This spreadsheet s upports upports STUDENT STUDENT analysis analysis of the case, "California "California Pizza Kitchen" Kitchen" (Case 33
March 31, 2008 Copyright (C) 2008, by the University of Virginia Darden choo! "o#ndation$
Exhibit 2 California Pizza Kitchen, Inc. Consolidated Balance Sheet (in thousands)
1/1/2006 Assets Current assets Cash and cash eui!alents %n!est&ents in &ar'etable securities ther recei!ables %n!entories Current deferred tax asset# net ,re-aid inco&e tax ther -re-aid ex-enses . other current assets otal current assets
,ro-ert and eui-&ent# net oncurrent deferred tax asset# net oodill and other intan4ibles ther assets otal assets Liabilities and Shareholders' Equity Current liabilities Accounts -aable Accrued co&-ensation and benefits Accrued rent 5eferred rent credits ther accrued liabilities Accrued inco&e tax otal current liabilities
"
"
"
ther liabilities 5eferred rent credits# net of current -ortion Shareholders euit Co&&on stoc' Additional -aid8in8ca-ital Accu&ulated deficit Accu&ulated co&-rehensi!e loss Total shareholders' equity Total liabilities Shareholders' Equity Sources of data Co&-an Annual and 9uarterl :e-orts;
"
11#272 " 11#0$ #10* 3#776 $#37 1#2$ +#*2 +#*22
As of 12/31/2006
$#1$7 " 7#$76 #7+ 11#721 +#3$$ 37#*17
7/1/2007
7#17$ 10#70* #+*6 11#$3 $#76* 6# *#+30
213#0$ #+13 +#*67 # 27#2+ "
2++#3$2 +#$67 +#$2+ +#+22 310#+13 "
271#$67 6#32$ +#7+ 6#300 33*#77*
7#0+ " 13#06$ 13#2+3 #0+6 *#2* 6#72+
1+#0 " 1+#02 1#+32 #* 13#27+ 3#61 66#001
1#11+ 1+#+72 1#*7* +#13+ 13#*$0 *#012 72#7*3
+#3$3 2#$10
$#6$3 27#$6
$#662 32#36
1*7 231#1+* (3#013) (7) 1*7#336
1*3 221#163 (13#013)
2*1 22$#67 (3#0+0)
20$#33
22+#$$$
27#2+ "
310#+13 "
33*#77*
Exhibit 3 California Pizza Kitchen, Inc. Consolidated %nco&e State&ents (in thousands# exce-t -er8share data)
2003 :estaurant sales =ranchise and other re!enues otal re!enues
"
=iscal ear (1) 200 200+
2006
3+6#260 " 3#627 3+*#$$7
1$#7** " 3#6+3 22#+2
7#73$ " #$61 7*#+**
+7#*6$ 6#633 ++#601
$7#$06 12*#702 70#273 2$7#7$1
103#$13 1+2#** $3#0+ 33*#$16
11$#$0 173#7+1 *2#$27 3$+#0+$
eneral and ad&inistrati!e 5e-reciation and a&orti?ation ,re8o-enin4 costs
21#$$ 20#71 #17
2$#7* 23#*7+ 737
36#2*$ 2+#0 #0+1
Se!erance char4es(2) >oss on i&-air&ent of ,,.E Store closure costs >e4al settle&ent reser!e -eratin4 inco&e
