the United Auto Workers (UAW). Cerberus sought a deal similar to what the UAW accepted from Goodyear Tire and
Rubber Company in late 2006. Under this agreement, the management of $1.2 billion in health-care liabilities was
transferred to a fund managed by the UAW, with Goodyear contributing $1 billion in cash and Goodyear stock. By
transferring responsibility for these liabilities to the UAW, Chrysler believed that it would be able to cut in half the $30
dollar per hour labor cost advantage enjoyed by Toyota. Cerberus also expected to benefit from melding Chrysler’s
financial unit with Cerberus’s 51 percent ownership stake in GMAC, GM’s former auto financing business. By
consolidating the two businesses, Cerberus hoped to slash cost by eliminating duplicate jobs, combining overlapping
operations such as data centers and field offices, and increasing the number of loans generated by combining back–
office operations.
However, the 2008 credit market meltdown, severe recession, and subsequent free fall in auto sales threatened the
financial viability of Chrysler, despite an infusion of U.S. government capital, and it’s leasing operations as well as
GMAC. GMAC applied for commercial banking status to be able to borrow directly from the U.S. Federal Reserve. In
late 2008, the U.S. Treasury purchased $6 billion in GMAC preferred stock to provide additional capital to the
financially ailing firm. To avoid being classified as a bank holding company under direct government supervision,
Cerberus reduced its ownership in 2009 to 14.9 percent of voting stock and 33 percent of total equity by distributing
equity stakes to its coinvestors in GMAC. By surrendering its controlling interest in GMAC, it is less likely that
Cerberus would be able to realize anticipated cost savings by combining the GMAC and Chrysler Financial operations.
In early 2009, Chrysler entered into negotiations with Italian auto maker Fiat to gain access to the firm’s technology in
exchange for a 20 percent stake in Chrysler.
Discussion Questions and Answers:
1. What were the motivations for this deal from Cerberus’ perspective? From Daimler’s perspective?
2. What are the risks to this deal’s eventual success? Be specific.
3. Cite examples of economies of scale and scope?
4. Cerberus and Daimler will own 80.1% and 19.9% of Chrysler Holdings LLC, respectively. Why do you think
the two parties agreed to this distribution of ownership?
35
5. Which of the leading explanations of why deals sometimes fail to meet expectations best explains why the
combination of Daimler and Chrysler failed? Explain your answer.
6. The new company, Chrysler Holdings, is a limited liability company. Why do you think CCM chose this legal
structure over a more conventional corporate structure?
Pacific Investors Acquires California Kool in a Leveraged Buyout
Pacific Investors (PI) is a small private equity limited partnership with $3 billion under management. The objective of
the fund is to give investors at least a 30-percent annual average return on their investment by judiciously investing
these funds in highly leveraged transactions. PI has been able to realize such returns over the last decade because of its
focus on investing in industries that have slow but predictable growth in cash flow, modest capital investment
requirements, and relatively low levels of research and development spending. In the past, PI made several lucrative
investments in the contract packaging industry, which provides packaging for beverage companies that produce various
types of noncarbonated and carbonated beverages. Because of its commitments to its investors, PI likes to liquidate its
investments within four to six years of the initial investment through a secondary public offering or sale to a strategic
investor.
Following its past success in the industry, PI currently is negotiating with California Kool (CK), a privately owned
contract beverage packaging company with the technology required to package many types of noncarbonated drinks.
CK’s 2003 revenue and net income are $190.4 million and $5.9 million, respectively. With a reputation for effective
management, CK is a medium-sized contract packaging company that owns its own plant and equipment and has a
history of continually increasing cash flow. The company also has significant unused excess capacity, suggesting that
production levels can be increased without substantial new capital spending.
The owners of CK are demanding a purchase price of $70 million. This is denoted on the balance sheet (see Table
13-15 at the end of the case) as a negative entry in additional paid–in capital. This price represents a multiple of 11.8
times 2003’s net income, almost twice the multiple for comparable publicly traded companies. Despite the “rich”
multiple, PI believes that it can finance the transaction through an equity investment of $25 million and $47 million in
debt. The equity investment consists of $3 million in common stock, with PI’s investors and CK’s management each
contributing $1.5 million. Debt consists of a $12 million revolving loan to meet immediate working capital
requirements, $20 million in senior bank debt secured by CK’s fixed assets, and $15 million in a subordinated loan
from a pension fund. The total cost of acquiring CK is $72 million, $70 million paid to the owners of CK and $2
million in legal and accounting fees.
