|
Historical
Company |
Historical
Bard |
Reclassifications
|
Equity
Financing and Debt Financing |
Bard
Acquisition |
Note
References |
Pro Forma
Combined |
|||||||||||||||||||||
(in millions)
|
||||||||||||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||||||
Current Assets:
|
||||||||||||||||||||||||||||
Cash and cash equivalents
|
$
|
548
|
$
|
891
|
$
|
—
|
$
|
14,891
|
$
|
(16,291
|
)
|
5a, 5
|
d
|
$
|
39
|
|||||||||||||
Restricted cash
|
—
|
179
|
—
|
—
|
—
|
179
|
||||||||||||||||||||||
Short-term investments
|
8
|
—
|
—
|
—
|
—
|
8
|
||||||||||||||||||||||
Trade receivables, net
|
1,569
|
450
|
—
|
—
|
—
|
2,019
|
||||||||||||||||||||||
Current portion of net investment in sales-type leases
|
355
|
—
|
—
|
—
|
—
|
355
|
||||||||||||||||||||||
Inventories
|
1,747
|
497
|
—
|
—
|
500
|
5
|
e
|
2,744
|
||||||||||||||||||||
Prepaid expenses and other
|
664
|
284
|
—
|
—
|
—
|
948
|
||||||||||||||||||||||
Total Current Assets
|
4,891
|
2,301
|
—
|
14,891
|
(15,791
|
)
|
6,292
|
|||||||||||||||||||||
|
||||||||||||||||||||||||||||
Property, plant and equipment, net
|
3,941
|
494
|
—
|
—
|
—
|
4,435
|
||||||||||||||||||||||
Goodwill
|
7,405
|
1,261
|
—
|
—
|
15,327
|
5
|
f
|
23,993
|
||||||||||||||||||||
Other intangibles, net
|
6,118
|
984
|
—
|
—
|
11,143
|
5
|
g
|
18,245
|
||||||||||||||||||||
Net investment in sales-type leases, less current portion
|
817
|
—
|
—
|
—
|
—
|
817
|
||||||||||||||||||||||
Deferred tax assets
|
—
|
39
|
(39
|
)
|
—
|
—
|
4
|
—
|
||||||||||||||||||||
Other assets
|
949
|
166
|
39
|
—
|
—
|
4
|
1,154
|
|||||||||||||||||||||
Total Assets
|
$
|
24,121
|
$
|
5,245
|
$
|
—
|
$
|
14,891
|
$
|
10,679
|
$
|
54,936
|
||||||||||||||||
|
||||||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Current Liabilities:
|
||||||||||||||||||||||||||||
Short-term debt and current maturities of long-term debt
|
$
|
1,224
|
$
|
609
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
1,833
|
||||||||||||||||
Payables and accrued expenses
|
2,794
|
950
|
—
|
—
|
(36
|
)
|
5
|
h
|
3,708
|
|||||||||||||||||||
Total Current Liabilities
|
4,018
|
1,559
|
—
|
—
|
(36
|
)
|
5,541
|
|||||||||||||||||||||
|
||||||||||||||||||||||||||||
Long-term debt
|
9,082
|
1,143
|
—
|
10,491
|
—
|
5
|
b
|
20,716
|
||||||||||||||||||||
Long-term employee benefit obligations
|
1,356
|
—
|
—
|
—
|
—
|
1,356
|
||||||||||||||||||||||
Deferred income taxes and other
|
1,702
|
871
|
—
|
—
|
4,798
|
5
|
i
|
7,371
|
||||||||||||||||||||
|
||||||||||||||||||||||||||||
Shareholders’ Equity:
|
||||||||||||||||||||||||||||
Preferred stock
|
—
|
—
|
—
|
2
|
—
|
5
|
c
|
2
|
||||||||||||||||||||
Common stock
|
333
|
18
|
—
|
12
|
19
|
5c, 5
|
j
|
382
|
||||||||||||||||||||
Capital in excess of par value
|
4,742
|
2,389
|
—
|
4,386
|
5,229
|
5c, 5
|
j
|
16,746
|
||||||||||||||||||||
Retained earnings
|
13,320
|
(514
|
)
|
—
|
—
|
448
|
5
|
j
|
13,254
|
|||||||||||||||||||
Deferred compensation
|
22
|
—
|
—
|
—
|
—
|
22
|
||||||||||||||||||||||
Common stock in treasury – at cost
|
(8,445
|
)
|
—
|
—
|
—
|
—
|
(8,445
|
)
|
||||||||||||||||||||
Accumulated other comprehensive loss
|
(2,009
|
)
|
(221
|
)
|
—
|
—
|
221
|
5
|
j
|
(2,009
|
)
|
|||||||||||||||||
Total Shareholders’ Equity
|
7,963
|
1,672
|
—
|
4,400
|
5,917
|
19,952
|
||||||||||||||||||||||
Total Liabilities and Shareholders’ Equity
|
$
|
24,121
|
$
|
5,245
|
$
|
—
|
$
|
14,891
|
$
|
10,679
|
$
|
54,936
|
|
Historical
