8-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, DC 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):
January 30, 2007

AIRGAS, INC.

(Exact name of registrant as specified in its charter)

Delaware	1-9344	56-0732648
(State or other	(Commission File Number)	(I.R.S. Employer
jurisdiction of		Identification No.)
incorporation)

259 North Radnor-Chester Road, Suite 100
Radnor, PA 19087-5283

(Address of principal executive offices)

Registrant’s telephone number, including area code: (610) 687-5253

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 (see General Instruction A.2. below):

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

Press Release dated January 30, 2007

Item 2.02 Results of Operations and Financial Condition

On January 30, 2007, Airgas, Inc. (the “Company”) reported its earnings for its third quarter and nine months ended December 31, 2006, as described in the press release attached as Exhibit 99.1 and incorporated herein by reference.

The information contained in this Form 8-K report shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 or incorporated by reference in any filing under the Securities Exchange Act of 1933, as amended, except as expressly set forth by specific reference in such a filing.

Non-GAAP Measures:

The press release attached as Exhibit 99.1 contains certain financial measures that are not defined under generally accepted accounting principles (GAAP). Return on capital is a non-GAAP measure that helps investors access how effectively the Company uses the capital invested in its operations. The Company also provided Adjusted Income from Continuing Operations and Adjusted Operating Income. Both of these non-GAAP measures provide meaningful insight into earnings growth by adjusting for material unusual items and the prospective implementation of SFAS 123R, Share-Based Payment.

The Company’s intent is to provide non-GAAP financial information to enhance investors’ understanding of the Company’s consolidated financial statements and should be considered by the reader in addition to, but not instead of, the financial statements prepared in accordance with GAAP.

Item 9.01 Financial Statements and Exhibits

(a)	None
(b)	None
(c)	None
(d)	Exhibits.

     99.1 — Press Release dated January 30, 2007

Signatures

Pursuant to the requirements of the Securities and Exchange Act of 1934, the Registrant and Co-Registrants have duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

AIRGAS, INC.		AIRGAS EAST, INC.
(Registrant)		AIRGAS GREAT LAKES, INC.
		AIRGAS MID AMERICA, INC.
		AIRGAS NORTH CENTRAL, INC.
BY:	/s/ Tom Smyth	AIRGAS SOUTH, INC.
	Tom Smyth	AIRGAS GULF STATES, INC.
	Vice President & Controller	AIRGAS MID SOUTH, INC.
		AIRGAS INTERMOUNTAIN, INC.
		AIRGAS NORPAC, INC.
		AIRGAS NORTHERN CALIFORNIA & NEVADA, INC.
		AIRGAS SOUTHWEST, INC.
		AIRGAS WEST, INC.
		AIRGAS SAFETY, INC.
		AIRGAS CARBONIC, INC.
		AIRGAS SPECIALTY GASES, INC.
		NITROUS OXIDE CORP.
		RED-D-ARC, INC.
		AIRGAS DATA, LLC
		(Co-Registrants)
		BY:	/s/ Tom Smyth
			Tom Smyth Vice President & Controller
		ATNL, INC.
			(Co-Registrant)
		BY:	/s/ Melanie Andrews
			Melanie Andrews President
DATED: January 31, 2007

EX-99.1

		Airgas, Inc. 259 N. Radnor-Chester Road Suite 100 Radnor, PA 19087-5283
	News Release	www.airgas.com

Exhibit 99.1

Investor Contact:	Media Contact:
Jay Worley (610) 902-6206	James Ely (610) 902-6010
jay.worley@airgas.com	jim.ely@airgas.com

For release:   Immediately

Airgas Reports Third Quarter EPS of $0.40; $0.50 before $0.10 Debt Extinguishment Charge

RADNOR, PA — January 30, 2007 — Airgas, Inc., (NYSE: ARG), the largest U.S. distributor of industrial, medical, and specialty gases, welding, safety, and related products, today reported strong growth in sales, operating income, and earnings for its third quarter ended December 31, 2006.

Quarterly net earnings and income from continuing operations were $32.5 million, or $0.40 per diluted share, including a charge of $7.9 million after-tax, or $0.10 per diluted share, on the early extinguishment of debt and $2.5 million of after-tax expense, or $0.03 per diluted share, related to stock-based compensation.

