# Financial Projection Model with Leverage Capabilities

Document Sample

```					  Enter Company/Project Name                               Projection Example
ENTER FIRST PROJECTED YEAR:                                      2010

All Manually Inputted data indicated in BLUE
Step 1: Input Historical Balance Sheet starting in row 111
Step 2: Input Balance Sheet Assumptions starting in row 216, Debt Assumptions in row 267
Step 3: Input Historical Income Statement starting in row 66
Step 4: Input Income Statement Projections starting in row 14

Projection Example

SUMMARY OF OPERATIONS & ASSUMPTIONS
(\$ in millions)

Calendar Year Ending December 31,
2009 A            2010          2011               2012             2013           2014        2015        2016

OPERATING ASSUMPTIONS
Sales Growth                                                                     0.0%             2.0%           2.0%              2.0%             2.0%            2.0%        2.0%        2.0%
Gross Profit Margin                                                             30.0%            30.0%          30.0%             30.0%            30.0%           30.0%       30.0%       30.0%
S,G&A as % of Sales                                                             22.0%            22.0%          22.0%             22.0%            22.0%           22.0%       22.0%       22.0%

SUMMARY OF OPERATIONS
Sales                                                                       \$10,000.0         \$10,200.0     \$10,404.0          \$10,612.1       \$10,824.3        \$11,040.8   \$11,261.6   \$11,486.9
Gross Profit                                                                  3,000.0           3,060.0       3,121.2            3,183.6         3,247.3          3,312.2     3,378.5     3,446.1
EBITDA                                                                          800.2             816.2         832.5              849.2           866.2            883.5       901.2       919.2
EBIT                                                                            600.2             611.5         614.0              616.6           619.1            621.7       624.2       642.3
Net Income                                                                      376.8             405.4         483.0              497.9           513.4            529.5       546.4       573.3

Cash Interest Expense                                                           \$15.1            \$15.1          \$15.1              \$15.1           \$15.1           \$15.1       \$15.1       \$15.1
PIK Interest                                                                      0.0              0.0            0.0                0.0             0.0             0.0         0.0         0.0
Amortization of Deferred Financing Fees                                           0.0              0.0            0.0                0.0             0.0             0.0         0.0         0.0
Total Interest Expense                                                        \$15.1            \$15.1          \$15.1              \$15.1           \$15.1           \$15.1       \$15.1       \$15.1

Capital Expenditures                                                              0.0            204.0          209.0              214.0           219.0           224.0       229.0       234.0
Free Cash Flow              (a)                                                 576.8            406.1          492.5              516.5           541.4           567.3       594.3       616.2

Total Debt                                                                     \$201.7           \$201.7         \$201.7             \$201.7          \$201.7          \$201.7      \$201.7      \$201.7
Net Debt                                                                          NM               NM             NM                 NM              NM              NM          NM          NM

COVERAGE & LEVERAGE STATISTICS

Calendar Year Ending December 31,
2009 A            2010          2011               2012            2013            2014        2015        2016
COVERAGE:
EBITDA / Cash Interest Expense                                                  52.9x            53.9x             55.0x           56.1x           57.2x           58.4x       59.6x       60.7x
(EBITDA - CapEx) / Cash Interest Expense                                        52.9x            40.5x             41.2x           42.0x           42.8x           43.6x       44.4x       45.3x
EBITDA / Total Interest Expense                                                 52.9x            53.9x             55.0x           56.1x           57.2x           58.4x       59.6x       60.7x
(EBITDA - CapEx) / Total Interest Expense                                       52.9x            40.5x             41.2x           42.0x           42.8x           43.6x       44.4x       45.3x

LEVERAGE:

Prepared by Jason Friedland                                                                 2/23/2012 6:50 AM                                                                        Page 1
Total Debt / EBITDA                                                         0.3x      0.2x              0.2x    0.2x    0.2x    0.2x    0.2x       0.2x
Net Debt / EBITDA                                                           NM        NM                NM      NM      NM      NM      NM         NM
Debt as % of Total Capitalization                                          3.6%      3.3%              3.1%    2.9%    2.7%    2.5%    2.3%       2.2%

(a) Defined as Net Income plus D&A less Capital Expenditures.