Company |
Historical
Bard |
Reclassifications
|
Equity
Financing and Debt Financing |
Bard
Acquisition |
Note
References |
Total
Pro Forma |
|||||||||||||||||||||
(in millions, except per share data)
|
||||||||||||||||||||||||||||
Revenues
|
$
|
5,892
|
$
|
1,906
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
7,798
|
||||||||||||||||
|
||||||||||||||||||||||||||||
Cost of products sold(a)
|
3,007
|
702
|
(46
|
)
|
—
|
339
|
4, 6
|
a
|
4,002
|
|||||||||||||||||||
Selling and administrative expense(a)
|
1,432
|
565
|
46
|
—
|
—
|
4
|
2,043
|
|||||||||||||||||||||
Research and development expense(a)
|
368
|
149
|
—
|
—
|
—
|
517
|
||||||||||||||||||||||
Acquisitions and other restructurings
|
163
|
—
|
2
|
—
|
—
|
4
|
165
|
|||||||||||||||||||||
Other operating (income) expense
|
(335
|
)
|
—
|
58
|
—
|
—
|
4
|
(277
|
)
|
|||||||||||||||||||
Total operating costs and expenses
|
4,635
|
1,416
|
60
|
—
|
339
|
6,450
|
||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Operating income
|
1,257
|
490
|
(60
|
)
|
—
|
(339
|
)
|
1,348
|
||||||||||||||||||||
|
||||||||||||||||||||||||||||
Interest expense
|
(181
|
)
|
(30
|
)
|
—
|
(241
|
)
|
—
|
6
|
b
|
(452
|
)
|
||||||||||||||||
Interest income
|
12
|
—
|
—
|
—
|
—
|
12
|
||||||||||||||||||||||
Other (expense) income, net
|
(34
|
)
|
(57
|
)
|
60
|
—
|
—
|
4
|
(31
|
)
|
||||||||||||||||||
|
||||||||||||||||||||||||||||
Income before income taxes
|
1,054
|
403
|
—
|
(241
|
)
|
(339
|
)
|
877
|
||||||||||||||||||||
Income tax provision (benefit)
|
149
|
66
|
—
|
(92
|
)
|
(129
|
)
|
6
|
c
|
(6
|
)
|
|||||||||||||||||
Net income
|
905
|
337
|
—
|
(149
|
)
|
(210
|
)
|
883
|
||||||||||||||||||||
|
||||||||||||||||||||||||||||
Less: preferred dividends
|
—
|
—
|
—
|
(71
|
)
|
—
|
6
|
d
|
(71
|
)
|
||||||||||||||||||
|
||||||||||||||||||||||||||||
Net income attributable to common shareholders
|
$
|
905
|
$
|
337
|
$
|
—
|
$
|
(220
|
)
|
$
|
(210
|
)
|
$
|
812
|
||||||||||||||
|
||||||||||||||||||||||||||||
Earnings per common share
|
||||||||||||||||||||||||||||
Basic
|
$
|
4.24
|
$
|
3.10
|
||||||||||||||||||||||||
Diluted
|
$
|
4.15
|
$
|
2.98
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Weighted average common shares:
|
||||||||||||||||||||||||||||
Basic
|
213.3
|
12.2
|
36.8
|
262.3
|
||||||||||||||||||||||||
Diluted
|
218.0
|
12.2
|
42.5
|
272.7
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||||||
(a) Includes depreciation and amortization expense of:
|
$
|
523
|
$
|
103
|
$
|
—
|
$
|
—
|
$
|
339
|
$
|
965
|
|
Historical
Company |
Historical
Bard |
Reclassifications
|
Equity
Financing and Debt Financing |
Bard
Acquisition |
Note
References |
Total
Pro Forma |
|||||||||||||||||||||
(in millions, except per share data)
|
||||||||||||||||||||||||||||
Revenues
|
$
|
12,483
|
$
|
3,714
|
$
|
—
|
$
|
—
|
$
|
—
|
$
|
16,197
|
||||||||||||||||
|
||||||||||||||||||||||||||||
Cost of products sold(a)
|
6,492
|
1,372
|
(90
|
)
|
—
|
677
|
4, 6
|
a
|
8,451
|
|||||||||||||||||||
Selling and administrative expense(a)
|
3,005
|
1,102
|
90
|
—
|
—
|
4
|
4,197
|
|||||||||||||||||||||
Research and development expense(a)
|
828
|
293
|
—
|
—
|
—
|
1,121
|
||||||||||||||||||||||
Acquisitions and other restructurings
|
728
|
—
|
29
|
—
|
—
|
4
|
757
|
|||||||||||||||||||||
Other operating (income) expense
|
—
|
—
|
205
|
—
|
—
|
4
|
205
|
|||||||||||||||||||||
Total operating costs and expenses
|
11,053
|