As indicated on Table 13-15, the change in total liabilities plus shareholders’ equity (i.e., total sources of funds or
cash inflows) must equal the change in total assets (i.e., total uses of funds or cash outflows). Therefore, as shown in
the adjustments column, total liabilities increase by $47 million in total borrowings and shareholders’ equity declines by
$45 million (i.e., $25 million in preferred and common equity provided by investors less $70 million paid to CK
owners). The excess of sources over uses of $2 million is used to finance legal and accounting fees incurred in closing
the transaction. Consequently, total assets increase by $2 million and total liabilities plus shareholders’ equity increase
by $2 million between the pre– and postclosing balance sheets as shown in the adjustments column.hasi1 Delta;Total
assets = ΔTotal liabilities + ΔShareholders’ equity: $2 million = $47 million –$45 million = $2 million.
Revenue for CK is projected to grow at 4.5 percent annually through the foreseeable future. Operating expenses and
sales, general, and administrative expenses as a percent of sales are expected to decline during the first three years of
operation due to aggressive cost cutting and the introduction of new management and engineering processes. Similarly,
improved working capital management results in significant declines in working capital as a percent of sales during the
first year of operation. Gross fixed assets as percent of sales is held constant at its 2003 level during the forecast period,
36
reflecting reinvestment requirements to support the projected increase in net revenue. Equity cash flow adjusted to
include cash generated in excess of normal operating requirements (i.e., denoted by the change in investments available
for sale) is expected to reach $8.5 million annually by 2010. Using the cost of capital method, the cost of equity
declines in line with the reduction in the firm’s beta as the debt is repaid from 26 percent in 2004 to 16.5 percent in
2010. In contrast, the adjusted present value method employs a constant unlevered COE of 17 percent.
The deal would appear to make sense from the standpoint of PI, since the projected average annual internal rates of
return (IRRs) for investors exceed PI’s minimum desired 30 percent rate of return in all scenarios considered between
2007 and 2009 (see Table 13-13). This is the period during which investors would like to “cash out.” The rates of return
scenarios are calculated assuming the business can be sold at different multiples of adjusted equity cash flow in the
year in which the business is assumed to be sold. Consequently, IRRs are calculated using the cash outflow (initial
equity investment in the business) in the first year offset by any positive equity cash flow from operations generated in
the first year, equity cash flows for each subsequent year, and the sum of equity cash flow in the year in which the
business is sold or taken public plus the estimated sale value (e.g., eight times equity cash flow) in that year. Adjusted
equity cash flow includes free cash flow generated from operations and the increase in “investments available for sale.”
Such investments represent cash generated in excess of normal operating requirements; and as such, this cash is
available to LBO investors.
The actual point at which CK would either be taken public, sold to a strategic investor, or sold to another LBO fund
depends on stock market conditions, CK‘s leverage relative to similar firms in the industry, and cash flow performance
as compared to the plan. Discounted cash flow analysis also suggests that PI should do the deal, since the total present
value of adjusted equity cash flow of $57.2 million using the CC method is more than twice the magnitude of the initial
equity investment. At $56 million, the APV method results in a slightly lower estimate of total present value. See
Tables 13-14,13-15, and 13-16 for the income, balance-sheet, and cash-flow statements, respectively, associated with
this transaction. Exhibits 13-1 and 13-2 illustrate the calculation of present value of the transaction based on the cost of
capital and the adjusted present value methods, respectively. Note the actual Excel spreadsheets and formulas used to
create these financial tables are available on the CD-ROM accompanying this book in a worksheet, Excel-Based
Leveraged Buyout Valuation and Structuring Model.
Discussion Questions
1. What criteria did Pacific Investors (PI) use to select California Kool (CK) as a target for an LBO? Why
were these criteria employed?
2. Describe how PI financed the purchase price. Speculate as why each source of financing was selected?
How did CK pay for feels incurred in closing the transaction?
3. What are the advantages and disadvantages of using enterprise cash flow in valuing CK? In what might
EBITDA been a superior (inferior) measure of cash flow for valuing CK?
