乐天堂fun88(中国区)官方网站 Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

FAIR VALUE (Tables)

FAIR VALUE (Tables)

9 Months Ended

Sep. 30, 2013

FAIR VALUE

听

Fair values of financial instruments

The fair values of financial instruments were as follows (dollars in millions):

听	听	September听30, 2013					听	December听31, 2012					听

听	听	Carrying Value		听	Estimated Fair Value		听	Carrying Value		听	Estimated Fair Value		听
Non-qualified employee benefit plan investments	听	$	18	听	$	18	听	$	14	听	$	14	听
Cross-currency interest rate contracts	听	听	8	听	听	8	听	听	18	听	听	18	听
Interest rate contracts	听	听	(12	)	听	(12	)	听	(18	)	听	(18	)
Long-term debt (including current portion)	听	听	(3,869	)	听	(3,948	)	听	(3,702	)	听	(3,869	)

Assets and liabilities are measured at fair value on a recurring basis

The following assets and liabilities are measured at fair value on a recurring basis (dollars in millions):

听	听	听		听	Fair Value Amounts Using								听

Description	听	September听30, 2013		听	Quoted prices in active markets for identical assets (Level听1)(3)		听	Significant other observable inputs (Level听2)(3)		听	Significant unobservable inputs (Level听3)		听
Assets:	听	听	听	听	听	听	听	听	听	听	听	听	听
Available-for sale equity securities:	听	听	听	听	听	听	听	听	听	听	听	听	听
Equity mutual funds	听	$	18	听	$	18	听	$	鈥�	听	$	鈥�	听
Derivatives:	听	听	听	听	听	听	听	听	听	听	听	听	听
Cross-currency interest rate contracts(1)	听	听	8	听	听	鈥�	听	听	8	听	听	鈥�	听
听	听	听		听	听		听	听		听	听		听
Total assets	听	$	26	听	$	18	听	$	8	听	$	鈥�	听
听	听	听		听	听		听	听		听	听		听
Liabilities:	听	听	听	听	听	听	听	听	听	听	听	听	听
Derivatives:	听	听	听	听	听	听	听	听	听	听	听	听	听
Interest rate contracts(2)	听	$	(12	)	$	鈥�	听	$	(12	)	$	鈥�	听
听	听	听		听	听		听	听		听	听		听

听

听	听	听		听	Fair Value Amounts Using								听

Description	听	December听31, 2012		听	Quoted prices in active markets for identical assets (Level听1)(3)		听	Significant other observable inputs (Level听2)(3)		听	Significant unobservable inputs (Level听3)		听
Assets:	听	听	听	听	听	听	听	听	听	听	听	听	听
Available-for sale equity securities:	听	听	听	听	听	听	听	听	听	听	听	听	听
Equity mutual funds	听	$	14	听	$	14	听	$	鈥�	听	$	鈥�	听
Derivatives:	听	听	听	听	听	听	听	听	听	听	听	听	听
Cross-currency interest rate contracts(1)	听	听	18	听	听	鈥�	听	听	18	听	听	鈥�	听
听	听	听		听	听		听	听		听	听		听
Total assets	听	$	32	听	$	14	听	$	18	听	$	鈥�	听
听	听	听		听	听		听	听		听	听		听
Liabilities:	听	听	听	听	听	听	听	听	听	听	听	听	听
Derivatives:	听	听	听	听	听	听	听	听	听	听	听	听	听
Interest rate contracts(2)	听	$	(18	)	$	鈥�	听	$	(18	)	$	鈥�	听
听	听	听		听	听		听	听		听	听		听

(1): The income approach is used to calculate the fair value of these instruments. Fair value represents the present value of estimated future cash flows, calculated using relevant interest rates, exchange rates, and yield curves at stated intervals. There were no material changes to the valuation methods or assumptions used to determine the fair value during the current period.
(2): The income approach is used to calculate the fair value of these instruments. Fair value represents the present value of estimated future cash flows, calculated using relevant interest rates and yield curves at stated intervals. There were no material changes to the valuation methods or assumptions used to determine the fair value during the current period.
(3): There were no transfers between Levels听1 and 2 within the fair value hierarchy for the nine months ended September听30, 2013 and the year ended December听31, 2012.

Reconciliation of beginning and ending balances for assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3)

The following table shows a reconciliation of beginning and ending balances for the nine months ended September 30, 2012 for instruments measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (dollars in millions).

听	听	Nine months ended September听30, 2012		听

Fair Value Measurements Using Significant Unobservable Inputs (Level听3)	听	Cross-Currency Interest Rate Contracts		听
Beginning balance, January听1, 2012	听	$	27	听
Transfers into Level听3	听	听	鈥�	听
Transfers out of Level听3(1)	听	听	(27	)
Total gains (losses):	听	听	听	听
Included in earnings	听	听	鈥�	听
Included in other comprehensive (loss) income	听	听	鈥�	听
Purchases, sales, issuances and settlements	听	听	鈥�	听
听	听	听		听
Ending balance, September听30, 2012	听	$	鈥�	听
听	听	听		听
The amount of total gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets still held at September听30, 2012	听	$	鈥�	听
听	听	听		听

(1): We are party to cross-currency interest rate contracts that are measured at fair value in the financial statements. These instruments have historically been categorized by us as Level听3 within the fair value hierarchy due to an unobservable input associated with the credit valuation adjustment, which we deemed to be a significant input to the overall measurement of fair value at inception. During the nine months ended September听30, 2012, this credit valuation adjustment had ceased to be a significant input to the entire fair value measurement of these instruments. The remaining inputs which are significant to the fair value measurement of these instruments represent observable market inputs that are inputs other than quoted prices (Level听2 inputs).

Our policy is to recognize transfers between levels within the fair value hierarchy as of the beginning of the reporting period. Due to the change in significance of the credit valuation adjustment to the entire fair value measurement of these instruments, effective January听1, 2012, we have categorized our cross-currency interest rate contracts as Level听2 within the fair value hierarchy.

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

+ References + Details

- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

+ References + Details