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

FAIR VALUE

6 Months Ended

Jun. 30, 2016

FAIR VALUE

听

FAIR VALUE

听

8. FAIR VALUE

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

听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听听

听

June听30, 2016

听

December听31, 2015

听

Carrying
Value

听

Estimated
Fair Value

听

Carrying
Value

听

Estimated
Fair Value

听

Non-qualified employee benefit plan investments

听

Investments in equity securities

听

Cross-currency interest rate contracts

听

Interest rate contracts

听

)

听

)

听

)

听

)

Long-term debt (including current portion)

听

(4,749

)

听

(4,789

)

听

(4,795

)

听

(4,647

)

听听听听听听听听The carrying amounts reported in our condensed consolidated balance sheets of cash and cash equivalents, accounts receivable and accounts payable approximate fair value because of the immediate or short-term maturity of these financial instruments. The fair values of non-qualified employee benefit plan investments and investments in equity securities are obtained through market observable pricing using prevailing market prices. The estimated fair values of our long-term debt are based on quoted market prices for the identical liability when traded as an asset in an active market (Level听1).

听听听听听听听听The fair value estimates presented herein are based on pertinent information available to management as of June听30, 2016 and December听31, 2015. The estimated fair value amounts have not been comprehensively revalued for purposes of these financial statements since June听30, 2016 and current estimates of fair value may differ significantly from the amounts presented herein.

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

听

Fair Value Amounts Using

听

Description

听

June听30,
2016

听

Quoted prices
in active
markets for
identical
assets
(Level听1)(4)

听

Significant
other
observable
inputs
(Level听2)(4)

听

Significant
unobservable
inputs
(Level听3)

听

Assets:

听

Available-for sale equity securities:

听

Equity mutual funds

听

鈥�

听

鈥�

听

Investments in equity securities(1)

听

鈥�

听

鈥�

听

Derivatives:

听

Cross-currency interest rate contracts(2)听听听听听听听听听听听听听听

听

鈥�

听

鈥�

听

鈥�

鈥� 听

鈥�

鈥� 听

鈥�

鈥� 听

鈥�

鈥� 听

鈥�

Total assets

听

鈥�

听

鈥�

鈥� 听

鈥�

鈥� 听

鈥�

鈥� 听

鈥�

鈥� 听

鈥�

鈥� 听

鈥�

鈥� 听

鈥�

鈥� 听

鈥�

鈥� 听

鈥�

Liabilities:

听

Derivatives:

听

Interest rate contracts(3)

听

)

鈥�

听

)

鈥�

听

鈥�

鈥� 听

鈥�

鈥� 听

鈥�

鈥� 听

鈥�

鈥� 听

鈥�

鈥� 听

鈥�

鈥� 听

鈥�

鈥� 听

鈥�

鈥� 听

鈥�

听

Fair Value Amounts Using

听

Description

听

December听31,
2015

听

Quoted prices
in active
markets for
identical
assets
(Level听1)(4)

听

Significant
other
observable
inputs
(Level听2)(4)

听

Significant
unobservable
inputs
(Level听3)

听

Assets:

听

Available-for sale equity securities:

听

Equity mutual funds

听

鈥�

听

鈥�

听

Investments in equity securities(1)听听听听听听听听听听听听听听

听

鈥�

听

鈥�

听

Derivatives:

听

Cross-currency interest rate contracts(2)

听

鈥�

听

鈥�

听

鈥�

鈥� 听

鈥�

鈥� 听

鈥�

鈥� 听

鈥�

鈥� 听

鈥�

Total assets

听

鈥�

听

鈥�

鈥� 听

鈥�

鈥� 听

鈥�

鈥� 听

鈥�

鈥� 听

鈥�

鈥� 听

鈥�

鈥� 听

鈥�

鈥� 听

鈥�

鈥� 听

鈥�

Liabilities:

听

Derivatives:

听

Interest rate contracts(3)

听

)

鈥�

听

)

鈥�

听

鈥�

鈥� 听

鈥�

鈥� 听

鈥�

鈥� 听

鈥�

鈥� 听

鈥�

鈥� 听

鈥�

鈥� 听

鈥�

鈥� 听

鈥�

鈥� 听

鈥�

听	听	听
(1)听听听听听听听听听听	As of April听1, 2015, we no longer exercise significant influence in our investment in Nippon Aqua听Co.,听Ltd., for which we previously accounted using the equity method. Consequently, we now account for this investment at fair value as an available-for-sale equity security.
(2)听听听听听听听听听听	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. In November 2014, we entered into two five year cross-currency interest rate contracts and one eight year cross-currency interest rate contract. These instruments have been categorized by us as Level听3 within the fair value hierarchy due to unobservable inputs associated with the credit valuation adjustment, which we deemed to be significant inputs to the overall measurement of fair value at inception.
(3)听听听听听听听听听听	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.
(4)听听听听听听听听听听	There were no transfers between Levels听1 and 2 within the fair value hierarchy for the six months ended June听30, 2016 and the year ended December听31, 2015.

