EFTA00616944.pdf

APOLLO Leon Black Tax Receivable Agreement (TRA) Payment Workbook Tax Year 2013 1 of 9 3/26/2014 EFTA00616944 APOLLO Page 3 Net Tax Benefit Allocated 4 Tax Benefit Schedule - Article II Section 2.03 5 Tax Benefit Payment Calculation - Article Ill 6 Heritage Adjustment 7 Projected Payments 2007 Exchange 8 Projected Payments May 2013 Exchange Projected Payments November 2013 Exchange 2 of 9 EFTA00616945 TRA Payment For the Year Ended 12.31.2013 TRA Holden Won Mick • iuly 200/ Exchange" — May 2013 Exchange November 2013 EXChant:, Total 95,619,396 7,173,135 481,288 34,41) 30 / 2,651.629 175,465 29.653,290 1,242.966 136,801 42 9., 2,45S 1 4 /,548 /32 7.315.871 3,824.394 103,373,919 37,687,401 32,030,523 41,097.155 15,347,548 13,053,998 1,913,733 7,315,871 3.824,394 13,0x' Apollo Operating Group Corporate Tax Related Pret (AOG) Units Owned Payments per Share Pay 92.727,166 5 B 0.2161 lktlk D .‘ 1 GIP t (6 VA.() LIMAN A /A,B&C 36,230,912 _ ' MA payment is taxable in the year ended December 31, 2014. o Pretax payment represents a distribution from the Apollo Operating Group. This amount is not distributed to class A unit holders as the amount is used for corporate tax related payments. Taxable income with respect to the pretax payment is included in your BRH Holdings IC-1 for 2013. •••Fleates to distributions on fund V carry earned in 0.2 and 03 of 2013 ••••In the course of the review of the 2013 exchanges, the original allocation of TRA benefits resulting from the 2007 step up was revised and updated to reflect the proper methodology (In 2007, the tax step up resulting from the exchange included assumption of liabilities that were allocated and taxed to the Founders. In calculating the allocation of TRA payments in the past years, the effect of the step up resulting from the assumption of liabilities was not included in the allocations of TRA payments.) The TRA payment amount relating to the 2007 exchange reflects a one-time adjustment for Overpayments in prior years resulting from the above. The following reflects proceeds received in past years and the adjustment reflected In the amount above: 2007-2012 Payments. Recalculated *247,723 2007-2012 Payments. Actual 47,551.612 Adjustment to Prior Year Payments 696,111 ° 2013 IRA Payment Due 12,357,887 {) H Adjusted 2013 Payment 13,053mo CA ).1( TteeConi in .-4) I lk ly-A ( ALLA A V' al ,V- r \ LeA- dy- k° 3 of 9 EFTA00616946 Apollo Global h1Onagoment LLC Tax Benefit Schedule • Article II Section 2.03 December 31. 2013 Descriptions (11 Non-Stepped Up Tax Liability • [2] Actual Tax Llathlity as Filed With Tax Return Partnership Disinbuove Share Income/ Ohm) Standalone APO Corp Income Section 197 Amortization • Ady 2007 Section 197 Ammizabon - May 2013 Secbon 197 Amortization - November 2013 Sec 483 Imputed Interest from Pinar Year • Jay 2007 Interest Expense on tale Payment from Prior Year. Sly 2007 Net Operating Less Canyforward OPAD Charitable Comnbubon Addback Special deductions Slate 8 Local Taxes 5104.351.019 (582.785) (54.720) (564) (4,808,134) 5104.351019 (582.785) Al (71,657.070) B (7.262.083) C (480.550) A2 (7.836,172) A3 (33.146) A4 (15,954.192) (54.720) 162.148 (584) (27.871) Taxable Income _599.405,083 11 324 014 Federal Income Tax 34.791,779 463.405 FTC Grade (1,749.836) (350.707) MIT Tax Liabfity 134.804 Federal Tax Leaden/ (Cramer of Regular or MIT) 33.041.943 134.804 General Business Creed (167) (166) 2013 State income Tax (NY. NYC. CA) 4.808.1341 27.871 37.849,910 162.509 Total 2013 Current Tax Liability 37.849.910 162.509 Effective Current Tax Rate 36.27% July 2007 May 2013 Nov 2013 • Nth respect to any taxable year, the liability for taxes of APO Corp.. includng yAbl respect. directly or theiremly. to the income and Bans alocable to APO Corp. from any partnersh'p in .Mich APO Corp. wins an interest using the same methods, elections. conventions and similar practices used on APO Corp.'s return. but cakilated usng the non•slepped up lax basis instead of the lax basis of the original assets and excluding any deduction attributable to the imputed interest. The