EFTA01382793.pdf

S- I/A Table of Contents FIRST DATA CORPORATION NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Continued) Fair Value Measurement The carrying amounts for the Company's Derivative financial instruments are the estimated fair value of the financial instruments. The Company's derivatives are not exchange listed and therefore the fair value is estimated under an income approach using Bloomberg analytics models that arc based on readily observable market inputs. These models reflect the contractual terms of the derivatives, such as notional value and expiration date. as well as market-based observables including interest and foreign currency exchange rates, yield curves, and the credit quality of the counterparties. The models also incorporate the Company's creditworthiness in order to appropriately reflect non-performance risk. Inputs to the derivative pricing models are generally observable and do not contain a high level of subjectivity and, accordingly, the Company's derivatives were classified within Level 2 of the fair value hierarchy. While the Company believes its estimates result in a reasonable reflection of the fair value of these instruments, the estimated values may not be representative of actual values that could have been realized or that will be realized in the near future. Effect of Derivative Instruments on the Consolidated Statements of Operations Derivative gains and (losses) were as follows for the periods indicated: fear ended December 31. 2014 2013 2012 Interest lorviwt Interest Foreign Interest Foreign Rate Rate F. change Rate Exchange ndllions. pretax) Contracts t ('ontracts Contracts Contracts Contracts Derivatives in cash flow hedging relationships (a): Gain (loss) reclassified from accumulated OCI into Interest expense in the Consolidated Statements of Operations — $ — $ — $ — (115) $ — Derivatives in net Investment hedging relationships: Gain (loss) recognized in ()CI (eike \ c portion) — $ 80 $ — 14 — $ (9) Derivatives not designated as hedging instruments Gain (loss) recognized in Other income (expense) in the Consolidated Statements of Operations $ (3) $ 4 $ (23) $ (2) $ (90) S (2) (a) No gain (loss) recognized in Consolidated Statements of Operations due to ineffectiveness. F-24 http://wuw.secgov/Archi vestedgar/datant83980/000119312515334479/d31022dsla.htmill0/14/2015 9:06:38 AM] CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0082288 CONFIDENTIAL SONY GM_00228472 EFTA01382793