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

3 Months Ended

Mar. 31, 2017

FAIR VALUE

听

FAIR VALUE

9. FAIR VALUE

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	March听31,听2017					听	December听31,听2016
听	Carrying		听	Estimated		听	Carrying		听	Estimated
听	Value		听听听听	Fair听Value		听听听听	Value		听听听听	Fair听Value
Non-qualified employee benefit plan investments	$	28	听	$	28	听	$	27	听	$	27
Investments in equity securities	听	18	听	听	18	听	听	18	听	听	18
Cross-currency interest rate contracts	听	29	听	听	29	听	听	29	听	听	29
Interest rate contracts	听	(1)	听	听	(1)	听	听	(2)	听	听	(2)
Long-term debt (including current portion)	听	(4,222)	听	听	(4,411)	听	听	(4,195)	听	听	(4,368)

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 1).

The fair value estimates presented herein are based on pertinent information available to management as of March 31, 2017 and December 31, 2016. The estimated fair value amounts have not been comprehensively revalued for purposes of these financial statements since March 31, 2017 and current estimates of fair value may differ significantly from the amounts presented herein.

听

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

听

Fair听Value听Amounts听Using

听

Quoted听prices

听

Significant听other

听

Significant

听

in active markets

听

observable

听

unobservable听

听

March听31,听

听

for identical

听

inputs

听

听inputs

Description

听听听听

2017

听听听听

assets听(Level听1)(3)

听听听听

(Level听2)(3)

听听听听

(Level听3)

Assets:

听

听听听听

听

Available-for sale equity securities:

听

Non-qualified employee benefit plan investments

听

听鈥�

听

听鈥�

Investments in equity securities

听

听鈥�

听

听鈥�

Derivatives:

听

Cross-currency interest rate contracts(1)

听

听鈥�

听

听鈥�

听

Total assets听

听

听鈥�

听

Liabilities:

听

Derivatives:

听

Interest rate contracts(2)

听

(1)

听

听鈥�

听

(1)

听

听鈥�

听

Fair听Value听Amounts听Using

听

Quoted听prices

听

Significant听other

听

Significant

听

in active markets

听

observable

听

unobservable听

听

December听31,听

听

for identical

听

inputs

听

听inputs

Description

听听听听

2016

听听听听

assets听(Level听1)(3)

听听听听

(Level听2)(3)

听听听听

(Level听3)

Assets:

听

Available-for sale equity securities:

听

Non-qualified employee benefit plan investments

听

听鈥�

听

听鈥�

Investments in equity securities

听

听鈥�

听

听鈥�

Derivatives:

听

Cross-currency interest rate contracts(1)

听

听鈥�

听

听鈥�

听

Total assets听

听

听鈥�

听

Liabilities:

听

Derivatives:

听

Interest rate contracts(2)

听

(2)

听

听鈥�

听

(2)

听

听鈥�

(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.

听

In November 2014, we entered into two听five year cross-currency interest rate contracts and one听eight year cross-currency interest rate contract. These instruments have been categorized by us as Level 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.

听

(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.

听

(3)

There were no听transfers between Levels听1 and 2 within the fair value hierarchy during the three months ended March 31, 2017 and the year ended December听31, 2016.

The following table shows a reconciliation of beginning and ending balances for the three months ended March 31, 2017 and 2016 for instruments measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (dollars in millions).

听

听	听	听	听
听	听	Cross-Currency听Interest
听	听听听听	Rate听Contracts
Fair Value Measurements Using Significant Unobservable Inputs (Level听3)	听	听
Beginning balance, January 1, 2017	听	$	29
Transfers into Level 3	听	听	听鈥�
Transfers out of Level 3	听	听	听鈥�
Total (losses) gains:	听	听	听
Included in earnings	听	听	听鈥�
Included in other comprehensive income (loss)	听	听	听鈥�
Purchases, sales, issuances and settlements	听	听	听鈥�
Ending balance, March 31, 2017	听	$	29
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 March 31, 2017	听	$	听鈥�

听

听	听	听	听
听	听	Cross-Currency听Interest
听	听听听听	Rate听Contracts
Fair Value Measurements Using Significant Unobservable Inputs (Level听3)	听	听
Beginning balance, January 1, 2016	听	$	28
Transfers into Level 3	听	听	听鈥�
Transfers out of Level 3	听	听	听鈥�
Total (losses) gains:	听	听	听
Included in earnings	听	听	听鈥�
Included in other comprehensive income (loss)	听	听	(8)
Purchases, sales, issuances and settlements	听	听	听鈥�
Ending balance, March 31, 2016	听	$	20
The amount of total gains (losses) for the period included in earnings attributable to the听听change in unrealized gains (losses) relating to assets still held at March 31, 2016	听	$	听鈥�

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 3) are reported in interest expense and other comprehensive income (loss) as follows (dollars in millions):

听

听	听	听	听	听	听	听
听	听	听		听	Other
听	听	Interest		听	comprehensive
2017	听听听听	expense		听听听听	income (loss)
Total net gains included in earnings	听	$	听鈥�	听	$	听鈥�
Changes in unrealized losses relating to assets still held at March 31, 2017	听	听	听鈥�	听	听	听鈥�

听

听	听	听	听	听	听	听
听	听	听		听	Other
听	听	Interest		听	comprehensive
2016	听听听听	expense		听听听听	income听(loss)
Total net gains included in earnings	听	$	听鈥�	听	$	听鈥�
Changes in unrealized losses relating to assets still held at March 31, 2016	听	听	听鈥�	听	听	(8)

听

We also have assets that under certain conditions are subject to measurement at fair value on a non鈥憆ecurring 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 each of the three months ended March 31, 2017 and 2016, we recorded charges of听nil for the impairment of long鈥憀ived assets.

- 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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