EFTA01377804.pdf

S-1/A drawn under the credit facility, with $195.0 million remaining available. On July 1, 2015, the Company paid the outstanding loan balance of $30.0 million, which was previously drawn under a revolving unsecured credit facility with certain lenders. As of September 30. 2015, no amounts were outstanding under the credit facility, with $225.0 million remaining available. Loans under the credit facility bear interest, at the Company's option, at (i) a base rate based on the highest of the prime rate, the federal funds rate plus 0.50% and an adjusted LIBOR rate for a one-month interest period plus 1.00%, in each case plus a margin ranging from 0.00% to 0.75% or (ii) an adjusted LIBOR rate plus a margin ranging from 1.00% to 1.75%. This margin is determined based on the Company's total leverage ratio for the preceding four fiscal quarters and the Company's status as a public or non-public company. The Company is obligated to pay other customary fees for a credit facility of this size and type including an annual administrative agent fee of $0.1 million and an unused commitment fee ranging from 0.10% to 0.25% depending on its leverage ratio. The Company paid $0.4 million in unused commitment fees during the year ended December 31, 2014. At December 31. 2014, the interest rate on the $30.0 million drawn amount was 4.00% and the commitment fee on the remaining available balance was 0.25%. The Company paid $0.4 million in fees related to unused commitments during the nine months ended September 30, 2015. NOTE 11-ACCRUED TRANSACTION LOSSES The Company is exposed to transaction losses due to chargebacks as a result of fraud or uncollectibility. Recoveries are reflected as a reduction in the reserve for transaction losses when the recovery occurs. The following table summarizes the activities of the Company's reserve for payment processing transaction losses (in thousands): Year Ended December 31, Nine Months Ended September 30, 2012 2013 2014 2015 (Unaudited) Accrued transaction losses, beginning of the period $ 2,844 $ 6.021 $ 7,488 $ 8,452 Provision for transaction losses 10,512 15.080 18,478 32,967 Charge-offs and recoveries to accrued transaction losses (7,335) (13,613) (17,514) (25,415) Accrued transaction losses, end of the period $ 6,021 $ 7,488 $ 8,452 $ 16,004 NOTE 12—INCOME TAXES The domestic and foreign components of loss before income taxes are as follows (in thousands): Year Ended December 31, 2012 2013 2014 Domestic $(83.081) $ (69.980) $(139,675) Foreign (2,118) (34,000) (12,978) Loss before income taxes $(85,199) $(103,980) $(152,653) F-29 Table of content‘ The components of the provision for income taxes are as follows (in thousands): Year Ended December 31, 2012 2013 2014 Current: Federal $ — $ — $ 2.746 State — 263 531 Foreign — 250 827 Total current provision for income taxes — 513 4,104 Deferred: Federal — — (2,503) http://vAvw..u:.gov/Archivestedgar/data/1512673AX$1119312515369092/d937622dsla.htm111/6/2015 7:37:12 AM) CONFIDENTIAL - PURSUANT TO FED. R. GRIM. P. 6(e) DB-SDNY-0074956 CONFIDENTIAL SDNY_GM_00221140 EFTA01377804