1#221 1$#*$
+#++2
2#700 1#333 2+#0*7
1#160 1+2 600 26#$0
317
+71
(3*) (32)
(13) 2$
73* 1#10+ (22) 1#$22
2+#+2+ 7#70* 17#$16 "
2$#662 *#172 1*#*0 "
30#6$* *#6$* 21#000
=ood# be!era4e and -a-er su--lies >abor 5irect o-eratin4 and occu-anc Cost of Sales
%nterest inco&e ther inco&e Euit in loss of unconsolidated @ otal other inco&e (ex-ense)
hree
13#60 " 1#+6 136#16$
1+6#+*2 1#*$* 1+$#+$1
13+#$$ 1**#7 10$#++$ #1+0
33#0*0 *#272 26#21 10$#+76
3$#26 +6#*12 30#773 126#111
3#320 2*#$* 6#*6
11#03+ 7#070 $00
12#206 *#022 $+2
707
76$
2*#*71
$#6$7
*#622
71$
2$7
*1
71$
2$7
*1
%nco&e before inco&e tax -ro!ision %nco&e tax -ro!ision (benefit) et inco&e
"
+#+20 ($2) +#602 "
et inco&e -er co&&on share Basic 5iluted
" "
0;30 " 0;2* "
0;*3 " 0;*2 "
1;01 " 0;** "
1;0$ 1;06
16$
171
1$$
20+
1*3
213
137
11
1+7
176
162
1$2
+#$*6 "
+7#+0* "
62#3$3 "
3;
$;0
7;+
Selected -eratin4 5ata :estaurants o-en at end of -eriod Co&-an8oned o-en at end of -eriod
(3)
A!4 ee'l full ser!ice re st; sales (3) 1$8&o; co&-arable rest; sales 4roth
" (3)
6+#06 +;*
"
$#*7 2#*61 6#013 "
*#713 3#3*3 6#320
" "
0;20 " 0;20 "
0;22 0;21
"
6+#27 "
6$#+3+
;$
otes (1)
=or the ears Ended 5ece&ber 31# 2006# @ anuar 1# 2006 and @anuar 2# 200+# 5ece&ber 2$# 2003;
(2)
Se!erance char4es re-resent -a&ents to for&er ,resident/CE and for&er S,/Senior 5e!elo-&ent fficer under ter&s of their se-aration a4ree&ents;
(3)
5ata for co&-an8oned restaurants;
Sources of data Co&-an Annual and 9uarterl :e-orts and uarterl co&-an earnin4s conference calls;
+;
Exhibit California Pizza Kitchen, Inc. Selected Distorical Co&-arable Store Sales (Calendari?ed) C!"#
C!"$
C!"%
C!"&
C!"
()
(*
(%
(&
()
California ,i??a itchen
3;
*;3
6;
;$
+;*
+;6
6;*
;7
A--lebees %nternational# %nc;
;1
;$
1;$
2;6
81;$
82;3
81;1
8;0
B@s :estaurants# %nc;
3;3
;0
;6
6;$
+;*
+;3
+;+
6;*
2;1
1;*
3;2
2;7
82;0
82;1
82;1
8;
he Cheeseca'e =actor# %nc;
0;7
3;*
1;7
81;3
80;$
81;6
0;$
0;
Chi-otle
1*;7 1;+
Brin'er %nternational
(1)
2;
13;3
10;2
11;6
10;1
$;3
5arden :estaurants# %nc; 88 :ed >obster
0;0
83;*
;2
1;6
*;
82;1
0;7
;6
5arden :estaurants# %nc; 88 li!e arden
2;2
;7
$;6
+;7
2;+
2;*
2;*
1;0
1;1
3;$
3;0
;1
2;$
2;*
2;0
2;$
,anera Bread Co&-an
0;2
2;7
7;$
*;0
3;2
2;$
2;0
0;0
,;=; Chan4s China Bistro
