CNO FINANCIAL GROUP, INC.

FORM 8-K(Current report filing)

Filed 03/22/12 for the Period Ending 03/22/12

Address 11825 N PENNSYLVANIA ST

CARMEL, IN 46032Telephone 3178176100

CIK 0001224608Symbol CNO

SIC Code 6321 - Accident and Health InsuranceIndustry Insurance (Life)

Sector FinancialFiscal Year 12/31

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 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): March 22, 2012

CNO Financial Group, Inc. (Exact Name of Registrant as Specified in Charter)

11825 North Pennsylvania Street Carmel, Indiana 46032

(Address of Principal Executive Offices) (Zip Code)

(317) 817-6100 (Registrant's telephone number, including area code)

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:

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Delaware 001-31792 75-3108137 (State or Other

Jurisdiction of Incorporation) (Commission File Number) (I.R.S. Employer

Identification No.)

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))

Ed Bonach, Chief Executive Officer of CNO Financial Group, Inc. (the "Company"), will discuss the Company at the Barclays High Yield Bond and Syndicated Loan

Conference on Monday, March 26, 2012 at 5:05 p.m. (EDT).

There will be a live webcast of the presentation available on the Investors section of the Company's website: http://investor.CNOinc.com. A replay of the presentation will also be available on the Company's website for 180 days after the event. The materials to be discussed during the presentation are attached hereto as Exhibit 99.1 and incorporated herein by reference.

The information contained in this Current Report on Form 8-K (including Exhibit 99.1) is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities and Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that Section. The information contained in this Current Report on Form 8-K shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in any such filing.

The following is furnished as an exhibit to this Current Report on Form 8-K:

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Item 7.01. Regulation FD Disclosure.

Item 9.01(d). Financial Statements and Exhibits.

99.1 Materials for Barclays High Yield Bond and Syndicated Loan Conference presentation

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

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CNO Financial Group, Inc.

Date: March 22, 2012

By: /s/ Karl W. Kindig

Karl W. Kindig

Senior Vice President

and Secretary

Barclays Hig h Yield Bo nd and Sy ndicated Loan C onf erence March 26, 201 2 Exh ib it 99 .1

