EFTA01367060.pdf

Amendment #4 Page 631 of 868 Nth..:f between market participants at the measurement date. YVnen determinng the far value measurements for assets and liabilites required to be recorded at their fair values, rrenagement conaders the pnno pal or most advantageous market n vitae, it would transact and consder asamptons that market participants would use when pricing as assets or kablities, etch as nherent risk transfer restrictions and risk cf non-niformance ASC 820 estatilsfes a far value hierarchy that requires an entity to maximize the use of observable inputs at innanze the use of unobservable lints when measuring fair value Masser' or a kaladys categorization withn the far value retard's, s based upon the lowest level of input that s significant to the fair value measurement. ASC 820 establishes three levels d mpes that may be used to measure far value • Level 1 quoted won in mine markets for dentical assets or had dos. • Level 2 inputs other than Level I that are observable, either directly a indirectly. such as qxxed prices in active markets for similar assets or labilities quoted noes for identical a similar assetsor Rabbles in markets that are not achy, or other inputs that are observable a can be corroborated ty observable market data for gut:Steno:illy the ful term d the assets Or lerbilitieS, a • Level 3 unobservable man that are supported by line or no market sewn and wet are significant to the fair values of the assets or habits* The Operatng Entine' interest rate swaps are classified as Level 2 since all signicare inputs are observable for similar instruments The fair value is determined based on observable market prices for nearest rates The far value of interest rate swaps at the end of the reporting period is determined by discounting the Mute cash flows using Ire curves at the end of the reporting period and the credit nsk ntorent in the contract There were no transfers between Level 1 Level 2 and Level 3 financial instruments dung de years ended December 31, 2014 and 2013 The Operating Snakes maintain venous fint noel instruments recorded al cost in the Decenter 31, 2014 and 2013 cornbned balance sheets Mal are not required to be recorded at far value. For these instrurrents. the Operatirg Enables used the following methods and stumped* to edema the fair yak* • Cash and cash as:wants, restricted cash, accounts receivable and amounts payable the carrying emirs appoomates fair value because d the short.term matuty of the nstruments • Longterm debt fair value is based On the amount d future cash flows associated with each debt irStrurnent discounted at the current bOrrOweg rate fOr smear debt instruments of comparable terms As at Decanter 31, 2014, the far value of the Operatirg Entities long-term debt with unrelated parties is approximately 8 0% greater than itsearning vakse At December 31, 2013. the far value was approximately 2 3% greater than its carrying amount • Glen trot the shareholder loan agreements d0 rid contain a faced or determinable repayment schedule. and thus no imputed interest rates acceed the amortized cod carrying valued loans from shareholders m deemed to approximate far value 3. Cash and cash equivalents Cash arc cash equivalents consist of December 31, Decanter 31, Few,ires in 2AR '000 2014 2013 Bank batames 147 764 Tre full value of cash and cash eq./Nolen% has been pledged as collateral against the Longterm debt of re Oceratng Entities F.311 http://cfdocs.btogo.com:27638/cf/drv7/pub/edgar/2015/07/20/0001193125-15-256461/d78... 7/20/2015 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0058588 CONFIDENTIAL SDNY_GM_00204772 EFTA01367060