Prepared by Jason Friedland                                                      2/23/2012 6:50 AM                                           Page 2
Projection Example
INCOME STATEMENT
(\$ in millions)

Calendar Year Ending December 31,
2007 A        2008 A      2009 A        2010          2011           2012            2013            2014        2015        2016
Revenue                       \$10,000.0     \$10,000.0    \$10,000.0    \$10,200.0     \$10,404.0      \$10,612.1       \$10,824.3      \$11,040.8    \$11,261.6   \$11,486.9
% Growth                                                                 2.0%          2.0%           2.0%            2.0%            2.0%        2.0%        2.0%

Cost of Goods Sold               7,000.0      7,000.0      7,000.0      7,140.0        7,282.8       7,428.5         7,577.0         7,728.6     7,883.1     8,040.8
Gross Profit                   3,000.0      3,000.0      3,000.0      3,060.0        3,121.2       3,183.6         3,247.3         3,312.2     3,378.5     3,446.1
Gross Profit Margin             30.0%        30.0%        30.0%        30.0%          30.0%         30.0%           30.0%           30.0%       30.0%       30.0%

S,G&A                            2,199.8      2,199.8      2,199.8      2,243.8        2,288.7       2,334.4         2,381.1         2,428.8     2,477.3     2,526.9
EBITDA                           800.2        800.2        800.2        816.2          832.5         849.2           866.2           883.5       901.2       919.2
EBITDA Margin                     8.0%         8.0%         8.0%         8.0%           8.0%          8.0%            8.0%            8.0%        8.0%        8.0%

Depreciation                      200.0        200.0        200.0        204.7          218.5         232.6           247.0           261.8       276.9       276.9
Stand-alone Amortization             0.0          0.0          0.0          0.0            0.0           0.0             0.0             0.0         0.0         0.0
Transaction Goodwill Amortization    0.0          0.0          0.0          0.0            0.0           0.0             0.0             0.0         0.0         0.0
EBIT                            600.2        600.2        600.2        611.5          614.0         616.6           619.1           621.7       624.2       642.3
EBIT Margin                      6.0%         6.0%         6.0%         6.0%           5.9%          5.8%            5.7%            5.6%        5.5%        5.6%

Interest Expense
Revolver                           0.0          0.0          0.0         0.0               0.0        0.0             0.0             0.0         0.0         0.0
New Bank Term Loan                 0.0          0.0          0.0         0.0               0.0        0.0             0.0             0.0         0.0         0.0
New Senior Notes                   0.0          0.0          0.0         0.0               0.0        0.0             0.0             0.0         0.0         0.0
New Convertible Notes              0.0          0.0          0.0         0.0               0.0        0.0             0.0             0.0         0.0         0.0
Existing Debt                    (16.0)       (16.0)       (16.0)       15.1              15.1       15.1            15.1            15.1        15.1        15.1
Amort. of Deferred Financing Fee   0.0          0.0          0.0         0.0               0.0        0.0             0.0             0.0         0.0         0.0
Total Interest Expense       (16.0)       (16.0)       (16.0)       15.1              15.1       15.1            15.1            15.1        15.1        15.1

Interest Income                    11.8         11.8         11.8         79.3          206.2         228.4           251.6           276.0       301.6       328.3
Other Income (Expense)              0.0          0.0          0.0          0.0            0.0           0.0             0.0             0.0         0.0         0.0
Pre Tax Income                  628.0        628.0        628.0        675.6          805.1         829.8           855.6           882.6       910.7       955.5
0
Income Taxes @ 40.0%              251.2        251.2        251.2        270.3          322.0         331.9           342.2           353.0       364.3       382.2
Net Income                      376.8        376.8        376.8        405.4          483.0         497.9           513.4           529.5       546.4       573.3

Preferred Dividends                 0.0          0.0          0.0          0.0            0.0           0.0             0.0             0.0         0.0         0.0
Net Income to Common           \$376.8       \$376.8       \$376.8       \$405.4         \$483.0        \$497.9          \$513.4          \$529.5      \$546.4      \$573.3

