EXHIBIT 8 TO MOTION FOR AWARD OF ATTORNEYS FEES (REDACTED)

Transcription

1 Case 8:11-cv FMO-AN Document Filed 05/06/16 Page 1 of 27 Page ID #:4680 EXHIBIT 8 TO MOTION FOR AWARD OF ATTORNEYS FEES (REDACTED)

2 Case 8:11-cv FMO-AN Document Filed 05/06/16 Page 2 of 27 Page ID #:4681 UNITED STATES DISTRICT COURT FOR THE CENTRAL DISTRICT OF CALIFORNIA WESTERN DIVISION ) STEVE CHAMBERS, an individual, et al. ) Case No. 8:11-cv FMO- ) MLG ) Plaintiffs, ) ) v. ) ) WHIRLPOOL CORPORATION, a ) Delaware Corporation, et al., ) ) ) Defendants. ) ) EXPERT REPORT OF PETER A. SALOMON, CPA, CFF May 5, 2016 H

3 Case 8:11-cv FMO-AN Document Filed 05/06/16 Page 3 of 27 Page ID #:4682 QUALIFICATIONS OF PETER A. SALOMON, CPA, CFF 1. I am the Managing Partner of the forensic Certified Public Accounting firm of Salomon Forensics, LLP, which is a licensed accounting firm with the California Board of Accountancy. I am a Certified Public Accountant in California and New York with over thirty-five years of professional accounting experience. 2. I have specialized in forensic accounting for more than twentyfive years. Prior to forming my own firm, I was a Principal in the Forensic Consulting Services Group of Hemming Morse, LLP ( Hemming ) in Los Angeles for five years. Hemming is a certified public accounting firm in existence for over fifty years and specializes in forensic accounting consulting services. Prior to specializing in forensic accounting, I worked for nine years auditing financial statements for two of the Big 4 public accounting firms. 3. I have provided expert testimony on numerous occasions in Federal Courts, State Courts and arbitrations regarding the calculation of economic damages. I have been retained on five occasions as an accounting referee or special master by Superior Courts in California to calculate economic damages. I have been retained by the United States Securities and Exchange Commission ( SEC ) as an expert witness. I have also assisted a variety of public companies, audit committees and individuals under investigation by the SEC and others by performing independent and other specialized accounting investigations. I have made presentations to the SEC and the United States Department of Justice on the findings of several of these investigations. H

4 Case 8:11-cv FMO-AN Document Filed 05/06/16 Page 4 of 27 Page ID #: I am a former Chair of the Forensic Services Section of the California Society of Certified Public Accountants and a former Chair of its Fraud Section. A copy of my curriculum vitae is attached as Exhibit A to this report. RETENTION 5. I have been retained by the law firm of Rifkin, Weiner, Livingston, Levitan & Silver LLC in this matter to provide my opinions on a variety of economic issues over the course of several years. I previously prepared an expert report regarding the proper methodology to calculate economic damages that was served on defendants in September 2014 for use in connection with class certification proceedings. I also consulted with the Rifkin firm and their co-counsel on a variety of other topics. I submit this report in connection with Class Counsel s motion for an award of attorneys fees. 6. I am informed that the parties have reached a settlement in this matter, which includes a wide variety of benefits, covering approximately 6 million Class Dishwashers and approximately 18 million additional dishwashers. I am informed that one component of the settlement provides for benefits in the event of future Overheating Events, as defined in the Settlement Agreement. More specifically, I am informed that the Settlement provides that in the event of a future Overheating Event that occurs up to two years from the Notice Date (which I understand is February 25, 2016), any owner of a covered dishwasher is entitled to claim either $100 in cash, or a 30% rebate on the price of a new Whirlpool, Kenmore, or Kitchenaid H

5 Case 8:11-cv FMO-AN Document Filed 05/06/16 Page 5 of 27 Page ID #:4684 dishwasher. This benefit applies to all approximately 24 million dishwashers. Further, I am informed that for NewGen/Raptor Dishwashers, the same benefits apply until the later of February 25, 2018, or ten years from the date of purchase. 7. I have been asked to opine on the estimated value of this coverage for future Overheating Events under the Settlement. I have not been asked to opine on the estimated value of the other benefits provided under the Settlement. ESTIMATE OF VALUE OF COVERAGE FOR FUTURE OVERHEATING EVENTS 8. As set forth above, under the Settlement, all of the relevant dishwashers are covered for future Overheating Events until at least February 25, 2018, and in many instances through the year Specifically, the Settlement requires Whirlpool to pay either $100, or provide a rebate of 30% off the price of a new dishwasher, in the event of an Overheating Event through the relevant deadline. I am informed Whirlpool ceased manufacturing Class Dishwashers (i.e., Rush and Rushmore models) in All NewGen and Raptor dishwashers are covered for future Overheating Events until the later of two years after the Notice date of February 25, 2016, or ten years after purchase. Thus, NewGen and Raptor dishwashers sold in 2009 are covered until 2019, NewGen and Raptor dishwashers sold in 2010 are covered until 2020, and NewGen and Raptor dishwashers sold in 2011 are covered until H

6 Case 8:11-cv FMO-AN Document Filed 05/06/16 Page 6 of 27 Page ID #: Although 24 million dishwashers are potentially covered under this aspect of the Settlement, from an economic standpoint only those dishwashers that are still in service receive a benefit in the form of coverage. Therefore, valuing this component requires estimation of the number of covered dishwashers still in service. 10. Class Counsel have provided me with data which I am informed reflects the number of subject dishwashers manufactured by Whirlpool in each year since (Source: WCH ) 11. According to a 2013 report in Appliance Magazine concerning the life expectancy of U.S. appliances, dishwashers have an average life expectancy of 12 years, with a low of 5 and a high of 18 years (see Exhibit B, attached). 12. Class Counsel have asked me to estimate the number of dishwashers still in service based on a much more conservative average lifespan of only 10 years, meaning only half the dishwasher sold in 2006 would still be in service in I understand this also corresponds to Whirlpool s 10-year design life for dishwashers. I have further been asked to conservatively assume that no dishwasher that is 15 years or older years (i.e., manufactured in 2001 or earlier) is still in service. 13. Based on these very conservative assumptions, the following chart summarizes my estimate of the number of covered dishwashers that are still in service today, based on the total number manufactured by Whirlpool in each year. H

7 Case 8:11-cv FMO-AN Document Filed 05/06/16 Page 7 of 27 Page ID #:4686 Number Percent Number Year of Still In Still In Mfr Dishwashers Service Service % % % % % % % % % % % % TOTAL d 14. I believe this estimate likely understates the number of covered dishwashers that are still in service, as the assumptions utilized are very conservative. 15. The settlement provides coverage for future Overheating Events in these dishwashers, and is therefore similar to a form of extended limited warranty, or an insurance policy, even though it is limited to one form of defect, i.e., an Overheating Event, and provides for a cash payout rather than H

