Macabacus M&A Model Strictly Confidential

Table of Contents

Inputs
Close
Pro Forma
Acquirer
Target
MACRS

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 Inputs

SCENARIO SELECTOR 9

Active Contemplated Scenarios

Scenario 1 2 3 4 5 6 7 8 9
Purchase price & consideration
Offer premium to market 25.0% 20.0% 25.0% 30.0% 25.0% 25.0% 25.0% 25.0% 25.0% 25.0%
Cash consideration (%) 50.0% 50.0% 50.0% 50.0% – 50.0% 100.0% 50.0% 50.0% 50.0%

Synergies
Annual revenue syergies $10.0 $10.0 $10.0 $10.0 $10.0 $10.0 $10.0 $10.0 $10.0 $10.0
COGS savings 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0%
SG&A savings 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0%

Acquisition financing
Senior credit facility 3 $75.0 – – – – – – $75.0 $75.0 $75.0
Subordinated note 3 – – – – – – – – – –
Convertible bond 3 – – – – – – – – – –
Preferred stock 3 $125.0 – – – – – – – $125.0 $125.0
Common stock issuance $75.0 – – – – – – – – $75.0

Optional revolver pay-down? Yes No No No No No No Yes Yes Yes

Retire existing TargetCo debt close?

Senior credit facility 2 Yes No No No No No No Yes Yes Yes
Subordinated note 2 Yes No No No No No No Yes Yes Yes
Convertible bond 2 Yes No No No No No No Yes Yes Yes
Preferred stock 2 Yes No No No No No No Yes Yes Yes

Convert convertible bonds at close if ITM? Yes No No No No No No Yes Yes Yes

Convert convertible preferreds at close if ITM? Yes No No No No No No Yes Yes Yes
Roll over TargetCo options (0=liquidate, 1=roll over)? No No No No No No No No No No

General Assumptions Revenue Synergies & Cost Savings Realization

Acquirer name BuyerCo Revenue synergies realization − first 12 months after close 50.0%
Target name TargetCo Revenue synergies realization − second 12 months after close 100.0%
Current BuyerCo stock price $31.71 COGS savings realization − first 12 months after close 50.0%
Current TargetCo stock price $9.16 COGS savings realization − second 12 months after close 100.0%
Transaction close date 6/30/23 SG&A savings realization − first 12 months after close 50.0%
Model currency USD SG&A savings realization − second 12 months after close 100.0%
Currency symbol $
Restructuring Charges
Deal Structure
Total restructuring charge (pre-tax) $200.0
Stock purchase (0=asset, 1=stock)? Yes Restructuring costs realization – at close 25.0%
Section 338 election? No Restructuring costs realization – first 12 months after close 50.0%
Carryover tax basis? Yes Restructuring costs realization – second 12 months after close 25.0%

Tax Assumptions Third Party Financing

BuyerCo tax rate 35.0% Debt issuance fee 3.00%

IRS long-term tax-exempt rate 2.83% Preferred equity issuance fee 3.00%
Common equity issuance fee 3.00%
Miscellaneous Common equity issuance discount 4.00%

Transaction costs expensed at close $30.0 Pro Forma Depreciation & Amortization
Minimum pro forma cash balance $1,400.0
Average interest? No Depreciation period for fixed asset write-ups (yrs) – book 7.0
Depreciation period for fixed asset write-ups (yrs) – tax 9.0
Amortization period for identifiable intangible write-ups (yrs) – book 5.0
Amortization period for identifiable intangible write-ups (yrs) – tax 15.0
Amortization period for goodwill created in deal (yrs) – tax 15.0

Page 2 of 12
 Close

Transaction Closing Calculations

($ and shares in millions, except per share amounts)

Purchase Price Sources & Uses Section 382 Limitation

Current TargetCo stock price $9.16 Sources Purchase price $405.8
Offer premium to market 25.0% Cash $21.7 ( x ) IRS long-term tax-exempt rate 2.83%
Offer price per share $11.45 BuyerCo common stock 205.3 Annual Section 382 NOL deduction limitation $11.5
( / ) Current BuyerCo stock price 31.71 Proceeds from liquidation of TargetCo options 4.9 ( x ) Tax rate 35.0%
Exchange ratio 0.3611x BuyerCo rollover options – (A) Max. annual DTA utilization under Section 382 $4.0
BuyerCo revolver draw-down 236.8 ( x ) Max. NOL carry-forward period (yrs) 14.5
Roll over TargetCo options? No Third party financing 275.0 (B) Realizable tax benefit under Section 382 $58.3
Total sources $743.7
TargetCo basic shares outstanding (BSO) 35.340 (C) Target's existing DTA attributable to NOLs $12.2
( + ) In-the-money TargetCo options liquidated 0.522 Uses (D) Total DTA subject to Section 382 (min. of C and B) 12.2
( + ) TargetCo convertible shares converted – Cash consideration $205.3
TargetCo fully diluted shares outstanding (FDSO) 35.862 Stock consideration 205.3 Transaction DTA / DTL
( x ) Offer price per TargetCo share $11.45 Equity purchase price 410.6 DTL from write-up/down of assets/liabilities $28.6
Equity purchase price $410.6 BuyerCo rollover options – Write off DTL related to purch. accnt. intangibles –
( – ) Proceeds from liquidation of TargetCo options (4.9) TargetCo revolver pay-off – Transaction DTL $28.6
( + ) Fair value of TargetCo options rolled over – Senior credit facility 2 retired –
Purchase price 405.8 Subordinated note 2 retired 45.5 DTA from write-down/up of assets/liabilities –
( + ) Non-convertible debt & preferred stock 45.5 Convertible bond 2 retired 194.5 Write down DTA attributable to NOL (Section 382) –
( + ) Convertible debt & preferred stock 194.5 Preferred stock 2 retired – Transaction DTA –
( + ) Capital leases – Total TargetCo debt & preferred retired 240.0
( + ) Noncontrolling interests – BuyerCo revolver pay-down – Purchase Price Allocation
( – ) Equity investments – Prepayment penalties 4.8 Purchase price $405.8
( – ) Cash & cash equivalents (187.3) Financing fees 8.3 ( + ) FV of noncontrolling interests –
Enterprise value $458.5 Transaction costs expensed at close 30.0 ( – ) Book value (138.7)
Restructuring charge at close 50.0 Excess purchase price to allocate 267.1
Valuation Multiples Total uses $743.7 Write off existing goodwill (61.1)
Market Offer Write off purch. accounting-related intangibles –
2023 Revenue multiple 0.83x 0.98x Cash Schedule Fair value adjustments 81.8
2024 Revenue multiple 0.82x 0.97x Cash available Transaction DTL (28.6)
2023 EBITDA multiple 3.06x 3.62x BuyerCo existing cash $1,234.4 Transaction DTA –
2024 EBITDA multiple 3.07x 3.64x TargetCo existing cash 187.3 ( – ) Book value adjustments (7.9)
2023 EBIT multiple 4.29x 5.08x ( + ) New sources of cash 516.7 Excess purchase price after allocation 275.0
2024 EBIT multiple 4.32x 5.12x ( – ) Minimum pro forma cash balance (1,400.0) ( + ) Bargain purchase gain –
2023 P / E multiple 8.03x 10.07x Total cash available $538.4 Goodwill created $275.0
2024 P / E multiple 8.06x 10.10x
Cash needed Restructuring Charge at Close
Pro Forma FDSO at Close Cash consideration $205.3 Total restructuring charge (pre-tax) $200.0
BuyerCo standalone FDSO 219.330 TargetCo debt & preferred retired 240.0 ( x ) Restructuring charge realized at close 25.0%
( + ) BuyerCo shares issued as consideration to seller 6.475 Restructuring charge at close 50.0 Restructuring charge at close (pre-tax) $50.0
( + ) BuyerCo shares issued to third parties 2.460 Prepayment penalties 4.8
( + ) TargetCo options rolled over (Treasury Method) – Financing fees 8.3 Model Checks
( + ) BuyerCo warrants issued (Treasury Method) – Advisory fees 30.0 Sources equal uses of funds OK
Pro forma FDSO 228.264 Cash needed before revolver pay-down 538.4 Cash used does not exceed cash available OK
Existing BuyerCo shareholder pro forma ownership 96.1% Optional pay-down of BuyerCo revolver Yes – Transaction balance sheet balances OK
Total cash used $538.4 Pro forma balance sheet balances OK
BuyerCo standalone balance sheet balances OK
TargetCo Fair Value Adjustments TargetCo standalone balance sheet balances OK
Excess purch. price allocated to identifiable intangibles (%) 25.0% Pro forma revolver not overdrawn OK

Asset / Liability Asset? BV at Close FV at Close FV Mark DTA Created DTL Created
PP&E Yes $51.1 $66.1 $15.0 – $5.3
Identifiable intangibles Yes – 66.8 66.8 – 23.4
[Asset 3] Yes – – – – –
[Liability 1] No – – – – –
[Liability 2] No – – – – –
[Liability 3] No – – – – –
Total – $28.6

TargetCo Stock Options

TargetCo Options Outstanding Liquidation Rollover
Number of Average In-the-money Proceeds in Replacement New Avg. Treasury Intrinsic
Options Strike Options Liquidation BuyerCo Options Strike Method Value
Tranche 1 0.402 $9.13 0.402 $3.7 0.145 $25.28 0.029 $0.9
Tranche 2 0.120 9.93 0.120 1.2 0.043 27.50 0.006 0.2
Tranche 3 0.466 11.60 – – 0.168 32.13 – –
Tranche 4 0.300 12.64 – – 0.108 35.01 – –
Tranche 5 0.520 19.48 – – 0.188 53.95 – –
Tranche 6 0.422 27.03 – – 0.152 74.86 – –
Tranche 7 0.375 45.78 – – 0.135 126.78 – –
Tranche 8 – – – – – – – –
Tranche 9 – – – – – – – –
Tranche 10 – – – – – – – –
Total 0.522 $4.9 0.035 $1.1

Third Party Financing

Issuance Fees
Debt Gross Issuance Capitalized Fee Capitalized Netted Against Net
Instrument? Issuance Fee (%) Amortization (yrs) Issuance Fees Proceeds Proceeds
Senior credit facility 3 Yes $75.0 3.00% 5.0 $2.3 – $75.0
Subordinated note 3 Yes – 3.00% 7.0 – – –
Convertible bond 3 Yes – 3.00% 7.0 – – –
Preferred stock 3 No 125.0 3.00% NA – 3.8 121.3
Common stock No 75.0 3.00% NA – 2.3 72.8
Total third party financing $275.0 $2.3 $6.0 $269.0

TargetCo Debt & Preferred Stock Conversion & Repayment

Pre-Conversion Conversion Post-Conversion Repayment Post-Repayment
Face Is Security Conversion Convertible In-the-Money Convert at Is Security Converted Additional Face Repay Prepayment Prepayment Face
Value Convertible? Price Shares at Offer Price? Close if ITM? Converted? Shares Paid-in Capital Value Debt? Penalty (%) Penalty ($mm) Value
Senior credit facility 2 – No – – No Yes No – – – Yes 2.00% – –
Subordinated note 2 $45.5 No – – No Yes No – – $45.5 Yes 2.00% $0.9 –
Convertible bond 2 $194.5 Yes $26.77 7.266 No Yes No – – $194.5 Yes 2.00% $3.9 –
Preferred stock 2 – No – – No Yes No – – – Yes 2.00% – –
Total – – $4.8

Transaction balance sheet

BuyerCo TargetCo Fair Value Adjustments Fair Value Purchase Acquired Transaction & Balance Third Party Financing Pro Forma Pro Forma
Standalone Standalone Write Off Purch. Fair Value New Net DTL of Acquired Accounting Incremental Restructuring Sheet Debt Preferred Common Incremental Consolidated Total
($ in millions) 6/30/23 6/30/23 Accnt. Intang. Marks (pre-tax) from FV Marks Balance Sheet Adjustments Balance Sheet Charges at Close Restructuring Issuance Issuance Issuance Balance Sheet Balance Sheet Adjustments
Assets
Cash and equivalents $1,234.4 $187.3 $187.3 ($200.4) ($13.1) ($52.0) ($6.3) $73.5 $121.3 $72.8 $196.1 $1,430.5 $8.8
Accounts receivable 673.5 144.9 144.9 144.9 144.9 818.3 –
Inventory – – – – – – –
Deferred tax asset, current 129.1 9.4 9.4 9.4 9.4 138.4 –
Other current assets 143.9 8.8 8.8 8.8 8.8 152.7 –
Total current assets 2,180.9 350.3 – – – 350.3 (200.4) 149.8 (52.0) (6.3) 73.5 121.3 72.8 359.1 2,539.9 8.8
PP&E, gross 517.6 51.1 15.0 66.1 66.1 66.1 583.6 15.0
( – ) Accumulated depreciation (56.8) (13.1) (13.1) (13.1) (13.1) (69.9) –
PP&E, net 460.7 38.0 – 15.0 – 53.0 – 53.0 – – – – – 53.0 513.7 15.0
Goodwill 1,487.6 61.1 (61.1) – 275.0 275.0 275.0 1,762.6 213.9
Purchase accounting-related intangibles – – – 66.8 66.8 66.8 66.8 66.8 66.8
Other intangible assets 253.7 31.7 31.7 31.7 31.7 285.4 –
Equity investments – – – – – – –
Unearned compensation – – – – – – –
Capitalized debt financing costs – – – – 2.3 2.3 2.3 2.3
Other assets 464.0 14.3 14.3 14.3 14.3 478.3 –
Total assets $4,847.0 $495.3 ($61.1) $81.8 – $516.0 $74.6 $590.6 ($52.0) ($6.3) $75.8 $121.3 $72.8 $802.0 $5,649.0 $306.7
Liabilities & Shareholders' Equity
Accounts payable $217.0 $22.0 $22.0 $22.0 $22.0 $239.0 –
Accrued expenses 460.9 16.4 16.4 16.4 16.4 477.3 –
Client deposits – – – – – – –
Income taxes payable 41.8 3.1 3.1 3.1 3.1 45.0 –
Deferred revenue 247.9 21.2 21.2 21.2 21.2 269.1 –
Other current liabilities – 38.6 38.6 38.6 38.6 38.6 –
Current portion of long-term debt 2.2 – – – – 2.2 –
Total current liabilities 969.7 101.3 – – – 101.3 – 101.3 – – – – – 101.3 1,071.1 –
BuyerCo revolver – – – – 236.8 236.8 236.8 236.8
Senior credit facility 1 – – – – – – –
Subordinated note 1 – – – – – – –
Convertible bond 1 471.4 – – – – 471.4 –
Total BuyerCo debt 471.4 – – – – – – – – 236.8 – – – 236.8 708.2 236.8
TargetCo revolver – – – – – – – –
Senior credit facility 2 – – – – – – – – – –
Subordinated note 2 – 45.5 – 45.5 – 45.5 (45.5) – – (45.5)
Convertible bond 2 – 194.5 – 194.5 – 194.5 (194.5) – – (194.5)
Total TargetCo debt – 240.0 – – – 240.0 – 240.0 – (240.0) – – – – – (240.0)
Senior credit facility 3 – – 75.0 75.0 75.0 75.0
Subordinated note 3 – – – – – –
Convertible bond 3 – – – – – –
New debt issued – – – – – – – – – – 75.0 – – 75.0 75.0 75.0
Net deferred tax liability / (asset) – (2.6) 28.6 26.0 26.0 – 0.8 26.8 26.8 29.4
Other liabilities 503.0 17.9 17.9 17.9 17.9 520.9 –
Total liabilities 1,944.1 356.6 – – 28.6 385.3 – 385.3 – (3.2) 75.8 – – 457.8 2,401.9 101.2
Noncontrolling interest – – – – – – –
Preferred stock 1 – – – – – – –
Preferred stock 2 – – – – – – – – – –
Preferred stock 3 – – – – 125.0 125.0 125.0 125.0
Common stock, par value 3.9 0.6 0.6 (0.6) – – 3.9 (0.6)
Additional paid-in capital (APIC) 2,239.5 371.4 371.4 (166.1) 205.3 (3.8) 72.8 274.3 2,513.9 (97.1)
Treasury stock (774.7) (667.9) (667.9) 667.9 – – (774.7) 667.9
Accum. & other comp. income / (loss) 6.6 (0.4) (0.4) 0.4 – – 6.6 0.4
Retained earnings 1,427.6 434.9 434.9 (434.9) – (52.0) (3.1) (55.1) 1,372.5 (490.0)
Total liabilities & shareholders' equity $4,847.0 $495.3 – – $28.6 $524.0 $66.6 $590.6 ($52.0) ($6.3) $75.8 $121.3 $72.8 $802.0 $5,649.0 $306.7
Shares Outstanding
Basic shares outstanding (mm) 216.443 35.340 35.340 (28.865) 6.475 6.475 222.918
Fully diluted shares outstanding (mm) 219.330 35.343 35.343 (28.868) 6.475 6.475 225.805

Check – – – – – –

Page 3 of 12
 Pro Forma

Fractional years per period 0.5000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000

x Income Statement
6 mo. Ending Fiscal Years Ending December 31,
($ in millions) 12/31/23 2024 2025 2026 2027 2028 2029 2030 2031 2032
Revenue $1,971.5 $4,334.0 $4,726.8 $5,155.7 $5,627.1 $6,145.2 $6,714.6 $7,340.6 $8,028.7 $8,785.2
COGS 1,178.5 2,590.6 2,824.6 3,085.3 3,371.8 3,686.8 4,033.0 4,413.7 4,832.1 5,292.2
Gross profit 793.0 1,743.4 1,902.2 2,070.4 2,255.3 2,458.4 2,681.6 2,926.9 3,196.6 3,492.9
SG&A 352.4 754.1 817.8 892.9 975.3 1,066.0 1,165.7 1,275.3 1,395.7 1,528.1
EBITDA 440.6 989.4 1,084.4 1,177.6 1,279.9 1,392.4 1,515.9 1,651.7 1,800.8 1,964.8
Depreciation 46.3 103.0 111.1 120.1 130.1 141.0 153.2 166.5 181.3 197.5
Amortization 47.9 93.6 89.2 75.8 43.4 2.2 (2.2) (6.7) (11.1) (15.6)
Stock-based comp 32.2 70.3 76.4 83.0 90.4 98.4 107.2 116.9 127.6 139.3
EBIT 314.2 722.4 807.7 898.6 1,016.1 1,150.7 1,257.7 1,374.9 1,503.1 1,643.5
EBITA 394.3 886.4 973.2 1,057.4 1,149.8 1,251.3 1,362.7 1,485.1 1,619.6 1,767.3
Interest (income) / expense
Cash (1.8) (3.6) (4.6) (5.9) (7.0) (8.4) (9.9) (11.5) (13.2) (15.2)
Revolver – interest 9.5 – – – – – – – – –
Revolver – undrawn commitment fee 4.4 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0
Senior credit facility 1 – – – – – – – – – –
Senior credit facility 2 – – – – – – – – – –
Senior credit facility 3 3.4 7.2 7.5 7.7 – – – – – –
Subordinated note 1 – – – – – – – – – –
Subordinated note 2 – – – – – – – – – –
Subordinated note 3 – – – – – – – – – –
Convertible bond 1 22.4 46.9 51.4 55.0 55.0 55.0 55.0 55.0 55.0 55.0
Convertible bond 2 – – – – – – – – – –
Convertible bond 3 – – – – – – – – – –
Interest (income) / expense 37.9 60.5 64.2 66.8 58.0 56.6 55.2 53.6 51.8 49.9
Equity income in affiliates – – – – – – – – – –
Other (income) / expense – – – – – – – – – –
Loss on unamortized OID at repayment – – – – – – – – – –
Amortization of capitalized financing costs 0.2 0.5 0.5 0.5 0.5 0.2 – – – –
Restructuring charges 50.0 75.0 25.0 – – – – – – –
Income before taxes 226.1 586.5 718.1 831.3 957.6 1,093.8 1,202.6 1,321.3 1,451.3 1,593.7
Provision for tax 79.1 205.3 251.3 291.0 335.2 382.8 420.9 462.5 508.0 557.8
GAAP net income 147.0 381.2 466.7 540.4 622.4 711.0 781.7 858.9 943.3 1,035.9
Net income attributable to noncontrolling interests – – – – – – – – – –
Preferred dividends 6.4 13.1 13.8 14.5 15.3 16.0 16.9 17.7 18.6 19.6
GAAP net income available to common $140.6 $368.1 $452.9 $525.9 $607.2 $694.9 $764.8 $841.1 $924.7 $1,016.3

GAAP to cash reconciliation

Amortization $31.2 $60.9 $58.0 $49.3 $28.2 $1.4 ($1.4) ($4.3) ($7.2) ($10.1)
Stock-based comp 20.9 45.7 49.6 54.0 58.7 64.0 69.7 76.0 82.9 90.6
One-time charges – – – – – – – – – –
Restructuring charges 32.5 48.7 16.2 – – – – – – –
Cash net income available to common $225.1 $523.4 $576.8 $629.1 $694.1 $760.3 $833.0 $912.8 $1,000.4 $1,096.7

Capital expenditures $108.9 $241.3 $264.1 $289.1 $316.7 $346.9 $380.2 $416.8 $457.1 $501.3
Common dividend per share $0.02 $0.04 $0.04 $0.04 $0.04 $0.04 $0.04 $0.04 $0.04 $0.04

