[sheet: Summary]
Category | Description | Total Hours | Total Fees | Percentage of Total Fees
Attorney Fees | Leonard Cross — Responsible Partner | 195.5 | $296,168.75 | 12.1%
Attorney Fees | Sylvia Hartwell — Billing Partner | 128 | $178,560.00 | 7.3%
Attorney Fees | Garrett Simmons — Lead Associate | 682.5 | $631,312.50 | 25.8%
Attorney Fees | Leila Nazari — Working Associate | 754 | $539,110.00 | 22.1%
Subtotal | Attorney Fees | 1760 | $1,645,151.25 | 67.3%
Paralegal Fees | Paralegals (blended rate $375/hr) | 312 | $117,000.00 | 4.8%
Subtotal | Legal Fees (Attorneys + Paralegals) | 2072 | $1,762,151.25 | 72.1%
Expenses | Travel, copying, research databases, courier, etc. | $38,420.50 | 1.6%
Expert Fees | Whitmore Valuation Group LLC — Transfer Pricing Economics (pass-through) | $655,200.00 | 26.8%
Grand Total | Total Billed — 2023 | $2,443,474.25 | 100.0%
[sheet: Monthly Detail]
Month | Leonard Cross — Hours | Leonard Cross — Fees | Sylvia Hartwell — Hours | Sylvia Hartwell — Fees | Garrett Simmons — Hours | Garrett Simmons — Fees | Leila Nazari — Hours | Leila Nazari — Fees | Paralegal — Hours | Paralegal — Fees | Total Hours | Total Legal Fees | Expenses | WVG Expert Fees | Monthly Grand Total
Jan-2023 | 12 | $18,180.00 | 8.5 | $11,857.50 | 58 | $53,650.00 | 72 | $51,480.00 | 24 | $9,000.00 | 174.5 | $144,167.50 | $2,840.00 | $52,000.00 | $199,007.50
Feb-2023 | 14.5 | $21,967.50 | 10 | $13,950.00 | 62.5 | $57,812.50 | 68 | $48,620.00 | 28 | $10,500.00 | 183 | $152,850.00 | $3,120.00 | $48,750.00 | $204,720.00
Mar-2023 | 16 | $24,240.00 | 12 | $16,740.00 | 65 | $60,125.00 | 70 | $50,050.00 | 30 | $11,250.00 | 193 | $162,405.00 | $3,450.00 | $55,200.00 | $221,055.00
Apr-2023 | 13 | $19,695.00 | 9 | $12,555.00 | 55 | $50,875.00 | 60 | $42,900.00 | 22 | $8,250.00 | 159 | $134,275.00 | $2,650.00 | $49,500.00 | $186,425.00
May-2023 | 15 | $22,725.00 | 10.5 | $14,647.50 | 58 | $53,650.00 | 64 | $45,760.00 | 26 | $9,750.00 | 173.5 | $146,532.50 | $3,100.00 | $54,000.00 | $203,632.50
Jun-2023 | 14 | $21,210.00 | 9.5 | $13,252.50 | 54 | $49,950.00 | 58 | $41,470.00 | 24 | $9,000.00 | 159.5 | $134,882.50 | $2,780.00 | $51,600.00 | $189,262.50
Jul-2023 | 16.5 | $24,997.50 | 11 | $15,345.00 | 60 | $55,500.00 | 66 | $47,190.00 | 28 | $10,500.00 | 181.5 | $153,532.50 | $3,380.00 | $56,400.00 | $213,312.50
Aug-2023 | 18 | $27,270.00 | 12.5 | $17,437.50 | 62 | $57,350.00 | 68 | $48,620.00 | 30 | $11,250.00 | 190.5 | $161,927.50 | $3,520.00 | $58,200.00 | $223,647.50
Sep-2023 | 17 | $25,755.00 | 11.5 | $16,042.50 | 58 | $53,650.00 | 64 | $45,760.00 | 26 | $9,750.00 | 176.5 | $150,957.50 | $3,200.00 | $55,800.00 | $209,957.50
Oct-2023 | 22 | $33,330.00 | 14 | $19,530.00 | 68 | $62,900.00 | 72 | $51,480.00 | 28 | $10,500.00 | 204 | $177,740.00 | $3,680.00 | $62,400.00 | $243,820.00
Nov-2023 | 18.5 | $28,027.50 | 11.5 | $16,042.50 | 46 | $42,550.00 | 50 | $35,750.00 | 24 | $9,000.00 | 150 | $131,370.00 | $3,200.00 | $56,550.00 | $191,120.00
Dec-2023 | 19 | $28,770.00 | 8 | $11,160.00 | 36 | $33,300.00 | 42 | $30,030.00 | 22 | $8,250.00 | 127 | $111,510.00 | $3,500.00 | $54,800.00 | $169,810.00
Total | 195.5 | $296,167.50 | 128 | $178,560.00 | 682.5 | $631,312.50 | 754 | $539,110.00 | 312 | $117,000.00 | 2072 | $1,762,150.00 | $38,420.00 | $655,200.00 | $2,455,770.00
[sheet: Phase Allocation]
Phase / Work Stream | Description | Time Period | Total Hours | Total Legal Fees | Total Expert Fees | Phase Total