+;1
3;0
1;2
1;3
81;0
80;+
80;*
82;+
:A:E 88 >on4horn Stea'house
;6
+;0
2;$
3;7
80;
80;3
1;+
81;0
:ed :obin our&et Bur4ers
;1
7;+
3;$
;$
3;3
0;$
0;2
80;+
:uths Chris Stea' Douse# %nc;
1;
11;6
10;
6;$
6;0
;3
7;
1;*
Sonic Cor-oration
1;6
7;0
+;
+;+
;3
;0
3;
2;0
exas :oadhouse# %nc;
3;+
7;6
+;6
6;
1;2
2;3
3;3
0;*
ote (1)
Brin'ers co&-arable store sales is a blended rate for its !arious brands;
Source of data eBanc Ca-ital
Exhibit + California Pizza Kitchen, Inc. Selected =orecasts for California ,i??a itchen
ir/
--enhei&er and Co; %nc; C%BC Forld
+ate of Price *""$E 0e1ort Tar2et 0e3enues
/*/2007 " 0 " /12/2007 37 +/11/2007 A +/11/2007 37 +/11/2007 A +/11/2007 3*
Source of data Selected fir&s euit research;
EPS
*""E 0e3enues EPS
6+2;* " 1;33 67;+ 1;2* A 1;2$ 6+0;7 1;31 6;2 1;33 67;+ 1;3
A A 7++;1 1;+7 A 1;++ 7+3;1 1;+* 72;1 1;+$ 7+;3 1;6*
*""-E 0e3enues EPS
A A A $7$;2 A A
A A A 1;*0 A A
Exhibit + California Pizza Kitchen, Inc. Selected =orecasts for California ,i??a itchen
ir/
--enhei&er and Co; %nc; C%BC Forld
+ate of Price *""$E 0e1ort Tar2et 0e3enues
/*/2007 " 0 " /12/2007 37 +/11/2007 A +/11/2007 37 +/11/2007 A +/11/2007 3*
EPS
*""E 0e3enues EPS
6+2;* " 1;33 67;+ 1;2* A 1;2$ 6+0;7 1;31 6;2 1;33 67;+ 1;3
A A 7++;1 1;+7 A 1;++ 7+3;1 1;+* 72;1 1;+$ 7+;3 1;6*
*""-E 0e3enues EPS
A A A $7$;2 A A
A A A 1;*0 A A
Source of data Selected fir&s euit research;
Exhibit 6 California Pizza Kitchen, Inc. Stoc' ,rice Co&-arison
4alue of 5)"" in3ested in CPK and SP S/allCa1 #"" 0estaurants Inde6 "10
"130
"120
"110
"100 C,
"*0
S., S&allCa- 600 :estaurants
5ate
C, S., S&allCa- 600 :estaurants
38@ul806
100
100
+8@ul806
**
**
68@ul806
*7
*$
78@ul806
*6
*7
108@ul806
101
*$
118@ul806
100
128@ul806
103
*+
138@ul806
*$
*2
18@ul806
*7
*2
178@ul806
*$
*2
1$8@ul806
*6
*2
1*8@ul806
**
*
208@ul806
*
*1
218@ul806
*+
*0
28@ul806
*7
*3
2+8@ul806
*$
*+
268@ul806
*6
*2
278@ul806
*+
*0
2$8@ul806
*+
*1
318@ul806
*7
*1
18Au4806
*
*0
28Au4806
*3
*1
38Au4806
*+
*2
8Au4806
*+
*3
78Au4806
*6
*2
$8Au4806
100
*2
*8Au4806
*+
*0
*7
Exhibit 6 California Pizza Kitchen, Inc. Stoc' ,rice Co&-arison
5ate
4alue of 5)"" in3ested in CPK and SP S/allCa1 #"" 0estaurants Inde6 "10
"130
"120
"110
"100 C,
S., S&allCa- 600 :estaurants
"*0
100
100
+8@ul806
**
**
68@ul806
*7
*$