The debt charge was a result of the Company’s October 27, 2006 redemption of its 9.125% senior subordinated notes, which reduced interest expense by approximately $500 thousand per month. The stock-based compensation expense is related to the Company’s adoption, on a prospective basis, in April, 2006 of SFAS 123R, Share-Based Payment. In the prior year, income from continuing operations was $32.7 million, or $0.41 per diluted share. Had the Company applied SFAS 123 to the prior year quarter, the Company would have recognized $2.7 million ($1.7 million after tax), or $0.02 per diluted share, related to stock-based compensation. In the current quarter, income from continuing operations, excluding the debt charge, was $40.3 million, or $0.50 per diluted share, an increase of 30% over prior year income adjusted for the impact of stock-based compensation.*

Third quarter sales grew to $787 million, up 12% over the prior year. Acquisitions accounted for 5% of the growth, and total same-store sales increased 7% over robust growth levels in the prior year, driven equally by both hardgoods, and gas and rent.

“We had a great quarter,” said Airgas Chairman and Chief Executive Officer Peter McCausland. “Trends in non-residential construction, industrial production, and energy markets continued to support core revenue growth, and our strategic product platforms were strong.”

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“Bulk gas sales grew about 17% during the quarter, which aligns well with our pending acquisition of the Linde U.S. bulk gas business,” said McCausland. “We expect to close the Linde transaction in the fourth quarter, which will make Fiscal ‘07 the largest acquisition year in our history, and our pipeline is still strong.”

For the nine months ended December 31, 2006, sales were $2.4 billion, up 13% from the prior year period. Year-to-date same-store sales growth was 9%, driven equally by both hardgoods, and gas and rent. Operating income for the nine months was $248 million, an increase of 27% from the prior year period. The current period includes stock-based compensation expense of $9.9 million. The prior year period includes losses related to hurricanes Katrina and Rita of $2.5 million. Adjusting the prior year for the impact of stock-based compensation and hurricane losses, operating income for the nine months increased 32%.*

McCausland continued, “Operating margin in the quarter expanded by 100 basis points over last year, to 10.8%, and Return on Capital was 13%, an increase of 190 basis points.* We were pleased to deliver strong improvement in returns while we continue to invest in our future.”

“Given our current momentum and prevailing business conditions, we are increasing our guidance for the fourth quarter, and now expect earnings from continuing operations of $0.51 to $0.53 per diluted share. We had previously communicated a range of $0.49 to $0.52 per diluted share for the fourth quarter.”

The Company will conduct an earnings teleconference at 11:00 a.m. Eastern Time on Wednesday, January 31. The teleconference will be available by calling (800) 819-9193. The presentation materials (this press release, slides to be presented during the Company’s teleconference, and information about how to access a live and on-demand webcast of the teleconference) are available in the “Investor Information” section under the “Company Information” heading on the Company’s Internet site at www.airgas.com. A webcast of the teleconference will be available live and on demand through February 28 at http://www.shareholder.com/arg/medialist.cfm. A replay of the teleconference will be available through February 8. To listen, call (888) 203-1112 and enter passcode 2824303.

* See attached reconciliations of non-GAAP financial measures associated with Adjusted Income from Continuing Operations, Adjusted Operating Income, and Return on Capital calculations.

About Airgas, Inc.

Airgas, Inc. (NYSE: ARG), through its subsidiaries, is the largest U.S. distributor of industrial, medical, and specialty gases, and hardgoods, such as welding equipment and supplies. Airgas is also the third-largest U.S. distributor of safety products, the largest U.S. producer of nitrous oxide and dry ice, the

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largest liquid carbon dioxide producer in the Southeast, and a leading distributor of process chemicals, refrigerants, and ammonia products. More than 11,000 employees work in about 900 locations including branches, retail stores, gas fill plants, specialty gas labs, production facilities and distribution centers. Airgas also distributes its products and services through eBusiness, catalog and telesales channels. Its national scale and strong local presence offer a competitive edge to its diversified customer base. For more information, please visit www.airgas.com.

