EFTA Document EFTA01366977

Amendment #4 Page 548 of 868 TeltLis( . coplifful nsk, however, that the amounts Whiskey pad upon resolution d alias could be materially ddlerent from re amounts previously ircluded in our income tax expense and, therefore could have a material impact on our tax provision, net income and cash flows Contingencies We are involved in =deans SC.13toons a circumstances in the ordinary course of business with possible gain or loss cortingercies trot will Ubmately be resolved when one or more fulls° 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 esbmate than any other amount. however the minimum amend ten We range wi be accrued the cortinuasy evaluate uncertainties assoceted with loss conOngenoes and record a charge equal to at least the mom= estimated liability torah:es contingency *nen both of the follomrg conditions are met (i) information available prof to issuance of tte financial statements indicates that it is probable that an asset had been fl oated °reliability had been muted at the date of the hence' statements. and (e) the loss a range ot loss can be reasonaby estimated. Legal costs are expensed when incurred Gain contingencies ere not recorded until reakzed or realzade. Fmk value, moosurontonfs Far value accouling guidance establishes a hierarchy for nputs used it measunng lair value that marmites the use of observable netts and mines the use of unobservable inputs by reqiirirg that the most observatle inputs be used when available. Observable nods are inpds that market parlicgants would use in pricing the asset or liability, and are based di market data oteasned from sources rdependent of us Unobservable inputs reflect assumptons rterk 1 partorpards would use in pricing the asset or liability Cased on the best information available n the circumstances. The hierarchy s broken down into three levels based on the reliability of inputs as follows Level 1—Valuations based on quoted paces in 'dere markets for identical assets or Imbibes that we have the abity to access. Valuation adustrnerts and block dscouits are not applied to Level instruments Because valuators are based on quoted antes that are (teddy and regularly evadable in an active market valuabon id these instrumerts does rot entail a significard degree of judgment Level 2—Vaketions based on quoted prices in markets that are not active or for which as sealant inputs are oteeNatite, ether dredly of indirectly Valuations for Level tare prepared on an indiwaral instrument bass using data obtained from retort transactors for identical eecuribes in weave markets or pricing data from sirriter instruments n active and inactive markets Level 3—Valustons based on riots Met are unobservable and sgrificant to the overall fair value measurement For cash and Cash equrvelents restricted cash, accounts receivable, accounts payable accrued expenses end other current Imbibes, Ire crying amount apixonrnates en vako because of tre short tern rrehrty of the nstnements See Note 4 for disclosures related to the fair value of our longterm debt Accounting pronouncements issued but not yet effective The !plowing accanting standards have been rssued but are rot yet effects* for rip have been adopted by the Company. F.228 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-0058505 CONFIDENTIAL SDNY GM_00204689 EFTA01366977