78@ul806
*6
*7
108@ul806
101
*$
118@ul806
100
128@ul806
103
*+
138@ul806
*$
*2
18@ul806
*7
*2
178@ul806
*$
*2
1$8@ul806
*6
*2
1*8@ul806
**
*
208@ul806
*
*1
218@ul806
*+
*0
28@ul806
*7
*3
2+8@ul806
*$
*+
268@ul806
*6
*2
278@ul806
*+
*0
2$8@ul806
*+
*1
318@ul806
*7
*1
18Au4806
*
*0
28Au4806
*3
*1
38Au4806
*+
*2
8Au4806
*+
*3
78Au4806
*6
*2
$8Au4806
100
*2
*8Au4806
*+
*0
Exhibit 7 California Pizza Kitchen, Inc. Co&-arati!e :estaurant =inancial 5ata# 2006 =iscal ear (in &illions# exce-t -er8share data) iscal !ear End
$7*7*""$
;onth
Share Price
0e3enue
California ,i??a itchen
5ec; "
22;10 "
A--lebees %nternational# %nc;
5ec;
B@s :estaurants# %nc;
5ec;
Brin'er %nternational (1)
E8IT+A
9et Profit
Earnin2s
+i3idends
8oo: 4alue
;ar2in
;ar2in
Per Share
Per Share
Per Share
8eta
+++
10;7
3;$ "
0;71 "
0;00 "
7;20
0;$+
2;2$
1#33$
1+;*
6;+
1;17
0;20
6;*
0;$0
20;0+
23*
*;6
;1
0;1
0;00
7;7$
1;0+
@une
2*;37
#1+1
12;0
;7
1;*
0;20
$;+*
0;*0
Buffalo Fild Fin4s# %ncor-orated
5ec;
1;7$
27$
13;3
+;$
0;*3
0;00
6;61
1;10
he Cheeseca'e =actor# %nc;
5ec;
2;+7
1#31+
12;2
6;2
1;02
0;00
*;0*
1;00
Chi-otle
5ec;
$6;00
$23
13;0
+;0
1;2$
0;00
1;+6
A
5arden :estaurants# %nc; (2)
;1
+#721
13;2
+;*
2;16
0;0
$;37
1;00
=rischs :estaurants# %nc;
30;+
2*1
31;6
3;1
1;7$
0;
1*;$
0;60
5ec;
2+;66
30$
*;7
;3
0;*2
0;00
11;20
1;10
,anera Bread Co&-an
5ec;
6;02
$2*
16;3
7;2
1;$7
0;00
12;+3
1;2+
,;=; Chan4s China Bistro
5ec;
3+;37
*3$
10;+
3;6
1;2
0;00
11;1
1;10
:A:E Dos-italit %nternational %nc; (3)
5ec;
26;76
*$7
11;6
+;1
1;+
0;00
11;17
0;+7
:ed :obin our&et Bur4ers
5ec;
0;1*
61*
13;7
;*
1;$2
0;00
1;6$
1;0+
:uths Chris Stea' Douse# %nc;
5ec;
16;$0
272
1+;6
$;7
1;01
0;00
2;*3
A
Sonic Cor-oration
Au4;
22;00
6*3
2;*
11;
0;$$
0;00
;66
0;*0
exas :oadhouse# %nc;
5ec;
12;$1
+*7
12;+
+;7
0;
0;00
;30
0;*0
Current
Current
Total
Shr.
+ebt7
Interest
T. Ca1ital
Assets
Liabilities
+ebt
Equity
Ca1ital
Co3era2e
Turno3er
20$
0;0
<=
2;7
10;1 10;1
$7
26;+
11;7
2;0
1;0 1$;0
California ,i??a itchen A--lebees %nternational# %nc; B@s :estaurants# %nc; Brin'er %nternational (1) Buffalo Fild Fin4s# %ncor-orated
"
3$ "
66
10+
1$7
"
0 " 17+
0eturn
;*
*6
36
0
203
0;0
<=
1;2
22
*7
+02
1#076
31;$
1;
2;6
13;2 1$;0
;*
7+
26
0
116
0;0
<=
2;
1;0 1;0
he Cheeseca'e =actor# %nc;
203
163
0
712
0;0
<=
1;$
11; 11;