# # #

Forward-Looking Statements

This press release may contain statements that are forward looking, as that term is defined by the Private Securities Litigation Reform Act of 1995 or by the Securities and Exchange Commission in its rules, regulations and releases. These statements include, but are not limited to, statements regarding: closing the Linde transaction in the fourth quarter; Fiscal 2007 being the largest acquisition year in our history; our acquisition pipeline remaining strong; our continued investment in our future; and our earnings from continuing operations guidance for the fourth quarter of $0.51 to $0.53 per diluted share. We intend that such forward-looking statements be subject to the safe harbors created thereby. All forward-looking statements are based on current expectations regarding important risk factors and should not be regarded as a representation by us or any other person that the results expressed therein will be achieved. Important factors that could cause actual results to differ materially from those contained in any forward-looking statement include: customer acceptance of price increases; supply cost pressures; increased industry competition; our ability to successfully consummate and integrate acquisitions, including the Linde transaction; a disruption to our business from integration problems associated with acquisitions; an economic downturn; adverse changes in customer buying patterns; significant fluctuations in interest rates; increases in energy costs and other operating expenses; the effect of hurricanes and other catastrophic events; political and economic uncertainties associated with current world events; and other factors described in the Company’s reports, including Form 10-K dated March 31, 2006 and Forms 10-Q dated June 30, 2006, and September 30, 2006, filed by the Company with the Securities and Exchange Commission.

Consolidated statements of earnings, consolidated condensed balance sheets, consolidated statements of cash flows, and reconciliations of non-GAAP financial measures follow.

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AIRGAS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF EARNINGS
(Amounts in thousands, except per share data)
(Unaudited)

	Three Months Ended						Nine Months Ended
	December 31,						December 31,
	2006			2005			2006			2005
Net sales	$	787,407		$	702,407		$	2,351,190		$	2,082,714
Costs and expenses:
Cost of products sold (excl. deprec.)		378,152			345,343			1,147,748			1,028,063
Selling, distribution and administrative expenses		286,102			255,515			846,003			765,173
Depreciation		34,909			31,220			102,223			90,515
Amortization		2,914			1,340			6,717			3,947
Total costs and expenses		702,077			633,418			2,102,691			1,887,698
Operating income		85,330			68,989			248,499			195,016
Interest expense, net		(14,743	)		(13,335	)		(43,073	)		(40,531	)
Discount on securitization of trade receivables		(3,611	)		(2,571	)		(10,493	)		(6,665	)
Loss on debt extinguishment		(12,099	)		—			(12,099	)		—
Other income, net		595			122			1,359			1,614
Earnings before income taxes and minority interest		55,472			53,205			184,193			149,434
Income taxes		(22,278	)		(19,792	)		(71,378	)		(55,972	)
Minority interest in earnings of consolidated affiliate		(711	)		(711	)		(2,134	)		(1,945	)
Income from continuing operations		32,483			32,702			110,681			91,517
Loss from discontinued operations, net of tax		—			(1,877	)		—			(1,424	)
Net earnings	$	32,483		$	30,825		$	110,681		$	90,093
NET EARNINGS PER COMMON SHARE
BASIC
Earnings from continuing operations	$	0.42		$	0.42		$	1.42		$	1.19
Loss from discontinued operations		—			(0.02	)		—			(0.01	)
Net earnings per share	$	0.42		$	0.40		$	1.42		$	1.18
DILUTED
Earnings from continuing operations	$	0.40		$	0.41		$	1.37		$	1.16
Loss from discontinued operations		—			(0.02	)		—			(0.02	)
Net earnings per share	$	0.40		$	0.39		$	1.37		$	1.14
Weighted average shares outstanding:
Basic		78,138			77,037			77,836			76,646
Diluted		83,063			81,575			82,734			80,995
See attached notes.

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AIRGAS, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED BALANCE SHEETS
(Amounts in thousands)

	(Unaudited)
	December 31,		March 31,
	2006		2006
ASSETS
Cash	$	29,883	$	34,985
Trade accounts receivable, net		158,824		132,245
Inventories, net		254,378		229,523
Deferred income tax asset, net		23,640		30,141
Prepaid expenses and other current assets		43,527		31,622
TOTAL CURRENT ASSETS		510,252		458,516
Plant and equipment, net		1,539,866		1,398,757
Goodwill		633,056		566,074
Other intangible assets, net		42,823		26,248
Other non-current assets		27,918		24,817
TOTAL ASSETS	$	2,753,915	$	2,474,412
LIABILITIES AND STOCKHOLDERS’ EQUITY
Accounts payable, trade	$	134,260	$	143,752
Accrued expenses and other current liabilities		206,349		200,001
Current portion of long-term debt		34,988		131,901
TOTAL CURRENT LIABILITIES		375,597		475,654
Long-term debt, excluding current portion		854,795		635,726
Deferred income tax liability, net		350,444		327,818
Other non-current liabilities		37,080		30,864
Minority interest in affiliate		57,191		57,191
Stockholders’ equity		1,078,808		947,159
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	2,753,915	$	2,474,412
See attached notes.

