EFTA Document EFTA01367080

Amendment #4 Page 651 of 868 cetlniet Deferred tax assets and liabilities are recognized for the Inure tax consequences attnixtehe to differences between the Irenoel statement carrying amounts of emend assets and abates and their respective tax bases arid operabng loss carry forwards arid tax credit carry forwards Deferred income taxes arise pnmanty because of afferences n the bases of assets or Mtn tes between financial statement accounting and tax accountrg which are known as temporary deererces, We record O. tax effect of these temporary dfferences as deferred tag assets (genera, / terns that can be used as a tax deduct= or credit ri future periods) and deferred tax lobelia (generally items for which we receive a tax deducton but have not yet been recorded in the combined statement of Income) Deferred tax assets and bedews we measured using enacted tax rates expected to ape?, to taxable income in the years n which those temporary dfferences are expecte] to be recovered or settled We ignore future ongnating temporary differences and schedule ending temporary differences to reverse on a fre-n-first-out basis wren determning the tar race expected to apply for purposesof measuring deferred taxes. The effect on deferred tax assets and ledlitres c4 a charge n tax rate is recognized in operations in the period that includes the enactment date We regularly review Ott deferred lax assets for reazability, taking irto consideraton all available evidence. both man and negative, including hist0nCel pre-tax and taxable income. projected future pre-tax and taxable income and the expected timing of the revers's of existing temporary differences In waving at these adgnents the weight given to the potent el °led of all implore and negate evidence *cornmensurate wth the extent towhich it can be otectreely verified Valuation allowances are eatablehed when management determines that it is more *rely than not that some portion or all of the deferred tax asset will not be realized The Companies intend to account for &vidend distribution tax n &pay n the yearn when a dvdend *declared We believe our tax positions are in compliance wth applicable tax laws and recursions Tax bend's are recognized only for tax positons that are more likely than not to be Sustained upon exam natal ty tax aerates The amount recognized is measured as ate largest smart of benefit that ms greater then 50 percent likely to be realiZed ipon settlement We believe that our income tax accrued liabiaes including related interest are adequate in relation to the potent al fa addtional tax assessments There is a risx however, that the anturts ultimately paid upon resolution d aunts could be materially Memel from the amounts prevously included n our ircorne tax pense and tnerefore, cold have a material impact on cur tax provaion, net income and cash flows Contingencies We are involved in concltons stuatoxis or circumstances in the ordinary course of business with possible gem or loss contingencies that will Utirnafear be reechoed wren one a wore future everts occur or fail to occur 1 some amen wean a range et loss appears at the tine to be a better estimate than any other amount wenn the range, that amount will be accrued When no amount within tie range is a better estimate than any other amount however, the minimum amour in Me range wit be accrued We cortinually evaluate uncenanbes asSOCeted with las contingences and record a charge equal to at leaU the en nrnon eStirreted Melt/ for a WS C0rlingenCy when bath of the fdlowing conditons we met (i) informabca available prior to issuance Cl the financial statements indicates that II is probable that an asset had been impaired a a liability had been incurred at the date of the financial statements, and (o) the loss or ranged ass can be reasonably estimated Legal costs are expensed when incurred Gan contingencies we not recorded until re:sized or reakzade F-33i 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-0058608 CONFIDENTIAL SDNY_GM_00204792 EFTA01367080