Table 35 Summary of Estimated Operating Values 5.5 Valuation Adjustments Valuation adjustments consist of premiums, discounts, and situations involving non‐operating assets and liabilities. The following sections discuss the specific attributes of the valuation methods employed, the valuation calculations, and the applicability, if any, of the premiums and discounts (also referred to as valuation adjustments) discussed in Section 2.6 Premiums and Discounts and the basis for their use. It is important to keep in mind that businesses are not bought and sold after applying premiums and discounts. Instead, discounts and premiums are the result of using less than perfect data to measure value. In addition, it is critical to identify the valuation basis for each indicated value (based on the specific valuation method) before applying valuation discounts and premiums. Finally, any non‐operating assets and liabilities identified in Section 4.7 Company Financial Review will be addressed before completing the subject interest appraisals.