8 Case 8:11-cv FMO-AN Document Filed 05/06/16 Page 8 of 27 Page ID #:4687 a free repair. I am not aware of any similar service plan or coverage offered in the marketplace, and therefore valuing this component by direct comparison is not possible. 16. The closest comparable coverages of which I am aware are extended service plans offered by third parties on appliances. One of the leading sellers of such policies is Square Trade, which, in addition to selling extended service policies on household appliances, sells extended service plans on cell phones, computers, televisions, and many other products. 17. Square Trade sells extended warranty policies on dishwashers, which vary in price based on the original cost of the dishwasher and the length of the policy selected. Square Trade sells these policies solely on new appliances purchased within 30 days. The prices for Square Trade extended warranty policies, as of May 4, 2016, are as follows: Appliance Price Range 3 Year Coverage 5 Year Coverage Up to $ $ $ $200 -$ $ $ $300 - $ $ $ $400 -$ $ $ $500 - $ $ $ $700 - $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ H

9 Case 8:11-cv FMO-AN Document Filed 05/06/16 Page 9 of 27 Page ID #: Thus, for a dishwasher in the $ price range, and 3 years of coverage, the cost to a consumer to purchase a Square Trade extended warranty is $ The cost for two additional years of coverage for a five year warranty doubles the cost to $ In other words, subsequent years of coverage are more expensive, given the fact that problems are more likely to arise later in the life of the appliance. The average cost per year for the first three years of coverage is $23.33 per year. The average cost per year for the next two years of coverage is $35 per year, an increase of about 50% per each additional year. Although not offered, the cost of a ten year warranty would clearly exceed $ The coverage provided by the settlement is more limited than a Square Trade plan, because it is limited to one defect, but is it also more comprehensive in that it provides coverage for a minimum of ten years from the date of purchase of the dishwasher (and in some cases well-over 10 years of coverage, as the subject dishwashers were manufactured as early as 1995). 20. I am also informed and believe that Overheating Events in these dishwashers are relatively common. I am informed that approximately 21,000 claimants have submitted claims to date, swearing under penalty of perjury that they previously experienced an Overheating Event in their dishwashers. I am also informed by Class Counsel that a claims rate of around 5% is not uncommon in a class action like this one. As such, one can assume that the number of overheating past events significantly exceeds the 21,000 sworn declarations. If 5% of those persons who experienced an Overheating Event have submitted claims, then the total number of H

10 Case 8:11-cv FMO-AN Document Filed 05/06/16 Page 10 of 27 Page ID #:4689 Overheating Events to date is around 420,000 (21,000 divided by 5%), or an average of 28,000 each year (420,000 divided by 15 years) since the beginning of production in 1995 (through 2010, which is a 15-year period). 21. I am also informed that Whirlpool s internal data, as reflected in a letter submitted to the Consumer Product Safety Commission ( CPSC ), reflects that between 2002 and 2011, approximately replacement boards were sold to consumers and/or distributors for out-of-warranty repairs, and approximately control boards were replaced under the typical one-year warranty, for a total of about control boards replaced over a roughly nine year period, or about total, Whirlpool s data reflects that approximately boards had no apparent issue, and an estimated per year. (WCH ) Of the of the replaced involved control board malfunction issues. Thus, Whirlpool estimated approximately replacements per year occurred as a result of control board malfunction issues. While the number of those replacements that were specifically due to Overheating Events is unknown, and, in fact, many consumers who experienced Overheating Events replaced their dishwashers rather than repair them and therefore these dishwashers would not be included in the control replacement statistics, this number corresponds very closely to the estimated 28,000 Overheating Events per year based on settlement claims statistics discussed above. Accordingly, I conclude that 28,000 Overheating Events per year is a reasonable estimate of the number of future expected Overheating Events. 22. Because the Settlement covers Overheating Events for another 5 years (through 2021), based on an estimate of an average of 28,000 H

11 Case 8:11-cv FMO-AN Document Filed 05/06/16 Page 11 of 27 Page ID #:4690 Overheating Events per year, it is estimated that 140,000 (28,000 times 5- years) covered Overheating Events could occur between now and the end of the coverage period in Given the above facts, I believe a conservative estimate of the market value to consumers of the coverage for future Overheating Events provided by the Settlement would be at least 2% of the $300 conservative estimate for a 10-year extended warranty from Square Trade, or $6 per covered dishwasher. 24. Accordingly, given that at least approximately 8.4 million dishwashers are covered by this aspect of the Settlement, and given the estimated conservative $6 value to each of those consumers, I estimate the fair value of this portion of the Settlement to be at least $50 million utilizing conservative estimates. PRIOR EXPERT TESTIMONY AND PUBLICATION WRITTEN 25. A list of all cases in which I have testified as an expert at trial or in deposition within the preceding four years is attached as Exhibit C to this report. Articles I have written that were published within the preceding ten years are listed in Exhibit D to this report. COMPENSATION 26. The compensation paid to Salomon Forensics for work performed by me and other professionals working at my direction is based upon hourly billing rates ranging from $175 to $495. In addition to professional fees, Salomon Forensics is reimbursed at cost for out-of-pocket H

12 Case 8:11-cv FMO-AN Document Filed 05/06/16 Page 12 of 27 Page ID #:4691 expenses. DOCUMENTS AND OTHER INFORMATION CONSIDERED 27. My report is based upon documents and other information that I have obtained and analyzed to date. A list of the documents and other information I have considered is attached as Exhibit E to this report. This report presents my opinions. The opinions in this report are subject to modification based upon additional facts or information that may become available. This report is prepared and issued solely for use in the above-cited matter. Executed on May 5, 2016, in Los Angeles, California. Peter A. Salomon, CPA, CFF H

13 Case 8:11-cv FMO-AN Document Filed 05/06/16 Page 13 of 27 Page ID #:4692 Exhibit A Salomon Forensics LLP Peter Salomon, CPA, CFF CURRICULUM VITAE Office 2200 Pacific Coast Highway Suite 320 Hermosa Beach, CA Direct Cell peter@salomonforensics.com Educational Background B.S. in Accounting Bentley University Waltham, Massachusetts Graduated with Highest Honors Employment History Hemming Morse, LLP Navigant Consulting, Inc. FTI Consulting, Inc. Simpson LLP Coopers & Lybrand Touche Ross (New York) Professional Licenses & Associations Certified Public Accountant California and New York Forensic Services Section of the California Society of CPAs Former Chair Fraud Section of the California Society of CPAs Former Chair AICPA Forensic and Valuation Services Committee s Fraud Task Force Subcommittee Former Chair Advanced Business Litigation Institute Planning Committee 2005 and 2007 American Institute of Certified Public Accountants Peter Salomon is the Managing Partner of Salomon Forensics, LLP. Mr. Salomon has over thirty-five years of professional accounting experience, including nine years of auditing experience with two of the Big Four international accounting firms. For over twenty-five years Mr. Salomon has provided accounting and auditing experience to attorneys in litigation and has specialized in determining economic damages and performing investigations of accounting irregularities. Mr. Salomon has addressed both liability and damages issues and has provided expert testimony in Federal and State Courts. Mr. Salomon has made presentations to the United States Securities and Exchange Commission ( SEC ) related to several investigations. Mr. Salomon has also assisted a variety of public companies, audit committees and individuals under investigation by the SEC and others by performing independent investigations. Mr. Salomon has also been retained by the SEC as an expert witness. On five occasions, the Superior Court of California has selected Mr. Salomon as an Accounting Referee or Special Master, including on the Marriage of McCourt. Mr. Salomon is a former Chair of the Forensic Services Section and a former Chair the Fraud Section of the California Society of Certified Public Accountants. Mr. Salomon is also former Chair of the American Institute of Certified Public Accountants Forensic and Valuation Services Committee s Fraud Task Force Subcommittee. Mr. Salomon is the current Chair of the Audit Committee as well as Treasurer for the Los Angeles Center for Law and Justice. In addition to determining damages and providing expert testimony in commercial litigation matters, Mr. Salomon has been involved with special investigations involving software companies, internet service providers, providers of internet anti-virus software and computer security solutions, a semiconductor manufacturer, a provider of storage software products, an energy drink company, a healthcare supply chain management solutions provider and a retailer. Mr. Salomon also has experience with the entertainment industry and has worked on matters involving the motion pictures Shakespeare in Love and Batman, the Jerry Springer television show, Tae Bo workout videos, the television series COPS, a dispute between Michael Jackson and his business manager and net profits accountings on several television series, including Hannah Montana and the Rockford Files. Mr. Salomon is a licensed CPA in California and New York.

