EFTA Document EFTA01366862

Amendment #4 Page 433 of 868 fbt„pnh• heome taxes Cur none tax balances are determned and reported in accordance with FASBASC 740 CASC 7401 Income Taxes. Our moon* tax balances are determined and reported using a 'separate return- method. Under tie separate return mettcd. income tax amoures tune teen cemented as if the Companies fled separate tax returns Deferred tax assets and liablibes are recognized for the Uwe lax consequences attributable to differences between the hence' statement carrying amotnts of exisbrg assets and waves and their respecbve tax bean and operabng loss carry forwards and tax aedd carry fonvards. Deferred income taxes ante prime* because of differences in the bases of assets or hatillies between financel statement accounting and lax eccountng which are known as temporary deafen:et We record the tax effect of these temporary dfferences as deferred tax assets (genera Ey tans that cal be used as a tax deduction or credit in future penods) and deferred tax retain (generally items for which we receive a tax deduction but have not yet teen recorded in the combined statement of income) Deferred tax assets and Ilab ibex ore measured urerg enacted tax rates expected toappty to taxable income in the years n when those temporary clearances are expected to be recovered or settled. We ignore future ongrating temporary differences and schedule existing temporary differences to reverse on a first-n-first-out basis when deforming the tax rate expected to apply for purposes of meastnng deferred taxes. The effect on deferred tax assets and habit:es ot a charge n tax rate is recognized in operations in the period that includes the enactment date We regularly review in deterred tax assets for reanability, talona ire° consideration al wallet* evidence, bath posture and negawe, inducing historical pre-ter and taxable income, projected future pee-tax and taxable scone and the expected timing of the reverses of existing temporary dieerences in err Wing at these juggnents, the wept' given to the potential elect of al positive and negabve evidence is commensurate wth the extent to which it can be ottectwely vented Valuation allowances are established when management determines that it is more likely than not that some portion. or all of the deferred tax asset will not be realized The Gen-panes intend to account for dividend *Mobutu:in tax n opal), n the yearn which a chndend *declared We believe all tax posecne are in compliance wth applicable tax laws and reguiatons Tax benefits are recognized only for tax positions that are more likely than net to be sustained upon examination by tax auttortes. The amount recognized is measured as the largest Brost a bereft that is greater Ten 50 percent likey to be realized upon settlement We believe that as income tax accrued Imbibes. including related interest are adequate ri relabon to the potential for additional tax assessments There is a rise however, that the amourts ultimately pad upon resolution Cl aunts could be materialhy differed from the amounts prevously included n our income tax expense and, therefore, cord have a matenal rrpact on or tat provision, net inccme and cash flows Contingencies We are involved In coxitons situations or circumstances in the ordrery course of business with possible gem or loss contingencies that will inmate,/ be resolved when cne or mere tubse evens occur or fail to occur home amourt within a range cf loss appears at the tine to be a better estrnate than any ether amount wan tree range, Slat amount will be accrued When no amount within the range is a better estimate than any other F.113 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-0058390 CONFIDENTIAL SDNY_GM_00204574 EFTA01366862