CNO Financial Grou p 2

CNO Financial Grou p 3 Fo rward -Look in g Statemen ts Caution ary Statemen t R egard in g Fo rward -Look in g Statemen ts . Ou r s tatements , trend an aly ses an d other inf ormation co ntained in these materials relative to markets f or CNO Fin ancial’s pro ducts an d trends in CNO Finan cial ’s oper atio ns o r f inancial r esu lts , as well as other s tatem ents, contain fo rward -lo okin g statements within the meaning o f the f ederal secu rities laws an d the Pr iv ate Securities Litigation R ef orm Act o f 199 5. For war d -lo okin g statements ty pically ar e iden tif ied b y the use of terms su ch as “an ticip ate, ” “believ e,” “ plan,” “estimate,” “ ex pect,” “project,” “ in ten d,” “ may,” “will,” “ wo uld,” “ co ntemplate,” “ possib le,” “ attemp t,” “ seek,” “ sho uld,” “ co uld,” “ goal,” “ tar get,” “ on track,” “ co mfor table with,” “ optimistic” an d similar word s, alth oug h so me forward -lo okin g statements ar e exp ressed dif ferently. Yo u sh ould co ns id er statements th at con tain th ese words carefully becau se they describe ou r ex pectations, p lan s, strategies an d goals and ou r b elief s con cer ning fu ture bu siness con ditions, o ur results of o perations, f in ancial p os itio n, and o ur bu sin ess o utlook o r they state other ‘‘forward - lo okin g’’ in form atio n based o n curr ently availab le inf ormation . Assum ptions and other imp ortant factors th at co uld cause o ur actual r esu lts to d iffer materially from tho se anticipated in our fo rward -lo okin g statements in clu de, amo ng oth er th in gs: ( i) ch anges in o r sustained low interest rates cau sing a red uctio n in investment in come, th e mar gins o f our fix ed annu ity an d lif e insur an ce b us inesses, and sales of, and demand for , ou r prod ucts ; (ii) gen er al econ omic, m ar ket an d po litical co ndition s, in clu ding th e per form ance an d fluctuation s of the finan cial mark ets which may affect the v alue of our inv estments as well as o ur ability to r aise capital or ref in ance existin g in debtedn ess and the cost o f d oing so; (iii) th e u ltimate outco me o f lawsuits filed against us and o ther legal an d regu lato ry pro ceeding s to wh ich we are subject; ( iv ) our ability to make chang es to certain non - guaran teed elemen ts of ou r life insuran ce p rod ucts; (v) o ur ability to o btain adequ ate and timely rate increases on o ur health pro ducts , includ ing ou r lo ng -ter m care bu sin ess; (v i) th e r eceip t o f an y requ ir ed regu lator y appr ovals f or divid en d and surp lus deb enture interest p ayments from o ur insurance subs idiaries ; (v ii) mo rtality , mor bidity, th e in cr eased cost and usage of health care ser vices, pers istency , the adequ acy of ou r p revio us reserve estimates an d other facto rs which may aff ect the pro fitability o f our insuran ce p rod ucts; (viii) chang es in ou r assumption s related to deferr ed acquis itio n costs or the present value of fu tu re prof its ; (ix) the recover ability o f our d ef erred tax assets and th e eff ect of p otential ownership chang es and tax rate chang es on th eir v alue; (x ) our assu mption that the pos itions we take on ou r tax r etu rn filing s, in clu ding o ur po sition that our 7 .0 % con vertible senio r debentu res du e 2 016 will not be treated as sto ck f or pu rpo ses o f Section 3 82 of the In ter nal R evenu e C od e o f 1 986 , as amen ded, and will no t trig ger an ownership ch an ge, will not be su ccessfully challeng ed by the Intern al R evenu e Service; (xi) chan ges in accou nting prin cip les and the interp retatio n th ereof (in clu ding ch anges in p rinciples r elated to accou nting for d eferred acquisition costs); ( xii) o ur ability to continu e to satis fy the finan cial ratio and b alan ce req uiremen ts and other co venan ts of ou r debt agreemen ts ; ( xiii) o ur ability to achieve anticip ated expense redu ctio ns an d lev els of op eratio nal efficiencies includ ing impro vemen ts in claims ad judication and co ntinued au tomation and r atio nalization o f oper atin g sy stems, (x iv ) perfo rmance and v alu atio n of ou r in vestments, includin g th e imp act o f r ealized losses (includ ing other -th an -temp orar y im pairment charg es); (x v) our ab ility to identify p rod ucts and mar kets in which we can co mpete ef fectiv ely against com petito rs with greater mark et share, higher r ating s, greater finan cial resour ces and s tron ger bran d recogn itio n; ( xvi) our ability to g enerate suf ficient liqu idity to m eet ou r debt ser vice o bligations and oth er cash needs; (xv ii) ou r ability to main tain eff ectiv e con trols over finan cial repo rting; (xv iii) o ur ability to co ntinue to recru it and retain pr odu ctiv e ag en ts and dis tribu tio n partner s and customer respo nse to new pr odu cts , d is tribu tio n chann els and mark etin g initiatives; ( xix) ou r ability to ach iev e ev entual upg rades o f th e f in ancial s treng th ratin gs o f CNO Finan cial and o ur insurance comp any subs idiaries as well as the impact o f our r atin gs on o ur bu sin ess, ou r ability to access capital an d th e co st of capital; ( xx) the risk factors or uncer tain ties lis ted from time to time in our f iling s with th e Secur ities an d Exchan ge Com miss ion; (xx i) r egulator y chang es or actions, inclu ding tho se relating to regu lation o f the financial af fairs o f o ur insuran ce co mpanies, such as the pay ment of divid ends an d su rplu s deben ture interest to us, reg ulation of the sale, und erwriting and pr icin g of pr odu cts , an d health car e r egulation affecting h ealth in su rance pro ducts ; and ( xxii) chan ges in the Fed eral in come tax laws an d regu lation s which may aff ect or eliminate th e r elative tax adv an tages o f som e of o ur pr odu cts or affect the value of ou r d eferred tax assets . Other factor s and assumptio ns no t id en tified abov e are also r elev ant to th e fo rward -lo okin g statements , and if they p rove inco rrect, cou ld also cause actu al results to diff er mater ially fr om those projected. A ll for war d -lookin g statements ar e exp ressly qu alif ied in their entirety b y th e f orego ing caution ary statements . Our f orward -lo okin g statements speak o nly as of the date made. We assume no ob lig atio n to upd ate or to p ublicly anno unce the results of any r evisio ns to any o f th e f orward - lo okin g statements to ref lect actual r esu lts , fu ture events or develo pments , chan ges in assu mption s or chan ges in oth er f acto rs aff ecting th e f orward -lo okin g statements .