Accretion / Dilution

Standalone BuyerCo GAAP EPS $0.71 $1.70 $1.89 $2.11 $2.43 $2.65 $2.94 $3.25 $3.59 $3.97
Pro forma GAAP EPS 0.62 1.63 2.01 2.33 2.69 3.08 3.39 3.72 4.10 4.50
Accretion / (dilution) ($) ($0.09) ($0.07) $0.12 $0.22 $0.26 $0.43 $0.45 $0.47 $0.50 $0.53
Accretion / (dilution) (%) (12.9%) (3.9%) 6.1% 10.6% 10.6% 16.0% 15.3% 14.6% 13.9% 13.3%

Standalone BuyerCo cash EPS $0.89 $2.06 $2.27 $2.50 $2.77 $2.90 $3.21 $3.54 $3.92 $4.33
Pro forma cash EPS 1.00 2.32 2.55 2.79 3.07 3.37 3.69 4.04 4.43 4.86
Accretion / (dilution) ($) $0.11 $0.26 $0.29 $0.28 $0.30 $0.47 $0.48 $0.50 $0.51 $0.53
Accretion / (dilution) (%) 12.5% 12.7% 12.6% 11.3% 10.8% 16.3% 15.1% 14.0% 13.1% 12.2%

Key Performance Metrics & Drivers

Sales growth NA 9.9% 9.1% 9.1% 9.1% 9.2% 9.3% 9.3% 9.4% 9.4%
GAAP earnings growth NA 29.7% 22.4% 15.8% 15.2% 14.2% 9.9% 9.9% 9.8% 9.8%
Cash earnings growth NA 16.3% 10.2% 9.1% 10.3% 9.5% 9.6% 9.6% 9.6% 9.6%

COGS / sales 59.8% 59.8% 59.8% 59.8% 59.9% 60.0% 60.1% 60.1% 60.2% 60.2%
SG&A / sales 17.9% 17.4% 17.3% 17.3% 17.3% 17.3% 17.4% 17.4% 17.4% 17.4%
Depreciation / sales 2.3% 2.4% 2.4% 2.3% 2.3% 2.3% 2.3% 2.3% 2.3% 2.2%
Amortization / sales 2.4% 2.2% 1.9% 1.5% 0.8% 0.0% (0.0%) (0.1%) (0.1%) (0.2%)
Stock-based comp / sales 1.6% 1.6% 1.6% 1.6% 1.6% 1.6% 1.6% 1.6% 1.6% 1.6%
Capex / sales 5.5% 5.6% 5.6% 5.6% 5.6% 5.6% 5.7% 5.7% 5.7% 5.7%

Gross margin 40.2% 40.2% 40.2% 40.2% 40.1% 40.0% 39.9% 39.9% 39.8% 39.8%
EBITDA margin 22.3% 22.8% 22.9% 22.8% 22.7% 22.7% 22.6% 22.5% 22.4% 22.4%
EBIT margin 15.9% 16.7% 17.1% 17.4% 18.1% 18.7% 18.7% 18.7% 18.7% 18.7%
EBITA margin 20.0% 20.5% 20.6% 20.5% 20.4% 20.4% 20.3% 20.2% 20.2% 20.1%
GAAP net margin 7.1% 8.5% 9.6% 10.2% 10.8% 11.3% 11.4% 11.5% 11.5% 11.6%
Cash net margin 11.4% 12.1% 12.2% 12.2% 12.3% 12.4% 12.4% 12.4% 12.5% 12.5%

ROIC 9.3% 9.9% 10.5% 10.9% 10.9% 10.9% 10.6% 10.3% 10.0% 9.8%
ROE 8.5% 9.9% 10.7% 10.9% 11.0% 11.0% 10.7% 10.4% 10.1% 9.9%
ROA 5.0% 5.9% 6.6% 7.0% 7.3% 7.5% 7.4% 7.3% 7.3% 7.2%

Tax rate 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0%

x Balance Sheet
Close Fiscal Years Ending December 31,
($ in millions) 6/30/23 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032
Assets

Cash and equivalents $1,430.5 $1,423.5 $1,859.0 $2,359.8 $2,797.5 $3,350.6 $3,941.3 $4,587.3 $5,294.2 $6,068.0 $6,915.3
Accounts receivable 818.3 765.3 841.1 917.4 1,000.6 1,092.1 1,192.7 1,303.2 1,424.7 1,558.2 1,705.0
Inventory – – – – – – – – – – –
Deferred tax asset, current 138.4 146.7 161.2 175.8 191.8 209.3 228.6 249.8 273.1 298.6 326.8
Other current assets 152.7 160.5 176.4 192.4 210.1 229.6 251.1 274.7 300.6 329.1 360.4
Total current assets 2,539.9 2,496.0 3,037.8 3,645.4 4,200.1 4,881.7 5,613.6 6,414.9 7,292.5 8,254.0 9,307.5
PP&E, gross 583.6 692.5 933.8 1,197.8 1,487.0 1,803.6 2,150.6 2,530.8 2,947.6 3,404.7 3,906.0
( – ) Accumulated depreciation (69.9) (116.2) (219.2) (330.3) (450.4) (580.5) (721.5) (874.7) (1,041.2) (1,222.5) (1,420.0)
PP&E, net 513.7 576.3 714.6 867.6 1,036.5 1,223.1 1,429.0 1,656.1 1,906.4 2,182.2 2,486.0
Goodwill 1,762.6 1,762.6 1,762.6 1,762.6 1,762.6 1,762.6 1,762.6 1,762.6 1,762.6 1,762.6 1,762.6
Other intangible assets 352.2 304.2 210.6 121.4 45.6 2.2 – 2.2 8.9 20.0 35.6
Equity investments – – – – – – – – – – –
Unearned compensation – – – – – – – – – – –
Capitalized debt financing costs 2.3 2.0 1.6 1.1 0.7 0.2 – – – – –
Other assets 478.3 478.3 478.3 478.3 478.3 478.3 478.3 478.3 478.3 478.3 478.3
Total assets $5,649.0 $5,619.5 $6,205.5 $6,876.5 $7,523.9 $8,348.2 $9,283.6 $10,314.2 $11,448.8 $12,697.2 $14,070.1

Liabilities & Shareholders' Equity

Accounts payable $239.0 $242.0 $266.0 $290.0 $316.8 $346.2 $378.6 $414.1 $453.2 $496.2 $543.4
Accrued expenses 477.3 514.0 564.9 615.9 672.8 735.3 803.9 879.4 962.4 1,053.7 1,154.0
Client deposits – – – – – – – – – – –
Income taxes payable 45.0 46.7 51.3 55.9 61.1 66.7 73.0 79.8 87.4 95.6 104.8
Deferred revenue 269.1 281.6 309.6 337.6 368.3 401.9 438.9 479.6 524.3 573.5 627.5
Other current liabilities 38.6 – – – – – – – – – –
Current portion of long-term debt 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2
Total current liabilities 1,071.1 1,086.5 1,193.9 1,301.7 1,421.1 1,552.3 1,696.6 1,855.2 2,029.5 2,221.2 2,431.9
Revolver 236.8 – – – – – – – – – –
Senior credit facility 1 – – – – – – – – – – –
Senior credit facility 2 – – – – – – – – – – –
Senior credit facility 3 75.0 75.0 75.0 75.0 – – – – – – –
Subordinated note 1 – – – – – – – – – – –
Subordinated note 2 – – – – – – – – – – –
Subordinated note 3 – – – – – – – – – – –
Convertible bond 1 471.4 493.8 540.7 579.2 579.2 579.2 579.2 579.2 579.2 579.2 579.2
Convertible bond 2 – – – – – – – – – – –
Convertible bond 3 – – – – – – – – – – –
Total debt 783.2 568.8 615.7 654.2 579.2 579.2 579.2 579.2 579.2 579.2 579.2
Net deferred tax liability / (asset) 26.8 24.8 20.5 17.8 13.6 10.5 9.1 9.6 11.9 15.9 21.6
Other liabilities 520.9 520.9 520.9 520.9 520.9 520.9 520.9 520.9 520.9 520.9 520.9
Total liabilities 2,401.9 2,201.0 2,350.9 2,494.6 2,534.8 2,662.9 2,805.8 2,964.9 3,141.5 3,337.1 3,553.5
Noncontrolling interests – – – – – – – – – – –
Preferred stock 1 – – – – – – – – – – –
Preferred stock 2 – – – – – – – – – – –
Preferred stock 3 125.0 128.2 134.8 141.7 148.9 156.6 164.6 173.0 181.9 191.2 201.0
Common stock, par value 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9
Additional paid-in capital (APIC) 2,513.9 2,546.0 2,616.3 2,692.7 2,775.7 2,866.1 2,964.5 3,071.7 3,188.6 3,316.2 3,455.6
Treasury stock (774.7) (774.7) (774.7) (774.7) (774.7) (774.7) (774.7) (774.7) (774.7) (774.7) (774.7)
Accum. & other comp. income / (loss) 6.6 6.6 6.6 6.6 6.6 6.6 6.6 6.6 6.6 6.6 6.6
Retained earnings 1,372.5 1,508.6 1,867.7 2,311.7 2,828.7 3,426.9 4,113.0 4,868.8 5,701.0 6,616.8 7,624.2
Total liabilities & shareholders' equity $5,649.0 $5,619.5 $6,205.5 $6,876.5 $7,523.9 $8,348.2 $9,283.6 $10,314.2 $11,448.8 $12,697.2 $14,070.1

Check – – – – – – – – – – –

Shares Outstanding

Basic shares outstanding (BSO) 222.918 222.918 222.918 222.918 222.918 222.918 222.918 222.918 222.918 222.918 222.918
Fully diluted shares outstanding (FDSO) 225.805 225.805 225.805 225.805 225.805 225.805 225.805 225.805 225.805 225.805 225.805

x Cash Flow Statement

Stub Fiscal Years Ending December 31,
($ in millions) 12/31/23 2024 2025 2026 2027 2028 2029 2030 2031 2032
Operating Activities

Net income $140.6 $368.1 $452.9 $525.9 $607.2 $694.9 $764.8 $841.1 $924.7 $1,016.3
Depreciation 46.3 103.0 111.1 120.1 130.1 141.0 153.2 166.5 181.3 197.5
Amortization of intangibles 47.9 93.6 89.2 75.8 43.4 2.2 (2.2) (6.7) (11.1) (15.6)
Amortization of capitalized financing costs 0.2 0.5 0.5 0.5 0.5 0.2 – – – –
Stock-based compensation 32.2 70.3 76.4 83.0 90.4 98.4 107.2 116.9 127.6 139.3
Equity income in affiliates – – – – – – – – – –
Cash dividends from equity investments – – – – – – – – – –
Amortization of OID – – – – – – – – – –
Loss on unamortized OID at repayment – – – – – – – – – –
PIK accrual – Convertible bond 1 22.4 46.9 38.5 – – – – – – –
PIK accrual – Convertible bond 2 – – – – – – – – – –
PIK accrual – Convertible bond 3 – – – – – – – – – –
PIK accrual – Preferred stock 1 – – – – – – – – – –
PIK accrual – Preferred stock 2 – – – – – – – – – –
PIK accrual – Preferred stock 3 3.2 6.6 6.9 7.3 7.6 8.0 8.4 8.9 9.3 9.8
Income statement adjustments 152.2 320.8 322.6 286.7 271.9 249.9 266.6 285.7 307.1 331.1
(Increase) / decrease in working capital 52.4 1.1 1.0 2.5 2.7 3.0 3.3 3.6 4.0 4.4
Increase / (decrease) in net DTL (1.9) (4.4) (2.6) (4.2) (3.2) (1.3) 0.5 2.2 4.0 5.7
(Increase) / decrease in other assets – – – – – – – – – –
Increase / (decrease) in other liabilities – – – – – – – – – –
Balance sheet adjustments 50.4 (3.3) (1.6) (1.8) (0.4) 1.7 3.8 5.9 8.0 10.2
Cash flow from operating activities $343.2 $685.7 $773.8 $810.8 $878.6 $946.5 $1,035.2 $1,132.7 $1,239.8 $1,357.5

Investing Activities

Capital expenditures ($109) ($241) ($264) ($289) ($317) ($347) ($380) ($417) ($457) ($501)
Proceeds from the sale of assets – – – – – – – – – –
Cash flow from investing activities ($108.9) ($241.3) ($264.1) ($289.1) ($316.7) ($346.9) ($380.2) ($416.8) ($457.1) ($501.3)

Financing Activities

Revolver ($236.8) – – – – – – – – –
Senior credit facility 1 – – – – – – – – – –
Senior credit facility 2 – – – – – – – – – –
Senior credit facility 3 – – – (75.0) – – – – – –
Subordinated note 1 – – – – – – – – – –
Subordinated note 2 – – – – – – – – – –
Subordinated note 3 – – – – – – – – – –
Convertible bond 1 – – – – – – – – – –
Convertible bond 2 – – – – – – – – – –
Convertible bond 3 – – – – – – – – – –
Preferred stock 1 – – – – – – – – – –
Preferred stock 2 – – – – – – – – – –
Preferred stock 3 – – – – – – – – – –
Common dividend (4.5) (8.9) (8.9) (8.9) (8.9) (8.9) (8.9) (8.9) (8.9) (8.9)
Cash flow from financing activities ($241.3) ($8.9) ($8.9) ($83.9) ($8.9) ($8.9) ($8.9) ($8.9) ($8.9) ($8.9)

Change in cash ($6.9) $435.4 $500.8 $437.7 $553.1 $590.7 $646.1 $706.9 $773.8 $847.3

x Working Capital
Close Stub Fiscal Years Ending December 31,
($ in millions) 6/30/23 12/31/23 2024 2025 2026 2027 2028 2029 2030 2031 2032
Net Working Capital

Accounts receivable $818.3 $765.3 $841.1 $917.4 $1,000.6 $1,092.1 $1,192.7 $1,303.2 $1,424.7 $1,558.2 $1,705.0
Inventory – – – – – – – – – – –
Deferred tax asset, current 138.4 146.7 161.2 175.8 191.8 209.3 228.6 249.8 273.1 298.6 326.8
Other current assets 152.7 160.5 176.4 192.4 210.1 229.6 251.1 274.7 300.6 329.1 360.4
Non-cash current assets 1,109.5 1,072.5 1,178.8 1,285.6 1,402.5 1,531.1 1,672.3 1,827.6 1,998.3 2,186.0 2,392.3
Accounts payable 239.0 242.0 266.0 290.0 316.8 346.2 378.6 414.1 453.2 496.2 543.4
Accrued expenses 477.3 514.0 564.9 615.9 672.8 735.3 803.9 879.4 962.4 1,053.7 1,154.0
Client deposits – – – – – – – – – – –
Income taxes payable 45.0 46.7 51.3 55.9 61.1 66.7 73.0 79.8 87.4 95.6 104.8
Deferred revenue 269.1 281.6 309.6 337.6 368.3 401.9 438.9 479.6 524.3 573.5 627.5
Other current liabilities 38.6 – – – – – – – – – –
Non-debt current liabilities 1,068.9 1,084.3 1,191.7 1,299.5 1,418.9 1,550.2 1,694.4 1,853.0 2,027.3 2,219.0 2,429.7
Net working capital $40.6 ($11.8) ($12.9) ($13.9) ($16.4) ($19.1) ($22.1) ($25.4) ($29.0) ($33.0) ($37.4)

Working Capital Drivers & Ratios

Sales $1,971.5 $4,334.0 $4,726.8 $5,155.7 $5,627.1 $6,145.2 $6,714.6 $7,340.6 $8,028.7 $8,785.2
COGS 1,178.5 2,590.6 2,824.6 3,085.3 3,371.8 3,686.8 4,033.0 4,413.7 4,832.1 5,292.2
Purchases 1,178.5 2,590.6 2,824.6 3,085.3 3,371.8 3,686.8 4,033.0 4,413.7 4,832.1 5,292.2
Selector
Accounts receivable / sales 1 19.41% 19.41% 19.41% 19.41% 19.41% 19.41% 19.41% 19.41% 19.41% 19.41%
Inventory / COGS 2 – – – – – – – – – –
Deferred tax asset, current / sales 1 3.72% 3.72% 3.72% 3.72% 3.72% 3.72% 3.72% 3.72% 3.72% 3.72%
Other current assets / COGS 2 6.81% 6.81% 6.81% 6.81% 6.81% 6.81% 6.81% 6.81% 6.81% 6.81%

Accounts payable / COGS 2 10.27% 10.27% 10.27% 10.27% 10.27% 10.27% 10.27% 10.27% 10.27% 10.27%
Accrued expenses / COGS 2 21.81% 21.81% 21.81% 21.81% 21.81% 21.81% 21.81% 21.81% 21.81% 21.81%
Client deposits / sales 1 – – – – – – – – – –
Income taxes payable / COGS 2 1.98% 1.98% 1.98% 1.98% 1.98% 1.98% 1.98% 1.98% 1.98% 1.98%
Deferred revenue / sales 1 7.14% 7.14% 7.14% 7.14% 7.14% 7.14% 7.14% 7.14% 7.14% 7.14%
Other current liabilities / COGS 2 – – – – – – – – – –

Accounts receivable days 73.3 67.6 67.9 67.9 67.9 67.9 67.8 67.8 67.8 67.8
Accounts payable days 37.2 35.8 35.9 35.9 35.9 35.9 35.9 35.9 35.9 35.8
Inventory days – – – – – – – – – –
Inventory turnover NA NA NA NA NA NA NA NA NA NA

x Equity Investments
Stub Fiscal Years Ending December 31,
($ in millions) 12/31/23 2024 2025 2026 2027 2028 2029 2030 2031 2032
BuyerCo Equity Investments

Equity income in affiliates – – – – – – – – – –

( – ) Cash dividends received from equity investments – – – – – – – – – –
Undistributed earnings – – – – – – – – – –

Dividends Received Deduction (DRD) 80.0%

Current taxes payable – – – – – – – – – –

Deferred tax expense No – – – – – – – – – –
Income tax expense – – – – – – – – – –

TargetCo Equity Investments

Equity income in affiliates – – – – – – – – – –

( – ) Cash dividends received from equity investments – – – – – – – – – –
Undistributed earnings – – – – – – – – – –

Dividends Received Deduction (DRD) 80.0%

Current taxes payable – – – – – – – – – –

Deferred tax expense No – – – – – – – – – –
Income tax expense – – – – – – – – – –

Tax Adjustment

Tax benefit from DRD – – – – – – – – – –

x Debt Schedule
Close Stub Fiscal Years Ending December 31,
($ in millions) 6/30/23 12/31/23 2024 2025 2026 2027 2028 2029 2030 2031 2032
Beginning cash balance $1,430.5 $1,423.5 $1,859.0 $2,359.8 $2,797.5 $3,350.6 $3,941.3 $4,587.3 $5,294.2 $6,068.0
( – ) Minimum cash balance (1,400.0) (1,400.0) (1,400.0) (1,400.0) (1,400.0) (1,400.0) (1,400.0) (1,400.0) (1,400.0) (1,400.0)
Excess cash / (cash deficit) 30.5 23.5 459.0 959.8 1,397.5 1,950.6 2,541.3 3,187.3 3,894.2 4,668.0
( + ) Cash flow available for debt service 229.9 435.4 500.8 512.7 553.1 590.7 646.1 706.9 773.8 847.3
Total cash available for debt service 260.3 459.0 959.8 1,472.5 1,950.6 2,541.3 3,187.3 3,894.2 4,668.0 5,515.3
Senior credit facility 1 – – – – – – – – – –
Senior credit facility 2 – – – – – – – – – –
Senior credit facility 3 – – – (75.0) – – – – – –
Subordinated note 1 – – – – – – – – – –
Subordinated note 2 – – – – – – – – – –
Subordinated note 3 – – – – – – – – – –
Convertible bond 1 – – – – – – – – – –
Convertible bond 2 – – – – – – – – – –
Convertible bond 3 – – – – – – – – – –
( – ) Scheduled debt repayment – – – (75.0) – – – – – –
Cash available for sweep / (revolver draw-down) $260.3 $459.0 $959.8 $1,397.5 $1,950.6 $2,541.3 $3,187.3 $3,894.2 $4,668.0 $5,515.3

Optional debt repayment Sweep

Revolver 100.0% ($236.8) – – – – – – – – –
Senior credit facility 1 100.0% – – – – – – – – – –
Senior credit facility 2 100.0% – – – – – – – – – –
Senior credit facility 3 – – – – – – – – – – –
Subordinated note 1 – – – – – – – – – – –
Subordinated note 2 – – – – – – – – – – –
Subordinated note 3 – – – – – – – – – – –
Total optional debt repayment ($236.8) – – – – – – – – –

Scheduled Debt Amortization (%)

Senior credit facility 1 – – – – – – – – – –

Senior credit facility 2 – – – – – – – – – –
Senior credit facility 3 – – – 100.0% – – – – – –
Subordinated note 1 – – – – – – – – – –
Subordinated note 2 – – – – – – – – – –
Subordinated note 3 – – – – – – – – – –

Debt Schedule

Revolver
Beginning balance $236.8 – – – – – – – – –
( + ) Revolver draw-down – – – – – – – – – –
( – ) Revolver pay-down (236.8) – – – – – – – – –
Ending balance $236.8 – – – – – – – – – –