realized tax bens* is alocated to each exchange by Ks share of total TRA related deduCliCels realized in 2013 Realized Tax Benefit x Sim A / (Sun A • B • C) ). The foreign lax erode is allocated to the illy 2037 exchange for any FTC termed that was generated in a PY. ▪ Per the Exchange Agreement MR. each Apollo Principal Holder shall pay APO Corp an amount temente its pro rata share of any increase In taxes as a result of income allocated to APO Corp from any Apollo Principal PannerShipS of Much APO Corp holds AOG Units ininiedialely alter an exchange in which APO LLC or APO FC (or any other subsdiary of AGM) also Gyms AOG units and any increase in taxes as a result or such payment. Each Apollo PrintiPel Holder may offset arty penmen( due by any amounts mime to such Apollo Principal Holder by APO Cap. polall of Actual Tax Liability Al - Amortization fax benefit of 2007 Exchange A2 - Imputed interest under IRC installment sale rules for 2007 Exchange (amount of TRA payment ralcassed as interest) A3 - TRA Article III 3.01(b) - Late interest from tax return due date through date of payment for 2007 Exchange A4 - Net operating bas generated in prior years from amortization of 2007 exchange, utilized in 2013 B - Amortization tax benefit of May 2013 Exchange C - Amortization tax benefit of November 2013 Exchange (11 .(2) =PI Realized Tax Benefit" Ea) x 65%e (4) TM Payment (51 (61 VI • PI • (81 k (7) Interest Tax Offset "' Total Payment 37,687,401 32,034,291 21,076 (24 643 32 030 523 (34,860.3071 (29.631,2611 (19,494) • (29.650,7551 (2,651,629) (2.253.885) (1,483) 13.402 (2.242,968) (175,465) (149,145) (98) 12,441 (136,602) 4of9 EFTA00616947 Apollo Global Managemont LLC Tax Benefit Payment Calculation - Article Ill December 31, 2013 'IRA Reference (Article NI) Description asenoont Notes Amount Amount Amount 3.01(0)(1),(3) APO Corp. 2013 Tax Year Realized Tax Benefit (De(rment) 2007 TM May 2013 7RA November 2013 TRA 3.0104(2),(4) Excess Realzed Tax Bona (Dettimen1) 37.687.401 34.880.307 2,651,629 175.465 37,687.401 34.860.307 2.651,629 175,465 3.01(e) Adjusted Realized Tax Benef4 3.01(0) 85% Per TRA 85% 85% 85% 85% 32034,291 29 631 261 2,253.885 149,145 3.01(b) Tax Benefit Payment (includes Imputed Interest under IRC Section 483) IRC Section 483 Imputed Interest (installment sale rules) 8.720.113 (1) 8.667.208 50.928 1,978 Section 483 Interest Rate - LT AFR Present Vale of Tax Benefit Payment • Total Sales Proceeds 23.314,178 (2) 20.984,053 2.202,957 147,168 301(e) Interest AMOunt Per TRA (Through AMU 3. 2014) 21.075 (3) 19,494 1,483 98 3.01(b) Tole( Net Tax Benefit - I.e.. Tax Benefit Payment related to 2013 Tax Return 32.055.366 29 650 755 2,255,368 149,243 3.11(a) Tax Offset - APO Corp Omseeship of PH I, PH III. PH V (24,843) (12,402) (12.441) Neat Cash Distnoutea 32,030.523 19.950.755 2.242.966 136.802 Notes: (I) To calculate the amount of imputed instalment sale interest Mat H taxable on the tax return the Applicable Federal Rate (AFR) that apples to the term of he installment sale on the date of the sale was used. The AFR was 5.15%, 2.60%, and 3.37% respectively for the 2007, May 2013, and November 2013 exchanges. (2) The peserit value of the Tax Benefit Payment is calculated using the lolowmg formula: Amount of Future Payment 1 • (*of days from the exchange dale to payment date)/ 365 x ;Veinal Interest Rte) Amount of Future Payment 29.631.261 2.253,685 149,145 Annual Interest Rate 5.15% 2.60% 337% of Days 2.515 325 147 (3) Interest is calculated from the due date of the 2013 Tax Return (without extensions) 5 of 9 EFTA00616948 Apollo Global Management, LLC Heritage Adjustment December 31, 2013 SRN Ownership (I) Heritage Rate Heritage Adjustment Leon 12,864,953 45.52% 16,000,810 56.61% 3,135,857 11.1% Marc 7,572,787 26.79% 6,734,112 23.83% (838,675) -3.0% Josh 7,827,142 27.69% 5,529,960 19.56% (2,297,182) -8.1% * Total Fund V Distributed 28,264,882 100.00% 28,264,882 100.00% 0-41-ct, 1 1 0 (g- , t o * Fund V Carry, net of profit sharing 4/22/13 Metals USA 29,202,925 5/2/13 Berry 7,048,059 5/9/13 Source 6,845,783 Q2 Subtotal 43,096,767 7/31/13 Berry 8,928,068 Q3 Subtotal 8,928,068 Grand Total 52,024,835 APO Ownership II) 54.33% Total Fund V distributed 28,264,882 ill Ownership rate is a blended rate between Q2 and Q3. 