Chi-otle
17*
61
0
7
0;0
<=
1;7
$;$
C, S., S&allCa- 600 :estaurants
38@ul806
$;7
*7
Exhibit 7 California Pizza Kitchen, Inc. Co&-arati!e :estaurant =inancial 5ata# 2006 =iscal ear (in &illions# exce-t -er8share data) iscal !ear End
$7*7*""$
;onth
Share Price
0e3enue
California ,i??a itchen
5ec; "
22;10 "
A--lebees %nternational# %nc;
5ec;
B@s :estaurants# %nc;
5ec;
Brin'er %nternational (1)
E8IT+A
9et Profit
Earnin2s
+i3idends
8oo: 4alue
;ar2in
;ar2in
Per Share
Per Share
Per Share
8eta
+++
10;7
3;$ "
0;71 "
0;00 "
7;20
0;$+
2;2$
1#33$
1+;*
6;+
1;17
0;20
6;*
0;$0
20;0+
23*
*;6
;1
0;1
0;00
7;7$
1;0+
@une
2*;37
#1+1
12;0
;7
1;*
0;20
$;+*
0;*0
Buffalo Fild Fin4s# %ncor-orated
5ec;
1;7$
27$
13;3
+;$
0;*3
0;00
6;61
1;10
he Cheeseca'e =actor# %nc;
5ec;
2;+7
1#31+
12;2
6;2
1;02
0;00
*;0*
1;00
Chi-otle
5ec;
$6;00
$23
13;0
+;0
1;2$
0;00
1;+6
A
5arden :estaurants# %nc; (2)
;1
+#721
13;2
+;*
2;16
0;0
$;37
1;00
=rischs :estaurants# %nc;
30;+
2*1
31;6
3;1
1;7$
0;
1*;$
0;60
5ec;
2+;66
30$
*;7
;3
0;*2
0;00
11;20
1;10
,anera Bread Co&-an
5ec;
6;02
$2*
16;3
7;2
1;$7
0;00
12;+3
1;2+
,;=; Chan4s China Bistro
5ec;
3+;37
*3$
10;+
3;6
1;2
0;00
11;1
1;10
:A:E Dos-italit %nternational %nc; (3)
5ec;
26;76
*$7
11;6
+;1
1;+
0;00
11;17
0;+7
:ed :obin our&et Bur4ers
5ec;
0;1*
61*
13;7
;*
1;$2
0;00
1;6$
1;0+
:uths Chris Stea' Douse# %nc;
5ec;
16;$0
272
1+;6
$;7
1;01
0;00
2;*3
A
Sonic Cor-oration
Au4;
22;00
6*3
2;*
11;
0;$$
0;00
;66
0;*0
exas :oadhouse# %nc;
5ec;
12;$1
+*7
12;+
+;7
0;
0;00
;30
0;*0
Current
Current
Total
Shr.
+ebt7
Interest
T. Ca1ital
Assets
Liabilities
+ebt
Equity
Ca1ital
Co3era2e
Turno3er
20$
0;0
<=
2;7
10;1 10;1
$7
26;+
11;7
2;0
1;0 1$;0
California ,i??a itchen
"
A--lebees %nternational# %nc; B@s :estaurants# %nc; Brin'er %nternational (1) Buffalo Fild Fin4s# %ncor-orated
3$ "
66
10+
1$7
"
0 " 17+
0eturn
*6
36
0
203
0;0
<=
1;2
22
*7
+02
1#076
31;$
1;
2;6
13;2 1$;0
;*
;*
7+
26
0
116
0;0
<=
2;
1;0 1;0
he Cheeseca'e =actor# %nc;
203
163
0
712
0;0
<=
1;$
11; 11;
Chi-otle
17*
61
0
7
0;0
<=
1;7
5arden :estaurants# %nc; (2)
37$
1#026
6+
1#230
3;
10;*
3;1
$;$
$;7
20;6 27;+
=rischs :estaurants# %nc;
12
31
3
101
30;1
+;*
2;0
7;*
*;1
30
0
0
160
0;2
<=
1;*
$;3
$;3
12$
110
0
3*$
0;0
<=
2;1
1+;1 1+;1 11;1 11;+