Bank revolver commitment $2,000.0 $2,000.0 $2,000.0 $2,000.0 $2,000.0 $2,000.0 $2,000.0 $2,000.0 $2,000.0 $2,000.0 $2,000.0
Undrawn revolver balance $1,763.2 $2,000.0 $2,000.0 $2,000.0 $2,000.0 $2,000.0 $2,000.0 $2,000.0 $2,000.0 $2,000.0 $2,000.0

Senior credit facility 1

Beginning balance – – – – – – – – – –
( – ) Mandatory repayment – – – – – – – – – –
( – ) Optional repayment – – – – – – – – – –
Ending balance – – – – – – – – – – –

Senior credit facility 2

Beginning balance – – – – – – – – – –
( – ) Mandatory repayment – – – – – – – – – –
( – ) Optional repayment – – – – – – – – – –
Ending balance – – – – – – – – – – –

Senior credit facility 3

Beginning balance $75.0 $75.0 $75.0 $75.0 – – – – – –
( – ) Mandatory repayment – – – (75.0) – – – – – –
( – ) Optional repayment – – – – – – – – – –
Ending balance $75.0 $75.0 $75.0 $75.0 – – – – – – –

Subordinated note 1
Beginning balance – – – – – – – – – –
( – ) Scheduled maturity – – – – – – – – – –
( – ) Optional repayment – – – – – – – – – –
Ending balance – – – – – – – – – – –

Subordinated note 2
Beginning balance – – – – – – – – – –
( – ) Scheduled maturity – – – – – – – – – –
( – ) Optional repayment – – – – – – – – – –
Ending balance – – – – – – – – – – –

Page 4 of 12
 Pro Forma
Subordinated note 3
Beginning balance – – – – – – – – – –
( – ) Scheduled maturity – – – – – – – – – –
( – ) Optional repayment – – – – – – – – – –
Ending balance – – – – – – – – – – –

Convertible bond 1
Beginning balance $471.4 $493.8 $540.7 $579.2 $579.2 $579.2 $579.2 $579.2 $579.2 $579.2
( + ) PIK accretion 22.4 46.9 38.5 – – – – – – –
( – ) Scheduled maturity – – – – – – – – – –
Ending balance $471.4 $493.8 $540.7 $579.2 $579.2 $579.2 $579.2 $579.2 $579.2 $579.2 $579.2

Convertible bond 2
Beginning balance – – – – – – – – – –
( + ) PIK accretion – – – – – – – – – –
( – ) Scheduled maturity – – – – – – – – – –
Ending balance – – – – – – – – – – –

Convertible bond 3
Beginning balance – – – – – – – – – –
( + ) PIK accretion – – – – – – – – – –
( – ) Scheduled maturity – – – – – – – – – –
Ending balance – – – – – – – – – – –

Preferred stock 1
Beginning balance – – – – – – – – – –
( + ) PIK accretion – – – – – – – – – –
( – ) Retirement – – – – – – – – – –
Ending balance – – – – – – – – – – –

Preferred stock 2
Beginning balance – – – – – – – – – –
( + ) PIK accretion – – – – – – – – – –
( – ) Retirement – – – – – – – – – –
Ending balance – – – – – – – – – – –

Preferred stock 3
Beginning balance $125.0 $128.2 $134.8 $141.7 $148.9 $156.6 $164.6 $173.0 $181.9 $191.2
( + ) PIK accretion 3.2 6.6 6.9 7.3 7.6 8.0 8.4 8.9 9.3 9.8
( – ) Retirement – – – – – – – – – –
Ending balance $125.0 $128.2 $134.8 $141.7 $148.9 $156.6 $164.6 $173.0 $181.9 $191.2 $201.0

Interest Rates

LIBOR 3.74% 4.16% 4.57% 4.83% 4.98% 5.11% 5.22% 5.31% 5.40% 5.49%
Cash 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25%
Undrawn commitment fee 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50%

Revolver 7.99% 8.41% 8.82% 9.08% 9.23% 9.36% 9.47% 9.56% 9.65% 9.74%
Senior credit facility 1 8.49% 8.91% 9.32% 9.58% 9.73% 9.86% 9.97% 10.06% 10.15% 10.24%
Senior credit facility 2 8.49% 8.91% 9.32% 9.58% 9.73% 9.86% 9.97% 10.06% 10.15% 10.24%
Senior credit facility 3 9.11% 9.54% 9.95% 10.21% 10.36% 10.49% 10.60% 10.69% 10.78% 10.87%
Subordinated note 1 8.25% 8.25% 8.25% 8.25% 8.25% 8.25% 8.25% 8.25% 8.25% 8.25%
Subordinated note 2 8.25% 8.25% 8.25% 8.25% 8.25% 8.25% 8.25% 8.25% 8.25% 8.25%
Subordinated note 3 8.25% 8.25% 8.25% 8.25% 8.25% 8.25% 8.25% 8.25% 8.25% 8.25%
Convertible bond 1 9.50% 9.50% 9.50% 9.50% 9.50% 9.50% 9.50% 9.50% 9.50% 9.50%
Convertible bond 2 9.50% 9.50% 9.50% 9.50% 9.50% 9.50% 9.50% 9.50% 9.50% 9.50%
Convertible bond 3 9.50% 9.50% 9.50% 9.50% 9.50% 9.50% 9.50% 9.50% 9.50% 9.50%
Preferred stock 1 10.25% 10.25% 10.25% 10.25% 10.25% 10.25% 10.25% 10.25% 10.25% 10.25%
Preferred stock 2 10.25% 10.25% 10.25% 10.25% 10.25% 10.25% 10.25% 10.25% 10.25% 10.25%
Preferred stock 3 10.25% 10.25% 10.25% 10.25% 10.25% 10.25% 10.25% 10.25% 10.25% 10.25%

Interest Expense / Preferred Dividends

Undrawn commitment fee $4.4 $10.0 $10.0 $10.0 $10.0 $10.0 $10.0 $10.0 $10.0 $10.0

Revolver $9.5 – – – – – – – – –
Senior credit facility 1 – – – – – – – – – –
Senior credit facility 2 – – – – – – – – – –
Senior credit facility 3 $3.4 $7.2 $7.5 $7.7 – – – – – –
Subordinated note 1 – – – – – – – – – –
Subordinated note 2 – – – – – – – – – –
Subordinated note 3 – – – – – – – – – –
Convertible bond 1 $22.4 $46.9 $51.4 $55.0 $55.0 $55.0 $55.0 $55.0 $55.0 $55.0
Convertible bond 2 – – – – – – – – – –
Convertible bond 3 – – – – – – – – – –
Preferred stock 1 – – – – – – – – – –
Preferred stock 2 – – – – – – – – – –
Preferred stock 3 $6.4 $13.1 $13.8 $14.5 $15.3 $16.0 $16.9 $17.7 $18.6 $19.6

Senior interest expense $17.3 $17.2 $17.5 $17.7 $10.0 $10.0 $10.0 $10.0 $10.0 $10.0
Cash interest expense $17.3 $17.2 $30.3 $72.7 $65.0 $65.0 $65.0 $65.0 $65.0 $65.0
Total interest expense $39.7 $64.1 $68.8 $72.7 $65.0 $65.0 $65.0 $65.0 $65.0 $65.0
Convertible preferred dividends – – – – – – – – – –
Straight preferred dividends $6.4 $13.1 $13.8 $14.5 $15.3 $16.0 $16.9 $17.7 $18.6 $19.6
Total preferred dividends $6.4 $13.1 $13.8 $14.5 $15.3 $16.0 $16.9 $17.7 $18.6 $19.6

Interest & Dividends Paid-in-Kind (PIK)

Revolver – – – – – – – – – –
Senior credit facility 1 – – – – – – – – – –
Senior credit facility 2 – – – – – – – – – –
Senior credit facility 3 – – – – – – – – – –
Subordinated note 1 – – – – – – – – – –
Subordinated note 2 – – – – – – – – – –
Subordinated note 3 – – – – – – – – – –
Convertible bond 1 100.0% 100.0% 75.0% – – – – – – –
Convertible bond 2 50.0% 50.0% 50.0% 25.0% – – – – – –
Convertible bond 3 – – – – – – – – – –
Preferred stock 1 – – – – – – – – – –
Preferred stock 2 – – – – – – – – – –
Preferred stock 3 50.0% 50.0% 50.0% 50.0% 50.0% 50.0% 50.0% 50.0% 50.0% 50.0%

Debt Triggers

Fixed Rate / Spread to Senior Preferred Convertible Conversion Cash

Coupon LIBOR Debt? Security? Security? Price Sweep
Revolver – 4.25% Yes No No – 100.0%
Senior credit facility 1 – 4.75% Yes No No – 100.0%
Senior credit facility 2 – 4.75% Yes No No – 100.0%
Senior credit facility 3 – 5.38% Yes No No – –
Subordinated note 1 8.25% – No No No – –
Subordinated note 2 8.25% – No No No – –
Subordinated note 3 8.25% – No No No – –
Convertible bond 1 9.50% – No No Yes $43.12 –
Convertible bond 2 9.50% – No No Yes $26.77 –
Convertible bond 3 9.50% – No No No – –
Preferred stock 1 10.25% – No Yes No – –
Preferred stock 2 10.25% – No Yes No – –
Preferred stock 3 10.25% – No Yes No – –

x Depreciation Schedule
Close Stub Fiscal Years Ending December 31,
($ in millions) 6/30/23 12/31/23 2024 2025 2026 2027 2028 2029 2030 2031 2032
Year 1 2 3 4 5 6 7 8 9 10
Quarters in each period 2 4 4 4 4 4 4 4 4 4

Book Depreciation

PP&E depreciation period (yrs) 7.0

PP&E depreciation methodology (1 = SYD, 2 = SL) 1
Scheduled PP&E depreciation – SYD $3.8 $3.2 $2.7 $2.1 $1.6 $1.1 $0.5 – ($0.5) ($1.1)
Scheduled PP&E depreciation – SL 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1 2.1
Scheduled PP&E depreciation – selected SYD: 3.8 3.2 2.7 2.1 1.6 1.1 0.5 – (0.5) (1.1)
Scheduled PP&E depreciation – adjusted for stub period 1.9 3.5 2.9 2.4 1.9 1.3 0.8 0.3 (0.3) (0.8)

PP&E write-up / (down) – beginning $15.0 $13.1 $9.6 $6.7 $4.3 $2.4 $1.1 $0.3 – $0.3
( – ) Book depreciation (1.9) (3.5) (2.9) (2.4) (1.9) (1.3) (0.8) (0.3) 0.3 0.8
PP&E write-up / (down) – ending $15.0 $13.1 $9.6 $6.7 $4.3 $2.4 $1.1 $0.3 – $0.3 $1.1

Standalone BuyerCo book depreciation $37.4 $85.4 $93.9 $103.3 $113.7 $125.0 $137.5 $151.3 $166.4 $183.1
Standalone TargetCo book depreciation 7.1 14.1 14.2 14.4 14.5 14.7 14.8 15.0 15.1 15.3
( + ) Depreciation of fixed asset write-ups 1.9 3.5 2.9 2.4 1.9 1.3 0.8 0.3 (0.3) (0.8)
Pro forma book depreciation expense $46.3 $103.0 $111.1 $120.1 $130.1 $141.0 $153.2 $166.5 $181.3 $197.5

Tax Depreciation

PP&E depreciation period (yrs) 9.0

PP&E depreciation methodology (1 = SYD, 2 = SL) 1
Scheduled PP&E depreciation – SYD – – – – – – – – – –
Scheduled PP&E depreciation – SL – – – – – – – – – –
Scheduled PP&E depreciation – selected SYD: – – – – – – – – – –
Scheduled PP&E depreciation – adjusted for stub period – – – – – – – – – –

PP&E write-up / (down) – beginning – – – – – – – – – –

( – ) Tax depreciation – – – – – – – – – –
PP&E write-up / (down) – ending – – – – – – – – – – –

Standalone BuyerCo tax depreciation $37.4 $85.4 $93.9 $103.3 $113.7 $125.0 $137.5 $151.3 $166.4 $183.1
Standalone TargetCo tax depreciation 7.1 14.1 14.2 14.4 14.5 14.7 14.8 15.0 15.1 15.3
( + ) Depreciation of fixed asset write-ups – – – – – – – – – –
Pro forma tax depreciation expense $44.4 $99.5 $108.2 $117.7 $128.2 $139.7 $152.4 $166.3 $181.5 $198.3

x Amortization Schedule
Close Stub Fiscal Years Ending December 31,
($ in millions) 6/30/23 12/31/23 2024 2025 2026 2027 2028 2029 2030 2031 2032
Year 1 2 3 4 5 6 7 8 9 10
Quarters in each period 2 4 4 4 4 4 4 4 4 4

Book Amortization

Identifiable intangibles amortization period (yrs) 5.0

Identifiable intangibles amortization methodology (1 = SYD, 2 = SL) 1
Scheduled identifiable intangibles amortization – SYD $22.3 $17.8 $13.4 $8.9 $4.5 – ($4.5) ($8.9) ($13.4) ($17.8)
Scheduled identifiable intangibles amortization – SL 13.4 13.4 13.4 13.4 13.4 13.4 13.4 13.4 13.4 13.4
Scheduled identifiable intangibles amortization – selected SYD: 22.3 17.8 13.4 8.9 4.5 – (4.5) (8.9) (13.4) (17.8)
Scheduled identifiable intangibles amortization – adjusted for stub period 11.1 20.0 15.6 11.1 6.7 2.2 (2.2) (6.7) (11.1) (15.6)

Identifiable intangibles – beginning $66.8 $55.6 $35.6 $20.0 $8.9 $2.2 – $2.2 $8.9 $20.0
( – ) Amortization (11.1) (20.0) (15.6) (11.1) (6.7) (2.2) 2.2 6.7 11.1 15.6
Identifiable intangibles – ending $66.8 $55.6 $35.6 $20.0 $8.9 $2.2 – $2.2 $8.9 $20.0 $35.6

Standalone BuyerCo amortization $31.0 $62.0 $62.0 $62.0 $36.7 – – – – –

Standalone TargetCo amortization 5.8 11.6 11.6 2.7 – – – – – –
( – ) Foregone TargetCo amortization from purchase accounting-related intangibles writ – – – – – – – – – –
( + ) Amortization of identifiable intangibles 11.1 20.0 15.6 11.1 6.7 2.2 (2.2) (6.7) (11.1) (15.6)
Pro forma book amortization expense $47.9 $93.6 $89.2 $75.8 $43.4 $2.2 ($2.2) ($6.7) ($11.1) ($15.6)

Tax Amortization

Identifiable intangibles
Identifiable intangibles amortization period (yrs) 15.0

Identifiable intangibles – beginning – – – – – – – – – –

( – ) Amortization (straight-line) – – – – – – – – – –
Identifiable intangibles – ending – – – – – – – – – – –

Goodwill
Goodwill amortization period (yrs) 15.0

Goodwill – beginning – – – – – – – – – –
( – ) Amortization (straight-line) – – – – – – – – – –
Goodwill – ending – – – – – – – – – – –

Standalone BuyerCo amortization $31.0 $62.0 $62.0 $62.0 $36.7 – – – – –

Standalone TargetCo amortization 5.8 11.6 11.6 2.7 – – – – – –
( – ) Foregone TargetCo amortization from purchase accounting-related intangibles writ – – – – – – – – – –
( + ) Amortization of identifiable intangibles and goodwill – – – – – – – – – –
Pro forma tax amortization expense $36.8 $73.6 $73.6 $64.7 $36.7 – – – – –

x Tax Schedule
Close Stub Fiscal Years Ending December 31,
($ in millions) 6/30/23 12/31/23 2024 2025 2026 2027 2028 2029 2030 2031 2032
*** SOME OR ALL OF THIS SECTION MAY NOT APPLY OUTSIDE THE UNITED STATES ***

Federal tax rate 33.0% 33.0% 33.0% 33.0% 33.0% 33.0% 33.0% 33.0% 33.0% 33.0%
State and local tax rate 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0%
Blended tax rate 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0%

Cash Taxes & Net DTL

EBITDA $440.6 $989.4 $1,084.4 $1,177.6 $1,279.9 $1,392.4 $1,515.9 $1,651.7 $1,800.8 $1,964.8
( – ) Tax depreciation (44.4) (99.5) (108.2) (117.7) (128.2) (139.7) (152.4) (166.3) (181.5) (198.3)
( – ) Tax amortization of intangible assets (36.8) (73.6) (73.6) (64.7) (36.7) – – – – –
( – ) Stock-based compensation (32.2) (70.3) (76.4) (83.0) (90.4) (98.4) (107.2) (116.9) (127.6) (139.3)
( + ) Interest income / (expense) (37.9) (60.5) (64.2) (66.8) (58.0) (56.6) (55.2) (53.6) (51.8) (49.9)
( + ) Distributed equity income in affiliates – – – – – – – – – –
( + ) Other income / (expense) – – – – – – – – – –
( – ) Loss on unamortized OID at repayment – – – – – – – – – –
( – ) Amortization of capitalized financing costs – – – – – – – – – –
( – ) Restructuring charges (50.0) (75.0) (25.0) – – – – – – –
Total taxable income 239.3 610.5 737.0 845.3 966.6 1,097.6 1,201.1 1,314.9 1,439.9 1,577.3
( – ) NOL used (5.7) (11.5) (11.5) (1.9) – – – – – –
State and local taxable income 233.6 599.0 725.6 843.4 966.6 1,097.6 1,201.1 1,314.9 1,439.9 1,577.3
( – ) State and local cash taxes (7.0) (18.0) (21.8) (25.3) (29.0) (32.9) (36.0) (39.4) (43.2) (47.3)
Federal taxable income $226.6 $581.0 $703.8 $818.1 $937.6 $1,064.7 $1,165.1 $1,275.5 $1,396.7 $1,530.0

Federal cash taxes $74.1 $191.7 $232.2 $269.9 $309.3 $351.2 $384.4 $420.8 $460.8 $504.7
( + ) State and local cash taxes 7.0 18.0 21.8 25.3 29.0 32.9 36.0 39.4 43.2 47.3
Total cash taxes payable 81.1 209.6 254.0 295.2 338.3 384.2 420.4 460.2 504.0 552.0
( + ) Deferred tax expense / (benefit) (1.9) (4.4) (2.6) (4.2) (3.2) (1.3) 0.5 2.2 4.0 5.7
Book tax expense $79.1 $205.3 $251.3 $291.0 $335.2 $382.8 $420.9 $462.5 $508.0 $557.8

Net DTL – beginning balance $26.8 $24.8 $20.5 $17.8 $13.6 $10.5 $9.1 $9.6 $11.9 $15.9
Increase / (decrease) in net DTL (1.9) (4.4) (2.6) (4.2) (3.2) (1.3) 0.5 2.2 4.0 5.7
Net DTL – ending balance $26.8 $24.8 $20.5 $17.8 $13.6 $10.5 $9.1 $9.6 $11.9 $15.9 $21.6

Acquired NOL Subject to Section 382

Annual NOL limitation – acquired TargetCo NOL $11.5 $5.7 $11.5 $11.5 $11.5 $11.5 $11.5 $11.5 $11.5 $11.5 $11.5
Annual NOL limitation – BuyerCo encumbered NOL – – – – – – – – – – –
Total annual NOL limitation $11.5 $5.7 $11.5 $11.5 $11.5 $11.5 $11.5 $11.5 $11.5 $11.5 $11.5

Acquired NOL subject to Sec. 382

Beginning balance $30.6 $24.9 $13.4 $1.9 – – – – – –
( – ) NOL used (5.7) (11.5) (11.5) (1.9) – – – – – –
( – ) NOL expired – – – – – – – – – –
Ending balance $30.6 $24.9 $13.4 $1.9 – – – – – – –

Unused limitation carryforward

Beginning balance – – – – – – – – – –
( + ) Carryforward created – – – – – – – – – –
( – ) Carryforward used – – – – – – – – – –
Ending balance – – – – – – – – – – –

Unencumbered NOL

NOL – beginning balance – – – – – – – – – –

( + ) NOL created – – – – – – – – – –
( – ) NOL used – – – – – – – – – –
( – ) NOL expired – – – – – – – – – –
NOL – ending balance – – – – – – – – – – –

Alternative Minimum Tax (AMT)

Corporate AMT tax rate 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0%
Maximum taxable income offset 90.0% 90.0% 90.0% 90.0% 90.0% 90.0% 90.0% 90.0% 90.0% 90.0%
Effective AMT tax rate 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%

Federal tax at statutory rate (post-NOL) $74.7 $191.7 $232.2 $269.9 $309.3 $351.2 $384.4 $420.8 $460.8 $504.7
Alternative minimum tax (before credits) 4.6 11.8 14.3 16.4 18.8 21.3 23.3 25.5 27.9 30.6

Tax payable before AMT credit used $74.7 $191.7 $232.2 $269.9 $309.3 $351.2 $384.4 $420.8 $460.8 $504.7
( – ) AMT tax credit used (0.7) – – – – – – – – –
Federal cash taxes $74.1 $191.7 $232.2 $269.9 $309.3 $351.2 $384.4 $420.8 $460.8 $504.7
Effective federal cash tax rate 31.9% 32.4% 32.5% 32.9% 33.0% 33.0% 33.0% 33.0% 33.0% 33.0%

