EFTA01382415.pdf

Amendment No. 3 to Form S-1 Table of Contents AB ACQUISITION LLC AND SUBSIDIARIES Notes to Condensed Consolidated Financial Statements (unaudited) The following table presents assets and liabilities which were measured at fair value on a recurring basis as of February 28, 2015 (in millions): Fair Value Measurements Quoted prices In active markets Significant Significant for Identical observable unobservable assets Inputs Inputs Total (Level 1) (Level 2) (Level 3) Assets: Cash equivalents: Money market $565.0 $ 565.0 S - $ - Short-term investments(1) 24.1 17.1 7.0 — Non-current investments(2) 55.3 8.4 46.9 Total $644.4 $ 590.5 $ 53.9 $ — Liabilities: Derivative contracts(3) $121.7 $ — $ 121.7 $ — Contingent consideration(4) 270.9 — — 270.9 Total $392.6 $ 121.7 $ 270.9 (1) Classified as held for sale and are included in Other current assets on the Condensed Consolidated Balance Sheets. (2) Classified as held for sale and are included in Other assets on the Condensed Consolidated Balance Sheets. Change in market value of available for sale securities is recognized in Other comprehensive loss. (3) Primarily relates to interest rate swaps and is included in Other current liabilities on the Condensed Consolidated Balance Sheets. (4) Primarily relates to Casa Ley CVR and is included in Other long-term liabilities on the Condensed Consolidated Balance Sheets. A reconciliation of the beginning and ending balances for Level 3 liabilities for the 16 weeks ended June 20, 2015 follows (in millions): Contingent consideration Beginning balance $ 270.9 Changes in fair value 9.2 Payments (2.6) Ending balance $ 277.5 The estimated fair value of the Company's debt, including current maturities, were based on Level 2 inputs, being market quotes or values for similar instruments, and interest rates currently available to the Company for the issuance of debt with similar terms and remaining maturities as a discount rate for the remaining principal payments. As of June 20, 2015 and February 28, 2015, the fair value of total debt was $11,728.8 million and $12,095.2 million compared to a carrying value of $11,182.2 million and $11,594.3 million, respectively. F-12 (Continued) Mtn. WMV. See .11O% Archk edgar data' 1646972 000119312515335826'd900395ds Itt.htm110 14'2015 9:03:02 AM1 CONFIDENTIAL - PURSUANT TO FED. R. GRIM. P. 6(e) DB-SDNY-0081760 CONFIDENTIAL SDNY_GM_00227944 EFTA01382415