14 SERVING THE APPLIANCE INDUSTRY WORLDWIDE Case 8:11-cv FMO-AN Document Filed 05/06/16 Page 14 of 27 Page ID #:4693 Magazine MARKET RESEARCH THE U.S. APPLIANCE INDUSTRY: MARKET VALUE, LIFE EXPECTANCY & REPLACEMENT PICTURE 2013 DECEMBER 2013 WHAT YOU WILL FIND IN THIS REPORT: Monthly Value of Shipments of household appliance manufacturing, HVAC manufacturing, audio and video equipment manufacturing, and electronic computer manufacturing. Data covers all months from January 1992 through September Life Expectancy/Replacement data based on appliance original use life cycle and potential replacement units in 2014 and U.S. Saturation Data for approximately 50 products in the categories of Major Appliances, Electric Housewares, Personal Care Appliances, Floor Care Appliances, and Comfort Conditioning equipment. Saturation data includes 2013 as well as the comparison years of 2003 and 2008.

15 Case 8:11-cv FMO-AN Document Filed 05/06/16 Page 15 of 27 Page ID #:4694 UBM Canon Headquarters th St., Ste. 100 Santa Monica, CA United States Phone: Fax: Website: ubmcanon.com Steve Corrick VP and Executive Director UBM Canon Publishing Roger Burg VP, Operations Publications Division Magazine THE U.S. APPLIANCE INDUSTRY: MARKET VALUE, LIFE EXPECTANCY & REPLACEMENT PICTURE 2013 Table of Contents Value of Retail Sales: U.S. Household Appliance Stores...3 Monthly Value of Shipments, January 1992-September 2013: John Guadagno Brand Manager Beth Berner Account Executive Refrigeration Equipment Manufacturing Major Appliances - U.S. Shipments, Exports, and Imports of Major Household Appliances: 2010 and Tony Deligio Editor Tony.deligio@ubm.com The Life Expectancy/Replacement Picture Value of Shipments of Major Household Appliances Tim Somheil Editor tim.somheil@ubm.com The U.S. Saturation Picture Marco Aguilera Lead Art Director marco.aguilera@ubm.com Jeff Tade Production Director jeff.tade@ubm.com 2 Appliance Report December

16 Case 8:11-cv FMO-AN Document Filed 05/06/16 Page 16 of 27 Page ID #:4695 Appliance Magazine The U.S. Appliance Industry: Market Value, Life Expectancy & Replacement Picture 2013 December 2013 Value of Retail Sales - U.S. Household Appliance Stores - Not Seasonally Adjusted, sales in millions of dollars YEAR January February March April May June July August September October November December Total Sales 1992 $601 $576 $631 $643 $662 $746 $764 $727 $682 $732 $753 $920 $8, $641 $593 $669 $701 $727 $803 $920 $817 $741 $773 $804 $948 $9, $640 $592 $692 $676 $703 $829 $789 $771 $714 $746 $885 $1,008 $9, $744 $667 $794 $724 $823 $890 $923 $896 $799 $800 $893 $1,027 $9, $748 $699 $784 $802 $858 $853 $855 $899 $817 $856 $944 $1,100 $10, $778 $724 $809 $792 $841 $919 $970 $886 $828 $858 $903 $1,066 $10, $830 $769 $853 $839 $921 $999 $1,043 $962 $889 $932 $947 $1,115 $11, $842 $814 $943 $926 $950 $1,105 $1,200 $1,019 $989 $997 $1,051 $1,246 $12, $926 $929 $1,013 $962 $1,108 $1,119 $1,037 $1,088 $1,031 $1,045 $1,124 $1,248 $12, $996 $938 $1,043 $999 $1,079 $1,166 $1,142 $1,226 $1,047 $1,164 $1,249 $1,430 $13, $1,085 $1,036 $1,152 $1,160 $1,194 $1,209 $1,285 $1,204 $1,111 $1,157 $1,228 $1,384 $14, $1,079 $970 $1,096 $1,067 $1,165 $1,216 $1,285 $1,273 $1,218 $1,265 $1,305 $1,525 $14, $1,158 $1,147 $1,277 $1,203 $1,290 $1,341 $1,312 $1,299 $1,250 $1,278 $1,412 $1,641 $15, $1,217 $1,222 $1,329 $1,334 $1,358 $1,470 $1,395 $1,430 $1,369 $1,411 $1,523 $1,734 $16, $1,325 $1,298 $1,457 $1,363 $1,471 $1,503 $1,518 $1,569 $1,482 $1,464 $1,594 $1,701 $17, $1,395 $1,306 $1,447 $1,343 $1,541 $1,532 $1,479 $1,565 $1,405 $1,486 $1,635 $1,665 $17, $1,312 $1,356 $1,359 $1,379 $1,453 $1,475 $1,471 $1,391 $1,315 $1,309 $1,412 $1,541 $16, $1,232 $1,127 $1,166 $1,165 $1,221 $1,248 $1,268 $1,271 $1,168 $1,219 $1,354 $1,441 $14, $1,074 $1,090 $1,179 $1,200 $1,313 $1,292 $1,303 $1,241 $1,178 $1,146 $1,403 $1,453 $14, $1,036 $1,097 $1,168 $1,136 $1,223 $1,260 $1,276 $1,297 $1,315 $1,209 $1,522 $1,541 $15, $1,089 $1,173 $1,225 $1,106 $1,285 $1,293 $1,255 $1,286 $1,188 $1,183 $1,493 $1,469 $15, $1,130 $1,176 $1,249 $1,182 $1,341 $1,272 $1,349 $1,326 $1,266 N/A N/A N/A $11,291 Source: U.S. Census Bureau 3 Appliance Report December