CNO Financial Grou p 4 No n -GAAP Measures This p resentation co ntains f in ancial m easur es that d iffer fro m th e co mparab le measures und er Gen erally Accepted Accou nting Principles ( GAAP). R econ ciliations between th ese no n-GAAP m easur es and the comp arable GAAP measu res are includ ed in th e App endix . While manag ement b eliev es these measur es are useful to en hance un derstanding an d comp ar ability o f our fin ancial results , these n on - GAAP m easur es sh ould n ot be co ns idered substitutes fo r th e mo st directly comp arable GAAP m easur es. Ad ditional info rmation con cer ning n on-GAAP m easur es is includ ed in o ur per io dic filin gs with the Secu rities and Exch ange Co mmiss ion that are available in the “Investors – SEC Filings ” section of C NO’s website, www.CNOinc.com.

CNO Financial Grou p 5 CNO Fun damentals �Well po sition ed in th e mar ket �Track record o f stro ng execu tio n �Buildin g co re value driv er s �Well capitalized and gen eratin g sig nificant excess capital �Stro ng risk managemen t

CNO Financial Grou p 6 • Fixed an d Fix ed- Index Lif e and An nuity Prod ucts • Long - Term Care • Med icare Sup plement • Whole and Univ ersal life p rod ucts • Final exp en se • Su pplemental Health C NO can access consumer s across mu ltip le chan nels • With an Ag ent ( Retail) • Bank ers C ar eer Fo rce • Wash ington Nation al • PMA (CNO -owned) • Indep enden ts • With ou t an Agent (D irect) • Colon ial Penn • At Wor k (Wo rks ite Mark etin g) • PMA Wor ksite Div ision • Wash ington Nation al - Indep enden ts • Risin g medical co sts • Decline of societal safety nets (g over nment and emp loyer) • Increased long evity • Gr eater awareness o f need for retiremen t p lan ning C NO has expertise acr oss impor tan t mid dle -market pro ducts Stron g trends are drivin g middle- market consumer s CNO: T he r ight pro ducts and the right chann els for tod ay’s middle -market consumer

CNO Financial Grou p 7 Few competitor s in our targ et space AE L AFL AI G Aviva USA DFG Gerb er Lif e GAFRI GNW Gu ardian HIG ManuLife KCLI LNC Mass Mu tual MET Mut. Of Omah a NM NYL PFG PL PNX PLFE PRU W NIC SFG TMK UNM BLC C PL C NO PRI SYA Prod ucts C u s to m er s More Affluen t Less Afflu ent Pro tection Pro duct Asset Accu mulation Relative comp an y size based on total admitted assets as of 1 2/31/1 0

CNO Financial Grou p 8 CNO – Track Recor d of Str ong Ex ecution Q4 20 08 Separation o f C losed Block LTC bus iness Q4 200 6 VNB in trodu ced 200 7/20 08 CI G sales & marketing rig htsizing - $6 million an nual expen se red uction 20 08 Excess C hicago space vacated - $5 million an nual expen se save Q4 2 007 R ecapture of C olon ial Penn Life Block Q3 2 007 Sale o f $3 billion annuity block Q3 20 07 C ompleted con so lid atio n of sh ared services in Car mel, Sale of ex cess space in Carm el Q1 20 09 Ren egotiated credit facility to loosen cov enants Q1 2 007 Ex pand ed An nu al In cen tiv e P lan par ticipation ; incr eased weight on shareh older valu e Q3 20 09 R ein su rance of CI G Life po licies to Wilton R e Q4 2 010 R efinanced $ 650 m illion o f d ebt Q4 2 00 9 Reinsuran ce o f B ank er s Life policies to Wilton R e Q4 20 09 R efinanced con vertible deb en tures p utable in Sep t 20 10 ; issued n ew equ ity; p aid down Sr. C redit Facility Q4 200 9 Reneg otiated Senio r Cred it Facility to loosen cov en ants Q4 20 09 Achieved R BC in ex cess o f 300 % Q1 201 1 Pr e- paid $50 million o n Sen io r Cred it Facility Q2 20 11 Amended Senio r Cred it Facility to allo w f or more flexib ility & redu ced rate 1 25b ps Q2 20 11 B egan bu ying back s tock un der rep urchase plan (and mak ing commen su rate p repay ments on th e Senior C redit Facility) Q3 201 1 Emerg ence f rom 3 year cum ulativ e lo ss