Prepared by Jason Friedland                                         2/23/2012 6:50 AM                                                                   Page 3
Projection Example
BALANCE SHEET
(\$ in millions)

Calendar Year Ending December 31,
2009 A     2010            2011       2012            2013            2014      2015        2016

ASSETS:
Cash & Equivalents                     \$1,762.1   \$4,581.8        \$5,074.8   \$5,591.8        \$6,133.7       \$6,701.5    \$7,296.4    \$7,913.1
Accounts Receivable                     2,308.2       65.8            67.1       68.4            69.8           71.2        72.6        74.1
Inventory                               1,640.5    1,673.3         1,706.7    1,740.9         1,775.7        1,811.2     1,847.4     1,884.4
Prepaid & Other Current Assets            758.0       15.8            16.1       16.4            16.8           17.1        17.5        17.8
Total Current Assets                  6,468.8    6,336.6         6,864.8    7,417.5         7,996.0        8,601.1     9,233.9     9,889.4

Property, Plant & Equipment, net        1,385.6    1,384.8         1,375.3    1,356.7         1,328.7        1,290.9     1,243.0     1,200.1
Intangible Assets, net                      0.0        0.0             0.0        0.0             0.0            0.0         0.0         0.0
Transaction Goodwill                        0.0        0.0             0.0        0.0             0.0            0.0         0.0         0.0
Deferred Financing Fees                     0.0        0.0             0.0        0.0             0.0            0.0         0.0         0.0
Investment in Affiliates                    0.0        0.0             0.0        0.0             0.0            0.0         0.0         0.0
Deferred Income Taxes                       0.0        0.0             0.0        0.0             0.0            0.0         0.0         0.0
Other Assets                               82.0       82.0            82.0       82.0            82.0           82.0        82.0        82.0

TOTAL ASSETS                         \$7,936.4   \$7,803.5        \$8,322.1   \$8,856.3        \$9,406.6       \$9,973.9   \$10,558.9   \$11,171.4

LIABILITIES & SHAREHOLDERS EQUITY:
Accounts Payable                       \$1,437.1     \$576.8          \$588.4     \$600.1          \$612.1         \$624.4      \$636.9      \$649.6
Current Maturities of Long Term Debt        0.0        0.0             0.0        0.0             0.0            0.0         0.0         0.0
Accrued Expenses                          820.0      836.4           853.1      870.2           887.6          905.3       923.5       941.9
Other Current Liabilities                  60.0      365.6           372.9      380.4           388.0          395.7       403.7       411.7
Total Current Liabilities             2,317.1    1,778.8         1,814.4    1,850.7         1,887.7        1,925.5     1,964.0     2,003.3

Revolver                                    0.0        0.0             0.0        0.0             0.0            0.0         0.0         0.0
New Bank Term Loan                          0.0        0.0             0.0        0.0             0.0            0.0         0.0         0.0
New Senior Notes                            0.0        0.0             0.0        0.0             0.0            0.0         0.0         0.0
New Convertible Notes                       0.0        0.0             0.0        0.0             0.0            0.0         0.0         0.0
Existing Debt                             201.7      201.7           201.7      201.7           201.7          201.7       201.7       201.7
Deferred Income Taxes                       0.0        0.0             0.0        0.0             0.0            0.0         0.0         0.0
Reserves                                    0.0        0.0             0.0        0.0             0.0            0.0         0.0         0.0
Other Long Term Liabilities                 0.0        0.0             0.0        0.0             0.0            0.0         0.0         0.0
Total Liabilities                     2,518.9    1,980.6         2,016.2    2,052.4         2,089.5        2,127.2     2,165.7     2,205.0

Minority Interest                           0.0        0.0             0.0        0.0             0.0            0.0         0.0         0.0
Preferred Stock                             0.0        0.0             0.0        0.0             0.0            0.0         0.0         0.0
Shareholders Equity                     5,417.5    5,822.9         6,305.9    6,803.8         7,317.2        7,846.7     8,393.1     8,966.4
Shareholders Equity                   5,417.5    5,822.9         6,305.9    6,803.8         7,317.2        7,846.7     8,393.1     8,966.4

TOTAL LIABILITIES & SH. EQUITY       \$7,936.4   \$7,803.5        \$8,322.1   \$8,856.3        \$9,406.6       \$9,973.9   \$10,558.9   \$11,171.4