4. Compare and contrast the Cost of Capital Method and the Adjusted Present Value Method of valuation.
Table 13-11: California Kool Model Output Summary
Sources (Cash Inflows) and Uses (Cash Outflows) of Funds: Pro Forma Capital Structure
Amount($) Interest
Rate (%) Uses of Funds Amount ($) Form of Debt and Equity Market
Value % of Total
Capital
Sources of Funds:
Cash From Balance Sheet $0.0 0.0% Cash to Owners $70.0 Revolving Loan $12.0 16.7%
New Revolving Loan $12.0 9.0% Seller’s Equity $0.0 Senior Debt $20.0 27.8%
New Senior Debt $20.0 9.0% Seller’s Note $0.0 Subordinated Debt $15.0 20.8%
New Subordinated Debt $15.0 12.0% Excess Cash $0.0 Total Debt $47.0 65.3%
New Preferred Stock (PIK) $22.0 12.0% Paid to Owners $70.0 Preferred Equity
$22.0 30.6%
New Common Stock $3.0 0.0% Debt Repayment $0.0 Common Equity $3.0
4.2%
Buyer Expenses $2.0 Total Equity $25.0 34.7%
Total Sources $72.0 Total Uses $72.0 Total Capital $72.0
Equity Investment: Ownership Distribution ($) % Distribution Fully Diluted Ownership Distribution
Common Preferred Total Common Preferred Common Warrants Pre-Option
Ownership Perform.
Options Fully Dil.
Ownership
Equity Investor 1.5 22.0 23.5 50.0% 100.0% 50.0% 0.0% 50.0% 0.0% 50.0%
Management 1.5 0.0 1.5 50.0% 0.0% 50.0% 0.0% 50.0% 0.0% 50.0%
Total Equity Investment $3.0 $22.0 $25.0 100.0% 100.0% 100.0% 0.0% 100.0% 0.0%
100.0%
Internal Rates of Return: Total Investor Return (%) Equity Investor Investment Gain ($) Management Investment
Gain ($)
2007 2008 2009 2007 2008 2009 2007 2008 2009
Multiple of Adjusted Equity Cash Flow1
8 x Terminal Yr. CF
9 x Terminal Yr. CF
10 x Terminal Yr. CF 0.42 0.35 0.33 $66.6 $78.9 $96.0 $4.3 $5.0 $6.1
0.46 0.39 0.35 $73.8 $86.6 $104.5 $4.7 $5.5 $6.7
0.51 0.42 0.37 $81.0 $94.2 $113.0 $5.2 $6.0 $7.2
Financial Projections and Analysis: 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net Sales $177.6 $183.5 $190.4 $197.1 $205.0 $214.2 $223.8 $233.9 $244.4 $255.4
Annual Growth Rate 4.2% 3.3% 3.8% 3.5% 4.0% 4.5% 4.5% 4.5% 4.5% 4.5%
EBIT as % of Net Revenue 5.5% 1.3% 5.1% 8.5% 9.5% 10.2% 11.2% 11.4% 11.4% 11.4%
39
Adjusted Enterprise Cash Flow2 $4.2 $0.2 $0.1 $9.5 $9.6 $10.8 $13.0 $13.4 $14.2 $14.9
Adjusted Equity Cash Flow $4.2 $0.2 $0.1 $0.3 $0.2 $1.8 $7.4 $7.7 $8.1 $8.5
Total Debt Outstanding 0 0 $47.0 $39.5 $31.5 $23.8 $19.2 $14.3 $8.8 $2.7
Total Debt/Adjusted Enterprise Cash Flow 0.0 0.0 NA 4.1 3.3 2.2 1.5 1.1 0.6 0.2
EBIT/Interest Expense 0 0 0 3.6 4.9 6.6 10.1 13.3 18.6 30.9
PV of Adjusted Equity Cash Flow @ 26% $57.2
PV of 2004-10 Adj. Equity CF/Terminal Val 28.1%
1Net Income + Depreciation & Amortization – Gross Capital Spending – Chg. In Working Capital – Principal Repayments – Change Investments
Available
for Sale (I.e., Increases in such investments are a negative cash flow entry, but represent cash in excess of normal operating needs.)