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AIRGAS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
(Unaudited)

	Nine Months Ended			Nine Months Ended
	December 31, 2006			December 31, 2005
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings	$	110,681		$	90,093
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation		102,223			90,515
Amortization		6,717			3,947
Deferred income taxes		33,750			33,300
Loss on divestiture		—			1,900
Gain on sales of plant and equipment		(298	)		(806	)
Minority interest in earnings		2,134			1,945
Stock-based compensation expense		9,932			—
Stock issued for employee stock purchase plan		8,824			7,775
Loss on debt extinguishment		12,099			—
Changes in assets and liabilities, excluding effects of business acquisitions and divestiture:
Securitization of trade receivables		(3,200	)		33,600
Trade receivables, net		(6,649	)		(10,280	)
Inventories, net		(13,735	)		(19,338	)
Prepaid expenses and other current assets		(11,938	)		7,929
Accounts payable, trade		(26,945	)		(30,925	)
Accrued expenses and other current liabilities		(19,417	)		13,971
Other long-term assets		(1,432	)		6,494
Other long-term liabilities		(1,092	)		(3,211	)
Net cash provided by operating activities		201,654			226,909
CASH FLOWS FROM INVESTING ACTIVITIES
Capital expenditures		(181,792	)		(153,750	)
Proceeds from sales of plant and equipment		5,273			4,362
Proceeds from divestiture		—			14,562
Business acquisitions and holdback settlements		(156,545	)		(99,272	)
Other, net		6			315
Net cash used in investing activities		(333,058	)		(233,783	)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings		951,442			382,730
Repayment of debt		(827,867	)		(407,652	)
Purchase of treasury stock		—			(5,567	)
Financing costs		(5,103	)		—
Premium paid on call of senior subordinated notes		(10,267	)		—
Minority interest in earnings		(2,134	)		(1,945	)
Minority stockholder note prepayment		—			21,000
Proceeds from exercise of stock options		12,163			13,622
Tax benefit realized from the exercise of stock options		7,053			—
Dividends paid to stockholders		(16,379	)		(13,820	)
Cash overdraft		17,394			27,868
Net cash provided by financing activities		126,302			16,236
Change in cash	$	(5,102	)	$	9,362
Cash – Beginning of period		34,985			32,640
Cash – End of period	$	29,883		$	42,002
See attached notes.

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Notes:

(a) The Company divested its subsidiary, Rutland Tool & Supply Co. (“Rutland Tool”), in December 2005. The results of Rutland Tool for the three and nine month periods ended December 31, 2005 have been classified in the Consolidated Statement of Earnings as “discontinued operations.”

(b) Effective April 1, 2006, the Company adopted Statement of Financial Accounting Standards No. 123R, Share-Based Payment, (“SFAS 123R”) using the modified prospective method. The new standard requires the Company to estimate the value of stock options, including options to purchase shares under its Employee Stock Purchase Plan, issued to employees and recognize the estimated cost in earnings over the period in which the options vest. Prior to the adoption of SFAS 123R, the Company used the intrinsic value method outlined in Accounting Principles Board Opinion No. 25 to account for stock-based compensation. For the three months ended December 31, 2006, the Company recognized stock-based compensation expense of $3.4 million. For the nine months ended December 31, 2006, the Company recognized stock-based compensation expense of $9.9 million. Since the Company adopted SFAS 123R prospectively, no stock-based compensation expense was reflected in earnings prior to April 1, 2006.

(c) On October 27, 2006, the Company redeemed its $225 million 9.125% senior subordinated notes (the “Notes”) in full at a premium of 104.563% of the principal amount with proceeds from the Company’s revolving credit line. In conjunction with the redemption of the Notes, the Company recognized a charge on the early extinguishment of debt of $12 million ($7.9 million after tax, or approximately $0.10 per diluted share) in October 2006. The charge included the redemption premium and the write-off of unamortized debt issuance costs. Under existing covenant restrictions, liquidity was not significantly affected by the redemption of the Notes.