AMT tax credit carryforward

AMT tax credit – beginning balance $0.7 – – – – – – – – –
( + ) AMT tax credit generated – – – – – – – – – –
( – ) AMT tax credit used (0.7) – – – – – – – – –
AMT tax credit – ending balance $0.7 – – – – – – – – – –

Illustrative Individual DTA / DTL from Purchase Accounting (DOES NOT FLOW THRU MODEL)

DTL from write-up of fixed assets

BoP DTL – PP&E $5.3 $4.6 $3.4 $2.3 $1.5 $0.8 $0.4 $0.1 – $0.1
( + ) DTL build / (reversal) (0.7) (1.2) (1.0) (0.8) (0.7) (0.5) (0.3) (0.1) 0.1 0.3
EoP DTL – PP&E $5.3 $4.6 $3.4 $2.3 $1.5 $0.8 $0.4 $0.1 – $0.1 $0.4

DTL from write-up of identifiable intangibles

BoP DTL – identifiable intangibles $23.4 $19.5 $12.5 $7.0 $3.1 $0.8 – $0.8 $3.1 $7.0
( + ) DTL build / (reversal) (3.9) (7.0) (5.5) (3.9) (2.3) (0.8) 0.8 2.3 3.9 5.5
EoP DTL – identifiable intangibles $23.4 $19.5 $12.5 $7.0 $3.1 $0.8 – $0.8 $3.1 $7.0 $12.5

DTA from goodwill created

BoP DTA – goodwill – – – – – – – – – –
( + ) DTA build – – – – – – – – – –
BoP DTA – goodwill – – – – – – – – – – –

x Revenue Synergies, Cost Savings, and Restructuring Costs

Stub Fiscal Years Ending December 31,
($ in millions) 12/31/23 2024 2025 2026 2027 2028 2029 2030 2031 2032
Revenue Synergies

Annual revenue synergies – unadjusted for stub period $10.0 $10.0 $10.0 $10.0 $10.0 $10.0 $10.0 $10.0 $10.0 $10.0
Realization (%) 50% 100% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Realized revenue synergies – unadjusted for stub period $5.0 $10.0 $10.0 $10.0 $10.0 $10.0 $10.0 $10.0 $10.0 $10.0
Quarters in each period 2 4 4 4 4 4 4 4 4 4
Revenue synergies – adjusted for stub period $2.5 $7.5 $10.0 $10.0 $10.0 $10.0 $10.0 $10.0 $10.0 $10.0

BuyerCo revenue $1,735.0 $3,856.0 $4,241.6 $4,665.8 $5,132.3 $5,645.6 $6,210.1 $6,831.1 $7,514.3 $8,265.7
TargetCo revenue 234.0 470.5 475.2 480.0 484.8 489.6 494.5 499.4 504.4 509.5
Revenue synergies 2.5 7.5 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0
Pro forma revenue $1,971.5 $4,334.0 $4,726.8 $5,155.7 $5,627.1 $6,145.2 $6,714.6 $7,340.6 $8,028.7 $8,785.2

COGS Savings

TargetCo standalone COGS $249.8 $252.2 $254.7 $257.3 $259.8 $262.4 $265.1 $267.7 $270.4 $273.1
COGS savings (%) 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0% 5.0%
Realization (%) 50% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Annual COGS savings – unadjusted for stub period $6.2 $12.6 $12.7 $12.9 $13.0 $13.1 $13.3 $13.4 $13.5 $13.7
Quarters in each period 2 4 4 4 4 4 4 4 4 4
COGS savings – adjusted for stub period $3.1 $9.4 $12.7 $12.8 $12.9 $13.1 $13.2 $13.3 $13.5 $13.6

BuyerCo COGS $1,056.8 $2,347.8 $2,582.6 $2,840.8 $3,124.9 $3,437.4 $3,781.2 $4,159.3 $4,575.2 $5,032.7
TargetCo COGS 124.9 252.2 254.7 257.3 259.8 262.4 265.1 267.7 270.4 273.1
COGS savings (3.1) (9.4) (12.7) (12.8) (12.9) (13.1) (13.2) (13.3) (13.5) (13.6)
Pro forma COGS $1,178.5 $2,590.6 $2,824.6 $3,085.3 $3,371.8 $3,686.8 $4,033.0 $4,413.7 $4,832.1 $5,292.2

SG&A Savings

TargetCo standalone SG&A $91.7 $92.4 $93.3 $94.3 $95.2 $96.2 $97.1 $98.1 $99.1 $100.1
SG&A savings (%) 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0%
Realization (%) 50% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Annual SG&A savings – unadjusted for stub period $9.2 $18.5 $18.7 $18.9 $19.0 $19.2 $19.4 $19.6 $19.8 $20.0
Quarters in each period 2 4 4 4 4 4 4 4 4 4
SG&A savings – adjusted for stub period $4.6 $13.8 $18.6 $18.8 $18.9 $19.1 $19.3 $19.5 $19.7 $19.9

BuyerCo SG&A $311.2 $675.5 $743.1 $817.4 $899.1 $989.0 $1,087.9 $1,196.7 $1,316.4 $1,448.0
TargetCo SG&A 45.9 92.4 93.3 94.3 95.2 96.2 97.1 98.1 99.1 100.1
SG&A savings (4.6) (13.8) (18.6) (18.8) (18.9) (19.1) (19.3) (19.5) (19.7) (19.9)
Pro forma SG&A $352.4 $754.1 $817.8 $892.9 $975.3 $1,066.0 $1,165.7 $1,275.3 $1,395.7 $1,528.1

Restructuring Costs

Total restructuring costs $200.0

( x ) Restructuring costs not incurred at close (%) 75%
Restructuring costs not incurred at close $150.0
Realization (%) 67% 33% – – – – – – – –
Restructuring costs – unadjusted for stub period $100.0 $50.0 – – – – – – – –
Quarters in each period 2 4 4 4 4 4 4 4 4 4
Restructuring costs – adjusted for stub period $50.0 $75.0 $25.0 – – – – – – –

Page 5 of 12
x Amortization of Capitalized Debt Financing Costs Pro Forma

Amortization Annual Stub Fiscal Years Ending December 31,

($ in millions) Fee Period Expense 12/31/23 2024 2025 2026 2027 2028 2029 2030 2031 2032
Senior credit facility 3 $2.3 5.0 $0.5 $0.2 $0.5 $0.5 $0.5 $0.5 $0.2 – – – –
Subordinated note 3 – 7.0 – – – – – – – – – – –
Convertible bond 3 – 7.0 – – – – – – – – – – –
Total annual amortization $0.2 $0.5 $0.5 $0.5 $0.5 $0.2 – – – –

x Summary Credit Metrics

Stub Fiscal Years Ending December 31,
($ in millions) 12/31/23 2024 2025 2026 2027 2028 2029 2030 2031 2032
Capitalization

Total debt $568.8 $615.7 $654.2 $579.2 $579.2 $579.2 $579.2 $579.2 $579.2 $579.2
Net debt (854.8) (1,243.3) (1,705.6) (2,218.3) (2,771.4) (3,362.1) (4,008.1) (4,715.0) (5,488.8) (6,336.1)
Senior debt 75.0 75.0 75.0 – – – – – – –
Preferred stock 128.2 134.8 141.7 148.9 156.6 164.6 173.0 181.9 191.2 201.0
Total capitalization 3,987.3 4,470.3 5,036.1 5,568.3 6,264.5 7,057.0 7,928.5 8,886.5 9,939.2 11,095.7

Interest Expense

Senior interest expense $17.3 $17.2 $17.5 $17.7 $10.0 $10.0 $10.0 $10.0 $10.0 $10.0
Cash interest expense 17.3 17.2 30.3 72.7 65.0 65.0 65.0 65.0 65.0 65.0
Total interest expense 39.7 64.1 68.8 72.7 65.0 65.0 65.0 65.0 65.0 65.0
Fixed charges (total interest & preferred dividends) 46.1 77.2 82.6 87.2 80.3 81.1 81.9 82.8 83.7 84.6

Coverage

EBITDA $440.6 989.4 1,084.4 1,177.6 1,279.9 1,392.4 1,515.9 1,651.7 1,800.8 1,964.8
EBITDA / senior interest expense 25.5x 57.7x 62.1x 66.7x 128.0x 139.2x 151.6x 165.2x 180.1x 196.5x
EBITDA / cash interest expense 25.5x 57.7x 35.8x 16.2x 19.7x 21.4x 23.3x 25.4x 27.7x 30.2x
EBITDA / total interest expense 11.1x 15.4x 15.8x 16.2x 19.7x 21.4x 23.3x 25.4x 27.7x 30.2x
EBITDA / fixed charges 9.6x 12.8x 13.1x 13.5x 15.9x 17.2x 18.5x 20.0x 21.5x 23.2x

EBITDA – capex $331.7 $748.1 $820.3 $888.4 $963.3 $1,045.4 $1,135.7 $1,234.8 $1,343.8 $1,463.5
(EBITDA – capex) / senior interest expense 19.2x 43.6x 47.0x 50.3x 96.3x 104.5x 113.6x 123.5x 134.4x 146.3x
(EBITDA – capex) / cash interest expense 19.2x 43.6x 27.1x 12.2x 14.8x 16.1x 17.5x 19.0x 20.7x 22.5x
(EBITDA – capex) / total interest expense 8.4x 11.7x 11.9x 12.2x 14.8x 16.1x 17.5x 19.0x 20.7x 22.5x
(EBITDA – capex) / fixed charges 7.2x 9.7x 9.9x 10.2x 12.0x 12.9x 13.9x 14.9x 16.1x 17.3x

EBITDA – capex – Δ WC $384.1 $749.2 $821.3 $890.9 $966.0 $1,048.4 $1,139.0 $1,238.5 $1,347.8 $1,467.9
(EBITDA – capex – Δ WC) / senior interest expense 22.2x 43.7x 47.0x 50.5x 96.6x 104.8x 113.9x 123.8x 134.8x 146.8x
(EBITDA – capex – Δ WC) / cash interest expense 22.2x 43.7x 27.1x 12.3x 14.9x 16.1x 17.5x 19.0x 20.7x 22.6x
(EBITDA – capex – Δ WC) / total interest expense 9.7x 11.7x 11.9x 12.3x 14.9x 16.1x 17.5x 19.0x 20.7x 22.6x
(EBITDA – capex – Δ WC) / fixed charges 8.3x 9.7x 9.9x 10.2x 12.0x 12.9x 13.9x 15.0x 16.1x 17.3x

Leverage

Senior debt / total capitalization 1.88% 1.68% 1.49% – – – – – – –

Net debt / total capitalization NM NM NM NM NM NM NM NM NM NM

Senior debt / EBITDA 0.17x 0.08x 0.07x – – – – – – –

Total debt / EBITDA 1.29x 0.62x 0.60x 0.49x 0.45x 0.42x 0.38x 0.35x 0.32x 0.29x
Net debt / EBITDA NM NM NM NM NM NM NM NM NM NM
Net debt + preferred / EBITDA NM NM NM NM NM NM NM NM NM NM

Page 6 of 12
 Acquirer

Fractional years per period 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 0.5000 0.5000

x BuyerCo Income Statement

MRY Fiscal Years Ending December 31, Stub Periods
($ in millions) 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 6/30/23 12/31/23
Total revenue $2,929.2 $3,470.0 $3,856.0 $4,241.6 $4,665.8 $5,132.3 $5,645.6 $6,210.1 $6,831.1 $7,514.3 $8,265.7 $1,735.0 $1,735.0
COGS 1,812.8 2,113.5 2,347.8 2,582.6 2,840.8 3,124.9 3,437.4 3,781.2 4,159.3 4,575.2 5,032.7 1,056.8 1,056.8
Gross profit 1,116.4 1,356.5 1,508.2 1,659.0 1,824.9 2,007.4 2,208.2 2,429.0 2,671.9 2,939.1 3,233.0 678.3 678.3
SG&A 455.6 622.3 675.5 743.1 817.4 899.1 989.0 1,087.9 1,196.7 1,316.4 1,448.0 311.2 311.2
EBITDA 660.8 734.2 832.7 916.0 1,007.6 1,108.3 1,219.2 1,341.1 1,475.2 1,622.7 1,785.0 367.1 367.1
Depreciation 94.0 74.7 85.4 93.9 103.3 113.7 125.0 137.5 151.3 166.4 183.1 37.4 37.4
Amortization 62.0 62.0 62.0 62.0 62.0 36.7 – – – – – 31.0 31.0
Stock-based comp 54.4 53.7 59.6 65.6 72.1 79.3 87.3 96.0 105.6 116.1 127.8 26.9 26.9
EBIT 450.4 543.8 625.7 694.47 770.12 878.61 1,006.86 1,107.55 1,218.30 1,340.13 1,474.15 271.9 271.9
EBITA 566.8 659.5 747.3 822.0 904.2 994.7 1,094.1 1,203.5 1,323.9 1,456.3 1,601.9 329.8 329.8
Interest (income) / expense
Cash (3.1) (3.5) (4.5) (5.5) (6.6) (7.7) (9.0) (10.3) (11.8) (13.5) (1.5) (1.5)
Revolver – interest 12.8 – – – – – – – – – 6.4 6.4
Revolver – undrawn commitment fee 9.2 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 10.0 4.6 4.6
Senior credit facility 1 – – – – – – – – – – – –
Subordinated note 1 – – – – – – – – – – – –
Convertible bond 1 42.8 46.8 51.3 54.9 54.9 54.9 54.9 54.9 54.9 54.9 21.4 21.4
Interest (income) / expense (36.0) 61.7 53.3 56.8 59.4 58.3 57.2 56.0 54.6 53.1 51.4 30.8 30.8
Equity income in affiliates – – – – – – – – – – – – –
Other (income) / expense – – – – – – – – – – – – –
Income before taxes 486.4 482.1 572.4 637.7 710.7 820.3 949.7 1,051.6 1,163.7 1,287.1 1,422.8 241.1 241.1
Provision for tax 170.4 168.8 200.3 223.2 248.8 287.1 332.4 368.1 407.3 450.5 498.0 84.4 84.4
GAAP net income 316.0 313.4 372.1 414.5 462.0 533.2 617.3 683.5 756.4 836.6 924.8 156.7 156.7
Net income attributable to noncontrolling interests – – – – – – – – – – – – –
Preferred dividends – – – – – – – – – – – – –
GAAP net income available to common $316.0 $313.4 $372.1 $414.5 $462.0 $533.2 $617.3 $683.5 $756.4 $836.6 $924.8 $156.7 $156.7

GAAP to cash reconciliation

Amortization $40.3 $40.3 $40.3 $40.3 $40.3 $23.9 – – – – – $20.1 $20.1
Stock-based comp 35.3 34.9 38.7 42.6 46.9 51.6 56.7 62.4 68.6 75.5 83.0 17.5 17.5
One-time charges – – – – – – – – – – – – –
Cash net income available to common $391.6 $388.6 $451.1 $497.4 $549.2 $608.6 $674.0 $745.9 $825.0 $912.1 $1,007.8 $194.3 $194.3

GAAP diluted EPS $1.44 $1.43 $1.70 $1.89 $2.11 $2.43 $2.65 $2.94 $3.25 $3.59 $3.97 $0.71 $0.71
Cash diluted EPS $1.79 $1.77 $2.06 $2.27 $2.50 $2.77 $2.90 $3.21 $3.54 $3.92 $4.33 $0.89 $0.89

Capital expenditures $168.8 $203.6 $226.3 $248.9 $273.8 $301.2 $331.3 $364.5 $400.9 $441.0 $485.1 $101.8 $101.8
Common dividend per share $0.04 $0.04 $0.04 $0.04 $0.04 $0.04 $0.04 $0.04 $0.04 $0.04 $0.04 $0.02 $0.02

Key Performance Metrics & Drivers

Sales growth NA 18.5% 11.1% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% NA NA
GAAP earnings growth NA (0.8%) 18.7% 11.4% 11.5% 15.4% 15.8% 10.7% 10.7% 10.6% 10.5% NA NA
Cash earnings growth NA (0.8%) 16.1% 10.3% 10.4% 10.8% 10.7% 10.7% 10.6% 10.5% 10.5% NA NA

COGS / sales 61.9% 60.9% 60.9% 60.9% 60.9% 60.9% 60.9% 60.9% 60.9% 60.9% 60.9% 60.9% 60.9%
SG&A / sales 15.6% 17.9% 17.5% 17.5% 17.5% 17.5% 17.5% 17.5% 17.5% 17.5% 17.5% 17.9% 17.9%
Depreciation / sales 3.2% 2.2% 2.2% 2.2% 2.2% 2.2% 2.2% 2.2% 2.2% 2.2% 2.2% 2.2% 2.2%
Amortization / sales 2.1% 1.8% 1.6% 1.5% 1.3% 0.7% – – – – – 1.8% 1.8%
Stock-based comp / sales 1.9% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5% 1.5%
Capex / sales 5.8% 5.9% 5.9% 5.9% 5.9% 5.9% 5.9% 5.9% 5.9% 5.9% 5.9% 5.9% 5.9%

Gross margin 38.1% 39.1% 39.1% 39.1% 39.1% 39.1% 39.1% 39.1% 39.1% 39.1% 39.1% 39.1% 39.1%
EBITDA margin 22.6% 21.2% 21.6% 21.6% 21.6% 21.6% 21.6% 21.6% 21.6% 21.6% 21.6% 21.2% 21.2%
EBIT margin 15.4% 15.7% 16.2% 16.4% 16.5% 17.1% 17.8% 17.8% 17.8% 17.8% 17.8% 15.7% 15.7%
EBITA margin 19.3% 19.0% 19.4% 19.4% 19.4% 19.4% 19.4% 19.4% 19.4% 19.4% 19.4% 19.0% 19.0%
GAAP net margin 10.8% 9.0% 9.6% 9.8% 9.9% 10.4% 10.9% 11.0% 11.1% 11.1% 11.2% 9.0% 9.0%
Cash net margin 13.4% 11.2% 11.7% 11.7% 11.8% 11.9% 11.9% 12.0% 12.1% 12.1% 12.2% 11.2% 11.2%

ROIC 8.4% 10.5% 10.5% 10.3% 10.3% 10.4% 10.6% 10.3% 10.1% 9.9% 9.8% 11.1% 10.5%
ROE 11.6% 10.2% 10.6% 10.4% 10.3% 10.4% 10.6% 10.4% 10.2% 10.0% 9.8% 10.8% 10.2%
ROA 6.8% 6.2% 6.6% 6.6% 6.7% 7.0% 7.3% 7.3% 7.3% 7.2% 7.2% 6.5% 6.2%

Tax rate 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0%

x BuyerCo Balance Sheet

MRY Fiscal Years Ending December 31, Stub Periods
($ in millions) 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 6/30/23 12/31/23
Assets

Cash and equivalents $1,231.8 $1,401.6 $1,794.6 $2,213.8 $2,633.3 $3,089.1 $3,581.8 $4,129.1 $4,736.6 $5,410.2 $6,156.6 $1,234.4 $1,401.6
Accounts receivable 568.5 673.5 748.4 823.2 905.5 996.1 1,095.7 1,205.3 1,325.8 1,458.4 1,604.2 673.5 673.5
Inventory – – – – – – – – – – – – –
Deferred tax asset, current 109.0 129.1 143.4 157.8 173.6 190.9 210.0 231.0 254.1 279.5 307.5 129.1 129.1
Other current assets 123.5 143.9 159.9 175.9 193.5 212.8 234.1 257.5 283.3 311.6 342.8 143.9 143.9
Total current assets 2,032.7 2,348.0 2,846.3 3,370.7 3,905.8 4,488.9 5,121.6 5,822.9 6,599.8 7,459.7 8,411.0 2,180.9 2,348.0
PP&E, gross 415.8 619.4 845.7 1,094.6 1,368.4 1,669.6 2,000.9 2,365.4 2,766.3 3,207.3 3,692.4 517.6 619.4
( – ) Accumulated depreciation (19.5) (94.2) (179.6) (273.5) (376.9) (490.5) (615.6) (753.1) (904.4) (1,070.8) (1,253.9) (56.8) (94.2)
PP&E, net 396.3 525.2 666.1 821.1 991.6 1,179.1 1,385.4 1,612.3 1,861.9 2,136.5 2,438.5 460.7 525.2
Goodwill 1,487.6 1,487.6 1,487.6 1,487.6 1,487.6 1,487.6 1,487.6 1,487.6 1,487.6 1,487.6 1,487.6 1,487.6 1,487.6
Other intangible assets 284.7 222.7 160.7 98.7 36.7 – – – – – – 253.7 222.7
Equity investments – – – – – – – – – – – – –
Unearned compensation – – – – – – – – – – – – –
Other assets 464.0 464.0 464.0 464.0 464.0 464.0 464.0 464.0 464.0 464.0 464.0 464.0 464.0
Total assets $4,665.4 $5,047.6 $5,624.8 $6,242.1 $6,885.8 $7,619.7 $8,458.7 $9,386.9 $10,413.4 $11,547.9 $12,801.2 $4,847.0 $5,047.6