,anera Bread Co&-an ,;=; Chan4s China Bistro :A:E Dos-italit %nternational %nc; (3) :ed :obin our&et Bur4ers
6+
10
1*
2*0
6;2
<=
3;0
12+
13
166
360
31;6
2*;2
1;*
*;$ 13;*
2*
70
11
2
31;*
7;7
1;7
*;3 12;+
:uths Chris Stea' Douse# %nc;
26
+*
6$
GGG
+0;0
12;$
2;0
1$;6 3;*
Sonic Cor-oration
3
7$
1+*
3*2
2$;*
1+;0
1;3
1+;3 20;1
exas :oadhouse# %nc;
+3
7$
36
31*
10;2
1*;*
1;7
*;7 10;7
otes (1)
Brin'ers restaurant brands include Chilis rill . Bar# :o&anos
(2)
5ardens restaurant brands include :ed >obster and he li!e arden;
(3)
:A:Es restaurant brands include >on4Dorn Stea'house# he Ca-ital rille and Bu4aboo Cree' Stea' Douse;
Sources of data Value Line Investment Survey # 2007H Standard & Poor's Stock Report # 2007 and co&-an Annual :e-orts and ebsites;
Exhibit $ California Pizza Kitchen, Inc. %nterest :ates and ields
2000 2001 2002 2003 200 200+
2006 @an; =eb;
=.S. Treasury Securities 8ills 9otes 8onds %@/onth #@/onth %@year )"@year +;$+ +;*2 6;22 6;03 3;+ 3;3* ;0* +;02 1;62 1;6* 3;10 ;61 1;02 1;06 2;10 ;01 1;3$ 1;+$ 2;7$ ;27 3;16 3;0 3;*3 ;2*
;20 ;1 ;+1 ;+* ;72 ;7* ;*6 ;*$ ;$2 ;$* ;*+
;30 ;+1 ;61 ;72 ;$1 ;*+ +;0* ;** ;*0 ;*1 ;*6
;3+ ;6 ;7 ;$* ;*7 +;0* +;07 ;$+ ;6* ;72 ;6
;2 ;+7 ;72 ;** +;11 +;11 +;0* ;$$ ;72 ;73 ;60
%"@year +;* +;* ;;;;;; ;;;;;; ;;;;;; ;;;;;;
;;;;;; ;+ ;73 +;06 +;20 +;1+ +;13 +;00 ;$+ ;$+ ;6*
Cor1orate bonds >;oody's? Aaa % 8aa 7;62 $;36 7;0$ 7;*+ 6;* 7;$0 +;67 6;77 +;63 6;3* +;2 6;06
+;2* +;3+ +;+3 +;$ +;*+ +;$* +;$+ +;6$ +;+1 +;+1 +;33
6;2 6;27 6;1 6;6$ 6;7+ 6;7$ 6;76 6;+* 6;3 6;2 6;20
A3era2e Pri/e Lendin2 *;23 6;*1 ;67 ;12 ;3 6;1*
7;3$ 7;+0 7;63 7;7+ 7;$$ 7;13 $;2+ $;2+ $;2+ $;2+ $;2+
A3era2e LI8<0 %@/onth 6;++ 3;63 1;7* 1;22 1;67 3;63
;6$ ;$2 ;** +;1+ +;23 +;+1 +;* +;0 +;37 +;37 +;37
Exhibit $ California Pizza Kitchen, Inc. %nterest :ates and ields
2000 2001 2002 2003 200 200+
2006 @an; =eb;
=.S. Treasury Securities 8ills 9otes 8onds %@/onth #@/onth %@year )"@year +;$+ +;*2 6;22 6;03 3;+ 3;3* ;0* +;02 1;62 1;6* 3;10 ;61 1;02 1;06 2;10 ;01 1;3$ 1;+$ 2;7$ ;27 3;16 3;0 3;*3 ;2*
;20 ;1 ;+1 ;+* ;72 ;7* ;*6 ;*$ ;$2 ;$* ;*+ ;$+ ;*6 +;02 ;*7 ;$$ ;77 ;63
;30 ;+1 ;61 ;72 ;$1 ;*+ +;0* ;** ;*0 ;*1 ;*6 ;$$ ;* ;*7 ;*0 ;$7 ;$0 ;77
;3+ ;6 ;7 ;$* ;*7 +;0* +;07 ;$+ ;6* ;72 ;6 ;+$ ;7* ;7+ ;+1 ;60 ;6* +;00
;2 ;+7 ;72 ;** +;11 +;11 +;0* ;$$ ;72 ;73 ;60 ;+6 ;76 ;72 ;+6 ;6* ;7+ +;10