(d) Selling, distribution and administrative expenses in the nine months ended December 31, 2005 include an estimated loss related to hurricanes Katrina and Rita of $2.5 million,($1.6 million after tax), or $0.02 per diluted share.

(e) The Company participates in a securitization agreement with two commercial banks to sell up to $270 million of qualified trade receivables. Net proceeds from the securitization were used to reduce borrowings under the Company’s revolving credit facilities. The amount of outstanding receivables sold under the agreement was $241.0 million and $244.2 million at December 31, 2006 and March 31, 2006, respectively.

(f) The tables below present the computation of basic and diluted earnings per share:

	Three Months Ended					Nine Months Ended
	December 31,					December 31,
(In thousands, except per share amounts)	2006		2005			2006		2005
Basic Earnings per Share Computation
Numerator
Income from continuing operations	$	32,483	$	32,702		$	110,681	$	91,517
Loss from discontinued operations		—		(1,877	)		—		(1,424	)
Net earnings	$	32,483	$	30,825		$	110,681	$	90,093
Denominator
Basic shares outstanding		78,138		77,037			77,836		76,646
Basic earnings per share from continuing operations	$	0.42	$	0.42		$	1.42	$	1.19
Basic loss per share from discontinued operations		—		(0.02	)		—		(0.01	)
Basic net earnings per share	$	0.42	$	0.40		$	1.42	$	1.18

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	Three Months Ended					Nine Months Ended
	December 31,					December 31,
(In thousands, except per share amounts)	2006		2005			2006		2005
Diluted Earnings per Share Computation
Numerator
Income from continuing operations	$	32,483	$	32,702		$	110,681	$	91,517
Plus: Preferred stock dividends (1)(2)		711		711			2,134		2,134
Plus: Income taxes on earnings of National Welders (3)		252		184			729		509
Income from continuing operations assuming the preferred stock conversion		33,446		33,597			113,544		94,160
Loss from discontinued operations		—		(1,877	)		—		(1,424	)
Net earnings assuming preferred stock conversion	$	33,446	$	31,720		$	113,544	$	92,736
Denominator
Basic shares outstanding		78,138		77,037			77,836		76,646
Incremental shares from assumed conversions:
Stock options and options under the Employee Stock Purchase Plan		2,598		2,211			2,571		2,022
Preferred stock of National Welders (1)		2,327		2,327			2,327		2,327
Diluted shares outstanding		83,063		81,575			82,734		80,995
Diluted earnings per share from continuing operations	$	0.40	$	0.41		$	1.37	$	1.16
Diluted loss per share from discontinued operations		—		(0.02	)		—		(0.02	)
Diluted net earnings per share	$	0.40	$	0.39		$	1.37	$	1.14

(1) Pursuant to a joint venture agreement between the Company and the holders of the preferred stock of National Welders, until June 2009, the preferred stockholders have the option to exchange their 3.2 million preferred shares of National Welders either for cash at a price of $17.78 per share or to tender them to the joint venture in exchange for approximately 2.3 million shares of Airgas common stock. If Airgas common stock has a market value of $24.45 per share, the stock and cash redemption options are equivalent. Since the average market price of Airgas common stock for each of the periods presented above was in excess of $24.45 per share, conversion of the preferred stock was assumed.

(2) If the preferred stockholders of National Welders convert their preferred stock to Airgas common stock, the 5% preferred stock dividend, recognized as “Minority interest in earnings of consolidated affiliate,” would no longer be paid to the preferred stockholders, resulting in additional net earnings for Airgas.

(3) The earnings of National Welders for tax purposes are treated as a deemed dividend to Airgas, net of an 80% dividend exclusion. Upon the assumed conversion of National Welders preferred stock to Airgas common stock, National Welders would become a wholly owned subsidiary of Airgas. As a wholly owned subsidiary, the net earnings of National Welders would not be subject to additional tax at the Airgas level.

