EFTA01366783.pdf

Amendment #4 Page 354 of 868 coolirful s(.cool nsk, however, that the amounts urine* and upon resolution d ants could be materially dtlerent from re amounts previously woks:led in our income tax expense and, therefore could have a material impact cn our tax provision, net income and cash flows Contingencies We are involved in caldrons SC.13toons a circumstances in the ordinary course of business with possible gain or loss cortingercies treat will Ubmately be resolved when one or more Mdse averts occur or fail to occur if some amount wein a range of loss appears at the tine to be a better estimate than any other amourt wean the range, that amount will be accrued Wen no amount Withal the range is a better estimate than any other amount. however, the minimum arnoLrd in We range wi be accrued We cortinuaey evaluate urcertanbes assoceted with loss contrgencies and record a charge equal to at least the mom= estimated liatality bra bas contingency *nen bosh of the follomrg conditions are met (0 information available prof to issuance of tte financial statements indicates that it is probable that an asset had been roared °reliability had been incurred at the date of the Inertial statements. and (e) the loss a range of loss can be reasoned/ estimated Legal acts are expensed when stared Gain contingencies ere not recorded until reakzed or realzade. Pak Valle ritoasurcmenfa Far value a:canting gxlarce establishes a hierarchy for nputs used in measunng lair value that maurnoes the use of observable rods and mines the use of cnobservable inputs by requirirg that the most observatte inputs be used when available. Observable nets are inputs that rrerket parlicOants would use in pricing the asses or liability, and are based al market data oteasned from sources rdependent of us Unobservable inputs reflect assumptons rteark 1 partorpards world use in priorg the asset or liability based on the teal information avaitable it the circumstances The hierarchy s broken down into three levels based on the reliability of inputs as follows Level 1—Valuations based on quoted prices in Were markets for identical assets or Imbibes that we have the abity to access. Valuation adustrnerts and block dscouits are not applied to Level 1 instruments Because valuators are based on quoted prices that are (teddy and regularly evadable in an active market valuabon cd these instrumerts does rot entail a significard degree of judgment Level 2—Vaketions based on quoted prices in rrerkets that are not active or (Of which as sgrdcant inputs are oteeNatite, ether dredly of indirectly Valuations for Level tare prepared on an indivdal instrument tests using data obtained from retort transactors for identical eecuribes in weave markets a pricing data from sirrilar instruments n active and inactive markets Level 3—Valustons based on emits Met are urobsenratee and sgrificant to the overall fair value measurement Fa cash and calm es:tweeds, restricted cash, accounts receivable. accounts payable accrued expenses end other current liablees, Ire carrying amount apixonrnates tel value because of tre short term rekety of the nstnements See Note 4 for disclosures related to the fair value of our long-term dett Accounting pronouncements issued but not yet effective The fotowing accanting standards have been issued but are rot yet effects-01a not have been adopted by the Company. F-34 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-0058311 CONFIDENTIAL SDNY GM_00204495 EFTA01366783