2,767
|
234
|
—
|
677
|
14,731
|
||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Operating income
|
1,430
|
947
|
(234
|
)
|
—
|
(677
|
)
|
1,466
|
||||||||||||||||||||
|
||||||||||||||||||||||||||||
Interest expense
|
(388
|
)
|
(54
|
)
|
—
|
(447
|
)
|
—
|
6
|
b
|
(889
|
)
|
||||||||||||||||
Interest income
|
21
|
—
|
—
|
—
|
—
|
21
|
||||||||||||||||||||||
Other (expense) income, net
|
11
|
(229
|
)
|
234
|
—
|
—
|
4
|
16
|
||||||||||||||||||||
|
||||||||||||||||||||||||||||
Income before income taxes
|
1,074
|
664
|
—
|
(447
|
)
|
(677
|
)
|
614
|
||||||||||||||||||||
Income tax provision (benefit)
|
98
|
133
|
—
|
(170
|
)
|
(257
|
)
|
6
|
c
|
(196
|
)
|
|||||||||||||||||
Net income
|
976
|
531
|
—
|
(277
|
)
|
(420
|
)
|
810
|
||||||||||||||||||||
|
||||||||||||||||||||||||||||
Less: preferred dividends
|
—
|
—
|
—
|
(141
|
)
|
—
|
6
|
d
|
(141
|
)
|
||||||||||||||||||
|
||||||||||||||||||||||||||||
Net income attributable to common shareholders
|
$
|
976
|
$
|
531
|
$
|
—
|
$
|
(418
|
)
|
$
|
(420
|
)
|
$
|
669
|
||||||||||||||
|
||||||||||||||||||||||||||||
Earnings per common share
|
||||||||||||||||||||||||||||
Basic
|
$
|
4.59
|
$
|
2.56
|
||||||||||||||||||||||||
Diluted
|
$
|
4.49
|
$
|
2.46
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||||||
Weighted average common shares:
|
||||||||||||||||||||||||||||
Basic
|
212.7
|
12.2
|
36.8
|
261.7
|
||||||||||||||||||||||||
Diluted
|
217.5
|
12.2
|
42.5
|
272.2
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||||||
(a) Includes depreciation and amortization expense of:
|
$
|
1,114
|
$
|
213
|
$
|
—
|
$
|
—
|
$
|
677
|
$
|
2,004
|
|
Annual
12/31/16 |
Less:
Nine Months 9/30/16 |
Subtotal
Three Months 12/31/16 |
Add:
Three Months 3/31/17 |
Six
Months 3/31/17 |
|||||||||||||||
|
(millions)
|
|||||||||||||||||||
Net sales
|
$
|
3,714
|
$
|
2,747
|
$
|
967
|
$
|
939
|
$
|
1,906
|
||||||||||
Cost and expenses:
|
||||||||||||||||||||
Cost of goods sold(a)
|
1,372
|
1,024
|
348
|
354
|
702
|
|||||||||||||||
Marketing, selling and administrative expense(a)
|
1,102
|
822
|
280
|
285
|
565
|
|||||||||||||||
Research and development expense(a)
|
293
|
214
|
79
|
70
|
149
|
|||||||||||||||
Acquisitions and other restructurings
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Other operating income
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||||
Interest expense
|
54
|
39
|
15
|
15
|
30
|
|||||||||||||||
Other (income) expense, net
|
229
|
185
|
44
|
13
|
57
|
|||||||||||||||
Total costs and expenses
|
3,050
|
2,284
|
766
|
737
|
1,503
|
|||||||||||||||
|
||||||||||||||||||||
Income from operations before income taxes
|
664
|
463
|
201
|
202
|
403
|
|||||||||||||||
Income tax provision
|
133
|
91
|
42
|
24
|
66
|
|||||||||||||||
Net income
|
$
|
531
|
$
|
372
|
$
|
159
|
$
|
178
|
$
|
337
|
||||||||||
|
||||||||||||||||||||
(a) Includes depreciation and amortization expense of:
|
$
|
213
|
$
|
161
|
$
|
52
|
$
|
51
|
$
|
103
|
Description
|
March 31, 2017
Increase / (Decrease) |
|||
Deferred tax assets
|
$
|
(39
|
)
|
|
Other assets
|
39
|
(i) |
reclassifications of legal costs from other income (expense) below operating income to the caption “Other operating income” as a component within operating income in the amounts of $205 million for the year ended September 30, 2016 and $58 million for the six months ended March 31, 2017;
|
(ii) |