Prepared by Jason Friedland                    2/23/2012 6:50 AM                                                                Page 4
Prepared by Jason Friedland   2/23/2012 6:50 AM   Page 5
Projection Example
STATEMENT OF CASH FLOWS
(\$ in millions)

Calendar Year Ending December 31,
2009     2010          2011         2012            2013            2014         2015         2016

CASH FLOW FROM OPERATIONS:
Net Income                                                             \$405.4         \$483.0      \$497.9          \$513.4          \$529.5       \$546.4       \$573.3
Plus: Depreciation & Amortization                                       204.7          218.5       232.6           247.0           261.8        276.9        276.9
Plus: PIK Dividends                                                       0.0            0.0         0.0             0.0             0.0          0.0          0.0
Plus: Deferred Income Taxes                                               0.0            0.0         0.0             0.0             0.0          0.0          0.0
Plus: Change in Net Working Capital
Decrease / (Increase) in Accounts Receivable                        2,242.4          (1.3)       (1.3)           (1.4)           (1.4)        (1.4)        (1.5)
Decrease / (Increase) in Inventory                                    (32.8)        (33.5)      (34.1)          (34.8)          (35.5)       (36.2)       (36.9)
Decrease / (Increase) in Prepaid & Other Current Assets               742.2          (0.3)       (0.3)           (0.3)           (0.3)        (0.3)        (0.3)
Decrease / (Increase) in Other Assets                                   0.0           0.0         0.0             0.0             0.0          0.0          0.0
Increase / (Decrease) in Accounts Payable                            (860.3)         11.5        11.8            12.0            12.2         12.5         12.7
Increase / (Decrease) in Accrued Expenses                              16.4          16.7        17.1            17.4            17.8         18.1         18.5
Increase / (Decrease) in Other Current Liabilities                    305.6           7.3         7.5             7.6             7.8          7.9          8.1
Increase / (Decrease) in Other Long Term Liabilities                    0.0           0.0         0.0             0.0             0.0          0.0          0.0
Cash Flow from Operating Activities                       3,023.6         702.0       731.0           760.9           791.9        823.8        850.7

CASH FLOW FROM INVESTING ACTIVITIES
Capital Expenditures     (a)                                            (204.0)       (209.0)      (214.0)         (219.0)        (224.0)       (229.0)      (234.0)
Other                                                           0.0        0.0           0.0          0.0             0.0            0.0           0.0          0.0
Cash Flow from Investing Activities                 0.0     (204.0)       (209.0)      (214.0)         (219.0)        (224.0)       (229.0)      (234.0)

CASH FLOW FROM FINANCING ACTIVITIES
Change in Debt (Before Revolver)
New Bank Term Loan                                                         0.0           0.0        0.0             0.0               0.0          0.0          0.0
New Senior Notes                                                           0.0           0.0        0.0             0.0               0.0          0.0          0.0
New Convertible Notes                                                      0.0           0.0        0.0             0.0               0.0          0.0          0.0
Existing Debt                                                              0.0           0.0        0.0             0.0               0.0          0.0          0.0
Other                                                                      0.0           0.0        0.0             0.0               0.0          0.0          0.0
Cash Flow From Financing Before Revolver                                   0.0           0.0        0.0             0.0               0.0          0.0          0.0
Revolver                                                                   0.0           0.0        0.0             0.0               0.0          0.0          0.0

Cash Flow from Financing Activities                            0.0           0.0        0.0             0.0               0.0          0.0          0.0

Net Change In Cash & Equivalents                         2,819.6         493.0        517.0           541.9          567.9         594.8        616.7
Cash & Equivalents, Beginning of Period                  1,762.1      \$4,581.8     \$5,074.8        \$5,591.8       \$6,133.7      \$6,701.5     \$7,296.4

Cash & Equivalents, End of Period                       \$4,581.8      \$5,074.8     \$5,591.8        \$6,133.7       \$6,701.5      \$7,296.4     \$7,913.1

(a) Estimated.

