EFTA01367081.pdf

Amendment #4 Page 652 of 868 1 r onh Fair value measurements Fair value accounting game establishes a hierarchy for nputs used in meastunng far vatue that ma:amides re use of observable rats and rninviszes the use of inobservalle inputs by reqUrirg that the most observable inputs be used when available Observable inputs are inputsthat market panicpants veal(' use in prong the asset or liability, and are based on market data otfained nom sources independeM of us Unobservable nixes reflect assumptions rennet participants wood use in pacing tre asset or liability Wised on the best information available n the circumstances The hierarchy a. broken down irto trees levels based on the reliaterty of inputs as follows • Level 1—Valuators based on quoted prices in active markets for denboal assets or Is totes trot we have the &bay to access. Valuation aCtustments and block discouls are not applied to Level 1 instruments Because valuators are based on quoted prices that are reedly arc regularly avatable in an active market. valuabon or these irstrumerts does rot entail a significant &gee of judgment • Level 2—Vaataticas based on quoted prices in markets that are not tale or for vetPch al agnficant inputs are observable. eter arecoy or cared* Valuations tor Level 2 are prepared on an indrvolual wstrument basis using data obtaned from racers transactors la identical securites in inactive markets or pacing data from • instrLments n active and inactive markets • Level 3—Valuations biased on noes that are uroosenrable and sontcant to the overall fair value measurement maintan various financial nstrunents recorded al cost rn me December 31, 2014 and 2013 combined balance sneets that are rot requred to toe recorded at fair value For Oath and cash equeialentli, restricted cash accounts receivable accounts payable, and accrued rotates, the carrying amount approximates fair value because of the shod-term maturity of the instrument For due to related parties and debt the carrying arnourt approximates fair value based on comparable market interest rates for smiler nstruments "ea accountkw standards In January 2014, the FMB issued ASU No 2014-05, Service Concession Arrangements (ASC 853) The otiectste of the Updates to specify that an operating entity should not account tor a service concession arrangement withn the scope of this Update as a lease in accordance With Topic Be), Leases, rather. it should refer to other Topcs as appicabe to account for various aspects of a service concession arrangement The aii dims its also specfy that the rirastructure used in a service accession airangemert should rot be recognized as property, plant and equpment of the operating entity. We are crsrenuy evaluating the mead of the standard on our financial statement Mar 2014. the FASB issued ASU hk> 201409, Revenue from Contracts with Customers, which requires an entity to recognize the anon of revenue to which it expects to be entitled for the transfer of promised goods or services to customers ASU 2014-09 we replace most stating revenue recogntIOn gudance in U S GAAP when it becomes effective. ASU 2014-09 is effective for us on January 1, 2017. Early /oration is not permitted The stardard permits the use of either a retrospective or ornuralive effect transtion method We rave not deranged which transition method we wa adopt, and we are cinerary evaluating the impact that ASU 331409 we have on our finanoal statements art related disclosures Lpon adoption In August 2014. the FASB issued ASU No. 2014-15. Presentation of Financial Statements—Going Concern (Si.ttopic 205-40) Disclosure of Uncertainties about an Entity's Ability to Conbnue m a Going Concern, vetch redoes management to evaluate. al each annual and rderim reporting period whether there are conditions or F.332 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-0058609 CONFIDENTIAL SDNY_GM_00204793 EFTA01367081