2EBIT(1-t) + Depreciation & Amortization – Gross Capital Spending – Chg. in Working Capital – Chg. In Investments Available for Sale
41
Table 13-12. California Kool Income Statement and Forecast Assumptions
Historical Period Projections: Twelve Months Ending December 31,
Income Statement Assumptions: 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Net Sales Growth (%) 0.042 0.033 0.038 0.035 0.040 0.045 0.045 0.045 0.045 0.045
Cost of Sales as % of Sales 0.805 0.814 0.780 0.765 0.758 0.755 0.750 0.750 0.750 0.750
SG&A as % of Sales 0.133 0.144 0.142 0.135 0.130 0.125 0.120 0.120 0.120 0.120
Effective Tax Rate (%) 0.400 0.400 0.400 0.400 0.400 0.400 0.400 0.400 0.400 0.400
Income Statement:
Net Sales $177.6 $183.5 $190.4 $197.1 $205.0 $214.2 $223.8 $233.9 $244.4 $255.4
Cost of Sales 143.0 149.3 148.5 150.8 155.4 161.7 167.9 175.4 183.3 191.6
Gross Profit 34.6 34.1 41.9 46.3 49.6 52.5 56.0 58.5 61.1 63.9
Depreciation 1.3 5.4 5.1 2.4 2.9 3.4 3.5 3.7 3.8 4.0
Amortization of Financing Fees 0.5 0.5 0.5 0.5
Total Depreciation & Amortization 1.3 5.4 5.1 2.9 3.4 3.9 4.0 3.7 3.8 4.0
SG&A 23.6 26.4 27.0 26.6 26.6 26.8 26.9 28.1 29.3 30.7
Management Fee 0.1 0.1 0.1 0.1 0.1 0.1 0.1
Operating Income (EBIT) 9.7 2.3 9.7 16.7 19.5 21.7 25.0 26.6 27.8 29.1
(Interest Income) 0.1 0.1 0.1 0.0 0.1 0.1 0.1 0.1 0.1 0.1
New Revolver Interest Expense 1.0 0.7 0.4 0.0 0.0 0.0 0.0
New Senior Debt Interest Expense 1.8 1.6 1.4 1.2 0.9 0.6 0.3
Subordinated Debt Interest Expense 1.8 1.7 1.5 1.3 1.1 0.9 0.6
Total Interest Expense 0 0 0 4.6 4.0 3.3 2.5 2.0 1.5 0.9
Earnings Before Taxes 9.8 2.4 9.8 12.1 15.6 18.5 22.6 24.7 26.4 28.3
Taxes @40% 3.9 0.9 3.9 4.8 6.2 7.4 9.0 9.9 10.6 11.3
Net Income $5.9 $1.4 $5.9 $7.3 $9.4 $11.1 $13.6 $14.8 $15.9 $17.0
PIK Preferred Dividend 2.6 3.0 3.3 3.7 4.2 4.7 5.2
Net Income to Common $5.9 $1.4 $5.9 $4.6 $6.4 $7.8 $9.9 $10.7 $11.2 $11.7
Table 13-13. California Kool Balance Sheet and Forecast Assumptions
Historical Period Adjust. Closing Projections: Twelve Months Ended December,
42
2001 2002 2003 2003 2004 2005 2006 2007 2008 2009 2010
Balance Sheet Assumptions:
Cash & Marketable Securities (%Sales) 0.02 0.02 0.02 0.0 0.02 0.02 0.02 0.02 0.02 0.02 0.02
0.02
Accounts Receivable (%Sales) 0.161 0.158 0.167 0.0 0.167 0.155 0.155 0.155 0.155 0.155 0.155 0.155
Other Current Assets (%Sales) 0.054 0.057 0.063 0.0 0.063 0.055 0.055 0.055 0.055 0.055 0.055 0.055
Gross Prop., Plant & Equip. (%Sales) 0.473 0.5 0.52 0.0 0.52 0.52 0.52 0.52 0.52 0.52 0.52 0.52
Accumulated Depreciation (%GP&E) 0.7 0.7 0.7 0.0 0.7 0.7 0.7 0.7 0.7 0.7 0.7 0.7
Accounts Payable (%Sales) 0.08 0.083 0.084 0.0 0.084 0.078 0.078 0.078 0.078 0.078 0.078 0.078