restructuring costs from other income (expense), net, below operating income to a separate classification as a component within operating income in the amounts of $30 million for the year ended September 30, 2016 and $7 million for the six months ended March 31, 2017;
|
(iii) |
acquisition-related transaction costs from other income (expense), net, below operating income to a separate classification as a component within operating income in the amounts of $(1) million for the year ended September 30, 2016 and $(5) million for the six months ended March 31, 2017, and
|
(iv) |
reclassification of shipping and handling costs from cost of goods sold to a component within selling, general and administrative expenses in the amounts of $90 million for the year ended September 30, 2016 and $46 million for the six months ended March 31, 2017.
|
Description
|
Six Months Ended
March 31, 2017 Increase / (Decrease) |
For the Year Ended
September 30, 2016 Increase / (Decrease) |
||||||
Cost of products sold
|
$
|
(46
|
)
|
$
|
(90
|
)
|
||
Selling and administrative expense
|
46
|
90
|
||||||
Acquisitions and other restructurings
|
2
|
29
|
||||||
Other operating expense
|
58
|
205
|
||||||
Other income (expense), net
|
60
|
234
|
|
Consideration
|
|||||||||||
|
Cash
|
Equity(a)
|
Total
|
|||||||||
Number of outstanding shares of Bard common stock as of March 31, 2017
|
72.46
|
72.46
|
72.46
|
|||||||||
Purchase price consideration per share
|
$
|
222.93
|
$
|
94.07
|
$
|
317.00
|
||||||
|
||||||||||||
Subtotal
|
$
|
16,153
|
$
|
6,817
|
$
|
22,970
|
||||||
Consideration issued to settle outstanding stock compensation awards
|
—
|
1,049
|
1,049
|
|||||||||
|
||||||||||||
Total consideration issued
|
16,153
|
7,866
|
24,019
|
|||||||||
|
||||||||||||
Less: Portion of settlement of outstanding stock compensation awards to be recognized as an expense, primarily through 2021
|
—
|
238
|
238
|
|||||||||
|
||||||||||||
Total estimated purchase price consideration
|
$
|
16,153
|
$
|
7,628
|
$
|
23,781
|
||||||
|
||||||||||||
(a) Based on the closing market price of the Company’s common stock in effect as of April 21, 2017 (which was the last trading day before the public announcement of the Bard Acquisition)
|
Total consideration transferred
|
$
|
23,781
|
||||||
|
||||||||
Recognized amounts of identifiable assets acquired and liabilities assumed
|
||||||||
Net book value of assets acquired
|
$
|
1,672
|
||||||
Less after-tax transaction costs incurred by Bard
|
(63
|
)
|
||||||
Less write-off of pre-existing Bard goodwill and intangible assets
|
(2,245
|
)
|
||||||
Adjusted net book value of assets acquired
|
(636
|
)
|
||||||
Excess book value of net assets to be allocated
|
24,417
|
|||||||
Identifiable intangible assets at fair value
|
12,127
|
|||||||
Increase inventory to fair value
|
500
|
|||||||
Deferred tax impact of fair value adjustments
|
(4,798
|
)
|
||||||
Total Goodwill
|
$
|
16,588
|
(a) |
The net cash increase to the unaudited pro forma condensed combined balance sheet in the amount of $14.891 billion as of March 31, 2017 relating to:
|
• |
an increase in cash and cash equivalents of $4.4 billion to reflect the net proceeds assumed to be raised from the issuance of the depositary shares representing interests in the Preferred Stock and the shares of common stock; and
|
• |
an increase in cash and cash equivalents of $10.491 billion to reflect the net proceeds expected to be raised from the Debt Financing.
