(7) Represents the amount of total assets less intangible assets (the sum of deferred acquisition costs, goodwill and present value of future profits), less total liabilities, divided by total shares outstanding.
In January 2000, we acquired American Insurance Administration Group, Inc., a privately-held third party administrator located in Clearwater, Florida. American Insurance Administration Group is a third party administrator of senior health insurance. This acquisition strengthened our expertise and capacity to administer senior market products.
Consolidated net income after realized gains and Federal income taxes increased by $6.0 million to $28.9 million ($0.57 per share) in 2001, compared to $22.9 million ($0.49 per share) in 2000. Net operating income increased by $4.1 million to $26.9 million in 2001 compared to $22.8 million in 2000.
The following table presents the primary components comprising the corporate segment's operating loss:
The increase in the interest cost and the amortization of capitalized loan fees reflected the inclusion of a full year's costs in 2000 compared to five months in 1999. The stock-based compensation expense decreased due to termination of options as the result of employees leaving the company prior to vesting.
The effective date of this Statement is for fiscal years beginning after December 15, 2001 and interim periods within those fiscal years, with early application encouraged. The provisions of this Statement generally are to be applied prospectively. We anticipate that the adoption of this standard will not have a significant effect on our results of operations, financial position or liquidity.
In June 2001, the FASB issued SFAS No. 142, Goodwill and Other Intangible Assets, which replaced APB Opinion No. 17, Intangible Assets. The Statement, addresses how intangible assets that are acquired individually or with a group of other assets (but not those acquired in a business combination) should be accounted for in financial statements upon their acquisition. This Statement also addresses how goodwill and other intangible assets should be accounted for after they have been initially recognized in the financial statements. This Statement:
In June 1998, the FASB issued SFAS No. 133, Accounting for Derivative Instruments and Hedging Activities as amended by SFAS No. 137, Accounting for Derivative Instruments and Hedging Activities -- Deferral of the Effective Date of FASB Statement No. 133. We adopted the new statement effective January 1, 2001. If in the future we have derivative instruments, this Statement will require us to recognize all derivatives on the balance sheet at fair value. Derivatives that are not hedges must be adjusted to fair value through income. If a derivative is a hedge, depending on the nature of the hedge, changes in the fair value of the derivative will either be offset against the change in fair value of the hedged asset, liability, or firm commitment through earnings, or recognized in other comprehensive income until the hedged item is recognized in earnings. The ineffective portion of a derivative's change in fair value will be immediately recognized in earnings. The adoption of SFAS No. 133 did not have a significant effect on our results of operations, financial position or liquidity.