Prepared by Jason Friedland                                         2/23/2012 6:50 AM                                                                   Page 6
Projection Example
WORKING CAPITAL SCHEDULE
(\$ in millions)

Calendar Year Ending December 31,
#                                                            2009         2010          2011            2012            2013            2014       2015         2016

Net Sales                                                   \$10,000.0    \$10,200.0     \$10,404.0        \$10,612.1     \$10,824.3       \$11,040.8    \$11,261.6    \$11,486.9
COGS                                                          7,000.0      7,140.0       7,282.8          7,428.5       7,577.0         7,728.6      7,883.1      8,040.8
S,G&A                                                         2,199.8      2,243.8       2,288.7          2,334.4       2,381.1         2,428.8      2,477.3      2,526.9

Accounts Receivable                                            \$64.5        \$65.8          \$67.1           \$68.4          \$69.8           \$71.2       \$72.6        \$74.1
Days Receivable                                                 24.9          2.4            2.4             2.4            2.4             2.4         2.4          2.4
% of Sales                                                    0.6%         0.6%           0.6%            0.6%           0.6%            0.6%        0.6%         0.6%

Inventories                                                    \$72.0      \$1,673.3      \$1,706.7         \$1,740.9       \$1,775.7       \$1,811.2     \$1,847.4     \$1,884.4
Days Inventory                                                  85.5          85.5          85.5             85.5           85.5           85.5         85.5         85.5
% of COGS                                                     1.0%         23.4%         23.4%            23.4%          23.4%          23.4%        23.4%        23.4%

Prepaid & Other Current Assets                                 \$15.5        \$15.8          \$16.1           \$16.4          \$16.8           \$17.1       \$17.5        \$17.8
% of Sales                                                    0.2%         0.2%           0.2%            0.2%           0.2%            0.2%        0.2%         0.2%

Accounts Payable                                               \$55.5       \$576.8         \$588.4          \$600.1         \$612.1          \$624.4      \$636.9       \$649.6
Days Payable                                                    29.5         29.5           29.5            29.5           29.5            29.5        29.5         29.5
% of COGS                                                     0.8%         8.1%           8.1%            8.1%           8.1%            8.1%        8.1%         8.1%

Accrued Expenses                                              \$820.0       \$836.4         \$853.1          \$870.2         \$887.6          \$905.3      \$923.5       \$941.9
% of S,G&A                                                   37.3%        37.3%          37.3%           37.3%          37.3%           37.3%       37.3%        37.3%

Other Current Liabilities                                      \$34.0       \$365.6         \$372.9          \$380.4         \$388.0          \$395.7      \$403.7       \$411.7
% of Total Operating Expenses                                 3.9%         3.9%           3.9%            3.9%           3.9%            3.9%        3.9%         3.9%

Net Working Capital                                           (\$757.5)      (\$24.0)       (\$24.4)          (\$24.9)        (\$25.4)        (\$25.9)      (\$26.5)      (\$27.0)
% of Sales                                                    (7.6%)       (0.2%)        (0.2%)           (0.2%)         (0.2%)         (0.2%)       (0.2%)       (0.2%)

Increase / (Decrease) in Working Capital                                      (\$0.5)       (\$0.5)         (\$0.5)         (\$0.5)       (\$0.5)       (\$0.5)

Prepared by Jason Friedland                                          2/23/2012 6:50 AM                                                                     Page 7
Projection Example
DEBT SCHEDULE
(\$ in millions)

Calendar Year Ending December 31,
2009 A    2010              2011             2012             2013           2014         2015         2016

Revolver @ 7.25%                                7.3%

Beginning Cash Balance                                                 \$1,762.1          \$4,581.8         \$5,074.8        \$5,591.8        \$6,133.7     \$6,701.5     \$7,296.4
Plus: Period Cash Flows
Cash Flow from Operations                                  3,023.6             702.0            731.0           760.9           791.9        823.8        850.7
Cash Flow from Investing                                    (204.0)           (209.0)          (214.0)         (219.0)         (224.0)      (229.0)      (234.0)