|
(b) |
A net increase in long-term debt of $10.491 billion representing (i) $8.441 billion of borrowings under the Bridge Facility and (ii) $2.250 billion of borrowings under the Term Loan Facility used to fund a portion of the Cash Consideration, net of $200 million of debt issuance costs.
|
(c) |
A net increase in shareholders’ equity of $4.4 billion consisting of:
|
• |
an increase in shareholders’ equity relating to the par value of depositary shares representing interests in the Preferred Stock and shares of common stock of $2 million and $12 million, respectively, based on the shares assumed to be issued and the related par values per share of $1 and $1, respectively; and
|
• |
an increase in shareholders’ equity relating to the aggregate capital assumed to be raised in excess of par value of $4.386 billion, net of $112 million of transaction costs assumed to be incurred to issue the depositary shares representing interests in the Preferred Stock and shares of common stock.
|
(d) |
A decrease in cash and cash equivalents of $16.291 billion, representing the payment of $16.153 billion by the Company of the Cash Consideration as part of the exchange for the outstanding shares of Bard common stock as of March 31, 2017, and the payment of $138 million of acquisition-related transaction costs.
|
(e) |
An increase in inventories of $500 million, reflecting the adjustment to increase inventories to their fair value as part of the allocation of the purchase price to the underlying net assets of Bard.
|
(f) |
A net increase in goodwill of $15.327 billion consisting of:
|
• |
a decrease relating to the write off of Bard’s historical goodwill of approximately $1.261 billion; and
|
• |
an increase representing the excess of the purchase price over the fair value of Bard’s net assets of $16.588 billion.
|
(g) |
A net increase in other intangible assets of $11.143 billion consisting of:
|
• |
a decrease relating to the write off of Bard’s historical identifiable intangible assets of $984 million; and
|
• |
an aggregate increase of $12.127 billion to recognize the fair value of acquired identifiable intangible assets.
|
(h) |
A net decrease in current payables and accrued expenses of $36 million related to (i) a $26 million decrease in income taxes payable associated with the deductibility of a portion of the acquisition-related transaction costs and (ii) a $10 million decrease in income taxes payable associated with the one-time stock compensation settlement charge to be recognized on the first day of the post-combination period due to an acceleration of the underlying vesting rights of such awards.
|
(i) |
An increase in non-current deferred tax liabilities of $4.798 billion related to the incremental book-tax basis differences arising from the revaluation of the net assets acquired in the Bard Acquisition for book purposes.
|
(j) |
A net increase in shareholders’ equity of $5.917 billion consisting of:
|
• |
a net increase of $19 million in the par value of common stock related to (i) a $37 million increase due to the issuance of approximately 36.8 million shares of common stock as part of the Equity Consideration, offset in part by (ii) an $18 million decrease to eliminate the historical par value equity accounts of Bard.
|
• |
a net increase of $5.229 billion in capital in excess of par value related to (i) a $7.829 billion increase due to the issuance of approximately 36.8 million shares of common stock and an additional 5.7 million shares on a fully diluted basis in settlement of Bard’s outstanding stock compensation awards as part of the Equity Consideration and (ii) a $27 million increase due to the recognition of a portion of the Bard stock compensation settlement charge on the first day of the post-combination period due to an acceleration of the underlying vesting rights of such awards, offset in part by the sum of (iii) a $238 million decrease relating to a portion of the Equity Consideration being re-characterized for financial reporting purposes as a deferred stock compensation charge to be recognized in the post-combination period due to the settlement of outstanding Bard stock compensation awards and (iv) a $2.389 billion decrease to eliminate the historical equity accounts of Bard.
