EFTA01366953.pdf

Amendment #4 Page 524 of 868 method, deferred tax assets and 'abates are recognzed for the future tax consecpences attributable to Offerences between the financial statement carrying amounts of ending assets and bedtime and trier respective tax bases arc operating I:es carry forwards Deterred tax assets and ',abides We measured usrg enacted tax rates expected maps* lo tassels ircome in the years n witch those temporary di.ferentes are expected to be recovered or settled The effect on deferred tax assets and hadlities of a change in tax rate is recognized m operations in the period that includes the enactrrent date Vaketion allowances are establishedwhen management detemsnes that t is more likely than not that some porbon, or at of the deferred tax asset, will rot be realized The financial effect of changes in tax laws or rates is accounted for in the period of enactment Deferred income taxes anse primanty because d dfferences n the bases of assets or liabilities between financial statement accounting and tax accounting which are known as temporary drtferences We record the tax effect of these temporary differences as deferred tax assets (generally Items that can be used as a tax deduction or credit in future periods) and deferred tax leablities (generally items for which we receive a tax deduction tut have not yet been recorded in the combned statement of operations) We regularly review oil deferred tat assets for readizabldy, along it0 consideration al evadad0 evidence Both poste/sand negative. indudeng historical pretax arc taxable income. protected future pretax and taxable income and the expected Wang d the reversers of existing temporary differences In arriving at these Judgments. the wagrt (pen to the potential elect of at postive and negative evidence is commensurate wth the extent to which it can be obectivety verified We believe ow tax positions are in compliance with applicable tax laws and revisions Tax benefIs are recognized only for tax posdons that are more likely then not to be sustained upon examination ty tax Who:nes The amount recognized is measured as the largest amount of benefit that is greater than 50 pierced likely to be realized upon ultimate settlement We believe trot oi,r I abates for unrecognized tax benefits, Including related interest, are eta:pale in relation to the potential for adltional tax assessments There is a nsk however. that the arrowits ult mate's; paid upon resolution of a udds could be matenally df!went from the amounts prenous/y included in our rcome tax expense and, therefore, could have a matenal impact on our tax provision, net income and cash flows. Contingencies VW are revolve] man:Mons semitone err circwietarces in the ordinary course of business with possOle gem or loss cords-operates that will ;Sonata/ be rescind when one or more future everts OCCUI or fail to coot If some amourd within a range of loss appears at the time to be a better catenate than any dher amount withn the range, that amount will be accrued When no amourt wean tie range is a better estimate than any other amout, however, the minimal, effort in me range wit be accrued We COniflU3Ily evaluate uncertartes associated welt loss conbrcencies and record a charge equal to at least the rnnmurn estimated battery for a loss cortingency when boa) of he following corditions are met (i) iriormaticn available pm, to issuance d the finanoal &teemed& indicates that it is probable that an asset had been impaired a a liabdry had been marred at the date of the franca' statements; and (in the loss or range or loss can be reasonably estimated. Legal costs are expensed when incurred Gan contingencies are not recorded and realized or realizable. Far value meastrements Far value accouling gadance establishes a hierarchy for nputs used m measunng lair value that maximizes the use of observade remits and minimizes the use of unobservable inputs try requirirg that the most observable inputs be used when walla* Observable rip& are inputs that market perbopants woad use in F.204 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-0058481 CONFIDENTIAL SDNY_GM_00204665 EFTA01366953