From: "jeffrey E." <[email protected]> To: Marc Rowan Subject: Re: TRA Valuation Process Date: Fri, 04 Mar 2016 11:03:55 +0000 i see am image was included , it did not download On Thu, Mar 3, 2016 at 9:43 PM, Marc Rowan < > wrote: Sent from my iPhone Begin forwarded message: From: Chris Weidler Date: March 4, 2016 at 12:35:36 AM GMT+2 To: Marc Rowan < cmailto: Subject: RE: TRA Valuation Process Marc Not to be confusing but one point to clarify :mailto When we calculate the incremental DTA arising from each TRA payment we are required to calculate the amount of the payment related to principal versus interest. The portion that is deemed to be a `principal' payment creates additional DTA. That amount is also undiscounted when creating the balance sheet asset. The rate used to compute the `interest' portion of each TRA is the IRS applicable federal rate ('AFR') at the time of the original exchange. The interest amount does not create incremental DTA. For the November exchange it was 2.57% so the majority of any TRA payment results in incremental DTA Not sure if you needed this information as well so wanted to pass it along Thanks Chris From: Marc Rowan Sent: Thursday, March 03, 2016 5:25 PM To: Chris Weidler Subject: Re: TRA Valuation Process Tks Sent from my iPhone On Mar 4, 2016, at 12:19 AM, Chris Weidler < :mailto wrote: Marc For purposes of establishing the balance sheet asset the DTA/TRA are undiscounted. EFTA00832660