听听听听听听听听The following table shows a reconciliation of beginning and ending balances for the three and six months ended June听30, 2016 and 2015 for instruments measured at fair value on a recurring basis using significant unobservable inputs (Level听3) (dollars in millions).

听	听	Three months ended June听30, 2016		听	Six months ended June听30, 2016		听
Fair Value Measurements Using Significant Unobservable Inputs (Level听3)	听	Cross-Currency Interest Rate Contracts		听	Cross-Currency Interest Rate Contracts		听
Beginning balance	听	$	20	听	$	28	听
Transfers into Level听3	听	听	鈥�	听	听	鈥�	听
Transfers out of Level听3	听	听	鈥�	听	听	鈥�	听
Total gains (losses):	听	听	听	听	听	听	听
Included in earnings	听	听	鈥�	听	听	鈥�	听
Included in other comprehensive income (loss)	听	听	6	听	听	(2	)
Purchases, sales, issuances and settlements	听	听	鈥�	听	听	鈥�	听
鈥�	鈥�	鈥� 听	鈥� 听	鈥�	鈥� 听	鈥� 听	鈥�
Ending balance, June听30, 2016	听	$	26	听	$	26	听
鈥�	鈥�	鈥� 听	鈥� 听	鈥�	鈥� 听	鈥� 听	鈥�
鈥�	鈥�	鈥� 听	鈥� 听	鈥�	鈥� 听	鈥� 听	鈥�
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 June听30, 2016	听	$	鈥�	听	$	鈥�	听
鈥�	鈥�	鈥� 听	鈥� 听	鈥�	鈥� 听	鈥� 听	鈥�
鈥�	鈥�	鈥� 听	鈥� 听	鈥�	鈥� 听	鈥� 听	鈥�

听

听	听	Three months ended June听30, 2015		听	Six months ended June听30, 2015		听
Fair Value Measurements Using Significant Unobservable Inputs (Level听3)	听	Cross-Currency Interest Rate Contracts		听	Cross-Currency Interest Rate Contracts		听
Beginning balance	听	$	33	听	$	5	听
Transfers into Level听3	听	听	鈥�	听	听	鈥�	听
Transfers out of Level听3	听	听	鈥�	听	听	鈥�	听
Total gains (losses):	听	听	听	听	听	听	听
Included in earnings	听	听	鈥�	听	听	鈥�	听
Included in other comprehensive income (loss)	听	听	(8	)	听	20	听
Purchases, sales, issuances and settlements	听	听	鈥�	听	听	鈥�	听
鈥�	鈥�	鈥� 听	鈥� 听	鈥�	鈥� 听	鈥� 听	鈥�
Ending balance, June听30, 2015	听	$	25	听	$	25	听
鈥�	鈥�	鈥� 听	鈥� 听	鈥�	鈥� 听	鈥� 听	鈥�
鈥�	鈥�	鈥� 听	鈥� 听	鈥�	鈥� 听	鈥� 听	鈥�
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 June听30, 2015	听	$	鈥�	听	$	鈥�	听
鈥�	鈥�	鈥� 听	鈥� 听	鈥�	鈥� 听	鈥� 听	鈥�
鈥�	鈥�	鈥� 听	鈥� 听	鈥�	鈥� 听	鈥� 听	鈥�

听听听听听听听听Gains and losses (realized and unrealized) included in earnings for instruments measured at fair value on a recurring basis using significant unobservable inputs (Level听3) are reported in interest expense and other comprehensive income (loss) as follows (dollars in millions):

听

Three months
ended
June听30, 2016

听

Six months
ended
June听30, 2016

听

Interest
expense

听

Other
comprehensive
income (loss)

听

Interest
expense

听

Other
comprehensive
income (loss)

听

Total net gains included in earnings

听

鈥�

听

鈥�

听

鈥�

听

鈥�

听

Changes in unrealized gains (losses) relating to assets still held at June听30, 2016

听

鈥�

听

鈥�

听

)

听

Three months
ended
June听30, 2015

听

Six months
ended
June听30, 2015

听

Interest
expense

听

Other
comprehensive
income (loss)

听

Interest
expense

听

Other
comprehensive
income (loss)

听

Total net gains included in earnings

听

鈥�

听

鈥�

听

鈥�

听

鈥�

听

Changes in unrealized (losses) gains relating to assets still held at June听30, 2015

听

鈥�

听

)

听

鈥�

听

听听听听听听听听We also have assets that under certain conditions are subject to measurement at fair value on a non-recurring basis. These assets include property, plant and equipment and those associated with acquired businesses, including goodwill and intangible assets. For these assets, measurement at fair value in periods subsequent to their initial recognition is applicable if one or more is determined to be impaired. During the six months ended June听30, 2016 and 2015, we recorded charges of $1听million and nil, respectively, for the impairment of long-lived assets.

听

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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