Cash Flow from Financing (Excluding Revolver)                  0.0               0.0              0.0             0.0             0.0          0.0          0.0

Less: Minimum Cash Balance                                                100.0             100.0            100.0           100.0           100.0        100.0        100.0
Excess Cash / (Cash Deficit)                                         4,481.8           4,974.8          5,491.8         6,033.7         6,601.5      7,196.4      7,813.1

Beginning Balance                                                          \$0.0              \$0.0             \$0.0            \$0.0            \$0.0         \$0.0         \$0.0
Borrowings / (Repayments)                                                   0.0               0.0              0.0             0.0             0.0          0.0          0.0
Ending Balance                                                \$0.0       \$0.0              \$0.0             \$0.0            \$0.0            \$0.0         \$0.0         \$0.0

Cash Interest                                               0.0               0.0            0.0             0.0               0.0          0.0          0.0

New Bank Term Loan @ 7.50%                      7.5%

Beginning Balance                                                          \$0.0              \$0.0             \$0.0            \$0.0            \$0.0         \$0.0         \$0.0
Mandatory Amortization                                                      0.0               0.0              0.0             0.0             0.0          0.0          0.0
% of Original                                                              0.0%              0.0%             0.0%            0.0%            0.0%         0.0%         0.0%
Optional Amortization                                                       0.0               0.0              0.0             0.0             0.0          0.0          0.0
Ending Balance                                                  \$0.0       \$0.0              \$0.0             \$0.0            \$0.0            \$0.0         \$0.0         \$0.0

Cash Interest                                               0.0               0.0            0.0             0.0               0.0          0.0          0.0

New Senior Notes @ 8.50%                        8.5%

Beginning Balance                                                          \$0.0              \$0.0             \$0.0            \$0.0            \$0.0         \$0.0         \$0.0
PIK Interest                                                                0.0               0.0              0.0             0.0             0.0          0.0          0.0
Mandatory Amortization                                                      0.0               0.0              0.0             0.0             0.0          0.0          0.0
Optional Amortization                                                       0.0               0.0              0.0             0.0             0.0          0.0          0.0
Ending Balance                                                  \$0.0       \$0.0              \$0.0             \$0.0            \$0.0            \$0.0         \$0.0         \$0.0

Cash Interest                                               0.0               0.0            0.0             0.0               0.0          0.0          0.0

Prepared by Jason Friedland                                           2/23/2012 6:50 AM                                                                           Page 8
Projection Example
DEBT SCHEDULE (Cont'd)
(\$ in millions)

Calendar Year Ending December 31,
2009 A     2010          2011              2012             2013           2014         2015         2016

New Convertible Notes @ 9.00%             9.0%

Beginning Balance                                               \$0.0             \$0.0           \$0.0            \$0.0            \$0.0         \$0.0         \$0.0
PIK Interest                                                     0.0              0.0            0.0             0.0             0.0          0.0          0.0
Mandatory Amortization                                           0.0              0.0            0.0             0.0             0.0          0.0          0.0
Optional Amortization                                            0.0              0.0            0.0             0.0             0.0          0.0          0.0
Ending Balance                                      \$0.0        \$0.0             \$0.0           \$0.0            \$0.0            \$0.0         \$0.0         \$0.0

Cash Interest                                    0.0            0.0            0.0             0.0               0.0          0.0          0.0

Existing Debt @ 7.50%                     7.5%

Beginning Balance                                            \$201.7         \$201.7            \$201.7          \$201.7         \$201.7       \$201.7       \$201.7
Mandatory Amortization                                          0.0            0.0               0.0             0.0            0.0          0.0          0.0