Liabilities & Shareholders' Equity

Accounts payable $186.1 $217.0 $241.1 $265.2 $291.7 $320.9 $353.0 $388.2 $427.1 $469.8 $516.8 $217.0 $217.0
Accrued expenses 395.3 460.9 512.0 563.2 619.5 681.4 749.6 824.5 907.0 997.7 1,097.4 460.9 460.9
Client deposits – – – – – – – – – – – – –
Income taxes payable 35.9 41.8 46.5 51.1 56.2 61.9 68.0 74.8 82.3 90.6 99.6 41.8 41.8
Deferred revenue 209.2 247.9 275.4 303.0 333.3 366.6 403.3 443.6 487.9 536.7 590.4 247.9 247.9
Other current liabilities – – – – – – – – – – – – –
Current portion of long-term debt 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2 2.2
Total current liabilities 828.7 969.7 1,077.1 1,184.6 1,302.8 1,432.9 1,576.0 1,733.4 1,906.5 2,096.9 2,306.4 969.7 969.7
Revolver 160.0 – – – – – – – – – – – –
Senior credit facility 1 – – – – – – – – – – – – –
Subordinated note 1 – – – – – – – – – – – – –
Convertible bond 1 450.0 492.8 539.6 578.0 578.0 578.0 578.0 578.0 578.0 578.0 578.0 471.4 492.8
Net deferred tax liability / (asset) – – – – – – – – – – – – –
Other liabilities 503.0 503.0 503.0 503.0 503.0 503.0 503.0 503.0 503.0 503.0 503.0 503.0 503.0
Total liabilities 1,941.7 1,965.5 2,119.7 2,265.6 2,383.8 2,513.9 2,657.0 2,814.4 2,987.5 3,177.9 3,387.4 1,944.1 1,965.5
Noncontrolling interests – – – – – – – – – – – – –
Preferred stock 1 – – – – – – – – – – – – –
Common stock, par value 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9 3.9
Additional paid-in capital (APIC) 2,212.7 2,266.4 2,326.0 2,391.6 2,463.7 2,543.0 2,630.3 2,726.3 2,831.8 2,948.0 3,075.7 2,239.5 2,266.4
Treasury stock (774.7) (774.7) (774.7) (774.7) (774.7) (774.7) (774.7) (774.7) (774.7) (774.7) (774.7) (774.7) (774.7)
Accum. & other comp. income / (loss) 6.6 6.6 6.6 6.6 6.6 6.6 6.6 6.6 6.6 6.6 6.6 6.6 6.6
Retained earnings 1,275.2 1,580.0 1,943.4 2,349.2 2,802.5 3,327.0 3,935.7 4,610.5 5,358.3 6,186.2 7,102.4 1,427.6 1,580.0
Total liabilities & shareholders' equity $4,665.4 $5,047.6 $5,624.8 $6,242.1 $6,885.8 $7,619.7 $8,458.7 $9,386.9 $10,413.4 $11,547.9 $12,801.2 $4,847.0 $5,047.6

Check – – – – – – – – – – – – –

x BuyerCo Cash Flow Statement

MRY Fiscal Years Ending December 31, Stub Periods
($ in millions) 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 6/30/23 12/31/23
Operating Activities

Net income $313.4 $372.1 $414.5 $462.0 $533.2 $617.3 $683.5 $756.4 $836.6 $924.8 $156.7 $156.7
Depreciation 74.7 85.4 93.9 103.3 113.7 125.0 137.5 151.3 166.4 183.1 37.4 37.4
Amortization of intangibles 62.0 62.0 62.0 62.0 36.7 – – – – – 31.0 31.0
Amortization of capitalized financing costs – – – – – – – – – – – –
Stock-based compensation 53.7 59.6 65.6 72.1 79.3 87.3 96.0 105.6 116.1 127.8 26.9 26.9
Equity income in affiliates – – – – – – – – – – – –
Cash dividends from equity investments – – – – – – – – – – – –
PIK accrual – Convertible bond 1 42.8 46.8 38.4 – – – – – – – 21.4 21.4
PIK accrual – Preferred stock 1 – – – – – – – – – – – –
Income statement adjustments 233.2 253.8 259.9 237.5 229.7 212.3 233.5 256.9 282.6 310.8 116.6 116.6
(Increase) / decrease in working capital (4.5) 2.1 2.3 2.6 2.8 3.1 3.4 3.7 4.1 4.5 (4.5) –
Increase / (decrease) in net DTL – – – – – – – – – – – –
(Increase) / decrease in other assets – – – – – – – – – – – –
Increase / (decrease) in other liabilities – – – – – – – – – – – –
Balance sheet adjustments (4.5) 2.1 2.3 2.6 2.8 3.1 3.4 3.7 4.1 4.5 (4.5) –
Cash flow from operating activities $542.0 $628.0 $676.8 $702.0 $765.7 $832.7 $920.5 $1,017.0 $1,123.3 $1,240.1 $268.7 $273.3

Investing Activities

Capital expenditures ($203.6) ($226.3) ($248.9) ($273.8) ($301.2) ($331.3) ($364.5) ($400.9) ($441.0) ($485.1) ($101.8) ($101.8)
Proceeds from the sale of assets – – – – – – – – – – – –
Cash flow from investing activities ($203.6) ($226.3) ($248.9) ($273.8) ($301.2) ($331.3) ($364.5) ($400.9) ($441.0) ($485.1) ($101.8) ($101.8)

Financing Activities

Revolver ($160.0) – – – – – – – – – ($160.0) –

Senior credit facility 1 – – – – – – – – – – – –
Subordinated note 1 – – – – – – – – – – – –
Convertible bond 1 – – – – – – – – – – – –
Preferred stock 1 – – – – – – – – – – – –
Cash dividend (8.7) (8.7) (8.7) (8.7) (8.7) (8.7) (8.7) (8.7) (8.7) (8.7) (4.3) (4.3)
Cash flow from financing activities ($168.7) ($8.7) ($8.7) ($8.7) ($8.7) ($8.7) ($8.7) ($8.7) ($8.7) ($8.7) ($164.3) ($4.3)

Change in cash $169.8 $393.0 $419.2 $419.5 $455.8 $492.7 $547.3 $607.5 $673.6 $746.4 $2.6 $167.1

x BuyerCo Working Capital

MRY Fiscal Years Ending December 31, Stub Periods
($ in millions) 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 6/30/23 12/31/23
Net Working Capital

Accounts receivable $568.5 $673.5 $748.4 $823.2 $905.5 $996.1 $1,095.7 $1,205.3 $1,325.8 $1,458.4 $1,604.2 $673.5 $673.5
Inventory – – – – – – – – – – – – –
Deferred tax asset, current 109.0 129.1 143.4 157.8 173.6 190.9 210.0 231.0 254.1 279.5 307.5 129.1 129.1
Other current assets 123.5 143.9 159.9 175.9 193.5 212.8 234.1 257.5 283.3 311.6 342.8 143.9 143.9
Non-cash current assets 800.9 946.5 1,051.7 1,156.9 1,272.6 1,399.8 1,539.8 1,693.8 1,863.2 2,049.5 2,254.4 946.5 946.5
Accounts payable 186.1 217.0 241.1 265.2 291.7 320.9 353.0 388.2 427.1 469.8 516.8 217.0 217.0
Accrued expenses 395.3 460.9 512.0 563.2 619.5 681.4 749.6 824.5 907.0 997.7 1,097.4 460.9 460.9
Client deposits – – – – – – – – – – – – –
Income taxes payable 35.9 41.8 46.5 51.1 56.2 61.9 68.0 74.8 82.3 90.6 99.6 41.8 41.8
Deferred revenue 209.2 247.9 275.4 303.0 333.3 366.6 403.3 443.6 487.9 536.7 590.4 247.9 247.9
Other current liabilities – – – – – – – – – – – – –
Non-debt current liabilities 826.5 967.6 1,074.9 1,182.4 1,300.7 1,430.7 1,573.8 1,731.2 1,904.3 2,094.7 2,304.2 967.6 967.6
Net working capital ($25.6) ($21.1) ($23.2) ($25.5) ($28.1) ($30.9) ($34.0) ($37.4) ($41.1) ($45.2) ($49.8) ($21.1) ($21.1)

Working Capital Drivers

Sales $2,929.2 $3,470.0 $3,856.0 $4,241.6 $4,665.8 $5,132.3 $5,645.6 $6,210.1 $6,831.1 $7,514.3 $8,265.7 $1,735.0 $1,735.0
COGS 1,812.8 2,113.5 2,347.8 2,582.6 2,840.8 3,124.9 3,437.4 3,781.2 4,159.3 4,575.2 5,032.7 1,056.8 1,056.8
Purchases 2,113.5 2,347.8 2,582.6 2,840.8 3,124.9 3,437.4 3,781.2 4,159.3 4,575.2 5,032.7 1,056.8 1,056.8
Selector
Accounts receivable / sales 1 19.41% 19.41% 19.41% 19.41% 19.41% 19.41% 19.41% 19.41% 19.41% 19.41% 19.41% 19.41% 19.41%
Inventory / COGS 2 – – – – – – – – – – – – –
Deferred tax asset, current / sales 1 3.72% 3.72% 3.72% 3.72% 3.72% 3.72% 3.72% 3.72% 3.72% 3.72% 3.72% 3.72% 3.72%
Other current assets / COGS 2 6.81% 6.81% 6.81% 6.81% 6.81% 6.81% 6.81% 6.81% 6.81% 6.81% 6.81% 6.81% 6.81%

Accounts payable / COGS 2 10.27% 10.27% 10.27% 10.27% 10.27% 10.27% 10.27% 10.27% 10.27% 10.27% 10.27% 10.27% 10.27%
Accrued expenses / COGS 2 21.81% 21.81% 21.81% 21.81% 21.81% 21.81% 21.81% 21.81% 21.81% 21.81% 21.81% 21.81% 21.81%
Client deposits / sales 1 – – – – – – – – – – – – –
Income taxes payable / COGS 2 1.98% 1.98% 1.98% 1.98% 1.98% 1.98% 1.98% 1.98% 1.98% 1.98% 1.98% 1.98% 1.98%
Deferred revenue / sales 1 7.14% 7.14% 7.14% 7.14% 7.14% 7.14% 7.14% 7.14% 7.14% 7.14% 7.14% 7.14% 7.14%
Other current liabilities / COGS 2 – – – – – – – – – – – – –

Accounts receivable days 65.3 67.3 67.6 67.6 67.6 67.6 67.6 67.6 67.6 67.6 65.3 65.3
Accounts payable days 34.8 35.6 35.8 35.8 35.8 35.8 35.8 35.8 35.8 35.8 34.8 34.8
Inventory days – – – – – – – – – – – –
Inventory turnover NA NA NA NA NA NA NA NA NA NA NA NA

x BuyerCo Equity Investments

MRY Fiscal Years Ending December 31, Stub Periods
($ in millions) 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 6/30/23 12/31/23
Equity income in affiliates – – – – – – – – – – – –
( – ) Cash dividends received from equity investments – – – – – – – – – – – –
Undistributed earnings – – – – – – – – – – – –

Dividends Received Deduction (DRD) 80.0%

Current taxes payable – – – – – – – – – – – –

Deferred tax expense No – – – – – – – – – – – –
Income tax expense – – – – – – – – – – – –

Tax benefit from DRD – – – – – – – – – – – –

x BuyerCo Debt Schedule

MRY Fiscal Years Ending December 31, Stub Periods
($ in millions) 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 6/30/23 12/31/23
Beginning cash balance $1,231.8 $1,401.6 $1,794.6 $2,213.8 $2,633.3 $3,089.1 $3,581.8 $4,129.1 $4,736.6 $5,410.2 $1,231.8 $1,234.4
( – ) Minimum cash balance (1,200.0) (1,200.0) (1,200.0) (1,200.0) (1,200.0) (1,200.0) (1,200.0) (1,200.0) (1,200.0) (1,200.0) (1,200.0) (1,200.0)
Excess cash / (cash deficit) 31.8 201.6 594.6 1,013.8 1,433.3 1,889.1 2,381.8 2,929.1 3,536.6 4,210.2 31.8 34.4
( + ) Cash flow available for debt service 329.8 393.0 419.2 419.5 455.8 492.7 547.3 607.5 673.6 746.4 162.6 167.1
Total cash available for debt service 361.6 594.6 1,013.8 1,433.3 1,889.1 2,381.8 2,929.1 3,536.6 4,210.2 4,956.6 194.4 201.6
Senior credit facility 1 – – – – – – – – – – – –
Subordinated note 1 – – – – – – – – – – – –
Convertible bond 1 – – – – – – – – – – – –
( – ) Scheduled debt repayment – – – – – – – – – – – –
Cash available for sweep / (revolver draw-down) $361.6 $594.6 $1,013.8 $1,433.3 $1,889.1 $2,381.8 $2,929.1 $3,536.6 $4,210.2 $4,956.6 $194.4 $201.6

Optional debt repayment

Revolver ($160.0) – – – – – – – – – ($160.0) –
Senior credit facility 1 – – – – – – – – – – – –
Subordinated note 1 – – – – – – – – – – – –
Total optional debt repayment ($160.0) – – – – – – – – – ($160.0) –

Scheduled Debt Amortization (%)

Senior credit facility 1 – – – – – – – – – – – –

Subordinated note 1 – – – – – – – – – – – –

Debt Schedule

Revolver
Beginning balance $160.0 – – – – – – – – – $160.0 –
( + ) Revolver draw-down – – – – – – – – – – – –
( – ) Revolver pay-down (160.0) – – – – – – – – – (160.0) –
Ending balance $160.0 – – – – – – – – – – – –

Bank revolver commitment $2,000.0 $2,000.0 $2,000.0 $2,000.0 $2,000.0 $2,000.0 $2,000.0 $2,000.0 $2,000.0 $2,000.0 $2,000.0 $2,000.0 $2,000.0
Undrawn revolver balance $1,840.0 $2,000.0 $2,000.0 $2,000.0 $2,000.0 $2,000.0 $2,000.0 $2,000.0 $2,000.0 $2,000.0 $2,000.0 $2,000.0 $2,000.0

Senior credit facility 1

Beginning balance – – – – – – – – – – – –
( – ) Mandatory repayment – – – – – – – – – – – –
( – ) Optional repayment – – – – – – – – – – – –
Ending balance – – – – – – – – – – – – –

Subordinated note 1
Beginning balance – – – – – – – – – – – –
( – ) Scheduled maturity – – – – – – – – – – – –
( – ) Optional repayment – – – – – – – – – – – –
Ending balance – – – – – – – – – – – – –

Convertible bond 1
Beginning balance $450.0 $492.8 $539.6 $578.0 $578.0 $578.0 $578.0 $578.0 $578.0 $578.0 $450.0 $471.4
( + ) PIK accretion 42.8 46.8 38.4 – – – – – – – 21.4 21.4
( – ) Scheduled maturity – – – – – – – – – – – –
Ending balance $450.0 $492.8 $539.6 $578.0 $578.0 $578.0 $578.0 $578.0 $578.0 $578.0 $578.0 $471.4 $492.8

Preferred stock 1
Beginning balance – – – – – – – – – – – –
( + ) PIK accretion – – – – – – – – – – – –
( – ) Retirement – – – – – – – – – – – –
Ending balance – – – – – – – – – – – – –

Interest Rates

LIBOR 3.74% 4.16% 4.57% 4.83% 4.98% 5.11% 5.22% 5.31% 5.40% 5.49% 3.74% 3.74%
Cash 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25%
Undrawn commitment fee 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50%

Revolver 7.99% 8.41% 8.82% 9.08% 9.23% 9.36% 9.47% 9.56% 9.65% 9.74% 7.99% 7.99%
Senior credit facility 1 8.49% 8.91% 9.32% 9.58% 9.73% 9.86% 9.97% 10.06% 10.15% 10.24% 8.49% 8.49%
Subordinated note 1 8.25% 8.25% 8.25% 8.25% 8.25% 8.25% 8.25% 8.25% 8.25% 8.25% 8.25% 8.25%
Convertible bond 1 9.50% 9.50% 9.50% 9.50% 9.50% 9.50% 9.50% 9.50% 9.50% 9.50% 9.50% 9.50%
Preferred stock 1 10.25% 10.25% 10.25% 10.25% 10.25% 10.25% 10.25% 10.25% 10.25% 10.25% 10.25% 10.25%

Interest Expense / Preferred Dividends

Undrawn commitment fee $9.2 $10.0 $10.0 $10.0 $10.0 $10.0 $10.0 $10.0 $10.0 $10.0 $4.6 $4.6

Revolver $12.8 – – – – – – – – – $6.4 $6.4

Senior credit facility 1 – – – – – – – – – – – –
Subordinated note 1 – – – – – – – – – – – –
Convertible bond 1 $42.8 $42.8 $46.8 $51.3 $54.9 $54.9 $54.9 $54.9 $54.9 $54.9 $54.9 $21.4 $21.4
Preferred stock 1 – – – – – – – – – – – – –

Senior interest expense $22.0 $10.0 $10.0 $10.0 $10.0 $10.0 $10.0 $10.0 $10.0 $10.0 $11.0 $11.0
Cash interest expense $22.0 $10.0 $22.8 $64.9 $64.9 $64.9 $64.9 $64.9 $64.9 $64.9 $11.0 $11.0
Total interest expense $64.7 $56.8 $61.3 $64.9 $64.9 $64.9 $64.9 $64.9 $64.9 $64.9 $32.4 $32.4
Convertible preferred dividends – – – – – – – – – – – –
Straight preferred dividends – – – – – – – – – – – –
Total preferred dividends – – – – – – – – – – – –

Interest & Dividends Paid-in-Kind (PIK)

Revolver – – – – – – – – – – – –
Senior credit facility 1 – – – – – – – – – – – –
Subordinated note 1 – – – – – – – – – – – –
Convertible bond 1 100.0% 100.0% 75.0% – – – – – – – 100.0% 100.0%
Preferred stock 1 – – – – – – – – – – – –

Debt Triggers

Fixed Rate / Spread to Senior Preferred Convertible Conversion Cash

Coupon LIBOR Debt? Security? Security? Price Sweep
Revolver – 4.25% Yes No No – 100.0%
Senior credit facility 1 – 4.75% Yes No No – 100.0%
Subordinated note 1 8.25% – No No No – –
Convertible bond 1 9.50% – No No Yes $43.12 –
Preferred stock 1 10.25% – No Yes No – –

x BuyerCo Depreciation Schedule

MRY Fiscal Years Ending December 31, Stub Periods
($ in millions) 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 6/30/23 12/31/23
Capital expenditures $203.6 $226.3 $248.9 $273.8 $301.2 $331.3 $364.5 $400.9 $441.0 $485.1

Book Depreciation (straight-line)

Useful life (yrs) 20.0

Midpoint convention Yes

2023 $203.6 $5.1 $10.2 $10.2 $10.2 $10.2 $10.2 $10.2 $10.2 $10.2 $10.2
2024 $226.3 5.7 11.3 11.3 11.3 11.3 11.3 11.3 11.3 11.3
2025 $248.9 6.2 12.4 12.4 12.4 12.4 12.4 12.4 12.4
2026 $273.8 6.8 13.7 13.7 13.7 13.7 13.7 13.7
2027 $301.2 7.5 15.1 15.1 15.1 15.1 15.1
2028 $331.3 8.3 16.6 16.6 16.6 16.6
2029 $364.5 9.1 18.2 18.2 18.2
2030 $400.9 10.0 20.0 20.0
2031 $441.0 11.0 22.0
2032 $485.1 12.1
Book depreciation of capex $5.1 $15.8 $27.7 $40.8 $55.2 $71.0 $88.4 $107.5 $128.6 $151.7 $2.5 $2.5
( + ) Book depreciation of existing fixed assets 69.6 69.6 66.2 62.5 58.5 54.1 49.2 43.8 37.9 31.4 34.8 34.8
Total book depreciation expense $74.7 $85.4 $93.9 $103.3 $113.7 $125.0 $137.5 $151.3 $166.4 $183.1 $37.4 $37.4

MACRS Depreciation

Property class (yrs) 20.0

2023 $203.6 $7.6 $14.7 $13.6 $12.6 $11.6 $10.8 $10.0 $9.2 $9.1 $9.1
2024 $226.3 8.5 16.3 15.1 14.0 12.9 12.0 11.1 10.2 10.1
2025 $248.9 9.3 18.0 16.6 15.4 14.2 13.2 12.2 11.3
2026 $273.8 10.3 19.8 18.3 16.9 15.6 14.5 13.4
2027 $301.2 11.3 21.7 20.1 18.6 17.2 15.9

Page 7 of 12
 2028 $331.3 12.4 23.9 22.1 20.5 18.9 Acquirer
2029 $364.5 13.7 26.3 24.3 22.5
2030 $400.9 15.0 28.9 26.8
2031 $441.0 16.5 31.8
2032 $485.1 18.2
MACRS depreciation of capex $7.6 $23.2 $39.3 $55.9 $73.3 $91.5 $110.7 $131.1 $153.4 $178.0 $3.8 $3.8

Tax Depreciation

Use MACRS depreciation of capex? No

Tax depreciation of capex $5.1 $15.8 $27.7 $40.8 $55.2 $71.0 $88.4 $107.5 $128.6 $151.7 $2.5 $2.5
( + ) Tax depreciation of existing fixed assets 69.6 69.6 66.2 62.5 58.5 54.1 49.2 43.8 37.9 31.4 34.8 34.8
Total tax depreciation expense $74.7 $85.4 $93.9 $103.3 $113.7 $125.0 $137.5 $151.3 $166.4 $183.1 $37.4 $37.4

x BuyerCo Tax Schedule

MRY Fiscal Years Ending December 31, Stub Periods
($ in millions) 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 6/30/23 12/31/23
*** SOME OR ALL OF THIS SECTION MAY NOT APPLY OUTSIDE THE UNITED STATES ***