17 Case 8:11-cv FMO-AN Document Filed 05/06/16 Page 17 of 27 Page ID #:4696 Value of Shipments - Household Appliance Manufacturing - Seasonally Adjusted, in millions of dollars (current market) YEAR January February March April May June July August September October November December 1992 $6,449 $6,344 $6,650 $6,786 $6,831 $6,622 $6,926 $6,876 $6,952 $7,024 $7,090 $7, $7,063 $7,183 $7,137 $7,149 $7,307 $7,241 $7,363 $7,341 $7,403 $7,559 $7,509 $7, $7,764 $7,829 $7,742 $7,940 $8,027 $7,966 $8,193 $7,988 $7,894 $8,071 $8,086 $8, $8,400 $8,333 $8,346 $8,209 $8,179 $8,363 $8,383 $8,650 $8,617 $8,492 $8,563 $8, $8,450 $8,086 $8,756 $8,640 $8,680 $9,016 $8,736 $8,783 $8,806 $8,851 $9,208 $8, $8,912 $9,053 $9,053 $9,405 $9,166 $9,366 $9,284 $9,331 $9,605 $9,739 $9,823 $9, $9,550 $9,845 $9,670 $9,513 $9,601 $9,528 $9,666 $9,682 $9,804 $9,583 $9,708 $9, $9,642 $9,768 $9,658 $9,773 $9,900 $9,698 $9,972 $10,259 $9,815 $10,008 $9,967 $9, $10,660 $10,160 $10,443 $10,496 $10,347 $10,543 $10,557 $10,319 $10,443 $10,361 $10,481 $10, $10,308 $10,568 $10,265 $9,959 $9,990 $9,867 $9,239 $9,316 $8,741 $8,782 $8,307 $8, $8,368 $8,561 $8,693 $8,764 $8,838 $8,668 $8,519 $8,442 $8,461 $8,476 $8,602 $8, $8,477 $8,237 $8,335 $8,140 $8,141 $8,222 $8,334 $8,081 $8,392 $8,419 $8,591 $8, $8,409 $8,378 $8,554 $8,598 $8,691 $8,616 $8,888 $8,871 $8,910 $8,846 $8,997 $9, $9,291 $9,254 $8,869 $9,106 $9,118 $9,199 $9,285 $9,435 $9,551 $9,721 $9,768 $9, $9,842 $9,666 $9,752 $9,679 $10,203 $10,053 $9,987 $10,172 $10,012 $10,001 $9,910 $10, $10,471 $10,467 $10,742 $10,962 $10,737 $10,716 $10,697 $10,916 $10,932 $10,936 $10,778 $10, $11,163 $10,899 $10,846 $11,068 $11,159 $11,089 $11,480 $11,075 $10,985 $10,764 $9,758 $9, $9,056 $9,157 $8,766 $8,909 $8,632 $8,649 $8,875 $8,552 $8,555 $8,764 $8,813 $8, $8,704 $8,784 $8,906 $9,177 $8,954 $9,064 $9,117 $9,242 $9,226 $9,483 $9,592 $9, $9,671 $9,726 $10,055 $9,824 $9,918 $10,023 $9,809 $10,238 $10,319 $10,174 $10,088 $10, $10,358 $10,224 $10,471 $10,316 $10,436 $10,233 $10,206 $10,151 $10,062 $10,139 $10,268 $10, $10,266 $10,383 $10,273 $10,195 $10,401 $10,308 $10,298 $10,141 $10,065 Source: U.S. Census Bureau Value of Shipments - Household Appliance Manufacturing - Not-Seasonally Adjusted, in millions of dollars (current market) YEAR January February March April May June July August September October November December 1992 $5,553 $6,404 $6,990 $6,616 $6,723 $7,272 $6,377 $6,808 $7,763 $7,135 $7,053 $7,119 $81, $5,954 $7,037 $7,597 $6,996 $7,167 $7,946 $6,735 $7,359 $8,249 $7,539 $7,621 $7,446 $87, $6,532 $7,680 $8,248 $7,713 $7,935 $8,762 $7,356 $8,111 $8,856 $8,003 $8,171 $8,164 $95, $7,127 $8,200 $8,900 $7,833 $8,141 $9,291 $7,505 $8,773 $9,658 $8,454 $8,590 $8,579 $101, $7,212 $8,263 $9,192 $8,472 $8,590 $9,811 $7,965 $8,852 $9,885 $8,853 $9,170 $9,018 $105, $7,539 $8,895 $9,545 $9,162 $9,015 $10,297 $8,432 $9,242 $11,048 $9,660 $9,637 $9,644 $112, $8,035 $9,656 $10,385 $9,228 $9,334 $10,673 $8,755 $9,571 $11,237 $9,428 $9,569 $10,153 $116, $8,031 $9,539 $10,525 $9,504 $9,666 $10,794 $8,983 $10,229 $11,219 $9,674 $9,946 $10,203 $118, $8,925 $10,276 $11,403 $9,966 $10,395 $11,735 $9,375 $10,398 $11,809 $10,121 $10,369 $10,671 $125, $8,919 $10,155 $11,176 $9,557 $10,076 $10,870 $8,314 $9,381 $9,691 $8,702 $8,283 $8,944 $114, $7,234 $8,123 $9,323 $8,552 $8,912 $9,359 $7,784 $8,498 $9,382 $8,452 $8,535 $8,691 $102, $7,337 $7,732 $8,892 $7,946 $8,209 $8,908 $7,649 $8,058 $9,402 $8,456 $8,418 $8,899 $99, $7,268 $7,980 $9,294 $8,438 $8,663 $9,418 $8,179 $9,017 $9,827 $8,784 $9,039 $9,177 $105, $7,965 $8,565 $9,570 $8,909 $9,227 $9,976 $8,515 $9,779 $10,508 $9,705 $9,721 $9,537 $111, $8,624 $8,944 $10,458 $9,369 $10,476 $10,899 $9,265 $10,603 $10,850 $10,146 $9,790 $9,979 $119, $9,350 $9,678 $11,432 $10,739 $11,020 $11,512 $10,140 $11,403 $11,590 $11,248 $10,643 $10,425 $129, $10,007 $10,469 $11,343 $11,009 $11,373 $11,832 $11,072 $11,371 $11,912 $11,039 $9,376 $9,532 $130, $8,070 $8,433 $9,287 $8,843 $8,660 $9,434 $8,567 $8,775 $9,211 $8,962 $8,570 $8,605 $105, $7,641 $8,066 $9,538 $9,169 $8,972 $9,847 $8,760 $9,596 $9,881 $9,515 $9,470 $9,581 $110, $8,527 $8,953 $10,797 $9,719 $10,058 $10,870 $9,278 $10,739 $11,082 $10,157 $9,919 $9,925 $120, $9,251 $9,762 $11,197 $10,112 $10,728 $11,079 $9,723 $10,628 $10,524 $10,336 $10,110 $9,843 $123, $9,290 $9,592 $10,889 $10,111 $10,758 $10,970 $9,895 $10,518 $10,529 $92,552 Source: U.S. Census Bureau YEARLY TOTAL 4 Appliance Report December