Phase 1: IDR Response (Continued) | Ongoing responses to IRS IDRs (IDRs continued through September 2023; 47 total IDRs issued June 2022–Sept 2023) | Jan–Sep 2023 | 1095 | $925,800.00 | $420,000.00 | $1,345,800.00
Phase 1A: Mid-Examination Conference | Preparation for and attendance at mid-exam conference (May 25, 2023) with IRS team (Meskill, Dunleavy) | Apr–May 2023 | 85 | $78,500.00 | $0.00 | $78,500.00
Phase 1B: IRS Economist Engagement | Meeting with IRS Economist Dr. Alan Washburne (Aug 15, 2023); analysis of IRS economic methodology | Jul–Sep 2023 | 120 | $105,200.00 | $95,000.00 | $200,200.00
Phase 2: NOPA Analysis | Analysis of Notice of Proposed Adjustment dated Oct 12, 2023 ($380.4M proposed adjustments: CSA $235.01M + Royalty $188.04M − Correlative Offset $42.65M); 30-Day Letter analysis (Nov 8, 2023) | Oct–Nov 2023 | 295 | $258,500.00 | $85,200.00 | $343,700.00
Phase 3: Protest Preparation | Drafting, revision, and filing of Formal Protest (filed Dec 22, 2023) contesting all proposed transfer pricing adjustments for TY 2017–2020; preparation of Exhibits A–E | Nov–Dec 2023 | 310 | $268,000.00 | $55,000.00 | $323,000.00
Phase 4: Appeals Preparation (Initial) | Initial Appeals strategy development; settlement authority analysis; hazards-of-litigation assessment; case assigned to Appeals Officer Noreen Castañeda (Jan 2024) | Dec 2023 | 65 | $58,500.00 | $0.00 | $58,500.00
Client Communication & Reporting | Quarterly status reports (Q1–Q4 2023), SEC disclosure analysis, Hargrove credit facility covenant analysis, FIN 48 reserve analysis updates | Jan–Dec 2023 | 102 | $85,353.75 | $0.00 | $85,353.75
Total | All phases — 2023 | Jan–Dec 2023 | 2072 | $1,749,853.75 | $655,200.00 | $2,405,053.75
[sheet: Timekeeper Detail]
Timekeeper | Title / Role | Office | 2022 Rate | 2023 Rate | Rate Increase | Total 2023 Hours | Total 2023 Fees | Cumulative Hours (2022–2023) | Cumulative Fees (2022–2023)
Leonard Cross | Responsible Partner, Tax — Strategy, IRS interface, Appeals lead | Philadelphia | $1,475 | $1,515 | 2.7% | 195.5 | $296,167.50 | 390 | $577,542.50
Sylvia Hartwell | Billing Partner, Tax — Client management, billing oversight, international tax controversy practice leader | New York | $1,350 | $1,395 | 3.3% | 128 | $178,560.00 | 255 | $348,885.00
Garrett Simmons | Lead Associate, Tax — IDR responses, economic analysis coordination with Whitmore Valuation Group, Protest drafting | Philadelphia | $885 | $925 | 4.5% | 682.5 | $631,312.50 | 1380 | $1,254,787.50
Leila Nazari | Working Associate, Tax — Legal research, document production, Irish coordination with Thornbury & Keogh, regulatory analysis | Philadelphia | $695 | $715 | 2.9% | 754 | $539,110.00 | 1490 | $1,048,360.00
Paralegals (blended) | Document management, production, Bates numbering, IDR coordination, privilege log maintenance | Philadelphia / New York | $350 | $375 | 7.1% | 312 | $117,000.00 | 600 | $210,750.00
Total | 2072 | $1,762,150.00 | 4115 | $3,440,325.00
[sheet: Expense Detail]
Expense Category | Description | Q1 2023 | Q2 2023 | Q3 2023 | Q4 2023 | Annual Total
Travel | Travel to PPC offices (Princeton Junction, NJ), IRS meetings, PBI Dublin coordination trips | $3,200.00 | $2,850.00 | $3,600.00 | $4,250.00 | $13,900.00
Document Reproduction | Copying, printing, and binding for IDR productions and Protest filing | $1,450.00 | $1,200.00 | $1,600.00 | $2,100.00 | $6,350.00