Federal tax rate 33.0% 33.0% 33.0% 33.0% 33.0% 33.0% 33.0% 33.0% 33.0% 33.0% 33.0% 33.0%
State and local tax rate 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0%
Blended tax rate 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0%

Cash Taxes & Net DTL

EBITDA $734.2 $832.7 $916.0 $1,007.6 $1,108.3 $1,219.2 $1,341.1 $1,475.2 $1,622.7 $1,785.0 $367.1 $367.1
( – ) Tax depreciation (74.7) (85.4) (93.9) (103.3) (113.7) (125.0) (137.5) (151.3) (166.4) (183.1) (37.4) (37.4)
( – ) Tax amortization of intangible assets (62.0) (62.0) (62.0) (62.0) (36.7) – – – – – (31.0) (31.0)
( – ) Tax amortization of tax-deductible goodwill – – – – – – – – – – – –
( – ) Stock-based compensation (53.7) (59.6) (65.6) (72.1) (79.3) (87.3) (96.0) (105.6) (116.1) (127.8) (26.9) (26.9)
( + ) Interest income / (expense) (61.7) (53.3) (56.8) (59.4) (58.3) (57.2) (56.0) (54.6) (53.1) (51.4) (30.8) (30.8)
( + ) Distributed equity income in affiliates – – – – – – – – – – – –
( + ) Other income / (expense) – – – – – – – – – – – –
Total taxable income 482.1 572.4 637.7 710.7 820.3 949.7 1,051.6 1,163.7 1,287.1 1,422.8 241.1 241.1
( – ) NOL used – – – – – – – – – – – –
State and local taxable income 482.1 572.4 637.7 710.7 820.3 949.7 1,051.6 1,163.7 1,287.1 1,422.8 241.1 241.1
( – ) State and local cash taxes (14.5) (17.2) (19.1) (21.3) (24.6) (28.5) (31.5) (34.9) (38.6) (42.7) (7.2) (7.2)
Federal taxable income $467.7 $555.2 $618.6 $689.4 $795.7 $921.2 $1,020.0 $1,128.8 $1,248.5 $1,380.1 $233.8 $233.8

Federal cash taxes $154.3 $183.2 $204.1 $227.4 $262.5 $303.9 $336.5 $372.4 $411.9 $455.3 $77.1 $77.1
( + ) State and local cash taxes 14.5 17.2 19.1 21.3 24.6 28.5 31.5 34.9 38.6 42.7 7.2 7.2
Total cash taxes payable 168.8 200.3 223.2 248.8 287.1 332.4 368.1 407.3 450.5 498.0 84.4 84.4
( + ) Deferred tax expense / (benefit) – – – – – – – – – – – –
Book tax expense $168.8 $200.3 $223.2 $248.8 $287.1 $332.4 $368.1 $407.3 $450.5 $498.0 $84.4 $84.4

Net DTL – beginning balance – – – – – – – – – – – –

Increase / (decrease) in net DTL – – – – – – – – – – – –
Net DTL– ending balance – – – – – – – – – – – – –

Acquired NOL Subject to Section 382

Annual Sec. 382 NOL deduction limit – – – – – – – – – – – – –

Remaining NOL life (yrs) – – – – – – – – – – – – –

Acquired NOL subject to Sec. 382

Beginning balance – – – – – – – – – – – –
( – ) NOL used – – – – – – – – – – – –
( – ) NOL expired – – – – – – – – – – – –
Ending balance – – – – – – – – – – – – –

Unused limitation carryforward

Beginning balance – – – – – – – – – – – –
( + ) Carryforward created – – – – – – – – – – – –
( – ) Carryforward used – – – – – – – – – – – –
Ending balance – – – – – – – – – – – – –

Unencumbered NOL

Remaining NOL life (yrs) – – – – – – – – – – – – –

NOL – beginning balance – – – – – – – – – – – –

( + ) NOL created – – – – – – – – – – – –
( – ) NOL used – – – – – – – – – – – –
( – ) NOL expired – – – – – – – – – – – –
NOL – ending balance – – – – – – – – – – – – –

DTA attributable to NOL

DTA attributable to NOL – beginning balance – – – – – – – – – – – –

Increase / (decrease) in DTA attributable to NOL – – – – – – – – – – – –
DTA attributable to NOL – ending balance – – – – – – – – – – – – –

Alternative Minimum Tax (AMT)

*** SOME OR ALL OF THIS SECTION MAY NOT APPLY OUTSIDE THE UNITED STATES ***
Corporate AMT tax rate 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0%
Maximum taxable income offset 90.0% 90.0% 90.0% 90.0% 90.0% 90.0% 90.0% 90.0% 90.0% 90.0% 90.0% 90.0%
Effective AMT tax rate 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%

Federal tax at statutory rate (post-NOL) $154.3 $183.2 $204.1 $227.4 $262.5 $303.9 $336.5 $372.4 $411.9 $455.3 $77.1 $77.1
Alternative minimum tax (before credits) 9.4 11.1 12.4 13.8 15.9 18.4 20.4 22.6 25.0 27.6 4.7 4.7

Tax payable before AMT credit used $154.3 $183.2 $204.1 $227.4 $262.5 $303.9 $336.5 $372.4 $411.9 $455.3 $77.1 $77.1
( – ) AMT tax credit used – – – – – – – – – – – –
Federal cash taxes $154.3 $183.2 $204.1 $227.4 $262.5 $303.9 $336.5 $372.4 $411.9 $455.3 $77.1 $77.1
Effective federal cash tax rate 33.0% 33.0% 33.0% 33.0% 33.0% 33.0% 33.0% 33.0% 33.0% 33.0% 33.0% 33.0%

AMT tax credit carryforward

AMT tax credit – beginning balance – – – – – – – – – – – –
( + ) AMT tax credit generated – – – – – – – – – – – –
( – ) AMT tax credit used – – – – – – – – – – – –
AMT tax credit – ending balance – – – – – – – – – – – – –

x BuyerCo Shares Outstanding

MRY Fiscal Years Ending December 31, Stub Periods
($ in millions) 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 6/30/23 12/31/23
Stock Options

Current share price $31.71

Options Exercisable
Number of Average Treasury
Options Strike Method
Tranche 1 0.270 $2.31 0.250
Tranche 2 1.548 12.31 0.947
Tranche 3 2.855 22.00 0.874
Tranche 4 2.431 25.07 0.509
Tranche 5 2.182 27.88 0.264
Tranche 6 3.394 31.31 0.043
Tranche 7 2.678 34.35 –
Tranche 8 2.138 38.63 –
Tranche 9 2.631 52.72 –
Tranche 10 0.329 70.00 –
Total Treasury Method shares 2.887

Convertible Securities

Face value
Convertible bond 1 $450.0 $492.8 $539.6 $578.0 $578.0 $578.0 $578.0 $578.0 $578.0 $578.0 $578.0 $471.4 $492.8
Preferred stock 1 – – – – – – – – – – – – –

Conversion price
Convertible bond 1 $43.12 $43.12 $43.12 $43.12 $43.12 $43.12 $43.12 $43.12 $43.12 $43.12 $43.12 $43.12 $43.12
Preferred stock 1 – – – – – – – – – – – – –

Convertible shares
Convertible bond 1 10.436 11.427 12.513 13.405 13.405 13.405 13.405 13.405 13.405 13.405 13.405 10.932 11.427
Preferred stock 1 – – – – – – – – – – – – –

EPS if converted
Convertible bond 1 $1.52 $1.50 $1.76 $1.95 $2.17 $2.47 $2.84 $3.13 $3.45 $3.80 $4.18 $0.75 $0.75
Preferred stock 1 $1.46 $1.45 $1.72 $1.92 $2.13 $2.46 $2.85 $3.16 $3.49 $3.87 $4.27 $0.72 $0.72

Basic EPS $1.46 $1.45 $1.72 $1.92 $2.13 $2.46 $2.85 $3.16 $3.49 $3.87 $4.27 $0.72 $0.72

Is conversion dilutive?
Convertible bond 1 No No No No No No Yes Yes Yes Yes Yes No No
Preferred stock 1 No No No No No No No No No No No No No

Fully Diluted Shares Outstanding

Basic shares outstanding (BSO) 216.443 216.443 216.443 216.443 216.443 216.443 216.443 216.443 216.443 216.443 216.443 216.443 216.443
( + ) In-the-money Treasury Method option shares 2.887 2.887 2.887 2.887 2.887 2.887 2.887 2.887 2.887 2.887 2.887 2.887 2.887
( + ) Shares from Convertible bond 1 – – – – – – 13.405 13.405 13.405 13.405 13.405 – –
( + ) Shares from Preferred stock 1 – – – – – – – – – – – – –
Fully diluted shares outstanding (FDSO) 219.330 219.330 219.330 219.330 219.330 219.330 232.735 232.735 232.735 232.735 232.735 219.330 219.330

x BuyerCo Summary Credit Metrics

MRY Fiscal Years Ending December 31, Stub Periods
($ in millions) 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 6/30/23 12/31/23
Capitalization

Total debt $492.8 $539.6 $578.0 $578.0 $578.0 $578.0 $578.0 $578.0 $578.0 $578.0 $471.4 $492.8
Net debt (908.8) (1,255.0) (1,635.8) (2,055.3) (2,511.1) (3,003.8) (3,551.1) (4,158.6) (4,832.2) (5,578.6) (763.0) (908.8)
Senior debt – – – – – – – – – – – –
Preferred stock – – – – – – – – – – – –
Total capitalization 3,574.9 4,044.7 4,554.5 5,080.0 5,683.8 6,379.7 7,150.6 8,003.9 8,948.0 9,991.9 3,374.3 3,574.9

Interest Expense

Senior interest expense $22.0 $10.0 $10.0 $10.0 $10.0 $10.0 $10.0 $10.0 $10.0 $10.0 $11.0 $11.0
Cash interest expense 22.0 10.0 22.8 64.9 64.9 64.9 64.9 64.9 64.9 64.9 11.0 11.0
Total interest expense 64.7 56.8 61.3 64.9 64.9 64.9 64.9 64.9 64.9 64.9 32.4 32.4
Fixed charges (total interest & preferred dividends) 64.7 56.8 61.3 64.9 64.9 64.9 64.9 64.9 64.9 64.9 32.4 32.4
`
Coverage

EBITDA $734.2 $832.7 $916.0 $1,007.6 $1,108.3 $1,219.2 $1,341.1 $1,475.2 $1,622.7 $1,785.0 $367.1 $367.1
EBITDA / senior interest expense 33.4x 83.3x 91.6x 100.8x 110.8x 121.9x 134.1x 147.5x 162.3x 178.5x 33.4x 33.4x
EBITDA / cash interest expense 33.4x 83.3x 40.1x 15.5x 17.1x 18.8x 20.7x 22.7x 25.0x 27.5x 33.4x 33.4x
EBITDA / total interest expense 11.3x 14.7x 15.0x 15.5x 17.1x 18.8x 20.7x 22.7x 25.0x 27.5x 11.3x 11.3x
EBITDA / fixed charges 11.3x 14.7x 15.0x 15.5x 17.1x 18.8x 20.7x 22.7x 25.0x 27.5x 11.3x 11.3x

EBITDA – capex $530.6 $606.4 $667.0 $733.7 $807.1 $887.8 $976.6 $1,074.3 $1,181.7 $1,299.9 $265.3 $265.3
(EBITDA – capex) / senior interest expense 24.1x 60.6x 66.7x 73.4x 80.7x 88.8x 97.7x 107.4x 118.2x 130.0x 24.1x 24.1x
(EBITDA – capex) / cash interest expense 24.1x 60.6x 29.2x 11.3x 12.4x 13.7x 15.0x 16.6x 18.2x 20.0x 24.1x 24.1x
(EBITDA – capex) / total interest expense 8.2x 10.7x 10.9x 11.3x 12.4x 13.7x 15.0x 16.6x 18.2x 20.0x 8.2x 8.2x
(EBITDA – capex) / fixed charges 8.2x 10.7x 10.9x 11.3x 12.4x 13.7x 15.0x 16.6x 18.2x 20.0x 8.2x 8.2x

EBITDA – capex – Δ WC $526.1 $608.5 $669.4 $736.3 $809.9 $890.9 $980.0 $1,078.0 $1,185.8 $1,304.4 $260.8 $265.3
(EBITDA – capex – Δ WC) / senior interest expense 23.9x 60.9x 66.9x 73.6x 81.0x 89.1x 98.0x 107.8x 118.6x 130.4x 23.7x 24.1x
(EBITDA – capex – Δ WC) / cash interest expense 23.9x 60.9x 29.3x 11.3x 12.5x 13.7x 15.1x 16.6x 18.3x 20.1x 23.7x 24.1x
(EBITDA – capex – Δ WC) / total interest expense 8.1x 10.7x 10.9x 11.3x 12.5x 13.7x 15.1x 16.6x 18.3x 20.1x 8.1x 8.2x
(EBITDA – capex – Δ WC) / fixed charges 8.1x 10.7x 10.9x 11.3x 12.5x 13.7x 15.1x 16.6x 18.3x 20.1x 8.1x 8.2x

Leverage

Senior debt / total capitalization – – – – – – – – – – – –

Net debt / total capitalization NM NM NM NM NM NM NM NM NM NM NM NM

Senior debt / EBITDA – – – – – – – – – – – –

Total debt / EBITDA 0.67x 0.65x 0.63x 0.57x 0.52x 0.47x 0.43x 0.39x 0.36x 0.32x 1.28x 1.34x
Net debt / EBITDA NM NM NM NM NM NM NM NM NM NM NM NM
Net debt + preferred / EBITDA NM NM NM NM NM NM NM NM NM NM NM NM

Page 8 of 12
 Target

Fractional years per period 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 1.0000 0.5000 0.5000

x TargetCo Income Statement

MRY Fiscal Years Ending December 31, Stub Periods
($ in millions) 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 6/30/23 12/31/23
Total revenue $440.8 $468.0 $470.5 $475.2 $480.0 $484.8 $489.6 $494.5 $499.4 $504.4 $509.5 $234.0 $234.0
COGS 234.4 249.8 252.2 254.7 257.3 259.8 262.4 265.1 267.7 270.4 273.1 124.9 124.9
Gross profit 206.4 218.2 218.3 220.5 222.7 224.9 227.2 229.4 231.7 234.0 236.4 109.1 109.1
SG&A 79.6 91.7 92.4 93.3 94.3 95.2 96.2 97.1 98.1 99.1 100.1 45.9 45.9
EBITDA 126.8 126.5 125.9 127.2 128.4 129.7 131.0 132.3 133.6 135.0 136.3 63.2 63.2
Depreciation 14.0 14.1 14.1 14.2 14.4 14.5 14.7 14.8 15.0 15.1 15.3 7.1 7.1
Amortization 11.6 11.6 11.6 11.6 2.7 – – – – – – 5.8 5.8
Stock-based comp 10.8 10.6 10.7 10.8 10.9 11.0 11.1 11.2 11.4 11.5 11.6 5.3 5.3
EBIT 90.4 90.2 89.5 90.5 100.4 104.2 105.2 106.3 107.3 108.4 109.5 45.1 45.1
EBITA 112.8 112.4 111.8 112.9 114.0 115.2 116.3 117.5 118.7 119.9 121.1 56.2 56.2
Interest (income) / expense
Cash (0.4) (0.6) (0.8) (0.9) (1.1) (1.2) (1.4) (1.5) (1.7) (1.8) (0.2) (0.2)
Revolver – interest 1.2 – – – – – – – – – 0.6 0.6
Revolver – undrawn commitment fee 0.4 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.5 0.2 0.2
Senior credit facility 2 – – – – – – – – – – – –
Subordinated note 2 3.8 3.8 3.8 3.8 3.8 3.8 3.8 3.8 3.8 3.8 1.9 1.9
Convertible bond 2 18.1 18.9 19.8 20.7 21.2 21.2 21.2 21.2 21.2 21.2 9.0 9.0
Interest (income) / expense 19.0 23.0 22.6 23.3 24.1 24.4 24.2 24.1 24.0 23.8 23.7 11.5 11.5
Equity income in affiliates – – – – – – – – – – – – –
Other (income) / expense – – – – – – – – – – – – –
Income before taxes 71.4 67.2 66.9 67.2 76.4 79.8 81.0 82.2 83.4 84.6 85.8 33.6 33.6
Provision for tax 28.4 26.9 26.8 26.9 30.6 31.9 32.4 32.9 33.3 33.8 34.3 13.4 13.4
GAAP net income 43.0 40.3 40.2 40.3 45.8 47.9 48.6 49.3 50.0 50.8 51.5 20.1 20.1
Net income attributable to noncontrolling interests – – – – – – – – – – – – –
Preferred dividends – – – – – – – – – – – – –
GAAP net income available to common $43.0 $40.3 $40.2 $40.3 $45.8 $47.9 $48.6 $49.3 $50.0 $50.8 $51.5 $20.1 $20.1

GAAP to cash reconciliation

Amortization $7.0 $7.0 $7.0 $7.0 $1.6 – – – – – – $3.5 $3.5
Stock-based comp 6.5 6.4 6.4 6.5 6.5 6.6 6.7 6.7 6.8 6.9 7.0 3.2 3.2
One-time charges – – – – – – – – – – – – –
Cash net income available to common $56.5 $53.6 $53.5 $53.8 $54.0 $54.5 $55.3 $56.0 $56.8 $57.6 $58.4 $26.8 $26.8

GAAP diluted EPS $1.22 $1.14 $1.14 $1.14 $1.30 $1.35 $1.37 $1.39 $1.42 $1.44 $1.46 $0.57 $0.57
Cash diluted EPS $1.60 $1.52 $1.51 $1.52 $1.53 $1.54 $1.56 $1.59 $1.61 $1.63 $1.65 $0.76 $0.76

Capital expenditures $15.2 $14.1 $15.0 $15.2 $15.3 $15.5 $15.6 $15.8 $15.9 $16.1 $16.2 $7.1 $7.1
Common dividend per share – – – – – – – – – – – – –

Key Performance Metrics & Drivers

Sales growth NA 6.2% 0.5% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% NA NA
GAAP earnings growth NA (6.3%) (0.4%) 0.4% 13.6% 4.4% 1.5% 1.5% 1.5% 1.5% 1.5% NA NA
Cash earnings growth NA (5.1%) (0.2%) 0.4% 0.4% 0.9% 1.4% 1.4% 1.4% 1.4% 1.4% NA NA

COGS / sales 53.2% 53.4% 53.6% 53.6% 53.6% 53.6% 53.6% 53.6% 53.6% 53.6% 53.6% 53.4% 53.4%
SG&A / sales 18.1% 19.6% 19.6% 19.6% 19.6% 19.6% 19.6% 19.6% 19.6% 19.6% 19.6% 19.6% 19.6%
Depreciation / sales 3.2% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0%
Amortization / sales 2.6% 2.5% 2.5% 2.4% 0.6% – – – – – – 2.5% 2.5%
Stock-based comp / sales 2.5% 2.3% 2.3% 2.3% 2.3% 2.3% 2.3% 2.3% 2.3% 2.3% 2.3% 2.3% 2.3%
Capex / sales 3.4% 3.0% 3.2% 3.2% 3.2% 3.2% 3.2% 3.2% 3.2% 3.2% 3.2% 3.0% 3.0%

Gross margin 46.8% 46.6% 46.4% 46.4% 46.4% 46.4% 46.4% 46.4% 46.4% 46.4% 46.4% 46.6% 46.6%
EBITDA margin 28.8% 27.0% 26.8% 26.8% 26.8% 26.8% 26.8% 26.8% 26.8% 26.8% 26.8% 27.0% 27.0%
EBIT margin 20.5% 19.3% 19.0% 19.0% 20.9% 21.5% 21.5% 21.5% 21.5% 21.5% 21.5% 19.3% 19.3%
EBITA margin 25.6% 24.0% 23.8% 23.8% 23.8% 23.8% 23.8% 23.8% 23.8% 23.8% 23.8% 24.0% 24.0%
GAAP net margin 9.8% 8.6% 8.5% 8.5% 9.5% 9.9% 9.9% 10.0% 10.0% 10.1% 10.1% 8.6% 8.6%
Cash net margin 12.8% 11.5% 11.4% 11.3% 11.3% 11.2% 11.3% 11.3% 11.4% 11.4% 11.5% 11.5% 11.5%

ROIC 17.0% 15.5% 13.4% 12.0% 11.8% 11.1% 10.2% 9.5% 8.9% 8.3% 7.8% 16.7% 15.5%
ROE 38.0% 24.5% 18.7% 15.2% 14.2% 12.5% 11.0% 9.8% 8.9% 8.1% 7.5% 29.1% 24.5%
ROA 9.3% 7.5% 6.7% 6.1% 6.3% 6.1% 5.7% 5.4% 5.2% 4.9% 4.7% 8.1% 7.5%

Tax rate 39.8% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0%

x TargetCo Balance Sheet

MRY Fiscal Years Ending December 31, Stub Periods
($ in millions) 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 6/30/23 12/31/23
Assets

