Transaction Assumptions

($ in millions, except per share data)

Summary Financial Data

Code Name
Ticker
Current Price
52-Week High
52-Week Low

M&A

Acquirer

Target

BuyerCo
BBB

TargetCo
TTT

5/17/2008
4/2/2008
8/24/2007

$31.75
$40.36
$27.18

5/17/2008
6/4/2007
6/13/2006

Consideration
Transaction Price
Percent Cash Considera

$12.81
$28.22
$10.49

Basic Shares Outstanding

Treasury Method Shares
In-the-Money Convertible Shares
Fully Diluted Shares Outstanding

207.050
2.899
0.000
209.949

34.922
0.099
0.000
35.021

Equity Value
Net Debt
Enterprise Value

$6,665.9
(729.6)
$5,936.3

$448.6
83.4
$532.0

Convert 1
$450.0
$43.12
10.436
0.5%
no

Face Value
Conversion Price
Convertible Shares
Interest Rate
In the Money?
LTM Date
Last Fiscal Year End
Research Report Analyst
Research Report Date

Convert 2
$0.0
NA
0.000
0.0%
no

Convert 1
$230.0
$26.77
8.592
2.5%
no

Convert 2
$0.0
NA
0.000
0.0%
no

3/31/2008
9/30/2007

3/31/2008
12/31/2007

Deutsche Bank
4/24/2008

Goldman Sachs
4/27/2008

Deal Structure
Target LT Debt: 0=refina
Acquisition Type: 0=stoc
Section 338 Election?

Acquisition Debt
Interest Rate on Debt
Amortization Period for N

Cash
Interest Rate on Cash
Minimum Cash Balance
Fees & Expenses
Advisory Fees
Financing Fees
Synergies
Include Synergies?
Cost Synergies
SG&A Synergies

Purchase Price Allocat

% of Excess PP Allocate
Amortization Period (yrs
Step-Up of Target's Fixe
Depreciation Period (yrs

Options Data

Tranche 1
Tranche 2
Tranche 3
Tranche 4
Tranche 5
Tranche 6
Tranche 7
Tranche 8
Tranche 9

Number of
Options (m)
0.270
1.548
2.855
2.431
2.182
3.394
2.678
2.138
2.631

Average
Strike
$2.31
12.31
22.00
25.07
27.88
31.31
34.35
38.63
52.72

BuyerCo
Cumulative Cumulative
Options (m) Strike ($m)
0.270
$0.6
1.818
19.7
4.673
82.5
7.104
143.4
9.286
204.3
12.680
310.5
15.358
402.5
17.496
485.1
20.127
623.8

Cumulative
Avg. Strike
$2.31
10.82
17.65
20.19
22.00
24.49
26.21
27.73
30.99

Treasury
Shares
0.250
0.948
0.877
0.511
0.266
0.047
0.000
0.000
0.000

Other
Tax Rate
Calendar Year or Fiscal
Cash or GAAP?

Tranche 10

Tranche 1
Tranche 2
Tranche 3
Tranche 4
Tranche 5
Tranche 6
Tranche 7
Tranche 8
Tranche 9
Tranche 10

0.329

Number of
Options (m)
0.209
0.059
0.221
0.300
0.269
0.211
0.187
0.000
0.000
0.000

70.00

Average
Strike
$9.04
10.03
11.53
12.69
19.54
27.06
45.75
0.00
0.00
0.00

20.456

646.9

TargetCo
Cumulative Cumulative
Options (m) Strike ($m)
0.209
$1.9
0.268
2.5
0.489
5.0
0.789
8.8
1.058
14.1
1.269
19.8
1.456
28.4
1.456
28.4
1.456
28.4
1.456
28.4

31.62
Total

0.000
2.899

Cumulative
Avg. Strike
$9.04
9.26
10.28
11.20
13.32
15.60
19.48
19.48
19.48
19.48
Total

Treasury
Shares
0.062
0.013
0.022
0.003
0.000
0.000
0.000
0.000
0.000
0.000
0.099

M&A Assumptions
Consideration
Transaction Price
Percent Cash Consideration

3
40.0%

Deal Structure
Target LT Debt: 0=refinanced, 1=assumed
Acquisition Type: 0=stock, 1=asset
Section 338 Election?