CNO Financial Grou p 9 $11 ,4 78.0 $1 2,106 .9 $ 12,76 5.2 $2,89 4.9 $2,67 6.8 $2,63 7.6 $6 98.0 $7 04.0 $6 93.6 Growth in the CNO Fran chise ($ m illion s) $1 6,106 .8 Average liab ilities o n core bus iness segments ar e incr easing , while OC B is shrink ing $1 5,066 .5 $ 15,48 1.7 $5,79 9.2 $5,51 1.5 $5 ,2 86.1 20 09 20 10 20 11

CNO Financial Grou p 10 Pre/Af ter Tax GAAP Oper atin g Inco me C NO ($ million s) $1 64.6 $1 81.9 $2 16.0 $8 7.7 $9 9.7 $12 7.1 $0.0 $5 0.0 $10 0.0 $15 0.0 $20 0.0 $25 0.0 $30 0.0 $3 50.0 20 09 20 10 20 11 Net Oper atin g Incom e Tax Ex pense on Operating I ncome $2 52.3 $3 43.1 $2 81.6

CNO Financial Grou p 11 $1 28.2 $1 37.7 $2 09.0 $1 80.5 $1 54.1 $1 28.2 $1 37.7 $2 09 .0 $ 81.0 $8 1.0 $34 6.7 $20 9.2 Statuto ry Earnin gs Power In flows to Holding C o Statu to ry Earn in gs Po wer In flows to Holdin g Co Fees and I nterest to Holding C omp any Net Divid ends to Hold ing Co mpany Net Gain Fro m Op eratio ns R etained in Insuran ce C omp anies ($ millions) 20 10 20 11 Statu to ry Earn ings Po wer an d Cash Gen eration ** Amo unt is net of $2 6mm contr ib ution to life co mpan ies accrued in 20 11 CNO ** Observation s: � Statutor y earning s increased 39% to $36 3 million � Bus iness mix and in -force manag ement drives attractive s tatu to ry earnin gs p rofile � Earning s retained in supp ort of capital ratios and bu sin ess g rowth * D ividend s net of capital contribu tions *

CNO Financial Grou p 12 $2 09.2 $3 46.7 $1 45.5$ 139 .1 2010 2 011 C orp orate Liquid ity Tr end Recu rring Sou rces and Uses In clu ding Dividen ds an d Sch eduled Debt Payments ( $ in m illion s) R ecurrin g So urces Net Div idend s Recu rring Uses* * Sch ed uled Debt Pay ments Made*** $1 28.2 $1 14 .1 $ 137 .7 $ 90.5 $2 09.0 * Amou nt is net o f $26 mm contribu tion to lif e co mpanies accr ued in 201 1 ** In clu des co rpo rate ex penses and inter est paymen ts *** E xcludes im pact o f capital transactions $25 .0 $ 55.0 CNO * $81 .0 Ob serv atio ns: � Free cash flow af ter r ecurring uses increased by $1 00 millio n � Steady imp rov ement o n interest cov erage reaching 5x in 201 1 � Discretionary cap ital dep lo ymen t of $ 160 million du ring 2 011

CNO Financial Grou p 13 4Q11 3 58% 3Q11 3 59% 2 Q11 35 1% 1 Q1 1 341 % 4Q1 0 332 % 4Q10 $ 161 .1 1 Q11 $1 69.0 2Q11 $ 234 .0 3 Q11 $1 68.9 4Q1 1 $20 2.8 Excess Cap ital Co nsolid ated RB C Ratio Liquid ity ($ m illion s) App rox im ately $ 37 millio n in excess of manag ement tar get $ 102.8 m illion in excess o f m anagemen t target 35 0% * Management Targ et = $10 0 Ap pro ximately $14 0 million total excess capital as of 12 /3 1/11 C NO Manag ement Target = 30 0% * Du ring 3Q11 , man agement increased th e R BC tar get f rom 30 0% to 35 0%

