1. Covenant Intensity: Number of financial covenants associated with the facility. GDP Growth: Percentage quarterly growth in real GDP at annual rate. Invested Capital (Total): Invested capital -(total + deferred) taxes and investment tax credit -minority interest. Leverage: (Debt in current liabilities + total long-term debt) divided by total assets;Corp. Spread: Difference between Moody's rated Aaa corporate bond yield and Baa corporate bond yield
2. Operating Income (Before Depreciation): Total operating revenues -Total operation expense + Total maintenance expense + Total taxes other than income taxes. Profitability: EBITDA divided by total assets. Purpose: Indicator variables for the following categories reported in DealScan: debt repayment, working capital, takeover or other. Sales: Total Sales (net);Total Assets: Total book assets in billions USD. Tangibility: Net property, plant, and equipment divided by total assets. Working Capital : Total Current Assets (excluding Cash) -Total Current Liabilities
3. Pretax operating income/total assets + sales/total assets + 1.4 retained earnings/total assets + 1.2(current assets -current liabilities)/total assets + 0.6 market value of equity/total liabilities;Variables are in $(Millions) whenever relevant