spreads

yeah, I'm fairly confident this is correct, and this took me a bit to piece together.

maryli

Dreary, thanks for putting it together. Got a question on the partial goodwill
you had it

Partial Goodwill: Purchase price - 90% x BV(sub) - 90% x [FV(sub) - BV(sub)] = $810M -0.90($500M) - 0.90 ($100M) = $270M.

Why did you have this part "90% x BV(sub) - 90% x [FV(sub) - BV(sub)]" Instead of just 90% (FV of Sub)? As it ends up to be the same number (540).

wilslm

Not sure if it's always the same. Usually, I've seen it done like this:

Partial Goodwill: Purchase price - 90% x BV(sub) - 90% x [FV(PP&E) - BV(PP&E)]

..where you they look at PP&E only...so, if you consider the change in all identifiable assets (not just PP&E), then I guess you can just use Partial Goodwill: Purchase price - 90% FV(sub)