Optional Amortization                                           0.0            0.0               0.0             0.0            0.0          0.0          0.0
Ending Balance                                    \$201.7     \$201.7         \$201.7            \$201.7          \$201.7         \$201.7       \$201.7       \$201.7

Cash Interest                                 15.1             15.1           15.1            15.1            15.1         15.1         15.1

Cash @ 4.50%                              4.5%

Beginning Balance                                           \$1,762.1      \$4,581.8          \$5,074.8        \$5,591.8        \$6,133.7     \$6,701.5     \$7,296.4
Ending Balance                                               4,581.8       5,074.8           5,591.8         6,133.7         6,701.5      7,296.4      7,913.1

Interest Income                               79.3         206.2             228.4           251.6          276.0        301.6        328.3

Interest Summary                          4.5%

Cash Interest Expense                              \$15.1       \$15.1         \$15.1             \$15.1           \$15.1           \$15.1        \$15.1        \$15.1
PIK Interest Expense                                 0.0         0.0           0.0               0.0             0.0             0.0          0.0          0.0
Amortization of Deferred Financing Fees              0.0         0.0           0.0               0.0             0.0             0.0          0.0          0.0
Total Interest Expense                          \$15.1       \$15.1         \$15.1             \$15.1           \$15.1           \$15.1        \$15.1        \$15.1
Less Interest Income                               (79.3)      (79.3)       (206.2)           (228.4)         (251.6)         (276.0)      (301.6)      (328.3)
Net Interest Expense                           (\$64.2)     (\$64.2)      (\$191.0)          (\$213.2)        (\$236.5)        (\$260.9)     (\$286.4)     (\$313.2)

Preferred Stock @ 5.00%                   5.0%

Beginning Balance                                               \$0.0             \$0.0           \$0.0            \$0.0            \$0.0         \$0.0         \$0.0
PIK Dividends                                                    0.0              0.0            0.0             0.0             0.0          0.0          0.0
Amortization                                                     0.0              0.0            0.0             0.0             0.0          0.0          0.0
Ending Balance                                      \$0.0        \$0.0             \$0.0           \$0.0            \$0.0            \$0.0         \$0.0         \$0.0

Cash Dividends                                   0.0            0.0            0.0             0.0               0.0          0.0          0.0

Prepared by Jason Friedland                                2/23/2012 6:50 AM                                                                        Page 9
Projection Example
DEPRECIATION SCHEDULE
(\$ in millions)

BOOK DEPRECIATION

Assumptions (a)
Years to Depreciated Exising P,P&E           7
Years to Depreciated New P,P&E              15

Straight Line Depreciation
2010          2011         2012             2013             2014       2015        2016

Beg. Net P,P&E               \$1,385.6    \$197.9         \$197.9      \$197.9           \$197.9           \$197.9     \$197.9       \$197.9
2010 Capital Expenditures       204.0       6.8           13.6        13.6             13.6             13.6       13.6         13.6
2011 Capital Expenditures       209.0                      7.0        13.9             13.9             13.9       13.9         13.9
2012 Capital Expenditures       214.0                                  7.1             14.3             14.3       14.3         14.3
2013 Capital Expenditures       219.0                                                   7.3             14.6       14.6         14.6
2014 Capital Expenditures       224.0                                                                    7.5       14.9         14.9
2015 Capital Expenditures       229.0                                                                               7.6          7.6
2016 Capital Expenditures       234.0                                                                                            7.8

Beg. Net P,P&E                          \$1,385.6      \$1,384.8     \$1,375.3         \$1,356.7        \$1,328.7    \$1,290.9    \$1,243.0
Plus: Capital Expenditures                 204.0         209.0        214.0            219.0           224.0       229.0       234.0
Less: Total Depreciation                  (204.7)       (218.5)      (232.6)          (247.0)         (261.8)     (276.9)     (276.9)

Period End Net P,P&E                    \$1,384.8      \$1,375.3     \$1,356.7         \$1,328.7        \$1,290.9    \$1,243.0    \$1,200.1

(a) Assumed.