18 Case 8:11-cv FMO-AN Document Filed 05/06/16 Page 18 of 27 Page ID #:4697 Value of Shipments - Ventilation, Heating, Air-Conditioning, and Refrigeration Equipment Manufacturing Seasonally Adjusted, in millions of dollars (current market) YEAR January February March April May June July August September October November December 1992 $1,892 $1,987 $2,007 $2,218 $2,127 $2,168 $2,147 $2,060 $2,017 $2,030 $2,065 $2, $2,174 $2,126 $2,214 $2,178 $2,244 $2,193 $2,180 $2,263 $2,312 $2,324 $2,403 $2, $2,388 $2,428 $2,430 $2,480 $2,529 $2,572 $2,634 $2,582 $2,569 $2,630 $2,559 $2, $2,624 $2,662 $2,649 $2,671 $2,650 $2,595 $2,639 $2,788 $2,709 $2,721 $2,631 $2, $2,759 $2,603 $2,761 $2,745 $2,769 $2,854 $2,756 $2,810 $2,888 $2,761 $2,793 $2, $2,686 $2,677 $2,632 $2,673 $2,485 $2,496 $2,554 $2,433 $2,507 $2,526 $2,596 $2, $2,626 $2,662 $2,670 $2,696 $2,741 $2,786 $2,808 $2,792 $2,759 $2,872 $2,746 $2, $2,772 $2,816 $2,822 $2,797 $2,800 $2,778 $2,846 $2,851 $2,870 $2,879 $2,965 $3, $3,062 $2,905 $2,856 $2,934 $2,912 $2,916 $2,827 $2,847 $2,911 $2,948 $2,751 $2, $2,822 $2,921 $2,863 $2,764 $2,882 $2,808 $2,752 $2,744 $2,671 $2,664 $2,591 $2, $2,615 $2,598 $2,708 $2,756 $2,716 $2,723 $2,718 $2,744 $2,692 $2,624 $2,622 $2, $2,673 $2,673 $2,651 $2,596 $2,673 $2,701 $2,764 $2,740 $2,675 $2,703 $2,775 $3, $2,710 $2,639 $2,835 $2,840 $2,862 $2,881 $2,825 $2,687 $2,899 $2,895 $2,967 $3, $3,075 $3,049 $3,060 $3,088 $3,052 $3,084 $3,034 $3,162 $3,278 $3,315 $3,365 $3, $3,335 $3,251 $3,246 $3,220 $3,203 $3,225 $3,186 $3,335 $3,304 $3,309 $3,248 $3, $3,319 $3,447 $3,512 $3,544 $3,492 $3,400 $3,483 $3,179 $3,301 $3,313 $3,370 $3, $3,326 $4,400 $3,944 $3,459 $3,309 $3,412 $3,415 $3,288 $3,238 $3,105 $2,985 $2, $2,709 $2,959 $2,927 $2,881 $2,962 $2,929 $2,966 $2,875 $2,891 $2,976 $2,971 $3, $3,031 $2,789 $2,960 $3,039 $2,968 $2,966 $2,931 $3,000 $3,086 $3,108 $3,179 $3, $3,275 $3,184 $3,225 $3,204 $3,215 $3,301 $3,223 $3,311 $3,243 $3,168 $3,158 $3, $3,261 $3,384 $3,666 $3,572 $3,600 $3,529 $3,579 $3,530 $3,477 $3,586 $3,628 $3, $3,586 $3,629 $3,604 $3,770 $3,674 $3,573 $3,667 $3,598 $3,665 N/A N/A N/A Source: U.S. Census Bureau Value of Shipments - Ventilation, Heating, Air-Conditioning, and Refrigeration Equipment Manufacturing Not-Seasonally Adjusted, in millions of dollars (current market) 1992 $1,621 $1,988 $2,166 $2,302 $2,282 $2,476 $2,086 $2,030 $2,040 $2,082 $1,948 $1,882 $24, $1,820 $2,085 $2,408 $2,273 $2,377 $2,493 $2,086 $2,262 $2,367 $2,367 $2,287 $2,327 $27, $1,982 $2,391 $2,650 $2,540 $2,694 $2,923 $2,487 $2,603 $2,686 $2,665 $2,446 $2,304 $30, $2,203 $2,629 $2,896 $2,698 $2,818 $2,958 $2,471 $2,828 $2,835 $2,794 $2,528 $2,585 $32, $2,326 $2,673 $2,929 $2,821 $2,959 $3,182 $2,641 $2,835 $3,036 $2,868 $2,659 $2,388 $33, $2,284 $2,628 $2,765 $2,751 $2,615 $2,828 $2,469 $2,430 $2,660 $2,631 $2,439 $2,291 $30, $2,194 $2,586 $2,835 $2,763 $2,859 $3,223 $2,735 $2,773 $2,925 $2,939 $2,603 $2,515 $32, $2,276 $2,698 $3,021 $2,856 $2,912 $3,257 $2,739 $2,893 $3,048 $2,879 $2,820 $3,073 $34, $2,478 $2,822 $3,101 $2,874 $3,108 $3,508 $2,672 $2,964 $3,062 $2,907 $2,619 $2,709 $34, $2,324 $2,677 $3,094 $2,704 $3,105 $3,359 $2,641 $2,908 $2,766 $2,591 $2,480 $2,490 $33, $2,167 $2,324 $2,921 $2,699 $2,938 $3,236 $2,643 $2,894 $2,822 $2,521 $2,475 $2,545 $32, $2,235 $2,354 $2,850 $2,521 $2,836 $3,249 $2,720 $2,877 $2,845 $2,592 $2,588 $3,073 $32, $2,244 $2,349 $3,109 $2,766 $2,947 $3,497 $2,790 $2,839 $3,145 $2,713 $2,826 $3,149 $34, $2,498 $2,605 $3,350 $2,933 $3,157 $3,742 $3,005 $3,376 $3,624 $3,108 $3,208 $3,284 $37, $2,745 $2,746 $3,534 $2,987 $3,329 $3,948 $3,188 $3,587 $3,626 $3,160 $3,093 $3,263 $39, $2,747 $2,897 $3,721 $3,288 $3,660 $4,139 $3,599 $3,454 $3,571 $3,190 $3,200 $3,038 $40, $2,760 $3,835 $4,014 $3,224 $3,468 $4,224 $3,639 $3,498 $3,558 $3,000 $2,717 $2,898 $40, $2,217 $2,442 $2,963 $2,706 $3,095 $3,744 $3,214 $3,047 $3,157 $2,798 $2,700 $3,070 $35, $2,431 $2,272 $2,981 $2,919 $3,106 $3,878 $3,154 $3,239 $3,349 $2,839 $2,886 $3,254 $36, $2,580 $2,580 $3,265 $3,072 $3,448 $4,395 $3,436 $3,624 $3,497 $2,828 $2,856 $3,097 $38, $2,583 $2,855 $3,713 $3,457 $3,953 $4,679 $3,838 $3,932 $3,590 $3,248 $3,306 $3,264 $42, $2,866 $2,974 $3,587 $3,780 $4,134 $4,574 $4,037 $3,908 $3,827 N/A N/A N/A $33,687 Source: U.S. Census Bureau 5 Appliance Report December