Other Current Liabilities (%Sales) 0.074 0.079 0.076 0.0 0.076 0.07 0.07 0.07 0.07 0.07 0.07 0.07
Assets: ($Millions)
Current Assets
Cash and Marketable Securities 3.6 3.7 3.8 0.0 3.8 4.1 4.3 4.5 4.7 4.9 5.1 5.1
Accounts Receivable 28.6 29.0 31.8 0.0 31.8 30.6 31.8 33.2 34.7 36.3 37.9 39.6
Other Current Assets 9.6 10.5 12.0 0.0 12.0 10.8 11.3 11.8 12.3 12.9 13.4 14.0
Total Current Assets 41.7 43.1 47.6 0.0 47.6 45.5 47.3 49.5 51.7 54.0 56.4 58.8
Investments Available for Sale 0.0 0.0 0.0 0.0 0.0 8.9 16.3 24.2 32.7
Gross Property, Plant & Equipment 84.0 91.7 99.0 0.0 99.0 102.5 106.6 111.4 116.4 121.6 127.1 132.8
Less: Accumulated Depreciation 58.8 64.2 69.3 0.0 69.3 71.7 74.6 78.0 81.5 85.1 89.0 93.0
Net Property, Plant & Equipment 25.2 27.5 29.7 0.0 29.7 30.7 32.0 33.4 34.9 36.5 38.1 39.8
Transaction Fees and Expenses 0.0 0.0 0.0 2.0 2.0 1.5 1.0 0.5 0.0 0.0 0.0 0.0
Purchase price in excess of book value 0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.0
Total Assets 66.9 70.6 77.3 2.0 79.3 77.7 80.3 83.4 95.5 106.8 118.8 131.3
Liabilities & Shareholders’ Equity ($Millions)
Current Liabilities:
Accounts Payable 14.2 15.2 16.0 0.0 16.0 15.4 16.0 16.7 17.5 18.2 19.1 19.9
Other Current Liabilities 13.1 14.5 14.5 0.0 14.5 13.8 14.3 15.0 15.7 16.4 17.1 17.9
Total Current Liabilities 27.4 29.7 30.5 0.0 30.5 29.2 30.3 31.7 33.1 34.6 36.2 37.8
Long-Term Debt:
Revolving Loan 12.0 12.0 7.9 3.7 0.0 0.0 0.0 0.0 0.0
Senior Debt 20.0 20.0 17.8 15.5 12.9 10.1 7.0 3.7 0.0
Subordinated Debt 15.0 15.0 13.8 12.4 10.9 9.2 7.2 5.1 2.7
Total Long-Term Debt 0.0 0.0 0.0 47.0 39.5 31.5 23.8 19.2 14.3 8.8 2.7
Shareholders’ Equity
Preferred Stock (PIK) 22.0 22.0 24.6 27.6 30.9 34.6 38.8 43.4 48.6
Common Stock 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0
Additional Paid in Capital (70.0) (70.0) (70.0) (70.0) (70.0) (70.0) (70.0) (70.0) (70.0)
Retained Earnings 39.5 40.9 46.8 0.0 46.8 51.4 57.8 65.7 75.5 86.2 97.4 109.1
Total Shareholders‘ Equity 39.5 40.9 46.8 1.8 9.1 18.4 29.6 43.1 58.0 73.8 90.8
Total Liabilities & Shareholders’ Equity 66.9 70.6 77.3 2.0 79.3 77.7 80.3 85.0 95.5 106.8 118.8
131.3
Table 13-14: California Kool Cash Flow Statement and Analysis
Historical Data Projections: Twelve Months Ended
December 31,
2001 2002 2003 2004 2005 2006 2007 2008 2009
2010
GAAP Cash Flow ($Millions)
Cash Flow from Operating Activities:
Net Income Available to Common Equity 5.9 1.4 5.9 4.6 6.4 7.8 9.9 10.7 11.2
11.7
Adjustments to Reconcile Net Income to Net Cash Flow
Depreciation 1.3 5.4 5.1 2.4 2.9 3.4 3.5 3.7 3.8
4.0
Amortization of Financing Fees 0.0 0.0 0.0 0.5 0.5 0.5 0.5 0.0 0.0