6 of 9 EFTA00616949 ) 03n E;-- ate\A-N Apollo Global Management, LLC Projected Payments 2007 Exchange December 31, 201 3 Total Year TRA Related Deductions Tax Benefit"' TRA Payment Leon Black TRA Related Deductions Tax Benefit* TRA Payment 2014 83,863,589 33,838,958 28,763,115 34,952,795 14,103,453 11,987,935 2015 91,190,683 36,795,441 31,276,125 38,006,592 15,335,660 13,035,311 2016 92,572,838 37,353,140 31,750,169 38,582,649 15,568,099 13,232,884 2017 97,341,161 39,277,159 33,385,585 40,569,998 16,369,994 13,914,495 2018 103,344,752 41,699,607 35,444,666 43,072,184 17,379,626 14,772,682 2019 110,907,872 44,751,326 38,038,627 46,224,352 18,651,526 15,853,797 2020 121,333,248 48,957,966 41,614,271 50,569,457 20,404,776 17,344,059 2021 139,100,115 56,126,896 47,707,862 57,974,359 23,392,654 19,883,756 2022 110,012,801 44,390,165 37,731,640 45,851,303 18,501,001 15,725,851 2023 37,803,522 15,253,721 12,965,663 15,755,810 6,357,469 5,403,849 2024 12,990,363 5,241,612 4,455,370 5,414,143 2,184,607 1,856,916 2025 4,463,858 1,801,167 1,530,992 1,860,453 750,693 638,089 2026 1,533,908 618,932 526,092 639,305 257,959 219,265 2027 527,094 212,683 180,780 219,683 88,642 75,346 2028 181,125 73,084 62,121 75,489 30,460 25,891 2029 62,240 25,114 21,347 25,940 10,467 8,897 2030 21,387 8,630 7,335 8,914 3,597 3,057 Total 1,007,250,557 406,425,600 345,461,760 419,803,427 169,390,683 143,982,080 "Amounts paid in April of following year "Utilization of tax benefits depends upon sufficient tax income and enacted tax rates tr-i tr: iLt prroccdt, tekciffv. ( -0 11:t‘ At ° " CA 1444A-Cti 'DM 9.‘440,,Actlyof I A I(-t4 `` et K ) EFTA00616950 Apollo Global Management, LLC Projected Payments May 2013 Exchange December 31, 2013 Val fk-Af lb (3 Total Year TRA Related Deductions Tax Benefit" TRA Payment* 2014 12,849,249 5,184,672 4,406,971 2015 13,314,432 5,372,373 4,566,517 2016 13,762,509 5,553,172 4,720,196 2017 14,251,617 5,750,527 4,887,948 2018 14,791,733 5,968,464 5,073,195 2019 15,395,269 6,211,991 5,280,192 2020 16,079,590 6,488,115 5,514,897 2021 16,870,026 6,807,055 5,785,997 2022 17,805,452 7,184,500 6,106,825 2023 18,949,678 7,646,195 6,499,266 2024 20,417,632 8,238,515 7,002,737 2025 22,446,853 9,057,305 7,698,709 2026 25,654,333 10,351,523 8,798,795 2027 32,622,995 13,163,379 11,188,872 2028 16,437,353 6,632,472 5,637,601 2029 5,637,601 2,274,772 1,933,556 2030 1,933,556 780,190 663,161 Total 279,219,879 112,665,221 95,765,438 "Amounts paid in April of following year Leon Black TRA Related Deductions Tax Benefit* TRA Payment* "Utilization of tax benefits depends upon sufficient tax income and enacted tax rates AtivAWS 2 R Ctiuno 8 of 9 EFTA00616951 Apollo Global Management, LLC Projected Payments November 2013 Exchange December 31, 2013 Total Leon Black Year TRA Related Deductions Tax Benefit* TRA Payment TRA Related Deductions Tax Benefit" 2014 3,831,905 1,546,174 1,314,248 2015 3,979,776 1,605,840 1,364,964 2016 4,114,624 1,660,251 1,411,213 2017 4,261,789 1,719,632 1,461,687 2018 4,424,348 1,785,224 1,517,441 2019 4,606,049 1,858,541 1,579,760 2020 4,812,139 1,941,698 1,650,443 2021 5,050,273 2,037,785 1,732,117 2022 5,332,201 2,151,543 1,828,812 2023 5,677,221 2,290,759 1,947,145 2024 6,120,098 2,469,459 2,099,041 2025 6,732,726 2,716,655 2,309,157 2026 7,701,963 3,107,742 2,641,581 2027 9,810,710 3,958,622 3,364,828 2028 6,693,662 2,700,893 2,295,759 2029 2,295,759 926,339 787,388 2030 787,388 317,711 270,054 Total 86,232,631 34,794,867 29,575,637 *Amounts paid in April of following year **Utilization of tax benefits depends upon sufficient tax income and enacted tax rates Arsduicigs it4c4..104-1 \ VIA! --nz-A 9 of 9 TRA Payment EFTA00616952 I at Akaana Re RVRIRf I I A ga alla n maga a N at ARanAR RM2fRf a6 anaaka 20 'IRJ°: Pi !rail at faalai 16g r'°gg ti El WM aa geaws* a6 naaARA F. glaaai ft flint! 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