Cash and equivalents $157.1 $235.7 $308.1 $379.2 $442.3 $499.6 $557.7 $616.7 $676.5 $737.1 $798.5 $187.3 $235.7
Accounts receivable 136.4 144.9 145.6 147.1 148.6 150.0 151.5 153.1 154.6 156.1 157.7 144.9 144.9
Inventory – – – – – – – – – – – – –
Deferred tax asset, current 8.8 9.4 9.4 9.5 9.6 9.7 9.8 9.9 10.0 10.1 10.2 9.4 9.4
Other current assets 8.2 8.8 8.8 8.9 9.0 9.1 9.2 9.3 9.4 9.5 9.6 8.8 8.8
Total current assets 310.6 398.7 472.0 544.7 609.5 668.5 728.3 789.0 850.5 912.8 976.0 350.3 398.7
PP&E, gross 44.0 58.1 73.1 88.3 103.6 119.0 134.6 150.4 166.3 182.4 198.6 51.1 58.1
( – ) Accumulated depreciation (6.0) (20.1) (34.2) (48.5) (62.9) (77.4) (92.1) (106.9) (121.8) (137.0) (152.2) (13.1) (20.1)
PP&E, net 38.0 38.0 38.9 39.8 40.7 41.6 42.6 43.5 44.5 45.4 46.4 38.0 38.0
Goodwill 61.1 61.1 61.1 61.1 61.1 61.1 61.1 61.1 61.1 61.1 61.1 61.1 61.1
Other intangible assets 37.5 25.9 14.3 2.7 – – – – – – – 31.7 25.9
Equity investments – – – – – – – – – – – – –
Unearned compensation – – – – – – – – – – – – –
Other assets 14.3 14.3 14.3 14.3 14.3 14.3 14.3 14.3 14.3 14.3 14.3 14.3 14.3
Total assets $461.4 $538.0 $600.5 $662.6 $725.5 $785.5 $846.2 $907.8 $970.3 $1,033.6 $1,097.8 $495.3 $538.0

Liabilities & Shareholders' Equity

Accounts payable $20.7 $22.0 $22.2 $22.5 $22.7 $22.9 $23.1 $23.4 $23.6 $23.8 $24.1 $22.0 $22.0
Accrued expenses 15.4 16.4 16.5 16.7 16.9 17.0 17.2 17.4 17.6 17.7 17.9 16.4 16.4
Client deposits – – – – – – – – – – – – –
Income taxes payable 2.9 3.1 3.2 3.2 3.2 3.3 3.3 3.3 3.4 3.4 3.4 3.1 3.1
Deferred revenue 20.0 21.2 21.4 21.6 21.8 22.0 22.2 22.5 22.7 22.9 23.1 21.2 21.2
Other current liabilities 36.2 38.6 38.9 39.3 39.7 40.1 40.5 40.9 41.3 41.7 42.2 38.6 38.6
Current portion of long-term debt – – – – – – – – – – – – –
Total current liabilities 95.2 101.3 102.2 103.3 104.3 105.3 106.4 107.4 108.5 109.6 110.7 101.3 101.3
Revolver 15.0 – – – – – – – – – – – –
Senior credit facility 2 – – – – – – – – – – – – –
Subordinated note 2 45.5 45.5 45.5 45.5 45.5 45.5 45.5 45.5 45.5 45.5 45.5 45.5 45.5
Convertible bond 2 190.0 199.0 208.5 218.4 223.6 223.6 223.6 223.6 223.6 223.6 223.6 194.5 199.0
Net deferred tax liability / (asset) (15.4) 10.0 11.4 11.4 11.4 11.4 11.4 11.4 11.4 11.4 11.4 (2.6) 10.0
Other long-term liabilities 17.9 17.9 17.9 17.9 17.9 17.9 17.9 17.9 17.9 17.9 17.9 17.9 17.9
Total liabilities 348.2 373.8 385.5 396.4 402.6 403.7 404.7 405.8 406.9 408.0 409.1 356.6 373.8
Noncontrolling interests – – – – – – – – – – – – –
Preferred stock 2 – – – – – – – – – – – – –
Common stock, par value 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6 0.6
Additional paid-in capital (APIC) 366.1 376.7 387.4 398.3 409.2 420.2 431.3 442.6 453.9 465.4 477.0 371.4 376.7
Treasury stock (667.9) (667.9) (667.9) (667.9) (667.9) (667.9) (667.9) (667.9) (667.9) (667.9) (667.9) (667.9) (667.9)
Accum. & other comp. income / (loss) (0.4) (0.4) (0.4) (0.4) (0.4) (0.4) (0.4) (0.4) (0.4) (0.4) (0.4) (0.4) (0.4)
Retained earnings 414.7 455.0 495.2 535.5 581.4 629.2 677.8 727.1 777.1 827.9 879.4 434.9 455.0
Total liabilities & shareholders' equity $461.4 $538.0 $600.5 $662.6 $725.5 $785.5 $846.2 $907.8 $970.3 $1,033.6 $1,097.8 $495.3 $538.0

Check – – – – – – – – – – – – –

x TargetCo Cash Flow Statement

MRY Fiscal Years Ending December 31, Stub Periods
($ in millions) 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 6/30/23 12/31/23
Operating Activities

Net income $40.3 $40.2 $40.3 $45.8 $47.9 $48.6 $49.3 $50.0 $50.8 $51.5 $20.1 $20.1
Depreciation 14.1 14.1 14.2 14.4 14.5 14.7 14.8 15.0 15.1 15.3 7.1 7.1
Amortization of intangibles 11.6 11.6 11.6 2.7 – – – – – – 5.8 5.8
Amortization of capitalized financing costs – – – – – – – – – – – –
Stock-based compensation 10.6 10.7 10.8 10.9 11.0 11.1 11.2 11.4 11.5 11.6 5.3 5.3
Equity income in affiliates – – – – – – – – – – – –
Cash dividends from equity investments – – – – – – – – – – – –
PIK accrual – Convertible bond 2 9.0 9.5 9.9 5.2 – – – – – – 4.5 4.5
PIK accrual – Preferred stock 2 – – – – – – – – – – – –
Income statement adjustments 45.3 45.9 46.6 33.2 25.6 25.8 26.1 26.3 26.6 26.9 22.7 22.7
(Increase) / decrease in working capital (3.3) (0.0) (0.6) (0.6) (0.6) (0.6) (0.6) (0.6) (0.7) (0.7) (3.3) –
Increase / (decrease) in net DTL 25.4 1.3 – – – – – – – – 12.8 12.7
(Increase) / decrease in other assets – – – – – – – – – – – –
Increase / (decrease) in other liabilities – – – – – – – – – – – –
Balance sheet adjustments 22.1 1.3 (0.6) (0.6) (0.6) (0.6) (0.6) (0.6) (0.7) (0.7) 9.4 12.7
Cash flow from operating activities $107.7 $87.3 $86.3 $78.4 $72.8 $73.7 $74.7 $75.7 $76.7 $77.7 $52.2 $55.5

Investing Activities

Capital expenditures ($14.1) ($15.0) ($15.2) ($15.3) ($15.5) ($15.6) ($15.8) ($15.9) ($16.1) ($16.2) ($7.1) ($7.1)
Proceeds from the sale of assets – – – – – – – – – – – –
Cash flow from investing activities ($14.1) ($15.0) ($15.2) ($15.3) ($15.5) ($15.6) ($15.8) ($15.9) ($16.1) ($16.2) ($7.1) ($7.1)

Financing Activities

Revolver ($15.0) – – – – – – – – – ($15.0) –

Senior credit facility 2 – – – – – – – – – – – –
Subordinated note 2 – – – – – – – – – – – –
Convertible bond 2 – – – – – – – – – – – –
Preferred stock 2 – – – – – – – – – – – –
Common dividend – – – – – – – – – – – –
Cash flow from financing activities ($15.0) – – – – – – – – – ($15.0) –

Change in cash $78.6 $72.3 $71.1 $63.1 $57.3 $58.1 $59.0 $59.8 $60.6 $61.4 $30.2 $48.4

x TargetCo Working Capital

MRY Fiscal Years Ending December 31, Stub Periods
($ in millions) 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 6/30/23 12/31/23
Net Working Capital

Accounts receivable $136.4 $144.9 $145.6 $147.1 $148.6 $150.0 $151.5 $153.1 $154.6 $156.1 $157.7 $144.9 $144.9
Inventory – – – – – – – – – – – – –
Deferred tax asset, current 8.8 9.4 9.4 9.5 9.6 9.7 9.8 9.9 10.0 10.1 10.2 9.4 9.4
Other current assets 8.2 8.8 8.8 8.9 9.0 9.1 9.2 9.3 9.4 9.5 9.6 8.8 8.8
Non-cash current assets 153.5 163.0 163.9 165.5 167.2 168.9 170.6 172.3 174.0 175.7 177.5 163.0 163.0
Accounts payable 20.7 22.0 22.2 22.5 22.7 22.9 23.1 23.4 23.6 23.8 24.1 22.0 22.0
Accrued expenses 15.4 16.4 16.5 16.7 16.9 17.0 17.2 17.4 17.6 17.7 17.9 16.4 16.4
Client deposits – – – – – – – – – – – – –
Income taxes payable 2.9 3.1 3.2 3.2 3.2 3.3 3.3 3.3 3.4 3.4 3.4 3.1 3.1
Deferred revenue 20.0 21.2 21.4 21.6 21.8 22.0 22.2 22.5 22.7 22.9 23.1 21.2 21.2
Other current liabilities 36.2 38.6 38.9 39.3 39.7 40.1 40.5 40.9 41.3 41.7 42.2 38.6 38.6
Non-debt current liabilities 95.2 101.3 102.2 103.3 104.3 105.3 106.4 107.4 108.5 109.6 110.7 101.3 101.3
Net working capital $58.3 $61.7 $61.7 $62.3 $62.9 $63.5 $64.2 $64.8 $65.5 $66.1 $66.8 $61.7 $61.7

Working Capital Drivers

Sales $440.8 $468.0 $470.5 $475.2 $480.0 $484.8 $489.6 $494.5 $499.4 $504.4 $509.5 $234.0 $234.0
COGS 234.4 249.8 252.2 254.7 257.3 259.8 262.4 265.1 267.7 270.4 273.1 124.9 124.9
Purchases 249.8 252.2 254.7 257.3 259.8 262.4 265.1 267.7 270.4 273.1 124.9 124.9
Selector
Accounts receivable / sales 1 30.95% 30.95% 30.95% 30.95% 30.95% 30.95% 30.95% 30.95% 30.95% 30.95% 30.95% 30.95% 30.95%
Inventory / COGS 2 – – – – – – – – – – – – –
Deferred tax asset, current / sales 1 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00% 2.00%
Other current assets / COGS 2 3.51% 3.51% 3.51% 3.51% 3.51% 3.51% 3.51% 3.51% 3.51% 3.51% 3.51% 3.51% 3.51%

Accounts payable / COGS 2 8.81% 8.81% 8.81% 8.81% 8.81% 8.81% 8.81% 8.81% 8.81% 8.81% 8.81% 8.81% 8.81%
Accrued expenses / COGS 2 6.56% 6.56% 6.56% 6.56% 6.56% 6.56% 6.56% 6.56% 6.56% 6.56% 6.56% 6.56% 6.56%
Client deposits / sales 1 – – – – – – – – – – – – –
Income taxes payable / COGS 2 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25% 1.25%
Deferred revenue / sales 1 4.54% 4.54% 4.54% 4.54% 4.54% 4.54% 4.54% 4.54% 4.54% 4.54% 4.54% 4.54% 4.54%
Other current liabilities / COGS 2 15.44% 15.44% 15.44% 15.44% 15.44% 15.44% 15.44% 15.44% 15.44% 15.44% 15.44% 15.44% 15.44%

Accounts receivable days 109.7 112.7 112.4 112.4 112.4 112.4 112.4 112.4 112.4 112.4 109.7 109.7
Accounts payable days 31.2 32.0 32.0 32.0 32.0 32.0 32.0 32.0 32.0 32.0 31.2 31.2
Inventory days – – – – – – – – – – – –
Inventory turnover NA NA NA NA NA NA NA NA NA NA NA NA

x TargetCo Equity Investments

MRY Fiscal Years Ending December 31, Stub Periods
($ in millions) 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 6/30/23 12/31/23
Equity income in affiliates – – – – – – – – – – – –
( – ) Cash dividends received from equity investments – – – – – – – – – – – –
Undistributed earnings – – – – – – – – – – – –

Dividends Received Deduction (DRD) 80.0%

Current taxes payable – – – – – – – – – – – –

Deferred tax expense No – – – – – – – – – – – –
Income tax expense – – – – – – – – – – – –

Tax benefit from DRD – – – – – – – – – – – –

x TargetCo Debt Schedule

MRY Fiscal Years Ending December 31, Stub Periods
($ in millions) 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 6/30/23 12/31/23
Beginning cash balance $157.1 $235.7 $308.1 $379.2 $442.3 $499.6 $557.7 $616.7 $676.5 $737.1 $157.1 $187.3
( – ) Minimum cash balance (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0) (100.0)
Excess cash / (cash deficit) 57.1 135.7 208.1 279.2 342.3 399.6 457.7 516.7 576.5 637.1 57.1 87.3
( + ) Cash flow available for debt service 93.6 72.3 71.1 63.1 57.3 58.1 59.0 59.8 60.6 61.4 45.2 48.4
Total cash available for debt service 150.7 208.1 279.2 342.3 399.6 457.7 516.7 576.5 637.1 698.5 102.3 135.7
Senior credit facility 2 – – – – – – – – – – – –
Subordinated note 2 – – – – – – – – – – – –
Convertible bond 2 – – – – – – – – – – – –
( – ) Scheduled debt repayment – – – – – – – – – – – –
Cash available for sweep / (revolver draw-down) $150.7 $208.1 $279.2 $342.3 $399.6 $457.7 $516.7 $576.5 $637.1 $698.5 $102.3 $135.7

Optional debt repayment

Revolver ($15.0) – – – – – – – – – ($15.0) –
Senior credit facility 2 – – – – – – – – – – – –
Subordinated note 2 – – – – – – – – – – – –
Total optional debt repayment ($15.0) – – – – – – – – – ($15.0) –

Scheduled Debt Amortization (%)

Senior credit facility 2 – – – – – – – – – – – –

Subordinated note 2 – – – – – – – – – – – –

Debt Schedule

Revolver
Beginning balance $15.0 – – – – – – – – – $15.0 –
( + ) Revolver draw-down – – – – – – – – – – – –
( – ) Revolver pay-down (15.0) – – – – – – – – – (15.0) –
Ending balance $15.0 – – – – – – – – – – – –

Bank revolver commitment $100.0 $100.0 $100.0 $100.0 $100.0 $100.0 $100.0 $100.0 $100.0 $100.0 $100.0 $100.0 $100.0
Undrawn revolver balance $85.0 $100.0 $100.0 $100.0 $100.0 $100.0 $100.0 $100.0 $100.0 $100.0 $100.0 $100.0 $100.0

Senior credit facility 2

Beginning balance – – – – – – – – – – – –
( – ) Mandatory repayment – – – – – – – – – – – –
( – ) Optional repayment – – – – – – – – – – – –
Ending balance – – – – – – – – – – – – –

Subordinated note 2
Beginning balance $45.5 $45.5 $45.5 $45.5 $45.5 $45.5 $45.5 $45.5 $45.5 $45.5 $45.5 $45.5
( – ) Scheduled maturity – – – – – – – – – – – –
( – ) Optional repayment – – – – – – – – – – – –
Ending balance $45.5 $45.5 $45.5 $45.5 $45.5 $45.5 $45.5 $45.5 $45.5 $45.5 $45.5 $45.5 $45.5

Convertible bond 2
Beginning balance $190.0 $199.0 $208.5 $218.4 $223.6 $223.6 $223.6 $223.6 $223.6 $223.6 $190.0 $194.5
( + ) PIK accretion 9.0 9.5 9.9 5.2 – – – – – – 4.5 4.5
( – ) Scheduled maturity – – – – – – – – – – – –
Ending balance $190.0 $199.0 $208.5 $218.4 $223.6 $223.6 $223.6 $223.6 $223.6 $223.6 $223.6 $194.5 $199.0

Preferred stock 2
Beginning balance – – – – – – – – – – – –
( + ) PIK accretion – – – – – – – – – – – –
( – ) Retirement – – – – – – – – – – – –
Ending balance – – – – – – – – – – – – –

Interest Rates

LIBOR 3.74% 4.16% 4.57% 4.83% 4.98% 5.11% 5.22% 5.31% 5.40% 5.49% 3.74% 3.74%
Cash 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25% 0.25%
Undrawn commitment fee 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50% 0.50%

Revolver 7.99% 8.41% 8.82% 9.08% 9.23% 9.36% 9.47% 9.56% 9.65% 9.74% 7.99% 7.99%
Senior credit facility 2 8.49% 8.91% 9.32% 9.58% 9.73% 9.86% 9.97% 10.06% 10.15% 10.24% 8.49% 8.49%
Subordinated note 2 8.25% 8.25% 8.25% 8.25% 8.25% 8.25% 8.25% 8.25% 8.25% 8.25% 8.25% 8.25%
Convertible bond 2 9.50% 9.50% 9.50% 9.50% 9.50% 9.50% 9.50% 9.50% 9.50% 9.50% 9.50% 9.50%
Preferred stock 2 10.25% 10.25% 10.25% 10.25% 10.25% 10.25% 10.25% 10.25% 10.25% 10.25% 10.25% 10.25%

Interest Expense / Preferred Dividends

Undrawn commitment fee $0.4 $0.5 $0.5 $0.5 $0.5 $0.5 $0.5 $0.5 $0.5 $0.5 $0.2 $0.2

Revolver $1.2 – – – – – – – – – $0.6 $0.6

Senior credit facility 2 – – – – – – – – – – – –
Subordinated note 2 $3.8 $3.8 $3.8 $3.8 $3.8 $3.8 $3.8 $3.8 $3.8 $3.8 $1.9 $1.9
Convertible bond 2 $18.1 $18.1 $18.9 $19.8 $20.7 $21.2 $21.2 $21.2 $21.2 $21.2 $21.2 $9.0 $9.0
Preferred stock 2 – – – – – – – – – – – – –

Senior interest expense $1.6 $0.5 $0.5 $0.5 $0.5 $0.5 $0.5 $0.5 $0.5 $0.5 $0.8 $0.8
Cash interest expense $14.4 $13.7 $14.2 $19.8 $25.5 $25.5 $25.5 $25.5 $25.5 $25.5 $7.2 $7.2
Total interest expense $23.4 $23.2 $24.1 $25.0 $25.5 $25.5 $25.5 $25.5 $25.5 $25.5 $11.7 $11.7
Convertible preferred dividends – – – – – – – – – – – –
Straight preferred dividends – – – – – – – – – – – –
Total preferred dividends – – – – – – – – – – – –

Interest & Dividends Paid-in-Kind (PIK)

Revolver – – – – – – – – – – – –
Senior credit facility 2 – – – – – – – – – – – –
Subordinated note 2 – – – – – – – – – – – –
Convertible bond 2 50.0% 50.0% 50.0% 25.0% – – – – – – 50.0% 50.0%
Preferred stock 2 – – – – – – – – – – – –

Debt Triggers

Fixed Rate / Spread to Senior Preferred Convertible Conversion Cash

Coupon LIBOR Debt? Security? Security? Price Sweep
Revolver – 4.25% Yes No No – 100.0%
Senior credit facility 2 – 4.75% Yes No No – 100.0%
Subordinated note 2 8.25% – No No No – –
Convertible bond 2 9.50% – No No Yes $26.77 –
Preferred stock 2 10.25% – No Yes No – –

x TargetCo Depreciation Schedule

MRY Fiscal Years Ending December 31, Stub Periods
($ in millions) 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 6/30/23 12/31/23
Capital expenditures $14.1 $15.0 $15.2 $15.3 $15.5 $15.6 $15.8 $15.9 $16.1 $16.2

Book Depreciation (straight-line)

Useful life (yrs) 10.0

Midpoint convention Yes

2023 $14.1 $0.7 $1.4 $1.4 $1.4 $1.4 $1.4 $1.4 $1.4 $1.4 $1.4
2024 $15.0 0.8 1.5 1.5 1.5 1.5 1.5 1.5 1.5 1.5
2025 $15.2 0.8 1.5 1.5 1.5 1.5 1.5 1.5 1.5
2026 $15.3 0.8 1.5 1.5 1.5 1.5 1.5 1.5
2027 $15.5 0.8 1.5 1.5 1.5 1.5 1.5
2028 $15.6 0.8 1.6 1.6 1.6 1.6
2029 $15.8 0.8 1.6 1.6 1.6
2030 $15.9 0.8 1.6 1.6
2031 $16.1 0.8 1.6
2032 $16.2 0.8
Book depreciation of capex $0.7 $2.2 $3.7 $5.2 $6.7 $8.3 $9.8 $11.4 $13.0 $14.7 $0.4 $0.4
( + ) Book depreciation of existing fixed assets 13.4 11.9 10.6 9.2 7.8 6.4 5.0 3.5 2.1 0.6 6.7 6.7
Total book depreciation expense $14.1 $14.1 $14.2 $14.4 $14.5 $14.7 $14.8 $15.0 $15.1 $15.3 $7.1 $7.1

