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Re: rjeezy007 post# 3325

Monday, 09/02/2013 12:19:34 AM

Monday, September 02, 2013 12:19:34 AM

Post# of 3470
I don't think we will hear anything about this for another year or two, and then it can be appealed one more time, and then it will take years to be paid even if the verdict doesn't change (unlikely). The NPV of the liability is actually very low if you assume it will be paid in 5 years, 50% probability that the ruling will be overturned, and a discount rate of 10%. Furthermore, it would be attributed to the subsidiary, which isn't holding much cash and would have to pay out from cash flow over time. I don't include the liability in my net cash calculation for these reasons.

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