Prepared by Jason Friedland                                             2/23/2012 6:50 AM                                                                  Page 10
Projection Example
AMORTIZATION
(\$ in millions)

Assumptions(a)
Years to Amortize Intangibles                7
Years to Amortize New Goodwill              20
Years to Amortize Deferred Financing Fees    7

Straight Line Amortization
2009 A    2010           2011         2012              2013            2014      2015      2016
Intangibles
Beginning Balance                               \$0.0              \$0.0      \$0.0              \$0.0            \$0.0      \$0.0       \$0.0
Amortization                                     0.0               0.0       0.0               0.0             0.0       0.0        0.0
Ending Balance                      \$0.0      \$0.0              \$0.0      \$0.0              \$0.0            \$0.0      \$0.0       \$0.0

Transaction Goodwill
Beginning Balance                                \$0.0              \$0.0      \$0.0              \$0.0            \$0.0      \$0.0       \$0.0
Amortization                                      0.0               0.0       0.0               0.0             0.0       0.0        0.0
Ending Balance                      \$0.0      \$0.0              \$0.0      \$0.0              \$0.0            \$0.0      \$0.0       \$0.0

Deferred Financing Fees
Beginning Balance                                \$0.0              \$0.0      \$0.0              \$0.0            \$0.0      \$0.0       \$0.0
Amortization                                      0.0               0.0       0.0               0.0             0.0       0.0        0.0
Ending Balance                      \$0.0      \$0.0              \$0.0      \$0.0              \$0.0            \$0.0      \$0.0       \$0.0

(a) Estimated.

Prepared by Jason Friedland                                                  2/23/2012 6:50 AM                                                                Page 11
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#REF!

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MACRS Depreciation Schedule Generator - Do Not Touch

15               7 # of Years MACRS SCHEDULE FEEDER
5               3 Chooser         3 Year         5 Year                                  7 Year                       10 Year                      15 Year                         20 Year
New Capex   Existing      Recovery     1/2 Yr       Full       1/2 Yr      Full        1/2 Yr            Full       1/2 Yr             Full      1/2 Yr             Full         1/2 Yr
MACRS      MACRS           Year     (200% DB)   (200% DB)   (200% DB)   (200% DB)   (200% DB)      (200% DB)     (200% DB)       (200% DB)     (150%DB)       (150%DB)        (150% DB)
5.00%     28.57%          1         33.33%      66.67%      20.00%      40.00%      14.29%            28.57%     10.00%             20.00%      5.00%            10.00%           3.75%
9.50%     20.41%          2         44.45%      16.67%      32.00%      24.00%      24.49%            20.41%     18.00%             16.00%      9.50%             9.00%           7.22%
8.55%     14.58%          3         14.81%      16.66%      19.20%      12.00%      17.49%            14.58%     14.40%             12.80%      8.55%             8.10%           6.68%
7.70%      9.11%          4          7.41%                  11.52%      12.00%      12.49%             9.11%     11.52%             10.24%      7.70%             7.29%           6.18%
6.93%      9.11%          5                                 11.52%      12.00%       8.93%             9.11%      9.22%              6.83%      6.93%             6.56%           5.71%
6.23%      9.11%          6                                  5.76%                   8.92%             9.11%      7.37%              6.83%      6.23%             5.90%           5.29%
5.90%      9.11%          7                                                          8.93%             9.11%      6.55%              6.82%      5.90%             5.91%           4.89%
5.90%      0.00%          8                                                          4.46%                        6.55%              6.83%      5.90%             5.90%           4.52%
5.91%      0.00%          9                                                                                       6.56%              6.83%      5.91%             5.91%           4.46%
5.90%      0.00%         10                                                                                                                     5.90%             5.90%           4.46%
5.91%      0.00%         11                                                                                                                     5.91%             5.91%           4.46%
5.90%      0.00%         12                                                                                                                     5.90%             5.90%           4.46%
5.91%      0.00%         13                                                                                                                     5.91%             5.91%           4.46%
2.95%      0.00%         14                                                                                                                     2.95%                             4.46%
0.00%      0.00%         15                                                                                                                                                       4.46%
0.00%      0.00%         16                                                                                                                                                       4.46%
0.00%      0.00%         17                                                                                                                                                       4.46%
0.00%      0.00%         18                                                                                                                                                       4.46%
0.00%      0.00%         19                                                                                                                                                       2.23%

Prepared by Jason Friedland                                                     2/23/2012 6:50 AM                                                                                                         Page 21
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20 Year
Full
(150% DB)
7.50%
6.94%
6.42%
5.94%
5.49%
5.10%
4.70%
4.45%
4.46%
4.45%
4.46%
4.45%
4.46%
4.45%
4.46%
4.45%
4.46%
4.45%

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