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     (G) Business segment information for the Company’s Distribution and All Other Operations segments is shown below:

			(Unaudited)									(Unaudited)
			Three Months Ended									Three Months Ended
			December 31, 2006									December 31, 2005
			All									All
			Other									Other
(In thousands)	Dist.		Ops.		Elim.			Combined		Dist.		Ops.		Elim.			Combined
Gas and rent	$	351,431	$	113,554	$	(14,194	)	$	450,791	$	311,620	$	105,132	$	(13,367	)	$	403,385
Hardgoods		314,371		23,499		(1,254	)		336,616		280,809		19,731		(1,518	)		299,022
Total net sales		665,802		137,053		(15,448	)		787,407		592,429		124,863		(14,885	)		702,407
Cost of products sold, excluding deprec. expense		329,951		63,649		(15,448	)		378,152		300,545		59,683		(14,885	)		345,343
Selling, distribution and administrative expenses		238,728		47,374		—			286,102		213,855		41,660		—			255,515
Depreciation expense		28,198		6,711		—			34,909		24,010		7,210		—			31,220
Amortization expense		2,286		628		—			2,914		950		390		—			1,340
Operating income		66,639		18,691		—			85,330		53,069		15,920		—			68,989

			(Unaudited)									(Unaudited)
			Nine Months Ended									Nine Months Ended
			December 31, 2006									December 31, 2005
			All									All
			Other									Other
(In thousands)	Dist.		Ops.		Elim.			Combined		Dist.		Ops.		Elim.			Combined
Gas and rent	$	1,026,411	$	355,323	$	(42,185	)	$	1,339,549	$	911,914	$	311,333	$	(39,964	)	$	1,183,283
Hardgoods		945,971		69,586		(3,916	)		1,011,641		846,731		57,106		(4,406	)		899,431
Total net sales		1,972,382		424,909		(46,101	)		2,351,190		1,758,645		368,439		(44,370	)		2,082,714
Cost of products sold, excluding deprec. expense		991,304		202,545		(46,101	)		1,147,748		894,674		177,759		(44,370	)		1,028,063
Selling, distribution and administrative expenses		704,227		141,776		—			846,003		642,473		122,700		—			765,173
Depreciation expense		80,744		21,479		—			102,223		70,338		20,177		—			90,515
Amortization expense		5,164		1,553		—			6,717		3,261		686		—			3,947
Operating income		190,943		57,556		—			248,499		147,899		47,117		—			195,016

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Reconciliation of Non-GAAP Financial Measures (Unaudited)

     Adjusted Income from Continuing Operations:

     Reconciliation and computation of adjusted income from continuing operations:

	Three Months Ended					Three Months Ended
	December 31, 2006					December 31, 2005
(In thousands, except per share amounts)	Dollars			Diluted EPS		Dollars			Diluted EPS
Income from continuing operations	$	32,483		$	0.40	$	32,702		$	0.41
Plus charge for early extinguishment of debt, net of tax		7,865		$	0.10		—			—
Less pro-forma stock-based compensation, net of tax		—			—		(1,656	)		($0.02	)
Adjusted income from continuing operations	$	40,348		$	0.50	$	31,046		$	0.39
% Change		30	%

The Company believes this adjusted income from continuing operations computation provides meaningful insight into earnings growth by adjusting for material unusual items and the prospective implementation of SFAS 123R.

     Adjusted Operating Income:

     Reconciliation and computation of adjusted operating income:

	Nine Months			Nine Months
(In thousands)	Ended Dec 31, 2006			Ended Dec 31, 2005
Operating Income	$	248,499		$	195,016
Plus losses related to hurricanes		—			2,500
Less pro-forma stock-based compensation		—			(9,816	)
Adjusted operating income	$	248,499		$	187,700
% Change		32	%

The Company believes this adjusted operating income computation provides meaningful insight into earnings growth by adjusting for material unusual items and the prospective implementation of SFAS 123R.

     Return on Capital:

     Reconciliation and computation of return on capital:

(In thousands)	December 31, 2006			December 31, 2005
Operating Income — Trailing Four Quarters	$	322,240		$	247,467
Five Quarter Average of Total Assets	$	2,566,643		$	2,329,921
Five Quarter Average of Securitized Trade Receivables		238,060			206,020
Five Quarter Average of Current Liabilities (exclusive of debt)		(331,844	)		(309,378	)
Five Quarter Average Capital Employed	$	2,472,859		$	2,226,563
Return on Capital		13.0	%		11.1	%

The Company believes this return on capital computation helps investors assess how effectively the Company uses the capital invested in its operations.