1
0
no

Acquisition Debt
Interest Rate on Debt
Amortization Period for New Debt (yrs)

6.00%
7

Interest Rate on Cash

Minimum Cash Balance

2.0%
$100.0

Fees & Expenses

Advisory Fees
Financing Fees

$30.0
1.0%

Include Synergies?
Cost Synergies
SG&A Synergies

yes
$25.0
$50.0

Purchase Price Allocation

% of Excess PP Allocated to Intangibles
Amortization Period (yrs)
Step-Up of Target's Fixed Assets
Depreciation Period (yrs)

25.0%
5
$15.0
10

FY
Cash

Purchase Price Ratio Analysis

($ in millions, except per share data)

TargetCo
$12.81
Common Stock
Stock Options
ITM Convertible Securities
Total Diluted Equity Value
Net Debt
Total Enterprise Value

$12.00

$13.00

Transaction Prices Per TargetCo S

$14.00

$447.4
1.3
0.0
$448.6
83.4
$532.0

$419.1
0.8
0.0
$419.9
83.4
$503.3

$454.0
1.4
0.0
$455.4
83.4
$538.8

$488.9
2.2
0.0
$491.1
83.4
$574.5

$12.81
28.22
10.49
12.64
12.12
11.71
12.03

0.0%
(54.6%)
22.1%
1.3%
5.7%
9.4%
6.5%

(6.3%)
(57.5%)
14.4%
(5.1%)
(1.0%)
2.5%
(0.2%)

1.5%
(53.9%)
23.9%
2.8%
7.3%
11.0%
8.1%

9.3%
(50.4%)
33.5%
10.8%
15.5%
19.6%
16.4%

FY 2008P Revenue
FY 2009P Revenue
FY 2010P Revenue

$458.1
468.0
470.5

1.16x
1.14x
1.13x

1.10x
1.08x
1.07x

1.18x
1.15x
1.15x

1.25x
1.23x
1.22x

FY 2008P EBITDA
FY 2009P EBITDA
FY 2010P EBITDA

$130.2
126.5
125.9

4.1x
4.2x
4.2x

3.9x
4.0x
4.0x

4.1x
4.3x
4.3x

4.4x
4.5x
4.6x

FY 2008P EBITA
FY 2009P EBITA
FY 2010P EBITA

$116.1
112.4
111.8

4.6x
4.7x
4.8x

4.3x
4.5x
4.5x

4.6x
4.8x
4.8x

4.9x
5.1x
5.1x

$2.85
2.65
2.64

4.5x
4.8x
4.9x

4.2x
4.5x
4.6x

4.6x
4.9x
4.9x

4.9x
5.3x
5.3x

Premiums Analysis:
Current Price
52-Week High
52-Week Low
7-Day Trading Average
30-Day Trading Average
60-Day Trading Average
90-Day Trading Average

TargetCo

Multiples Analysis:

FY 2008P Cash P/E

FY 2009P Cash P/E
FY 2010P Cash P/E

ansaction Prices Per TargetCo Share

$15.00
$16.00
$523.8
3.0
0.0
$526.8
83.4
$610.2

$558.8
3.8
0.0
$562.5
83.4
$645.9

$17.00
$593.7
4.6
0.0
$598.3
83.4
$681.6

$18.00
$628.6
5.4
0.0
$634.0
83.4
$717.4

BuyerCo
$31.75
$6,573.8
92.1
0.0
$6,665.9
(729.6)
$5,936.3
BuyerCo

17.1%
(46.8%)
43.0%
18.7%
23.8%
28.1%
24.7%

24.9%
(43.3%)
52.5%
26.6%
32.0%
36.6%
33.0%

32.7%
(39.8%)
62.1%
34.5%
40.3%
45.2%
41.3%

40.5%
(36.2%)
71.6%
42.4%
48.5%
53.7%
49.6%

0.0%
(21.3%)
16.8%
(0.5%)
3.9%
5.7%
3.2%

$31.75
40.36
27.18
31.92
30.56
30.04
30.77

1.33x
1.30x
1.30x

1.41x
1.38x
1.37x

1.49x
1.46x
1.45x

1.57x
1.53x
1.52x

1.90x
1.71x
1.54x

$3,120.0
3,470.0
3,856.0

4.7x
4.8x
4.8x

5.0x
5.1x
5.1x

5.2x
5.4x
5.4x

5.5x
5.7x
5.7x

8.9x
8.1x
7.1x

$667.9
734.2
832.7

5.3x
5.4x
5.5x

5.6x
5.7x
5.8x

5.9x
6.1x
6.1x

6.2x
6.4x
6.4x

10.6x
9.0x
7.9x

$559.1
659.5
747.3

5.3x
5.7x
5.7x

5.6x
6.0x
6.1x

6.0x
6.4x
6.5x

6.3x
6.8x
6.8x

13.6x
11.7x
10.5x

$2.34
2.71
3.02

Purchase Price Allocation and Accounting Adjustments

($ in millions, except per share data)

Current
Price
$12.81

Transaction Prices Per

$12.00

$13.00

Options Calculations
Unvested Black Scholes Value
Stock Price
Strike Price
Expiration (yrs)
Volatility
Dividend Yield
Risk-Free Rate
d1
d2
N(d1)
N(d2)
Black Scholes Value Per Option

$12.81
$14.60
4.0
60.0%
0.0%
4.0%
0.6243
(0.5757)
0.7338
0.2824
$5.89

$12.00
$14.60
4.0
60.0%
0.0%
4.0%
0.5699
(0.6301)
0.7156
0.2643
$5.30

$13.00
$14.60
4.0
60.0%
0.0%
4.0%
0.6366
(0.5634)
0.7378
0.2866
$6.03

Vested Black Scholes Value

Stock Price
Strike Price
Expiration (yrs)
Volatility
Dividend Yield
Risk-Free Rate
d1
d2
N(d1)
N(d2)
Black Scholes Value Per Option

$12.81
$29.49
2.7
60.0%
0.0%
4.0%
(0.2433)
(1.2292)
0.4039
0.1095
$2.28

$12.00
$29.49
2.7
60.0%
0.0%
4.0%
(0.3095)
(1.2954)
0.3785
0.0976
$1.96

$13.00
$29.49
2.7
60.0%
0.0%
4.0%
(0.2283)
(1.2142)
0.4097
0.1123
$2.35

Transaction Prices Per TargetCo Share

$14.00
$15.00
$16.00

$17.00

$18.00

ulations

$14.00
$14.60
4.0
60.0%
0.0%
4.0%
0.6984
(0.5016)
0.7575
0.3080
$6.77

$15.00
$14.60
4.0
60.0%
0.0%
4.0%
0.7559
(0.4441)
0.7751
0.3285
$7.54

$16.00
$14.60
4.0
60.0%
0.0%
4.0%
0.8096
(0.3904)
0.7909
0.3481
$8.32

$17.00
$14.60
4.0
60.0%
0.0%
4.0%
0.8602
(0.3398)
0.8051
0.3670
$9.12

$18.00
$14.60
4.0
60.0%
0.0%
4.0%
0.9078
(0.2922)
0.8180
0.3851
$9.93

$14.00
$29.49
2.7
60.0%
0.0%
4.0%
(0.1532)
(1.1391)
0.4391
0.1273
$2.78

$15.00
$29.49
2.7
60.0%
0.0%
4.0%
(0.0832)
(1.0691)
0.4669
0.1425
$3.23

$16.00
$29.49
2.7
60.0%
0.0%
4.0%
(0.0177)
(1.0036)
0.4929
0.1578
$3.71

$17.00
$29.49
2.7
60.0%
0.0%
4.0%
0.0438
(0.9421)
0.5175
0.1731
$4.22

$18.00
$29.49
2.7
60.0%
0.0%
4.0%
0.1018
(0.8841)
0.5405
0.1883
$4.74

Pro Forma Balance Sheet

($ in millions, except per share data)