Online Research / Databases | Legal research databases, financial data services for benchmarking support | $2,100.00 | $2,050.00 | $2,200.00 | $2,150.00 | $8,500.00
Courier / Delivery | IRS filings (Protest, Form 2848 renewals), document deliveries to Crestfield & Associates | $420.00 | $380.00 | $510.00 | $620.00 | $1,930.00
Telecommunications | Conference calls, secure video conferences with PBI Dublin / Thornbury & Keogh | $510.00 | $480.00 | $540.00 | $620.00 | $2,150.00
Meals / Working Sessions | Working meals during intensive NOPA review and Protest drafting sessions | $680.00 | $590.00 | $780.00 | $1,020.00 | $3,070.00
Court / Filing Fees | IRS filing fees, certified mail | $150.00 | $120.00 | $180.00 | $1,070.50 | $1,520.50
Miscellaneous | Other reimbursable disbursements | $250.00 | $200.00 | $250.00 | $300.00 | $1,000.00
Total Expenses | $8,760.00 | $7,870.00 | $9,660.00 | $12,130.50 | $38,420.50
[sheet: WVG Expert Fees]
Month | Lead Economist | Description of Services | Hours | Blended Rate | Monthly Fee
Jan-2023 | Dr. Helena Vasquez / Dr. Rohan Chakrabarti | Continued benchmarking study updates; CPM/TNMM analysis refinements for 22 comparable companies; CUT analysis maintenance (14 comparable license agreements) | 80 | $650 | $52,000.00
Feb-2023 | Dr. Helena Vasquez / Dr. Rohan Chakrabarti | Updated revenue projection analysis — Americas vs. Non-Americas splits for Veritaxol, Imvara, Cerulon; cost-sharing ratio sensitivity testing | 75 | $650 | $48,750.00
Mar-2023 | Dr. Helena Vasquez / Dr. Rohan Chakrabarti | Supplemental IDR support — R&D cost pool analysis ($487.3M–$598.4M qualified R&D); updated functional analysis coordination | 84.9 | $650 | $55,185.00
Apr-2023 | Dr. Helena Vasquez / Dr. Rohan Chakrabarti | Mid-examination conference preparation; analysis of PBI cost-sharing percentages (38.2%–42.7%) vs. IRS proposed (48.2%–53.7%) | 76.2 | $650 | $49,530.00
May-2023 | Dr. Helena Vasquez / Dr. Rohan Chakrabarti | Post-mid-exam conference analysis; refinement of PCT income method/DCF at 9.8% WACC ($278M–$361M range) | 83.1 | $650 | $54,015.00
Jun-2023 | Dr. Helena Vasquez / Dr. Rohan Chakrabarti | Support for IDR No. 35 response — intercompany pricing analysis across 68 country markets | 79.4 | $650 | $51,610.00
Jul-2023 | Dr. Helena Vasquez / Dr. Rohan Chakrabarti | Analysis of IRS Economist Dr. Alan Washburne's anticipated methodology; preparation for economist meeting (Aug 15) | 86.8 | $650 | $56,420.00
Aug-2023 | Dr. Helena Vasquez / Dr. Rohan Chakrabarti | Post-economist meeting analysis; critique of IRS discount rate (7.2% WACC vs. PPC/C&H 9.8%); CUT comparability review | 89.5 | $650 | $58,175.00
Sep-2023 | Dr. Helena Vasquez / Dr. Rohan Chakrabarti | Final IDR support (IDR No. 47); preparation for anticipated NOPA; legacy IP royalty financial modeling (4.5% vs. IRS 11.0%) | 85.8 | $650 | $55,770.00
Oct-2023 | Dr. Helena Vasquez / Dr. Rohan Chakrabarti | NOPA analysis support — review of $380.4M proposed adjustments; rebuttal preparation; royalty adjustment analysis ($188.04M) | 96 | $650 | $62,400.00
Nov-2023 | Dr. Helena Vasquez / Dr. Rohan Chakrabarti | Protest support — economic analysis summaries for Exhibit C (CUT IQR 3.1%–6.8%, median 4.4%; CPM/TNMM; PCT DCF); CSA adjustment analysis ($235.01M) | 87 | $650 | $56,550.00
Dec-2023 | Dr. Helena Vasquez / Dr. Rohan Chakrabarti | Protest finalization support; initial Appeals economic preparation; settlement range modeling | 84.3 | $650 | $54,795.00
Total | Annual WVG fees — 2023 | 1008 | $650 | $655,200.00