19 Case 8:11-cv FMO-AN Document Filed 05/06/16 Page 19 of 27 Page ID #:4698 Value of Shipments - Audio and Video Equipment - Seasonally Adjusted, in millions of dollars (current market) YEAR January February March April May June July August September October November December 1992 $766 $755 $801 $830 $776 $743 $719 $687 $667 $688 $709 $ $729 $714 $816 $688 $716 $761 $800 $793 $805 $771 $769 $ $777 $807 $774 $802 $840 $842 $819 $862 $860 $880 $884 $ $886 $950 $942 $959 $948 $956 $1,016 $985 $985 $1,034 $1,009 $ $789 $791 $864 $778 $759 $745 $716 $760 $732 $710 $667 $ $737 $762 $697 $672 $687 $665 $650 $642 $674 $668 $679 $ $700 $706 $718 $728 $665 $684 $660 $643 $665 $687 $709 $ $749 $724 $718 $776 $784 $765 $755 $842 $838 $722 $624 $ $803 $790 $817 $777 $674 $788 $824 $780 $755 $758 $700 $ $696 $751 $749 $576 $641 $685 $722 $683 $651 $754 $795 $1, $754 $770 $768 $722 $779 $749 $718 $701 $689 $648 $691 $ $637 $649 $622 $641 $656 $673 $721 $704 $757 $758 $733 $ $732 $685 $803 $847 $816 $867 $908 $983 $926 $972 $958 $ $949 $904 $912 $845 $831 $803 $724 $798 $773 $800 $790 $ $873 $907 $661 $762 $755 $799 $793 $821 $856 $778 $784 $ $789 $716 $648 $688 $611 $641 $606 $639 $568 $600 $577 $ $602 $552 $526 $658 $572 $527 $513 $482 $470 $466 $339 $ $294 $295 $300 $254 $304 $251 $273 $245 $258 $300 $237 $ $217 $186 $182 $172 $182 $197 $178 $131 $188 $198 $199 $ $213 $217 $214 $203 $210 $220 $218 $240 $216 $227 $228 $ $220 $219 $264 $265 $254 $253 $262 $242 $264 $241 $257 $ $250 $261 $249 $275 $273 $233 $290 $305 $266 N/A N/A N/A Source: U.S. Census Bureau Value of Shipments - Audio and Video Equipment - Not-Seasonally Adjusted, in millions of dollars (current market) 1992 $660 $737 $819 $706 $659 $660 $630 $702 $811 $873 $876 $675 $8, $618 $682 $828 $584 $609 $675 $690 $810 $1,007 $972 $928 $751 $9, $661 $772 $795 $664 $716 $766 $699 $873 $1,078 $1,104 $1,060 $907 $10, $756 $910 $979 $802 $805 $869 $861 $1,008 $1,209 $1,285 $1,230 $877 $11, $671 $798 $882 $643 $665 $674 $600 $773 $914 $874 $778 $719 $8, $645 $734 $712 $553 $598 $618 $554 $645 $818 $817 $793 $740 $8, $605 $680 $732 $612 $578 $634 $579 $639 $792 $816 $838 $822 $8, $645 $695 $727 $652 $685 $718 $666 $825 $994 $842 $741 $737 $8, $696 $774 $849 $641 $584 $766 $733 $756 $836 $880 $884 $779 $9, $601 $714 $766 $479 $561 $648 $643 $661 $701 $871 $1,043 $1,254 $8, $662 $725 $774 $584 $688 $705 $630 $665 $733 $767 $903 $813 $8, $569 $604 $621 $516 $571 $626 $631 $665 $782 $919 $972 $883 $8, $649 $659 $790 $695 $710 $776 $778 $934 $975 $1,172 $1,256 $1,155 $10, $840 $821 $905 $671 $725 $733 $605 $753 $802 $974 $1,040 $1,100 $9, $774 $812 $661 $606 $654 $727 $655 $772 $851 $952 $1,080 $1,044 $9, $694 $631 $638 $549 $535 $565 $498 $591 $557 $727 $820 $745 $7, $535 $498 $513 $510 $500 $472 $424 $424 $451 $576 $489 $484 $5, $259 $253 $292 $200 $264 $221 $230 $208 $245 $361 $354 $308 $3, $188 $158 $175 $134 $158 $177 $149 $108 $182 $232 $294 $296 $2, $183 $183 $209 $153 $183 $204 $182 $192 $209 $258 $337 $382 $2, $186 $190 $259 $202 $222 $227 $219 $197 $253 $265 $390 $415 $3, $210 $217 $244 $208 $255 $195 $245 $264 $241 N/A N/A N/A $2,079 Source: U.S. Census Bureau 6 Appliance Report December