MACRS Depreciation

Property class (yrs) 10.0

2023 $14.1 $1.4 $2.5 $2.0 $1.6 $1.3 $1.0 $0.9 $0.9 $0.9 $0.9
2024 $15.0 1.5 2.7 2.2 1.7 1.4 1.1 1.0 1.0 1.0
2025 $15.2 1.5 2.7 2.2 1.7 1.4 1.1 1.0 1.0
2026 $15.3 1.5 2.8 2.2 1.8 1.4 1.1 1.0
2027 $15.5 1.5 2.8 2.2 1.8 1.4 1.1

Page 9 of 12
 2028 $15.6 1.6 2.8 2.2 1.8 1.4 Target
2029 $15.8 1.6 2.8 2.3 1.8
2030 $15.9 1.6 2.9 2.3
2031 $16.1 1.6 2.9
2032 $16.2 1.6
MACRS depreciation of capex $1.4 $4.0 $6.2 $8.0 $9.5 $10.7 $11.8 $12.9 $14.0 $15.1 $0.7 $0.7

Tax Depreciation

Use MACRS depreciation of capex? No

Tax depreciation of capex $0.7 $2.2 $3.7 $5.2 $6.7 $8.3 $9.8 $11.4 $13.0 $14.7 $0.4 $0.4
( + ) Tax depreciation of existing fixed assets 13.4 11.9 10.6 9.2 7.8 6.4 5.0 3.5 2.1 0.6 6.7 6.7
Total tax depreciation expense $14.1 $14.1 $14.2 $14.4 $14.5 $14.7 $14.8 $15.0 $15.1 $15.3 $7.1 $7.1

x TargetCo Tax Schedule

MRY Fiscal Years Ending December 31, Stub Periods
($ in millions) 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 6/30/23 12/31/23
*** SOME OR ALL OF THIS SECTION MAY NOT APPLY OUTSIDE THE UNITED STATES ***

Federal tax rate 38.1% 38.1% 38.1% 38.1% 38.1% 38.1% 38.1% 38.1% 38.1% 38.1% 38.1% 38.1%
State and local tax rate 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0% 3.0%
Blended tax rate 39.8% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0% 40.0%

Cash Taxes & Net DTL

EBITDA $126.5 $125.9 $127.2 $128.4 $129.7 $131.0 $132.3 $133.6 $135.0 $136.3 $63.2 $63.2
( – ) Tax depreciation (14.1) (14.1) (14.2) (14.4) (14.5) (14.7) (14.8) (15.0) (15.1) (15.3) (7.1) (7.1)
( – ) Tax amortization of intangible assets (11.6) (11.6) (11.6) (2.7) – – – – – – (5.8) (5.8)
( – ) Tax amortization of tax-deductible goodwill – – – – – – – – – – – –
( – ) Stock-based compensation (10.6) (10.7) (10.8) (10.9) (11.0) (11.1) (11.2) (11.4) (11.5) (11.6) (5.3) (5.3)
( + ) Interest income / (expense) (23.0) (22.6) (23.3) (24.1) (24.4) (24.2) (24.1) (24.0) (23.8) (23.7) (11.5) (11.5)
( + ) Distributed equity income in affiliates – – – – – – – – – – – –
( + ) Other income / (expense) – – – – – – – – – – – –
Total taxable income 67.2 66.9 67.2 76.4 79.8 81.0 82.2 83.4 84.6 85.8 33.6 33.6
( – ) NOL used (64.2) – – – – – – – – – (33.6) (30.6)
State and local taxable income 3.0 66.9 67.2 76.4 79.8 81.0 82.2 83.4 84.6 85.8 – 3.0
( – ) State and local cash taxes (0.1) (2.0) (2.0) (2.3) (2.4) (2.4) (2.5) (2.5) (2.5) (2.6) – (0.1)
Federal taxable income $2.9 $64.9 $65.2 $74.1 $77.4 $78.5 $79.7 $80.9 $82.1 $83.3 – $2.9

Federal cash taxes $1.3 $23.4 $24.9 $28.3 $29.5 $30.0 $30.4 $30.8 $31.3 $31.8 $0.7 $0.7
( + ) State and local cash taxes 0.1 2.0 2.0 2.3 2.4 2.4 2.5 2.5 2.5 2.6 – 0.1
Total cash taxes payable 1.4 25.4 26.9 30.6 31.9 32.4 32.9 33.3 33.8 34.3 0.7 0.8
( + ) Deferred tax expense / (benefit) 25.4 1.3 – – – – – – – – 12.8 12.7
Book tax expense $26.9 $26.8 $26.9 $30.6 $31.9 $32.4 $32.9 $33.3 $33.8 $34.3 $13.4 $13.4

Net DTL – beginning balance ($15.4) $10.0 $11.4 $11.4 $11.4 $11.4 $11.4 $11.4 $11.4 $11.4 ($15.4) ($2.6)
Increase / (decrease) in net DTL 25.4 1.3 – – – – – – – – 12.8 12.7
Net DTL– ending balance ($15.4) $10.0 $11.4 $11.4 $11.4 $11.4 $11.4 $11.4 $11.4 $11.4 $11.4 ($2.6) $10.0

Acquired NOL Subject to Section 382

Annual Sec. 382 NOL deduction limit – – – – – – – – – – – – –

Remaining NOL life (yrs) – – – – – – – – – – – – –

Acquired NOL subject to Sec. 382

Beginning balance – – – – – – – – – – – –
( – ) NOL used – – – – – – – – – – – –
( – ) NOL expired – – – – – – – – – – – –
Ending balance – – – – – – – – – – – – –

Unused limitation carryforward

Beginning balance – – – – – – – – – – – –
( + ) Carryforward created – – – – – – – – – – – –
( – ) Carryforward used – – – – – – – – – – – –
Ending balance – – – – – – – – – – – – –

Unencumbered NOL

Remaining NOL life (yrs) 15.00 14.00 13.00 12.00 11.00 10.00 9.00 8.00 7.00 6.00 5.00 14.50 14.00

NOL – beginning balance $64.2 – – – – – – – – – $64.2 $30.6

( + ) NOL created – – – – – – – – – – – –
( – ) NOL used (64.2) – – – – – – – – – (33.6) (30.6)
( – ) NOL expired – – – – – – – – – – – –
NOL – ending balance $64.2 – – – – – – – – – – $30.6 –

DTA attributable to NOL

DTA attributable to NOL – beginning balance $25.7 – – – – – – – – – $25.7 $12.2

Increase / (decrease) in DTA attributable to NOL (25.7) – – – – – – – – – (13.4) (12.2)
DTA attributable to NOL – ending balance $25.7 – – – – – – – – – – $12.2 –

Alternative Minimum Tax (AMT)

*** SOME OR ALL OF THIS SECTION MAY NOT APPLY OUTSIDE THE UNITED STATES ***
Corporate AMT tax rate 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0% 20.0%
Maximum taxable income offset 90.0% 90.0% 90.0% 90.0% 90.0% 90.0% 90.0% 90.0% 90.0% 90.0% 90.0% 90.0%
Effective AMT tax rate 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%

Federal tax at statutory rate (post-NOL) $1.1 $24.8 $24.9 $28.3 $29.5 $30.0 $30.4 $30.8 $31.3 $31.8 – $1.1
Alternative minimum tax (before credits) 1.3 1.3 1.3 1.5 1.5 1.6 1.6 1.6 1.6 1.7 0.7 0.7

Tax payable before AMT credit used $1.3 $24.8 $24.9 $28.3 $29.5 $30.0 $30.4 $30.8 $31.3 $31.8 $0.7 $1.1
( – ) AMT tax credit used – (1.3) – – – – – – – – – (0.4)
Federal cash taxes $1.3 $23.4 $24.9 $28.3 $29.5 $30.0 $30.4 $30.8 $31.3 $31.8 $0.7 $0.7
Effective federal cash tax rate 2.0% 36.1% 38.1% 38.1% 38.1% 38.1% 38.1% 38.1% 38.1% 38.1% 2.0% 2.0%

AMT tax credit carryforward

AMT tax credit – beginning balance – $1.3 – – – – – – – – – $0.7
( + ) AMT tax credit generated 1.3 – – – – – – – – – 0.7 –
( – ) AMT tax credit used – (1.3) – – – – – – – – – (0.4)
AMT tax credit – ending balance – $1.3 – – – – – – – – – $0.7 $0.2

x TargetCo Shares Outstanding

MRY Fiscal Years Ending December 31, Stub Periods
($ in millions) 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 6/30/23 12/31/23
Stock Options

Current share price $9.16

Options Outstanding Options Exercisable

Number of Average Number of Average Treasury
Options Strike Options Strike Method
Tranche 1 0.402 $9.13 0.209 $9.04 0.003
Tranche 2 0.120 9.93 0.059 10.03 –
Tranche 3 0.466 11.60 0.221 11.53 –
Tranche 4 0.300 12.64 0.300 12.69 –
Tranche 5 0.520 19.48 0.269 19.54 –
Tranche 6 0.422 27.03 0.211 27.06 –
Tranche 7 0.375 45.78 0.187 45.75 –
Tranche 8 – – – – –
Tranche 9 – – – – –
Tranche 10 – – – – –
Total Treasury Method shares 0.003

Convertible Securities

Face value
Convertible bond 2 $190.0 $199.0 $208.5 $218.4 $223.6 $223.6 $223.6 $223.6 $223.6 $223.6 $223.6 $194.5 $199.0
Preferred stock 2 – – – – – – – – – – – – –

Conversion price
Convertible bond 2 $26.77 $26.77 $26.77 $26.77 $26.77 $26.77 $26.77 $26.77 $26.77 $26.77 $26.77 $26.77 $26.77
Preferred stock 2 – – – – – – – – – – – – –

Convertible shares
Convertible bond 2 7.097 7.435 7.788 8.158 8.351 8.351 8.351 8.351 8.351 8.351 8.351 7.266 7.435
Preferred stock 2 – – – – – – – – – – – – –

EPS if converted
Convertible bond 2 $1.27 $1.20 $1.19 $1.20 $1.33 $1.39 $1.40 $1.42 $1.44 $1.45 $1.47 $0.60 $0.60
Preferred stock 2 $1.22 $1.14 $1.14 $1.14 $1.30 $1.35 $1.37 $1.39 $1.42 $1.44 $1.46 $0.57 $0.57

Basic EPS $1.22 $1.14 $1.14 $1.14 $1.30 $1.35 $1.37 $1.39 $1.42 $1.44 $1.46 $0.57 $0.57

Is conversion dilutive?
Convertible bond 2 No No No No No No No No No No No No No
Preferred stock 2 No No No No No No No No No No No No No

Fully Diluted Shares Outstanding

Basic shares outstanding (BSO) 35.340 35.340 35.340 35.340 35.340 35.340 35.340 35.340 35.340 35.340 35.340 35.340 35.340
( + ) In-the-money Treasury Method option shares 0.003 0.003 0.003 0.003 0.003 0.003 0.003 0.003 0.003 0.003 0.003 0.003 0.003
( + ) Shares from Convertible bond 2 – – – – – – – – – – – – –
( + ) Shares from Preferred stock 2 – – – – – – – – – – – – –
Fully diluted shares outstanding (FDSO) 35.343 35.343 35.343 35.343 35.343 35.343 35.343 35.343 35.343 35.343 35.343 35.343 35.343

x TargetCo Summary Credit Metrics

MRY Fiscal Years Ending December 31, Stub Periods
($ in millions) 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 6/30/23 12/31/23
Capitalization

Total debt $244.5 $254.0 $263.9 $269.1 $269.1 $269.1 $269.1 $269.1 $269.1 $269.1 $240.0 $244.5
Net debt 8.8 (54.1) (115.3) (173.2) (230.5) (288.7) (347.6) (407.4) (468.0) (529.4) 52.7 8.8
Senior debt – – – – – – – – – – – –
Preferred stock – – – – – – – – – – – –
Total capitalization 408.7 469.0 530.0 592.0 650.9 710.6 771.1 832.5 894.7 957.8 378.7 408.7

Interest Expense

Senior interest expense $1.6 $0.5 $0.5 $0.5 $0.5 $0.5 $0.5 $0.5 $0.5 $0.5 $0.8 $0.8
Cash interest expense 14.4 13.7 14.2 19.8 25.5 25.5 25.5 25.5 25.5 25.5 7.2 7.2
Total interest expense 23.4 23.2 24.1 25.0 25.5 25.5 25.5 25.5 25.5 25.5 11.7 11.7
Fixed charges (total interest & preferred dividends) 23.4 23.2 24.1 25.0 25.5 25.5 25.5 25.5 25.5 25.5 11.7 11.7

Coverage

EBITDA $126.5 $125.9 $127.2 $128.4 $129.7 $131.0 $132.3 $133.6 $135.0 $136.3 $63.2 $63.2
EBITDA / senior interest expense 77.9x 251.8x 254.3x 256.9x 259.4x 262.0x 264.6x 267.3x 270.0x 272.7x 77.9x 77.9x
EBITDA / cash interest expense 8.8x 9.2x 9.0x 6.5x 5.1x 5.1x 5.2x 5.2x 5.3x 5.3x 8.8x 8.8x
EBITDA / total interest expense 5.4x 5.4x 5.3x 5.1x 5.1x 5.1x 5.2x 5.2x 5.3x 5.3x 5.4x 5.4x
EBITDA / fixed charges 5.4x 5.4x 5.3x 5.1x 5.1x 5.1x 5.2x 5.2x 5.3x 5.3x 5.4x 5.4x

EBITDA – capex $112.4 $110.9 $112.0 $113.1 $114.3 $115.4 $116.6 $117.7 $118.9 $120.1 $56.2 $56.2
(EBITDA – capex) / senior interest expense 69.2x 221.8x 224.0x 226.3x 228.5x 230.8x 233.1x 235.4x 237.8x 240.2x 69.2x 69.2x
(EBITDA – capex) / cash interest expense 7.8x 8.1x 7.9x 5.7x 4.5x 4.5x 4.6x 4.6x 4.7x 4.7x 7.8x 7.8x
(EBITDA – capex) / total interest expense 4.8x 4.8x 4.7x 4.5x 4.5x 4.5x 4.6x 4.6x 4.7x 4.7x 4.8x 4.8x
(EBITDA – capex) / fixed charges 4.8x 4.8x 4.7x 4.5x 4.5x 4.5x 4.6x 4.6x 4.7x 4.7x 4.8x 4.8x

EBITDA – capex – Δ WC $109.1 $110.9 $111.4 $112.5 $113.6 $114.8 $115.9 $117.1 $118.2 $119.4 $52.9 $56.2
(EBITDA – capex – Δ WC) / senior interest expense 67.2x 221.7x 222.8x 225.0x 227.3x 229.5x 231.8x 234.1x 236.5x 238.9x 65.1x 69.2x
(EBITDA – capex – Δ WC) / cash interest expense 7.6x 8.1x 7.9x 5.7x 4.5x 4.5x 4.5x 4.6x 4.6x 4.7x 7.3x 7.8x
(EBITDA – capex – Δ WC) / total interest expense 4.7x 4.8x 4.6x 4.5x 4.5x 4.5x 4.5x 4.6x 4.6x 4.7x 4.5x 4.8x
(EBITDA – capex – Δ WC) / fixed charges 4.7x 4.8x 4.6x 4.5x 4.5x 4.5x 4.5x 4.6x 4.6x 4.7x 4.5x 4.8x

Leverage

Senior debt / total capitalization – – – – – – – – – – – –

Net debt / total capitalization 2.15% NM NM NM NM NM NM NM NM NM 13.92% 2.15%

Senior debt / EBITDA – – – – – – – – – – – –

Total debt / EBITDA 1.93x 2.02x 2.08x 2.10x 2.07x 2.05x 2.03x 2.01x 1.99x 1.97x 3.79x 3.87x
Net debt / EBITDA 0.07x NM NM NM NM NM NM NM NM NM 0.83x 0.14x
Net debt + preferred / EBITDA 0.07x NM NM NM NM NM NM NM NM NM 0.83x 0.14x

x TargetCo Acquisition Multiple Matrix

Market Offer Premiums to Market
($ in millions) 0.0% 25.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0%
Valuation

Share price $9.16 $11.45 $10.08 $10.99 $11.91 $12.82 $13.74 $14.66 $15.57

Basic shares outstanding 35.340 35.340 35.340 35.340 35.340 35.340 35.340 35.340 35.340
Stock options
Tranche 1 0.003 0.044 0.021 0.037 0.050 0.062 0.071 0.080 0.088
Tranche 2 – 0.007 0.000 0.005 0.009 0.013 0.016 0.019 0.021
Tranche 3 – – – – 0.007 0.022 0.036 0.047 0.057
Tranche 4 – – – – – 0.003 0.023 0.040 0.056
Tranche 5 – – – – – – – – –
Tranche 6 – – – – – – – – –
Tranche 7 – – – – – – – – –
Tranche 8 – – – – – – – – –
Tranche 9 – – – – – – – – –
Convertible securities
Convertible bond 2 – – – – – – – – –
Preferred stock 2 – – – – – – – – –
Fully diluted shares outstanding 35.343 35.391 35.362 35.382 35.407 35.440 35.486 35.526 35.562
( x ) Share price $9.16 $11.45 $10.08 $10.99 $11.91 $12.82 $13.74 $14.66 $15.57
Equity value $323.7 $405.2 $356.3 $388.9 $421.6 $454.5 $487.6 $520.7 $553.8
( + ) Non-convertible debt & preferred stock 60.5 60.5 60.5 60.5 60.5 60.5 60.5 60.5 60.5
( + ) Convertible debt & preferred stock 190.0 190.0 190.0 190.0 190.0 190.0 190.0 190.0 190.0
( + ) Capital leases – – – – – – – – –
( + ) Noncontrolling interests – – – – – – – – –
( – ) Equity investments – – – – – – – – –
( – ) Cash & cash equivalents (187.3) (187.3) (187.3) (187.3) (187.3) (187.3) (187.3) (187.3) (187.3)
Enterprise value $386.9 $468.4 $419.5 $452.1 $484.8 $517.7 $550.8 $583.9 $617.0

Multiples Analysis

2023 Revenue multiple $468.0 0.83x 1.00x 0.90x 0.97x 1.04x 1.11x 1.18x 1.25x 1.32x
2023 Revenue multiple 468.0 0.83 1.00 0.90 0.97 1.04 1.11 1.18 1.25 1.32
2024 Revenue multiple 470.5 0.82 1.00 0.89 0.96 1.03 1.10 1.17 1.24 1.31

2023 EBITDA multiple $126.5 3.06x 3.70x 3.32x 3.57x 3.83x 4.09x 4.35x 4.62x 4.88x
2023 EBITDA multiple 126.5 3.06 3.70 3.32 3.57 3.83 4.09 4.35 4.62 4.88
2024 EBITDA multiple 125.9 3.07 3.72 3.33 3.59 3.85 4.11 4.37 4.64 4.90

2023 EBIT multiple $90.2 4.29x 5.19x 4.65x 5.01x 5.37x 5.74x 6.11x 6.47x 6.84x
2023 EBIT multiple 90.2 4.29 5.19 4.65 5.01 5.37 5.74 6.11 6.47 6.84
2024 EBIT multiple 89.5 4.32 5.23 4.69 5.05 5.42 5.78 6.15 6.52 6.89

2023 GAAP net income multiple $40.3 8.03x 10.06x 8.84x 9.65x 10.46x 11.28x 12.10x 12.92x 13.74x
2023 GAAP net income multiple 40.3 8.03 10.06 8.84 9.65 10.46 11.28 12.10 12.92 13.74
2024 GAAP net income multiple 40.2 8.06 10.09 8.87 9.69 10.50 11.32 12.14 12.97 13.79

Convertible bond coupon added back to net income if converted (after t – – – – – – – – –

Convertible preferred dividends added back to net income if converted – – – – – – – – –

2023 Adjusted net income $40.3 $40.3 $40.3 $40.3 $40.3 $40.3 $40.3 $40.3 $40.3
2023 Adjusted net income 40.3 40.3 40.3 40.3 40.3 40.3 40.3 40.3 40.3
2024 Adjusted net income 40.2 40.2 40.2 40.2 40.2 40.2 40.2 40.2 40.2

Page 10 of 12
Modified Accelerated Cost Recovery System (MACRS)

Property Class
Year 3 5 7 10 15
1 33.33% 20.00% 14.29% 10.00% 5.00%
2 44.45% 32.00% 24.49% 18.00% 9.50%
3 14.81% 19.20% 17.49% 14.40% 8.55%
4 7.41% 11.52% 12.49% 11.52% 7.70%
5 11.52% 8.93% 9.22% 6.93%
6 5.76% 8.92% 7.37% 6.23%
7 8.93% 6.55% 5.90%
8 4.46% 6.55% 5.90%
9 6.56% 5.91%
10 6.55% 5.90%
11 3.28% 5.91%
12 5.90%
13 5.91%
14 5.90%
15 5.91%
16 2.95%
17
18
19
20
21
Total 100.00% 100.00% 100.00% 100.00% 100.00%
Source: IRS Publication 946, Table A-1.
20
3.75%
7.22%
6.68%
6.18%
5.71%
5.29%
4.89%
4.52%
4.46%
4.46%
4.46%
4.46%
4.46%
4.46%
4.46%
4.46%
4.46%
4.46%
4.46%
4.46%
2.23%
100.00%