Valuation for Financial Reporting : Fair Value Measurements and ...
Valuation for Financial Reporting : Fair Value Measurements and ...
Valuation for Financial Reporting : Fair Value Measurements and ...
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Exhibit 3.17 (Continued)2017 Taxable Income $26,940Plus: Intangible Asset Amortization 5,590 2018 2019 2020 2021 20222017 Adjusted Taxable Income 32,530 Amortization of IntangiblesLess: Income Taxes 40.0% 13,012 (Pretax)$5,590 $5,590 $5,590 $5,590 $5,590Tax Benefit of Amortization 40.0% $2,236 $2,236 $2,236 $2,236 $2,2362017 Adjusted Net Income $19,518 (1) Present <strong>Value</strong> Factor 0.2105 0.1814 0.1564 0.1348 0.11622018 Adjusted Net Income, Growth 5.0% $20,494Less: 2018 Working Capital Provision (787)Present <strong>Value</strong> of Tax Benefit $471 $406 $350 $301 $2602018 Adjusted Cash Flow $19,707 Sum ¼ <strong>Fair</strong> <strong>Value</strong> of Tax Benefit $1,788Residual Cap. Rate, Perpetual Growth 5.0% 11.00%Residual <strong>Value</strong>, 2018 $179,155(1) Present <strong>Value</strong> Factor 0.2441Present <strong>Value</strong> of Residual Cash Flow $43,732Present <strong>Value</strong> of Net Cash Flow, 2008–2017 $91,471Present <strong>Value</strong> of Residual Cash Flow 43,732Present <strong>Value</strong> of Amortization TaxBenefit, 2018–20221,788Total Invested Capital, Rounded $137,000Footnote:Based on mid-period assumptionNote: Some amounts may not foot due to rounding.The impairment test presented in this example is assumed to be per<strong>for</strong>med as of December 31, 2007.# Copyright 2007 by FVG Holdings, LC <strong>and</strong> <strong>Financial</strong> <strong>Valuation</strong> Solutions, LLC. All rights reserved. Used with permission.108
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