CNO Financial Grou p 14 Excess C apital Utilization Opp ortun ities � Sh are B uy backs � Deb t Prepay ments � Investing in Bu siness f or Additional Growth – Gr owth and exp an sio n of dis tribution ch annels – Recaptur e rein su rance blocks �Comm on Sto ck Div idend

CNO Financial Grou p 15 LTC (LT C and HHC) and STC Sales Mix 19% 29% 33% 36% 4 1% 4 8% 8 1% 7 1% 67 % 64 % 59 % 52 % 200 6 200 7 200 8 20 09 20 10 20 11 STC (Shor t Term C are) LTC (Lo ng Term C ar e an d Ho me Health Car e) Long Ter m C are � Bank ers bu sin ess mo del utilizin g ex clus iv e d istribu tio n, an d a f ocus on midd le inco me 6 5+ targ et mar ket d ictates th e sale o f a lower risk pro file set o f in dividu ally u nder wr itten pr odu cts – No g rou p bus iness � On goin g prod uct pricing and r e-pricing to impro ve risk /return p rofile � Liab ility du rations, while long , can be, and are matched with in vestmen ts – Extended asset du rations at the begin ning o f 2 010 h edgin g risk o f reinvesting at sustained low in terest rate � Risk p rof ile of LTC b lock declining – Less th an 5% of in fo rce policies con tain lifetime benefit op tio ns – Almo st 50% of curr ent n ew sales are sh ort term care ( STC ) policies with differ en t r isk pr ofile th an LTC � Div er sified sales mix with LT C sales, exclud ing STC, representing 6 % of total NAP for Ban kers in 2 011 Pro activ e man agement of risk and p rofitability resu ltin g in continu ed stability in our LTC b us iness …

CNO Financial Grou p 16 CNO Valu e Pro pos itio n Co mpetitiv e Adv antage � Exclus ive, gr owing dis tributio n � Target market focu s, with gr owth as Bab y Boo mers tu rn 65 � Su stainable with b arriers to en try Pr odu cts � Div er sified p rodu ct suite focused on p rotection need s � Actively man aged info rce b lock � Fo cus on p rod ucts with attr activ e retu rns an d less imp acted b y capital mark ets vo latility Valu e Driver s Well Po sitioned in Mark et W ell Cap italized Risk Managemen t Pro fitab ility � 4Q201 1 marks th e twelfth con secu tiv e q uarter of GAAP net income � 201 1 GAAP n et o perating earn in gs o f $21 6.0 millio n, u p 19% o ver 20 10 � Gr owth in actively mar keted seg ments Growth � Ab ove averag e g rowth po ten tial; expected sales growth o f 8- 12% an nually – Percen tag e o f the p op ulation 65 year s old and o ld er pro jected to increase by 50 % in twen ty years – On av erage, o ver 10 ,0 00 Americans will tu rn 65 each d ay th rou gh 20 30 � Bro ad p rod uct suite tailo red to CNO ’s target market Cap ital Gen eration � 201 1 Statutor y net o perating earn ings of $3 63.1 millio n, u p 39% over 2 010 � Excess capital gen eration of $ 75 -$200 million ann ually Cred it Prof ile at 1 2/31 /2 011 � $202 .8 million in capital at the Ho lding C ompan y, co mpared to $ 59.0 millio n at 1 2/31/2 008 � RBC of 358 % ver sus 255 % at 12/31 /200 8 � Deb t to capital at 17 .1 %, d own fro m 28.2% at 12 /31/20 08