0.0
PIK Preferred Dividends 0.0 0.0 0.0 2.6 3.0 3.3 3.7 4.2 4.7
5.2
Net Change in Working Capital 0.0 1.1 (3.6) 1.1 (0.5) (0.6) (0.6) (0.6) (0.7)
(0.7)
Net Cash Flow from Operations 7.2 5.7 14.6 11.3 12.2 14.4 17.0 17.9 19.0
20.3
Cash Flow from Investing Activities:
(Increase) Decrease in Investments Available for Sale. 0.0 0.0 0.0 (8.9) (7.4) (7.9)
(8.5)
(Increase) Decrease in Gross Property, Plant & Equipment (3.5) (4.1) (4.8) (5.0) (5.2)
(5.5) (5.7)
Net Cash Used in Investments 0.0 0.0 0.0 (3.5) (4.1) (4.8) (13.9) (12.7) (13.3)
(14.2)
Cash Flows from Financing Activities:
Net Debt (Repayment) or Issuance 0.0 0.0 0.0 (7.5) (8.0) (7.8) (4.5) (5.0) (5.5)
(6.1)
Net Cash (Used in) Provided by Financing Activities 0.0 0.0 0.0 (7.5) (8.0) (7.8) (4.5) (5.0)
(5.5) (6.1)
Net Increase (Decrease) in Cash & Marketable Securities 0.3 0.2 1.8 (1.5) 0.2 0.2
0.0
Beginning Balances—Cash & Marketable Securities 3.8 4.1 4.3 6.1 4.7 4.9
5.1
Ending Balances—Cash & Marketable Securities 4.1 4.3 6.1 4.7 4.9 5.1
5.1
Valuation Cash Flow ($Millions)
44
Net Income to Available to Common Equity 5.9 1.4 5.9 4.6 6.4 7.8 9.9 10.7 11.2
11.7
After-Tax Net Interest Expense (Income) 0 0 0 1.7 1.4 1.2 1.0 0.8 0.6
0.4
Depreciation 1.3 5.4 5.1 2.4 2.9 3.4 3.5 3.7 3.8
4.0
Amortization of Financing Fees 0 0 0 0.5 0.5 0.5 0.5 0 0
0
PIK Preferred Dividend 0 0 0 2.6 3.0 3.3 3.7 4.2 4.7
5.2
Net Cash Flow Before Working Capital 7.2 6.8 11.0 11.9 14.2 16.1 18.6 19.3 20.3
21.3
Net Change in Working Capital 0.0 1.1 (3.6) 1.1 (0.5) (0.6) (0.6) (0.6) (0.7)
(0.7)
Net Cash Flow Before Gross Property, Plant & Equip. Spending 7.2 7.9 7.4 13.0 13.7 15.6 18.0 18.7
19.6 20.7
(Increase) Decrease in Invest Available for Sale 0.0 0.0 0.0 (8.9) (7.4) (7.9)
(8.5)
(Increase) Decrease in Gross Property, Plant & Equipment (3.0) (7.7) (7.3) (3.5) (4.1) (4.8) (5.0) (5.2) (5.5)
(5.7)
Enterprise Cash Flow 4.2 0.2 0.1 9.5 9.6 10.8 4.1 6.0 6.3
6.5
After-Tax Net Interest Expense (Income) 0.0 0.0 0.0 1.7 1.4 1.2 1.0 0.8 0.6
0.4
Net Debt (Repayments) or Issuance 0.0 0.0 0.0 (7.5) (8.0) (7.8) (4.5) (5.0) (5.5)
(6.0)
Equity Cash Flow 4.2 0.2 0.1 0.3 0.2 1.8 (1.5) 0.2 0.2
0.0
Dividends on Common Stock 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.0
Net Stock (Repurchase) or Issuance 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
0.0
Net Increase (Decrease) in Cash Balance 4.2 0.2 0.1 0.3 0.2 1.8 (1.5) 0.2 0.2
0.0
Beginning Balances—Cash & Marketable Securities 3.6 3.8 3.9 4.2 4.4 6.2 4.8 5.0
5.2
Ending Balances—Cash & Marketable Securities 3.6 3.8 3.9 4.2 4.4 6.2 4.8 5.0 5.2
5.2
Adjusted Equity Cash Flow 4.2 0.2 0.1 0.3 0.2 1.8 7.4 7.7 8.1
8.5