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  "documentTitle": "McDonald's Corporation (MCD)",
  "authorId": "01_Pershing_Square",
  "authorName": "Pershing Square Capital Management",
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  "presentationDate": "2006-01-18 00:00:00",
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  "notes": "The slide outlines a specific corporate finance transaction structure involving a parent company (McDonald's) and a subsidiary (McOpCo).",
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      "text": "Assuming a $1.3bn of IPO distribution, there would be no tax cost associated with the IPO",
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      "text": "Step 2: IPO of McOpCo",
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      "text": "Step 1: McOpCo dividends a $1.3bn Note to McDonald's (parent)",
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      "text": "Step 3: Share Repurchases using Cash on Hand and IPO Proceeds",
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      "text": "McOpCo declares and pays a dividend to McDonald's (parent) in the form of a Note in an amount equal to the anticipated proceeds from an initial public offering of McOpCo. For illustrative purposes, we assume the Note is for $1.3bn, or 20% of the equity market value of McOpCo (assumed to be $6.6bn)",
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      "text": "No incremental leverage issued. PF McDonald's repurchases approximately 7% of the fully diluted share base using Excess cash on hand. After tax proceeds of IPO",
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      "text": "McOpCo undertakes the IPO and uses the proceeds to repay the dividend note. Any tax cost for the IPO would be the amount by which the IPO distribution exceeded McDonald's basis in the McOpCo stock multiplied by McDonald's corporate and state/local tax rate. Assuming a $1.3bn of IPO distribution, there would be no tax cost associated with the IPO. Assume a $1.65 billion of tax basis",
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      "text": "McOpCo IPO: Mechanics",
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