Qu estion s and Answers

Ap pend ix

CNO Financial Grou p 19 The follo win g prov ides ad ditio nal in for matio n regard ing certain non -GAAP m easures used in th is presentation . A n on - GAAP m easur e is a nu merical measure of a comp any’ s perf orman ce, financial pos ition, or cash f lo ws that excludes or includes amoun ts that are n ormally exclu ded or included in th e m ost directly comp arable measu re calcu lated an d presented in accordan ce with GAAP. W hile m anagemen t believes th ese measures ar e u sefu l to enh ance und erstan ding and co mparab ility of o ur finan cial results, th ese no n-GAAP m easur es sh ould n ot be co ns idered as sub stitutes fo r th e m ost directly comp arable GAAP measu res. Addition al info rmation con cerning n on - GAAP m easur es is includ ed in o ur per io dic filin gs with the Secu rities and Exch ange Co mmiss ion that are available in the “Investor – SEC Filings” section of o ur website, www.CNOinc.com. Op eratin g earnin gs measures Man agemen t believes th at an analy sis o f net in come applicable to common stock b efore loss on ex tin guishmen t or mo dification of d ebt, net realized gains o r losses, fair value chan ges d ue to f lu ctuations in th e interest r ates used to disco unt embed ded deriv ativ e liabilities related to o ur fixed ind ex annu ities an d increases or d ecr eases to our valuation allowance fo r deferred tax assets ( “net o perating inco me,” a no n -GAAP f in ancial m easur e) is im portan t to evaluate the perfo rmance of the C ompan y and is a key measure commo nly used in the life insuran ce ind ustry. Man agement uses this m easur e to evalu ate per forman ce b ecause these items are u nrelated to the Comp any ’s continu ing op eratio ns. In form atio n Related to C ertain Non - GAAP Finan cial Measu res

CNO Financial Grou p 20 Inf ormation R elated to C ertain No n -GAAP Finan cial Measu res A reconciliation of earn ings befor e n et realized investment gains ( losses), fair valu e ch an ges in emb edded d erivatives, corp orate interest, loss on exting uishment of deb t and tax es ( “EBIT ”) to n et inco me is as follows ( dollars in m illion s): Year Ended December 3 1, 2 011 B anker s Life 327 .2 $ Washingto n Natio nal 9 9.2 Colo nial Penn 2 7.3 Oth er CNO B usiness 13.4 EB IT from b us in ess segm ents 46 7.1 Co rpor ate op erations, ex clu ding interest ex pense (47 .7 ) T otal EB IT 419 .4 C orp orate interest exp ense (7 6.3) 34 3.1 Tax expen se on p eriod inco me 1 27.1 Net o perating inco me 2 16.0 Net r ealized inv estmen t gain s 35.5 Fair value chang es in embedd ed derivative liabilities (9.8) Loss o n extingu ishm ent o f debt, n et o f in come taxes (2 .2 ) Net incom e before valuation allowance fo r deferred tax assets 239.5 Decrease in v alu atio n allo wan ce f or defer red tax assets 14 3.0 Net income 38 2.5$ In come befo re n et realized inv estment gains (losses), f air v alue ch anges in em bedd ed derivative liabilities an d tax es

CNO Financial Grou p 21 Inf ormation R elated to C ertain No n -GAAP Finan cial Measu res A reconciliation of the deb t to capital r atio to d ebt to capital, as defined in ou r Sen ior Secu red Agreemen t is as follows (d ollars in millions) Debt to cap ital ratio, ex cluding accu mulated other comp rehen sive inco me (lo ss) This n on -GAAP f in ancial m easur e d if fers f rom the debt to capital ratio becau se accumu lated oth er co mpreh ensive (income) loss h as been exclu ded fro m th e valu e o f capital used to determine this m easur e. In add itio n, d ebt is defined as par value plus accrued interest an d certain other items. Managemen t believes th is no n- GAAP f in ancial m easur e is u sefu l as the lev el of such ratio impacts cer tain p rovis ions in our Senior Secured C redit Agreemen t. 4Q08 4 Q1 1 Co rpor ate no tes payab le 1 ,3 28.7$ 8 57.9$ To tal shareh olders ' equity 1,61 9.2 5,032 .6 T otal capital 2,947 .9 5 ,8 90.5 Co rpo rate d ebt to cap ital 45.1% 14.6% Cor por ate no tes payab le 1 ,3 28.7$ 8 57.9$ Add u namo rtized d isco unt on deb t 1 .1 1 5.3 Par valu e o f notes p ayable 1,329 .8 8 73.2 In ter est payab le and o ther items 36.9 Debt as adju sted 1,32 9.8 910 .1 T otal shareh olders ' equity 1,61 9.2 5,03 2.6 Less accu mulated other com prehen siv e inco me 1 ,7 70.7 (6 25.5) To tal capital 4 ,7 19.7$ 5 ,3 17 .2 $ Deb t t total capital ratio, as d efined in ou r Sen io r Secu red Cred it Agr eem ent ( a n on- GAAP f in ancial 2 8.2% 1 7.1% measure)