|
• |
a net increase of $448 million in retained earnings related to (i) a $514 million increase to eliminate the historical deficit of Bard, (ii) a $49 million decrease to reflect the after-tax effect of the Company expensing $60 million of acquisition-related transaction costs using an effective statutory tax rate of approximately 19% based on an estimate of tax deductibility of transaction costs, and (iii) a $17 million decrease relating to the after-tax effect of expensing a $27 million portion of the Bard stock compensation settlement charge on the first day of the post-combination period due to an acceleration of the underlying vesting rights of such awards. As the recognition of this stock compensation charge has no continuing impact on the combined entity, the cost and associated tax benefit have not been reflected in the accompanying unaudited combined statements of operations for all periods presented; and
|
• |
a net increase of $221 million in accumulated other comprehensive loss to eliminate the historical equity accounts of Bard.
|
(a) |
Depreciation and Amortization
|
Description
|
Weighted
Average Useful Life |
Fair Value
|
Six Months Ended
March 31, 2017 Increase / (Decrease) |
For the Year Ended
September 30, 2016 Increase / (Decrease) |
||||||||||||
Other intangible assets, net
|
15
|
12,127
|
$
|
404
|
$
|
808
|
||||||||||
Less historical intangible assets amortization expense
|
(65
|
)
|
(131
|
)
|
||||||||||||
Net pro forma adjustment
|
$
|
339
|
$
|
677
|
• |
the elimination of $65 million of historical amortization expense to write off Bard’s historical net book value of identifiable intangible assets, which will be reestablished in the purchase accounting to reflect such identifiable intangible assets at their respective fair values; and
|
• |
an increase in amortization expense of $404 million relating to the $12.127 billion aggregate fair value of finite-lived intangible assets, over a weighted-average useful life of an estimated 15 years on a straight-line basis.
|
• |
the elimination of $131 million of historical amortization expense to write off Bard’s historical net book value of identifiable intangible assets, which will be reestablished in the purchase accounting to reflect such identifiable intangible assets at their respective fair values; and
|
• |
an increase in amortization expense of $808 million relating to the $12.127 billion aggregate fair value of finite-lived intangible assets, over a weighted-average useful life of an estimated 15 years on a straight-line basis.
|
(b) |
Interest Expense
|
Description
|
Six Months Ended
March 31, 2017 |
For the Year Ended
September 30, 2016 |
||||||
Cash interest on additional borrowings
|
$
|
174
|
$
|
314
|
||||
Cash interest on commitment fees
|
2
|
5
|
||||||
Non-cash amortization of debt issuance costs
|
65
|
128
|
||||||
Net pro forma adjustment
|
$
|
241
|
$
|
447
|
• |
an increase in interest expense of $144 million relating to assumed borrowings of $8.441 billion under the Bridge Debt Facility at an assumed interest rate of 3.4%;
|
• |
an increase in interest expense of $30 million relating to assumed borrowings of $2.250 billion under the Term Loan Facility at an assumed interest rate of 2.7%;
|
• |
an increase in interest expense of $2 million relating to the annual commitment fees payable on the $2.309 billion of undrawn availability under the Bridge Debt Facility and the New Credit Facilities at a 0.20% rate; and
|
• |
an increase in interest expense of $65 million related to the amortization of an aggregate $200 million of debt issuance costs expected to be incurred in connection with the Bridge Debt Facility and New Credit Facilities over the approximate 1.5 year weighted-average life of the facilities for pro forma purposes.
|
• |
an increase in interest expense of $253 million relating to assumed borrowings of $8.441 billion under the Bridge Debt Facility at an assumed interest rate of 3.0%;
|
• |
an increase in interest expense of $61 million relating to assumed borrowings of $2.250 billion under the Term Loan Facility at an assumed interest rate of 2.7%;
|
• |
an increase in interest expense of $5 million relating to the annual commitment fees payable on the $2.309 million of undrawn availability under the Bridge Debt Facility and the New Credit Facilities at a 0.20% rate; and
|
• |
an increase in interest expense of $128 million related to the amortization of an aggregate $200 million of debt issuance costs expected to be incurred in connection with the Bridge Debt Facility and the New Credit Facilities over the approximate 1.5-year expected life of the facilities for pro forma purposes.
|
(c) |
Provision for Income Taxes
|
(d) |
Preferred Dividends
|