EFTA00623350.pdf

SUMMARY COMPARISON OF CLAT VS. NO CLAT VS. FOUNDATION Assumptions: Gross value of 108/0R8 assets of time of death is assumed to be $4.38 consistent with 3/31/I6 balance sheet. Net worth after poydown of $600mm art loon and $1.58 of notes to children's trusts is $2.28. From this amount, the estate will pay bequests to charity andfamily, administration expenses and estate taxes on the non-charitable gifts. The Residuary Estate Is shown at $2.08 with preponderance of remaining assets in BFP valued as if 21residuary assets are BFP interests. LOB Residuary Estate: $ 2,000,000,000 Scenario 1: Income: 4.0% Growth: 5.0% Scenario 2: Income: 3.0% Growth: 2.0% Lack of marketability discount applied to underlying 8FP assets: 13.7% NO CLAT - 100% TO CHILDREN'S NO CLAT - 100% TO r, I,. TRUST vs. FOUNDATION Value of MAT Aggregate Amount Value of Trust Aggregate Amount at end of 15 years Value of Foundation Paid to Charity at end of 15 years Value of Foundation Pistil to Charity $cenarIQ Ito children) Salina at Purina 15 year period TOTAL Ito children) ;tend of 15 year& during 15 year period TOTAL 1 $ 3,399,563,827 $ 2,649,769,809 $ 830,979,388 $ 6,880,313,024 $ 3,289,228,038 $ 3,601,887,010 $ 2,002,358,764 $ 5,604,245,774 2 $ 1,302,312,820 $ 1.984,986,300 $ 694,745,205 $ 3,982,044,325 $ 1,978,860,276 € $ 2,000,000,000 $ 1,500,000,000 $ 3,500,000,000 j EFTA00623350  CHARITABLE LEAD ANNUITY TRUST FIFTEEN (15) YEAR CLAT (ZEROED-OUT) Assumptions: LDB "taxable" residuary estate consists entirely of BFP interests. LDB "taxable" residuary estate - undiscounted: $ 2,000,000,000 Less lack of marketability discount 13.70% Adjusted Value: $ 1,726,000,000 AGM starting value - per share $ 17.00 CLAT Term (years): 15 Required Annuity (as a % of Adjusted Value): 7.667% Annuity Amount (in USD): 132,332,420 Income (Cash Flow): 4.0% Growth (Appreciation): 5.0% Combined (as a % of undiscounted value) 9.0% Foundation: Income (Cash Flow): 4.0% Growth (Appreciation): 5.0% Combined (as a % of Foundation assets) 9.0% Required Annual Distribution (as a % of Foundation assets on 1/1): 5.0% Income Tax Rate: Combined Federal and State (on Ordinary Income): 42.62% Capital gains taxes not illustrated 2 EFTA00623351  CHARITABLE LEAD ANNUITY TRUST FIFTEEN (15) YEAR CWT (ZEROED-OUT) 4% INCOME; 5% GROWTH Assumptions: OAT Principal • Undbcounted $ 2 000 000 000 I Growth MOM* I Estimated Stock Beginning Income (Appreciation) Taxes Ending I Price for AGM - kat Undo( (Cash Flow) (Unrealized! irmh Flow) Ethisiszal I MAWR I 1 2,000,000,000 80,000,000 $ 100,000,000 (132,332,420) $ $ 2,047,667,580 I $ 17.85 2 $ 2,047,667,580 $ 81,906,703 $ 102.383,379 $ (132,332,420) $ 2,099,625,242 I $ 9.a74 18 3 $ 2,099,625,242 83,985,010 $ 104,981,262 (132,332,420) $ $ 2,156,259,094 I 4 $ 2,156,259,094 86,250,364 107,812,955 (132,332,420) $ $ 2,217,989,993 i $ 20.66 5 $ 2,217,989,993 $ 88,719,600 $ 110,899,500 $ (132,332,420) $ $ 2.285,276,673 $ 21.69 6 $ 2,285,276,673 $ 91,412,067 $ 114,263,834 $ (132,332,420) $ $ 2,358,619,154 $ 22.77 7 $ 2,358,619,154 $ 94,344,766 $ 117,930,958 $ (132,332,420) $ $ 2,438,562,458 $ 23.91 8 $ 2,438,562,458 $ 97,542,498 $ 121,928,123 $ (132,332,420) S $ 2,525,700,659 i $ 25.11 9 $ 2,525,700,659 $ 301,028.026 $ 126,285,033 $ (132,332,420) $ 5 2,620,681,298 I $ 26. 