BuyerCo
3/31/2008

TargetCo
3/31/2008

Assets
Current Assets
Cash and Equivalents
Accounts Receivable
Inventory
Deferred Income Taxes
Other Current Assets
Total Current Assets

$1,181.8
568.5
0.0
109.0
113.5
$1,972.7

$146.6
131.4
0.0
8.8
8.2
$295.1

Net PP&E
Goodwill
Intangibles
Investments/Restricted Cash
Unearned Compensation
Deferred Financing Fees
Other Assets
Total Assets

$296.3
1,487.6
284.7
0.0
0.0
0.0
464.0
$4,505.4

$33.0
61.1
37.5
0.0
0.0
0.0
14.3
$440.9

$186.1
395.3
35.9
209.2
0.0
2.2
$828.7

$20.7
15.4
2.9
20.0
36.2
0.0
$95.2

Revolver
Non-Convertible Debt
Convertible Debt
Deferred Income Taxes
Other Long-Term Liabilities
Total Liabilities

$0.0
0.0
450.0
0.0
503.0
$1,781.7

$0.0
0.0
230.0
0.0
17.9
$343.1

Preferred Stock, par value

Common Stock, par value
APIC
Treasury Stock
Accum. & Other Comp. Income (Loss)
Retained Earnings
Total Stockholders' Equity
Total Liabilities and Stockholders' Equity

$0.0
3.9
2,212.7
(774.7)
6.6
1,275.2
$2,723.7
$4,505.4

$0.0
0.6
350.7
(667.9)
(0.4)
414.7
$97.9
$440.9

Liabilities and Stockholders' Equity

Current Liabilities
Accounts Payable
Accrued Expenses
Income Taxes Payable
Deferred Revenue
Other Current Liabilities
Current Portion of Long-Term Debt
Total Current Liabilities

Check

0.000

0.000

BuyerCo Income Statement

($ in millions, except per share data)

