- 80 -
certain technical segment businesses. These costs were
charged against the gain because the only reason
Brunswick formed the partnership was to maximize the
after tax earnings and cash flow from these
dispositions.
Although the second sentence quoted above is crossed out in the
copy of the Abrahamson memorandum provided to the Court, the word
"STET" appears in the margin next to the sentence in question.
Arthur Andersen also prepared a schedule, set forth below,
itemizing Brunswick's accrual of $10,370,000 in foreign
partnership expenses for the quarter ended December 31, 1990:
Fees (in thousands) Saba Otrabanda Total
Merrill Lynch 1,750 1,425 3,175
ABN (advisory fee)(actual $645) 750 750
Bartolo-2nd FP 900 900
Cravath, Swaine & Moore 250 250 500
N.V. Fides (Trust Co.) 50 50 100
Other 300 300
Total Fees 3,100 2,625 5,725
Financing Costs
Underwriting Costs
Chase Note and 3 CNs 2,840 1,450 4,290
Swap and Other 355 355
Total 6,295 4,075 10,370
Say 10.6
Paid in Accrued TOTAL TOTAL
1990 at 12-31 EST.EXP. DIF
Merrill Lynch 1,436 1,750 3,186 3,175 11
Relying on a schedule prepared by Brunswick's accounting
department on February 4, 1991, Arthur Andersen estimated that,
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