Investor Presentaiton
FAVORABLE TAX
ATTRIBUTES
Tax attributes and 338(h)10 election overview
$1.9 billion combined asset basis step-up created through
2006 acquisition of Generac and other acquisitions
• Each amortizes over 15 years
• Reduces cash tax obligation on average by
~$33 million per year through 2021
($ MM)
TOTAL
2020
2021
Annual tax amortization
$264
$130
$107
2022+
$27
Cash tax savings (1)
$67
$33
$27
$7
(1) Assuming continued profitability and no limitations at
an assumed 25.5% federal and state tax rate.
(2) Based on annual discount rate of between 5 and 10%
4
GENERAC
. . . .
l l l l l l l l l l l l l l l l l l l l
GENERAC
INDUSTRIAL
POWER
GENERAC
INDUSTRIAL
POWER
Results in present value tax savings of
~$60 million (2) or $.90-$1.00 per share
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