FY Ended September 30,

2005A
2006A
2007A
Total Revenue
% Growth

2008P

FY Ending Septemb
2009P

$2,038.6
NA

$2,480.1
21.7%

$2,836.2
14.4%

$3,120.0
10.0%

$3,470.0
11.2%

COGS
% of Sales
Gross Profit
% Margin

1,295.6
63.6%
$743.0
36.4%

1,565.8
63.1%
$914.3
36.9%

1,771.0
62.4%
$1,065.2
37.6%

1,945.5
62.4%
$1,174.5
37.6%

2,113.5
60.9%
$1,356.5
39.1%

SG&A
% of Sales

253.6
12.4%

392.3
15.8%

482.4
17.0%

506.6
16.2%

622.3
17.9%

EBITDA
% Margin

$489.4
24.0%

$522.0
21.0%

$582.8
20.5%

$667.9
21.4%

$734.2
21.2%

Depreciation
% of Sales
Amortization
% of Sales
Total D&A
% of Sales

78.5
3.9%
15.4
0.8%
$93.9
4.6%

80.3
3.2%
37.6
1.5%
$117.9
4.8%

90.0
3.2%
75.0
2.6%
$165.0
5.8%

108.8
3.5%
61.8
2.0%
$170.6
5.5%

74.7
2.2%
62.0
1.8%
$136.7
3.9%

Stock-Based Comp
% of Sales

44.5
2.2%

46.2
1.9%

53.6
1.9%

54.5
1.7%

53.7
1.5%

EBIT
% Margin

$351.0
17.2%

$357.9
14.4%

$364.2
12.8%

$442.8
14.2%

$543.8
15.7%

EBITA
% Margin

$410.9
20.2%

$441.7
17.8%

$492.8
17.4%

$559.1
17.9%

$659.5
19.0%

Interest (Income) / Expense

Equity (Income)
Minority Interest
Other (Income) / Expense
Income Before Taxes

(26.6)
4.3
$433.2

(45.5)
3.8
$483.4

(42.6)
(8.0)
$543.4

(36.8)
$595.9

(44.3)
$703.8

Provision for Tax

% Tax Rate

85.8
19.8%

71.4
14.8%

57.3
10.5%

79.6
13.4%

96.9
13.8%

Cash Net Income

% Margin

$347.4
17.0%

$412.0
16.6%

$486.1
17.1%

$516.3
16.5%

$606.9
17.5%

Cash Diluted EPS

$1.63

$1.89

$2.18

$2.34

$2.71

Diluted Shares Out

212.571

218.534

223.256

221.099

224.286

$12.3
35.7
10.1

$32.0
39.4
21.9

$67.1
47.9
6.1

$53.5
47.2
-

$53.5
46.3
-

$289.3

$318.7

$365.0

$415.5

$507.1

Cash to GAAP Reconciliation:

Amortization
Stock-Based Comp
One-Time Charges
GAAP Net Income

% Margin

14.2%

12.8%

12.9%

13.3%

14.6%

GAAP Diluted EPS

$1.36

$1.46

$1.63

$1.88

$2.26

Capex
% of Sales

$71.4
3.5%

$80.7
3.3%

$166.4
5.9%

$183.1
5.9%

$203.6
5.9%

FY Ending September 30,

2010P
2011E

2012E

CAGR
2008-2012

$3,856.0
11.1%

$4,284.9
11.1%

$4,761.6
11.1%

11.1%

2,347.8
60.9%
$1,508.2
39.1%

2,609.0
60.9%
$1,676.0
39.1%

2,899.2
60.9%
$1,862.4
39.1%

675.5
17.5%

750.6
17.5%

834.1
17.5%

$832.7
21.6%

$925.3
21.6%

$1,028.3
21.6%

85.4
2.2%
62.0
1.6%
$147.4
3.8%

94.9
2.2%
62.0
1.4%
$156.9
3.7%

105.5
2.2%
62.0
1.3%
$167.5
3.5%

59.6
1.5%

66.2
1.5%

73.6
1.5%

$625.7
16.2%

$702.2
16.4%

$787.2
16.5%

15.5%

$747.3
19.4%

$830.4
19.4%

$922.8
19.4%

13.3%

(52.3)
$799.6

(52.3)
$882.7

(52.3)
$975.1

110.1
13.8%

121.5
13.8%

134.3
13.8%

$689.5
17.9%

$761.2
17.8%

$840.8
17.7%

13.0%

$3.02

$3.28

$3.56

11.1%

228.286

232.286

236.286

$53.5
51.4
-

$53.5
57.1
-

$53.5
63.5
-

$584.6

$650.6

$723.9

12.2%

11.4%

13.1%

14.9%

15.2%

15.2%

15.2%

$2.56

$2.80

$3.06

$226.3
5.9%

$192.8
4.5%

$190.5
4.0%

13.0%

TargetCo Income Statement

($ in millions, except per share data)

