EFTA01366955.pdf

Amendment #4 Page 526 of 868 Teter. 9f. c.PIttyrii• Denvabves used to hedge foreign-currency deromireted cash Item and hoeing rate debt may be accounted for as cash flow hedges. as deemed appropriate Gars arid losses on denverves designated as cash flow redges are recorded in ether comprehensive income (lass) and reclassified to earrings in a manner that matches the timing of the earnings impact of the hedged transactions The neffectioe porton of all hedges. d any. is recognized currently in earrings The effectnre portion of the hedge wit be recorded in the same merman foreign currency transieion adustment in other comprehensive (loss) income Mien the hedge position a dissolved and we recognize again or loss in other income (expense), The associated hedge gain or loss in other comprehensive income (loss) will be reclassified to otter mare (expense) New accounting standards In ..furry 2013. the FASB issued ASU 2013-11, Income Taxes (Topic 740) Presentation of an Unrecogrued Tax Bereft Mon a Net Opentrng Loss Canytontard. a Similar Tax Loss. or a Tax Creo'it Cartylcnvard Exats. or ASU No 2013-11 The amendments of ASU 2013-11, which were adopted on January 1. 2014, require an ertity b present an unrecognized tax beneft, or a portian of an unrecognized tax bereft, as a reduction of a deferred tax asset brand operating loss, or NOL. a similar tax bee or tie credit carryforward rather than a bablity when the breeder tax position wood reduce the NOL or ether canyforward under the tax taw of the applicable iurisdicton and the entity intends b use the deferred tax asset fa that purpose. The adoption of the guidance dd rot result in any material rnpact to our combined financial statements. In May 2014, me FASB issued ASV 2014-09, Revenue from CeltaCIS wall Gustavo's. which requires an enbty to recognize the amount of revenue to which it expects to be erected for the transfer of promised goals or services to customers. MU 201409 WI replace most exist revenue reccgivtion guidance In U S. GAAP when it becomes effective ASU 2014-09 is effective fa us on January 1, 2017. Early applcabon is not permitted A delay in the effective date is currently being considered by the FASB, which we expect will remit in at feast a ore year deferral. MU 2014-09 permits the use of ether a retrospective or amulabve effect Venation method We have not determined whch transition method we we adopt, srictwe are currently evaluating the impact mat MU 201409 will have on our coramed firencel statements and related disclosures upon adoption In August 2014. the FASB Issued ASU 2014.15, Orator. of Uncerfinifte abaci an Entity's Abary to Cavity. 838S:so; Crown, which describes how an enbry snculd assess is splay to meet ailigatore and sets nos for row the information stood be disclosed in the financial statenerls MU 2014.15 wades accarting guidance that we be used along with existing melting standards MU 2014.15 apples to all entities fa the first event pared ending after December 15. 2016. and interim periods thereafter Management has evaluated the guidance andconcluded met the adoption of the gudance we rot result in any material impact to our combined financial statemerts In January 2015, the FASB named ASV 2015-01, Income Sratementalmorcanay and !Inoue( fawns (Schlepp 225.201 Simparyng /room. Stikine& Oteserve!cn by &aurora:, The Concept d Extreeninary items ASU 201501 eliminates from GAAP the concept of extraordnary items An entity w.11 ro longer be required to (1) segregate an extraordinary Item from the results of ordinary operations. (2) separately present an extraordinary item on its Income statement net of tax. after income from oontnung operations, and (3) disclose income taxes and carnal:is-per-Share data applicable to an extraordinary item MU 2015-01 will be effective for fiscal years beginning after December 15, 2015 An erley may apply the amendments prospecovely or retrospectwely to as prior periods presented in the financial statements Early adoption is paginated provided Mat the gudance is applied from the begnarg of the fiscal year of adoption Management does not beiteve that the adoption of MU No 2015.01 will have a material effect on as combined financial statements In Fetxuary 2015, the FASB issued ASU No. 2015.02, Conscioarron (Tcpc SIG Amendments to the Consols:brim AnarYsis ASU No 2015.02 amended the process that a reporting entity must perform to determine whether it F•205 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-0058483 CONFIDENTIAL SDNY_GM_00204667 EFTA01366955