10 $ 2,620,681,298 $ 104,827,252 S 131,034,065 $ (132,332,420) $ S 2,724,210,195 I $ 27.69 37 11 $ 2,724,210,195 $ 108,968,408 $ 136.210,510 $ (132,332,420) $ $ 2,837,056,693 iI $ 29.07 12 $ 2,837,056,693 $ 113,482,268 $ 141,852,835 (132,332,420) $ $ 2,960,059,376 I $ 30.52 1 13 $ 2,960,059,376 118,402,375 $ 148,002,969 $ (132,332,420) $ $ 3,094,132,300 i $ 32.05 14 $ 3,094,132.300 $ 123,765,292 $ 154,706,615 $ (132,332,420) $ $ 3,240,271,787 i $ 33.65 IS $ 3,240,271,787 $ 129,610,871 $ 162,013,589 $ (132,332,420) $ 3,399,563,827 1 $ 35,33 To Children I 3 EFTA00623352  CHARITABLE LEAD ANNUITY TRUST FOUNDATION 4% INCOME; 5% GROWTH Estimated Stock Beginning Income Growth Distribution from 5% payment Ending Price for AGM - ytat Etinsigal rash flow) pumrpciationl CIST Principal 9SEihem 1 $ - $ . $ - $ 132,332,420 $ • $ 232,332,420 $ 17.85 2 $ 132,332,420 $ 5,293,297 $ 6,616,621 $ 132,332,420 $ (6,616,621) $ 269,958,137 $ 18.74 3 $ 269,958,137 $ 10,798,325 $ 13,497,907 $ 132,332,420 $ (13,497,907) $ 413,088.882 $ 19.68 4 $ 413,088,882 $ 16,523,555 $ 20,654,444 $ 132,332,420 $ 120,654,444) $ 561,944,857 $ 20.66 5 $ 561,944,857 $ 22,477,794 $ 28,097,243 $ 132,332,420 $ 128,097,243) $ 716,755,071 $ 21.69 6 $ 716,755,071 $ 28,670,203 $ 35,837,754 $ 132,332,420 $ 135,837,754) $ 877,757,694 $ 22.77 7 $ 877,757,694 $ 35,110,308 $ 43,887,885 $ 132,332,420 $ (43,887,885) $ 1,045,200,422 $ 23.91 8 $ 1,045,200,422 $ 41,808,017 $ 52,260,021 $ 132,332,420 $ 152,260,021) $ 1,219,340,859 $ 25.11 i 9 $ 1,219,340,859 $ 48,773,634 $ 60,967,043 $ 132,332,420 $ (60,967,043) $ 1,400,446,913 26.37 10 $ 1,400,446,913 $ 56,017,877 $ 70,022,346 $ 132,332,420 $ (70,022,346) $ 1,588,797,210 I S 27.69 S 11 $ 1,588,797,210 $ 63,551,888 $ 79,439,861 $ 132,332,420 $ (79,439,861) $ 1,784,681,518 I $ 29.07 12 $ 1,784,681,518 $ 71,387,261 $ 89,234,076 $ 132,332,420 $ (89,234,076) $ 1,988,401,199 30.52 13 $ 1,988,401,199 $ 79,536,048 $ 99,420,060 $ 132,332,420 $ (99,420,060) $ 2,200,269,667 iI $ S 32.05 14 $ 2,200,269,667 $ 88,010,787 $ 110,013,483 $ 132,332,420 $ (110.013,483) $ 2.420,612,874 I $ 33.65 15 $ 2,420,612,874 $ 96,824,515 $ 121,030,644 $ 132,332,420 $ (121,030,644) $ 2,649,769,809 35.33 I $ $ 830,979,388) 4 EFTA00623353  NO CLAT - RESIDUARY ESTATE TO CHILDREN'S TRUST Assumptions: LDB "taxable" residuary estate consists entirely of BFP interests. LDB "taxable" residuary estate - undiscounted: $ 2,000,000,000 Less lack of marketability discount: 13.7% Adjusted Value: $ 1,726,000,000 AGM starting value - per share 17.00 Trust for Children: LDB "taxable" residuary estate - undiscounted: $ 2,000,000,000 Less: Estate Taxes 49.6% of Adjusted Value (856,096,000) Net Trust Principal $ 1,143,904,000 Term (years): 15 Income (Cash Flow): 4.0% Growth (Appreciation): 5.0% Combined (as a % of Trust assets) 9.0% Income Tax Rates: Combined Federal and State (on Ordinary Income) 42.62% Capital gains taxes not illustrated S EFTA00623354  NO CLAT - RESIDUARY ESTATE TO CHILDREN'S TRUST CHILDREN'S TRUST FIFTEEN (15) YEAR PERIOD 4% INCOME; 5% GROWTH Assumptions: Children's Trust Principal - Undiscounted $ 1,143,904,000 Growth Estimated Stock Beginning Income (Appreciation) Federal Ending Price for AGM - Principal (Cash Flow! !Unrealized! p_acket rir 2gssam 1 $ 1,143,904,000 $ 45,756,160 $ 57,195,200 (19,501,275) $ 1,227,354,085 17.85 2 $ 1,227,354,085 $ 49,094,163 $ 61,367,704 $ (20,923,932) $ 1,316,892,020 18.74 3 $ 1,316,892,020 $ 52,675,681 $ 65,844,601 (22,450,375) $ 1,412,961,927 19.68 4 $ 1,412,961,927 5 56,518,477 $ 70,648,096 $ (24,088,175) $ 1,516,040,325 20.66 5 1,516,040,325 $ 60,641,613 $ 75,802,016 $ (25,845,455) $ 1,626,638,499 21.69 6 $ 1,626,638,499 $ 65,065,540 5 81,331,925 $ (27,730,933) $ 1,745,30$,031 22.77 7 1,745,305,031 5 69,812,201 $ 87,265,252 $ (29,753,960) $ 1,872,628,524 23.91 8 $ 1,872,628,524 74,905,141 $ 93,631,426 $ (31,924,571) $ 2,009,240,520 15.11 9 2,009,240,520 $ 80,369,621 100,462,026 $ (34,253,532) $ 2,155,818,635 16.37 10 $ 2,155,818,635 $ 86,232,745 $ 107,790,932 $ (36,752,396) $ 2,313,089,916 27.69 11 $ 2,313,089,916 $ 92,523,597 $ 115,654,496 $ (39,433,557) 2,481,834,452 29.07 12 $ 2,481,834,452 $ 99,273,378 $ 124,091,723 $ (42,310,314) $ 2,662,889,239 30.52 13 $ 2,662,889,239 $ 106,515,570 $ 133,144,462 (45,396,936) $ 2,857,152,335 32.05 14 $ 2,857,152,335 $ 114,286,093 142,857,617 $ (48,708,733) $ 3,065.587,312 33.65 15 $ 3,065,587,312 $ 122,623,492 $ 153,279,366 $ (52,262,132) $ 3,289 228,038 35.33 To Children 6 EFTA00623355  NO CLAT - RESIDUARY ESTATE TO FOUNDATION Assumptions: LDS "taxable" residuary estate consists entirely of BFP interests. LDB "taxable" residuary estate - undiscounted: $ 2,000,000,000 Less lack of marketability discount: 13.70% Adjusted Value: $ 1,726,000,000 AGM starting value - per share 17.00 Foundation Income (Cash Flow): 4.0% Growth (Appreciation): 5.0% Combined (as a % of undiscounted value) 9.0% Required Annual Distribution (as a % of Foundation assets on 1/1): 5.0% 7 EFTA00623356  FOUNDATION ONLY 4% INCOME; 5% GROWTH Estimated Stock Beginning Income Growth 5% payment Ending Price for AGM - Year Principal Tash Flow! !Appreciation) to Charity Principe! per share 1 2,000,000,000 $ 80,000,000 $ 100,000,000 $ (100,000,000) $ 2,080,000,000 17.85 2 $ 2,080,000,000 5 83,200,000 $ 104,000,000 $ (104,000,000) $ 2,163,200,000 18.74 3 $ 2,163,200,000 $ 86,528,000 $ 108,160,000 $ (108,160,000) $ 2,249,728,000 19.68 4 $ 2,249,728,000 $ 89,989,120 5 112,486,400 $ (112,486,400) $ 2,339,717,120 20.66 5 $ 2,339,717,120 $ 93,588,685 $ 116,985,856 $ (116,985,856) 5 2,433,305,805 21.69 6 $ 2,433,305,805 $ 97,332,232 $ 121,665,290 5 (121,665,290) $ 2,530,638,037 22.77 7 $ 2,530,638,037 $ 101,225,521 $ 126,531,902 $ (126,531,902) $ 2,631,863,558 23.91 8 $ 2,631,863,558 $ 105,274,542 $ 131,593,178 $ (131,593,178) $ 2,737,138,100 25.11 9 $ 2,737,138,100 $ 109,485,524 $ 136,856,905 $ (136,856,905) $ 2,846,623,624 26.37 10 $ 2,846,623,624 $ 113,864,945 $ 142,331,181 $ (142,331,181) $ 2,960,488,569 27.69 11 $ 2,960,488,569 $ 118,419,543 148,024,428 $ (148,024,428) $ 3,078,908,112 29.07 12 $ 3,078,908,112 $ 123,156,324 $ 153,945,406 $ (153,945,406) $ 3,202,064,436 30.52 13 $ 3,202,064,436 $ 128,082,577 $ 160,103,222 $ (160,103,222) $ 3,330,147,013 32.05 14 $ 3,330,147,013 $ 133,205,881 $ 166,507,351 $ (166,507,351) 5 3,463,352,894 33.65 15 $ 3,463,352,894 $ 138,534,116 $ 173,167,645 $ (173,167,645) $ 3,601,887,010 35.33 $ (2,002,358,764) 8 EFTA00623357