FY Ended September 30,

2005A
2006A
2007A

2008P

FY Ending Septemb
2009P

Total Revenue
% Growth

$370.8
NA

$380.8
2.7%

$402.5
5.7%

$458.1
13.8%

$468.0
2.2%

COGS
% of Sales
Gross Profit
% Margin

182.5
49.2%
$188.3
50.8%

188.6
49.5%
$192.2
50.5%

207.7
51.6%
$194.8
48.4%

239.6
52.3%
$218.5
47.7%

249.8
53.4%
$218.2
46.6%

SG&A
% of Sales

46.6
12.6%

61.9
16.3%

74.8
18.6%

88.3
19.3%

91.7
19.6%

EBITDA
% Margin

$141.7
38.2%

$130.3
34.2%

$120.0
29.8%

$130.2
28.4%

$126.5
27.0%

Depreciation
% of Sales
Amortization
% of Sales
Total D&A
% of Sales

14.0
3.8%
25.7
6.9%
$39.7
10.7%

11.1
2.9%
18.2
4.8%
$29.3
7.7%

12.1
3.0%
18.6
4.6%
$30.7
7.6%

14.1
3.1%
19.6
4.3%
$33.7
7.4%

14.1
3.0%
19.9
4.3%
$34.0
7.3%

16.5
4.4%

13.4
3.5%

11.3
2.8%

10.8
2.4%

10.6
2.3%

EBIT
% Margin

$85.5
23.1%

$87.6
23.0%

$78.0
19.4%

$85.7
18.7%

$81.9
17.5%

EBITA
% Margin

$127.7
34.4%

$119.2
31.3%

$107.9
26.8%

$116.1
25.3%

$112.4
24.0%

Interest (Income) / Expense

Equity (Income)
Minority Interest
Other (Income) / Expense
Income Before Taxes

4.9
0.1
$122.7

0.9
$118.3

$107.9

(2.4)
(0.1)
$118.6

$112.4

Provision for Tax

% Tax Rate

24.3
19.8%

17.5
14.8%

11.4
10.5%

15.8
13.4%

15.5
13.8%

Cash Net Income

% Margin

$98.4
26.5%

$100.8
26.5%

$96.5
24.0%

$102.8
22.4%

$96.9
20.7%

Cash Diluted EPS

$2.81

$2.98

$2.71

$2.85

$2.65

Diluted Shares Out

35.064

33.880

35.580

36.080

36.580

Cash to GAAP Reconciliation:

Amortization
Stock-Based Comp
One-Time Charges

$20.6
13.2
8.2

$15.5
11.4
3.4

$16.6
10.1
0.7

$17.0
9.4
0.1

$17.2
9.1
-

GAAP Net Income

$56.4

$70.5

$69.1

$76.3

$70.6

Stock-Based Comp
% of Sales

% Margin

15.2%

18.5%

17.2%

16.7%

15.1%

GAAP Diluted EPS

$1.61

$2.08

$1.94

$2.12

$1.93

Capex
% of Sales

$26.0
7.0%

$12.5
3.3%

$18.0
4.5%

$16.0
3.5%

$14.1
3.0%

FY Ending September 30,

2010P
2011E

2012E

CAGR
2008-2012

$470.5
0.5%

$475.2
1.0%

$480.0
1.0%

1.2%

252.2
53.6%
$218.3
46.4%

254.7
53.6%
$220.5
46.4%

257.3
53.6%
$222.7
46.4%

92.4
19.6%

93.3
19.6%

94.3
19.6%

$125.9
26.8%

$127.2
26.8%

$128.4
26.8%

14.1
3.0%
20.0
4.3%
$34.1
7.2%

14.2
3.0%
20.0
4.2%
$34.2
7.2%

14.4
3.0%
20.0
4.2%
$34.4
7.2%

10.7
2.3%

10.8
2.3%

10.9
2.3%

$81.1
17.2%

$82.1
17.3%

$83.1
17.3%

(0.8%)

$111.8
23.8%

$112.9
23.8%

$114.0
23.8%

(0.4%)

$111.8

$112.9

$114.0

15.4
13.8%

15.5
13.8%

15.7
13.8%

$96.4
20.5%

$97.4
20.5%

$98.3
20.5%

(1.1%)

$2.64

$2.66

$2.69

(1.4%)

36.580

36.580

36.580

$17.2
9.2
-

$17.2
9.3
-

$17.2
9.4
-

$69.9

$70.8

$71.7

0.5%

(0.3%)

(1.0%)

(1.6%)

14.9%

14.9%

14.9%

$1.91

$1.94

$1.96

$14.2
3.0%

$14.3
3.0%

$14.5
3.0%

(1.9%)