Content
Corporate
(millions of dollars) |
2007 |
2006 |
2005 |
|---|---|---|---|
Corporate |
(63.0) |
(82.2) |
(63.9) |
Impact of tax changes |
30.2 |
14.0 |
- |
|
(32.8) |
(68.2) |
(63.9) |
The Corporate segment includes corporate financing costs, corporate development activities and other corporate costs not attributable to a specific business segment.
Corporate costs totaled $32.8 million for the year ended December 31, 2007, compared with $68.2 million in 2006. After adjusting for the impact of favorable legislated tax changes, Corporate costs decreased $19.2 million due to lower interest expense resulting from decreased average debt balances throughout 2007 as a result of the equity issuance in the first quarter. As well, expenditures on corporate development activity decreased because of the Company's focus on organic growth.
Corporate costs were $68.2 million for the year ended December 31, 2006 compared with $63.9 million for the year ended December 31, 2005. The increase in Corporate costs was due to a number of factors including higher interest expense as a portion of the Company's floating rate debt was repaid through the issuance of long-term fixed rate debt as well as higher business development activity and the impact of a strong labour market on compensation expense.