20 Case 8:11-cv FMO-AN Document Filed 05/06/16 Page 20 of 27 Page ID #:4699 Value of Shipments - Electronic Computer Manufacturing - Seasonally Adjusted, in millions of dollars (current market) YEAR January February March April May June July August September October November December 1992 $3,232 $3,088 $2,838 $3,379 $3,395 $3,164 $3,383 $3,168 $3,123 $3,188 $3,161 $3, $3,479 $3,279 $3,202 $3,105 $2,840 $3,174 $3,108 $3,239 $3,318 $3,303 $3,323 $3, $3,420 $3,648 $3,660 $3,827 $3,803 $3,972 $3,960 $3,979 $3,950 $4,162 $4,869 $4, $4,330 $4,512 $4,580 $4,721 $5,145 $4,900 $4,358 $4,985 $5,194 $5,082 $5,406 $5, $4,465 $5,093 $5,074 $4,750 $4,846 $4,790 $4,650 $4,917 $4,934 $5,082 $5,206 $4, $5,234 $5,149 $5,140 $5,418 $5,516 $5,623 $5,803 $5,841 $5,870 $5,579 $5,318 $5, $5,497 $5,540 $5,834 $5,437 $5,342 $6,083 $5,163 $5,221 $5,720 $5,144 $5,364 $5, $5,412 $6,170 $6,212 $5,986 $6,250 $6,479 $6,377 $6,198 $5,799 $6,176 $5,930 $4, $5,856 $5,806 $5,680 $6,100 $6,444 $5,459 $5,667 $5,909 $5,527 $5,905 $5,868 $5, $5,423 $4,991 $4,926 $4,793 $4,564 $4,741 $4,738 $4,365 $4,378 $4,282 $4,318 $4, $4,168 $4,428 $4,380 $3,793 $4,184 $4,255 $3,821 $3,972 $3,921 $3,660 $3,498 $3, $4,017 $3,613 $3,527 $3,792 $3,660 $3,499 $4,136 $3,845 $4,006 $4,537 $3,855 $3, $3,721 $3,356 $3,408 $3,357 $3,300 $3,186 $3,307 $3,218 $3,445 $4,022 $3,332 $3, $3,497 $3,481 $3,422 $3,580 $3,413 $3,432 $3,212 $3,411 $3,074 $3,255 $3,462 $3, $3,312 $3,487 $3,761 $3,671 $3,496 $3,493 $3,882 $3,811 $3,479 $2,654 $3,694 $3, $3,592 $4,177 $3,503 $3,623 $3,951 $3,687 $2,752 $3,665 $3,926 $3,890 $3,631 $3, $3,998 $3,721 $3,556 $3,880 $4,595 $4,133 $3,617 $3,813 $3,836 $3,068 $3,588 $3, $3,307 $3,553 $3,454 $3,074 $3,221 $2,878 $2,974 $2,643 $2,428 $2,570 $2,619 $2, $2,100 $2,044 $2,078 $1,778 $1,593 $1,546 $1,521 $1,647 $1,471 $1,364 $1,275 $ $947 $762 $725 $724 $658 $652 $700 $682 $649 $731 $635 $ $654 $790 $678 $763 $1,010 $821 $527 $634 $730 $570 $699 $ $607 $560 $610 $519 $522 $465 $436 $535 $520 N/A N/A N/A Source: U.S. Census Bureau Value of Shipments - Electronic Computer Manufacturing - Not-Seasonally Adjusted, in millions of dollars (current market) 1992 $2,727 $2,854 $3,676 $2,872 $2,926 $4,044 $2,776 $2,797 $3,594 $2,877 $3,073 $3,842 $38, $2,887 $2,950 $4,081 $2,683 $2,522 $3,869 $2,566 $2,823 $3,984 $2,928 $3,176 $4,567 $39, $2,856 $3,297 $4,610 $3,188 $3,315 $5,084 $3,167 $3,427 $4,899 $3,813 $4,386 $5,364 $47, $3,492 $4,074 $5,973 $3,839 $4,399 $6,472 $3,573 $4,244 $6,351 $4,560 $5,014 $6,546 $58, $3,484 $4,819 $6,676 $3,913 $4,161 $6,156 $3,699 $4,393 $6,260 $4,377 $4,779 $6,497 $59, $4,112 $4,581 $6,989 $4,230 $4,791 $7,538 $4,647 $5,156 $7,233 $4,959 $4,781 $7,285 $66, $4,406 $4,869 $7,753 $4,514 $4,532 $7,926 $4,380 $4,772 $6,548 $4,763 $4,962 $7,440 $66, $4,363 $5,355 $7,831 $5,275 $5,448 $7,821 $5,764 $5,589 $6,771 $5,831 $5,315 $6,317 $71, $5,055 $5,038 $6,906 $5,449 $5,403 $6,824 $5,394 $5,143 $6,370 $5,843 $5,160 $6,714 $69, $4,750 $4,222 $5,784 $4,630 $3,734 $5,623 $4,656 $3,923 $4,957 $4,246 $3,904 $5,440 $55, $3,749 $3,703 $4,865 $3,729 $3,519 $4,807 $3,801 $3,652 $4,578 $3,623 $3,118 $4,586 $47, $3,863 $2,999 $3,903 $3,660 $3,127 $3,925 $4,153 $3,515 $4,530 $4,713 $3,440 $4,065 $45, $3,661 $2,881 $3,591 $3,554 $2,863 $3,171 $3,509 $3,024 $3,773 $4,258 $3,085 $3,675 $41, $3,430 $2,912 $3,495 $3,743 $2,916 $3,500 $3,365 $3,185 $3,416 $3,623 $3,071 $4,038 $40, $3,098 $2,947 $3,922 $3,745 $2,935 $3,718 $4,179 $3,509 $3,744 $2,944 $3,465 $4,191 $42, $3,211 $3,551 $3,659 $3,697 $3,260 $3,966 $2,893 $3,490 $4,187 $4,299 $3,499 $4,380 $44, $3,408 $3,269 $3,809 $3,508 $3,958 $4,749 $3,655 $3,608 $4,198 $3,425 $3,341 $4,544 $45, $2,868 $2,965 $3,731 $2,791 $2,729 $3,286 $3,129 $2,535 $2,550 $2,945 $2,512 $2,664 $34, $1,747 $1,666 $2,226 $1,651 $1,396 $1,730 $1,636 $1,509 $1,627 $1,514 $1,188 $1,111 $19, $806 $607 $760 $665 $567 $797 $738 $596 $747 $829 $553 $602 $8, $539 $624 $740 $741 $838 $1,065 $551 $544 $826 $604 $641 $973 $8, $482 $434 $674 $465 $488 $599 $360 $493 $650 N/A N/A N/A $4,645 Source: U.S. Census Bureau 7 Appliance Report December

21 Case 8:11-cv FMO-AN Document Filed 05/06/16 Page 21 of 27 Page ID #:4700 Major Appliances - U.S. Shipments, Exports, and Imports of Major Household Appliances: 2010 and 2009 Product description COOKING APPLIANCES Electric ranges, ovens, and surface cooking units, equipment Microwave ranges and ovens (including combination microwave ranges and built-in ovens using microwaves) Parts and accessories for electric ranges and ovens Gas ranges, ovens, and surface cooking units Parts and accessories for gas ranges and ovens and other cooking equipment OUTDOOR COOKING APPLIANCES Outdoor cooking equipment, portable, gas or both gas and other fuel Outdoor cooking equipment, portable, solid fuel (wood, charcoal, coal, etc.) All other outdoor cooking and other cooking equipment REFRIGERATION Refrigerators - Compression type fitted with separate external doors Product Code (NAICS) Year Manufacturers Shipments - Quantity Manufacturers Shipments - Value f.o.b. plant (thousands of dollars) Exports of Domestic Merchandise - Quantity Exports of Domestic Merchandise - Value at port (thousands of dollars) Imports for Consumption - Quantity Imports for Consumption - Value (thousands of dollars) T ,496,736 1,914, , ,481 12,654, , N/A N/A 465, ,194 10,491, , N/A N/A 171,657 23,684 16,608,256 1,034, ,359 36, ,331 24,844 14,564, , N/A 134,702 N/A 86,732 N/A 55, N/A 119,375 N/A 79,268 N/A 109, T ,857,983 1,191,284 97,921 53,969 7,087,030 1,213, ,568,946 1,054,828 91,819 51,400 6,346,962 1,093, N/A 63,161 N/A 47,824 N/A 64, N/A 62,147 N/A 48,894 N/A 75, N/A N/A 1,403, ,243 3,872, , N/A N/A 1,059, ,084 3,296,866 87, N/A N/A 114,403 8,605 10,811, , N/A N/A 84,370 6,308 8,672, , N/A N/A 117,264 51,393 1,787, , ,074 23, ,110 47,199 1,471, , T ,036,423 5,125, , ,033 5,124,681 3,034, ,360,615 4,894, , ,204 4,182,669 2,455,695 All other household refrigerators , ,669 86,304 44,093 3,160, , , ,483 82,123 42,000 2,368, ,113 Upright and chest type freezers N/A N/A 516, ,824 1,310, ,836 LAUNDRY APPLIANCES, INCLUDING COIN-OPERATED 2009 N/A N/A 553, , , ,737 Washing machines, fully automatic (electric), (coin-operated and non N/A N/A 662, ,910 1,564, ,516 coin-operated) 2009 N/A N/A 802, ,465 1,642, ,531 Gas and electric dryers (non coinoperated) T 2010 N/A N/A 119,325 26,103 1,068, , N/A N/A 110,503 23, , ,754 Dryers (coin-operated) N/A N/A 11,581 5,174 2, N/A N/A 13,128 6,055 3, DISHWASHERS Dishwashing machines, household ,837,811 1,690, , ,142 1,131, , ,053,835 1,709, , , , ,943 OTHER APPLIANCES All other major household appliances and parts for other major household appliances (value only) T 2010 N/A N/A N/A 22,780 N/A 125, N/A N/A N/A 26,498 N/A 97,737 Source: U.S. Census Bureau; 2011 data was not available as of the writing fo this report. 8 Appliance Report December