%"@year +;* +;* ;;;;;; ;;;;;; ;;;;;; ;;;;;;
;;;;;; ;+ ;73 +;06 +;20 +;1+ +;13 +;00 ;$+ ;$+ ;6* ;6$ ;$+ ;$2 ;72 ;$7 ;*0 +;20
Cor1orate bonds >;oody's? Aaa % 8aa 7;62 $;36 7;0$ 7;*+ 6;* 7;$0 +;67 6;77 +;63 6;3* +;2 6;06
+;2* +;3+ +;+3 +;$ +;*+ +;$* +;$+ +;6$ +;+1 +;+1 +;33 +;32 +;0 +;3* +;30 +;7 +;7 +;7*
6;2 6;27 6;1 6;6$ 6;7+ 6;7$ 6;76 6;+* 6;3 6;2 6;20 6;22 6;3 6;2$ 6;27 6;3* 6;3* 6;70
A3era2e Pri/e Lendin2 *;23 6;*1 ;67 ;12 ;3 6;1*
7;3$ 7;+0 7;63 7;7+ 7;$$ 7;13 $;2+ $;2+ $;2+ $;2+ $;2+ $;2+ $;2+ $;2+ $;2+ $;2+ $;2+ $;2+
A3era2e LI8<0 %@/onth 6;++ 3;63 1;7* 1;22 1;67 3;63
;6$ ;$2 ;** +;1+ +;23 +;+1 +;* +;0 +;37 +;37 +;37 +;36 +;36 +;36 +;3+ +;36 +;36 +;36
Sources of data Economic Report of the President and =annie
Exhibit * CALI<09IA PIA KITCBE9 ,ro =or&a ax Shield Effect of :eca-itali?ation Scenarios (5ollars in thousands# exce-t share dataH fi4ures based on end of @une 2007)
Actual %nterest rate ax rate
(1)
5ebt/otal Ca-ital 10 20
30
6;16 32;+
6;16 32;+
6;16 32;+
6;16 32;+
Earnin4s before inco&e taxes and interest (2)
30#0+
30#0+
30#0+
30#0+
%nterest ex-ense Earnin4s before taxes
0 30#0+
1#3*1 2$#663
2#7$3 27#271
#17 2+#$$0
%nco&e taxes
*#7++
*#303
$#$+2
$#00
et inco&e
20#2**
1*#3+*
1$#1*
17#$0
Exhibit * CALI<09IA PIA KITCBE9 ,ro =or&a ax Shield Effect of :eca-itali?ation Scenarios (5ollars in thousands# exce-t share dataH fi4ures based on end of @une 2007)
Actual %nterest rate ax rate
(1)
5ebt/otal Ca-ital 10 20
30
6;16 32;+
6;16 32;+
6;16 32;+
6;16 32;+
Earnin4s before inco&e taxes and interest (2)
30#0+
30#0+
30#0+
30#0+
%nterest ex-ense Earnin4s before taxes
0 30#0+
1#3*1 2$#663
2#7$3 27#271
#17 2+#$$0
%nco&e taxes
*#7++
*#303
$#$+2
$#00
et inco&e
20#2**
1*#3+*
1$#1*
17#$0
8oo: 3alue 5ebt
0
22#+$*
+#17$
67#766
22+#$$$
203#2**
1$0#710
1+$#122
22+#$$$
22+#$$$
22+#$$$
22+#$$$
0
22#+$*
+#17$
67#766
63#773
62$#+16
613#2+*
+*$#002
63#773
6+1#10+
6+$#37
66+#76*
Euit otal ca-ital ;ar:et 3alue
5ebt(3) Euit()
otes (1)
%nterest rate of C,s credit facilit ith Ban' of A&erica >%B: I 0;$0;
(2)
EB% includes interest inco&e;
(3)
()
Actual &ar'et !alues of euit euals the share -rice ("22;10) &ulti-lied b the current nu&ber of shares outstandin4 (2*;13 &illion);
Source Case riter analsis based on C, financial data;
