Final-round drill: PPA step-ups year-1 versus year-3 EPS impact. Walk through timing pattern.

Inventory step-up usually hits COGS in year 1 only. PP&E step-up creates depreciation over useful life. Identifiable intangibles create amortization over useful life. Therefore year-1 EPS may be hit by inventory plus ongoing D&A/amortization; year-3 EPS usually has no inventory step-up but still includes PP&E depreciation and intangible amortization.