EFTA01378091.pdf

prices in active markets Significant for other Significant identical observable unobservable Total assets inputs inputs fair value (level 1) (level 2) (level 3) measurements (In thousands) Assets: Cash equivalents' Money market funds S 70.290 — S 70.290 Time deposits 171 171 Long-term investments: Marketable equity security 9,360 9,360 Total $ 79.650 $ 171 $ — $ 79,821 Liabilities: Contingent consideration arrangement S — $ — s (43.625) S (43.625) December 31, 2014 Quoted market prices in active markets Significant for other Significant identical observable unobservable Total assets inputs Inputs fair value (level 1) (level 2) (level 3) measurements (In thousands) Assets: Cash equivalents: Money market funds $ 57057 $ — — $ 57,057 Time deposits 13,405 13,405 Long-term investments: Marketable equity seventy 7,410 7.410 Total $ 64,467 $ 13,405 $ — $ 77,872 Contingent consideration arrangements S — $ - (20,615) $ (20,615) F-41 Tatie_otContents The following table presents the changes in the Company's financial instruments that are measured at fair value on a recurring basis using significant unobservable inputs /Lever 3) December 31, 2013 2014 Contingent Contingent consideration consideration arrangement arrangements (In thousands) Balance at January 1 (43.625) Total net (losses) gains. Included in earnings (343) 13,962 Included in foreign currency translation adjustment (2,445) 1,975 Fair value at date of acquisition (40,837) (300) Settlements 7,373 Balance at December 31 (43.625) $ (20.615) There are no gains or losses included in earnings for the year ended December 31, 2012. relating to the Company's financial instruments that are measured at fair value on a recurring basis using significant unobservable inputs. Contingent consideration arrangements As of December 31, 2014, there are two contingent consideration arrangements related to business acquisitions. The maximum contingent payments related to these arrangements is $124.4 million and the fair value of these two arrangements at December 31, 2014 is $20.6 million. The contingent consideration arrangements are based upon earnings performance and'or operating metrics. The Company primarily uses probability-weighted analyses to determine the amount of the gross liability, and, to the extent the arrangement is long-term in nature, applies a discount rate, which captures the risks associated with the obligation. The number of scenanos in the probability-weighted analyses can vary, generally, more scenanos are prepared for longer duration and more hrrplwau.see.gov•Antliiti daW157518911001(1474691500343,112226453^-laiiimf I I 920139:21:17 AIM CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0075251 CONFIDENTIAL SONY GM_00221435 EFTA01378091