22 Case 8:11-cv FMO-AN Document Filed 05/06/16 Page 22 of 27 Page ID #:4701 THE LIFE EXPECTANCY/REPLACEMENT PICTURE Life Expectancy Units To Be This study lists the estimated low, high, and average years of an appliance s original life cycle. This life expectancy is based on first-owner In Years Replaced use of the product and does not necessarily mean the appliance has Low High Ave stopped functioning. When a replacement is purchased, the old unit is traded in, relegated to use elsewhere, given away, or discarded, thereby ending the original life cycle. Comfort Conditioning Appliances The estimates contained in the listing represent the expert judgment of APPLIANCE magazine staff based on input obtained from many sources. Original life-cycle expectancy for each appliance category is indicated, as well as the estimated number of units that will be eligible for replacement during 2014 and These appliances may be replaced with the same type of product, may be replaced with an appliance of a different type, or may not be replaced at all. To obtain replacement estimates, the average life expectancy in years of each appliance was ascertained. That number was subtracted from the replacement year (2014 or 2015). The number of units produced in that year became Outdoor Appliances the number of units eligible for replacement. Unit shipments are taken from Leaf Blowers, Back Pack, APPLIANCE magazine s Statistical Review, published annually for more than Gasoline 50 years. The replacement numbers do not account for changes in life expectancy throughout the years. Units To Be Replaced Air-Conditioners, Room ,031,700 10,055,300 Air-Conditioners, Unitary ,950,827 4,500,000 Furnaces, Gas ,126,127 3,104,191 Furnaces, Oil , ,012 Heat Pumps ,483,599 1,626,365 Leaf Blowers, Hand-Held Gasoline , , ,086,418 N/A Major Appliances Life Expectancy In Years Units To Be Replaced Units To Be Replaced Low High Ave Dishwashers ,206,800 6,428,000 Disposers ,814,700 6,277,000 Dryers, Electric ,718,000 6,261,000 Dryers, Gas ,490,400 1,616,000 Freezers ,534,500 2,522,900 Microwave Ovens ,687,000 11,851,000 Ranges, Electric ,982,400 5,026,000 Ranges, Gas ,950,500 3,136,200 Refrigerators, Standard ,305,400 9,744,300 Washers ,146,000 8,832,000 Water Heaters, Electric ,333,170 4,390,495 Water Heaters, Gas ,907,007 4,931,314 Electric Housewares and Personal Care Appliances Blenders, Stand-Type ,509,000 11,393,910 Can Openers ,761,000 5,703,390 Coffeemakers, Automatic Drip ,535,039 N/A Food Processors ,030,700 2,100,000 Irons ,491,110 13,480,000 Mixers, Hand ,800,000 5,773,032 Slow Cookers ,550,000 9,420,000 Floor Care Appliances Central Vacuum Systems , ,000 Shampooers/Steam Cleaners ,890,000 2,870,000 Vacuum Cleaners, Full-Size ,968,000 24,691,400 Vacuum Cleaners, Hand-Held ,550,000 N/A Snowthrowers, Gasoline ,320 N/A Sources for Life Expectancy and Saturation data: APPLIANCE surveys, APPLIANCE estimates, and Appliance Industry Associations Value of Shipments of Major Household Appliances Electric Residential Ranges, Ovens, and Surface Cooking Units, Equipment, and Parts Gas Residential Ranges, Ovens, and Surface Cooking Units, Equipment, and Parts Other Household Ranges, Cooking Equipment, and Outdoor Cooking Equipment, including Parts and Accessories Household Refrigerators, including Refrigerator-Freezers Refrigerator and Freezer Parts and Attachments Product code (NAICS) Year Value (in millions of dollars) , , , , , , , , , , , , , , , N/A 9 Appliance Report December

23 Case 8:11-cv FMO-AN Document Filed 05/06/16 Page 23 of 27 Page ID #:4702 Value of Shipments of Major Household Appliances U.S. Saturation Household Laundry Appliances and Parts U.S. Saturation Major Appliances Product code (NAICS) Water Heaters, Electric Water Heaters, Non-Electric Household Appliances not elsewhere classified, and Parts Source: U.S. Census Bureau Year Value (in millions of dollars) , , , , , , , , , , , , , ,413.3 THE U.S. SATURATION PICTURE The following chart shows saturation levels for certain appliances in the United States. This information was gathered from companies producing these products and from other industry sources. In most cases, there was very little variance between the figures supplied by the various producers; consequently, APPLIANCE magazine believes the data to be well-weighted figures. These figures represent the percentage of U.S. households with one particular type of appliance, and do not reflect households with more than one of a particular appliance. Compactors 3.0% 4.0% 4.0% Dishwashers 59.5% 61.0% 61.0% Disposers 44.0% 47.0% 47.0% Dryers, Electric 61.0% 62.0% 63.0% Dryers, Gas 20.2% 20.0% 20.0% Freezers 47.5% 43.0% 46.0% Microwave Ovens 95.0% 91.0% 94.0% Range Hoods 45.0% 44.0% 45.0% Ranges, Electric 61.0% 61.0% 61.0% Ranges, Gas 39.0% 40.0% 40.0% Refrigerators, Standard 99.0% 99.0% 99.0% Washers 94.3% 95.0% 95.0% Water Heaters, Gas 57.0% 53.0% 53.0% Electric Housewares Blenders 83.0% 85.0% 85.0% Can Openers 68.0% 71.0% 71.0% Clocks (Incl. Battery Operated) 98.0% 99.0% 99.0% Coffeemakers, Automatic Drip 83.0% 88.0% 88.0% Espresso Machines 15.0% 22.5% 22.5% Food Processors 55.0% 58.0% 58.0% Frypans 52.0% 48.0% 48.0% Griddles, Automatic 45.0% 54.0% 54.0% Irons 90.0% 92.0% 92.0% Juicers/Extractors 25.0% 28.5% 27.0% Mixers 85.0% 87.0% 87.0% Rice Cookers/Steamers 14.0% 18.0% 18.0% Slow Cookers 69.0% 76.0% 76.0% Toaster Ovens 55.0% 60.0% 60.0% Toasters 88.0% 92.0% 92.0% Waffle Irons/Sandwich Grills 45.0% 49.0% 49.0% Personal Care Curling Brushes 20.0% 20.0% 20.0% Curling Irons, Styling Combs 62.0% 62.0% 62.0% Hair Dryers, Hand-Held 86.0% 85.0% 85.0% Hair Setters 31.0% 28.0% 28.0% Heating Pads 55.0% 54.0% 54.0% Massagers, Hand-Held 25.0% 25.0% 25.0% Shavers, Men s 45.0% 45.0% 45.0% Shavers, Women s 22.0% 22.0% 22.0% Toothbrushes/Plaque Removers 38.0% 38.0% 38.0% Trimmers, Mustache/Beard 35.0% 33.0% 33.0% Water Pulsators 24.0% 21.0% 20.0% Floor Care Appliances Central Vacuum Systems 10.0% 11.0% 10.0% Shampooers/Steam Cleaners 22.5% 22.0% 22.0% Vacuum Cleaners, Full-Size 98.7% 96.0% 23.0% Vacuum Cleaners, Robotic 4.0% 5.0% Vacuum Cleaners, Hand-Held 50.0% 45.0% Comfort Conditioning Appliances Air-Conditioners, Room 30.0% 29.0% 29.0% Air-Conditioners, Unitary 63.0% 66.0% 66.0% Furnaces, Gas 75.0% 75.0% 77.0% Heat Pumps 17.0% 16.0% 16.0% Humidifiers 20.0% 24.0% 22.0% Water Heaters, Electric 43.0% 45.0% 45.0% 10 Appliance Report December