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, 2012

FAIR VALUE

听

FAIR VALUE

9. FAIR VALUE

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

听	听	March听31, 2012					听	December听31, 2011					听

听	听	Carrying Value		听	Estimated Fair Value		听	Carrying Value		听	Estimated Fair Value		听
Non-qualified employee benefit plan investments	听	$	14	听	$	14	听	$	12	听	$	12	听
Cross-currency interest rate contracts	听	听	17	听	听	17	听	听	27	听	听	27	听
Interest rate contracts	听	听	(17	)	听	(17	)	听	(17	)	听	(17	)
Long-term debt (including current portion)	听	听	(3,821	)	听	(4,041	)	听	(3,942	)	听	(4,061	)

听听听听听听听听The carrying amounts reported in our condensed consolidated balance sheets (unaudited) 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 value of non-qualified employee benefit plan investments is 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.

听听听听听听听听The fair value estimates presented herein are based on pertinent information available to management as of March听31, 2012 and December听31, 2011. Although management is not aware of any factors that would significantly affect the estimated fair value amounts, such amounts have not been comprehensively revalued for purposes of these financial statements since March听31, 2012, 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	听	听		听	Fair Value Amounts Using								听

Description	听	March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	17	听	听	鈥�	听	听	17	听	听	鈥�	听
听	听	听		听	听		听	听		听	听		听
Total assets	听	$	31	听	$	14	听	$	17	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	$	(17	)	$	鈥�	听	$	(17	)	$	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, 2011		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	$	12	听	$	12	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	27	听	听	鈥�	听	听	鈥�	听	听	27	听
听	听	听		听	听		听	听		听	听		听
Total assets	听	$	39	听	$	12	听	$	鈥�	听	$	27	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	$	(17	)	$	鈥�	听	$	(17	)	$	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 three months ended March听31, 2012 and December听31, 2011.

听听听听听听听听The following table shows a reconciliation of beginning and ending balances for instruments measured at fair value on a recurring basis using significant unobservable inputs (Level听3) (dollars in millions):

Fair Value Measurements Using Significant Unobservable Inputs (Level听3)	听	Cross-Currency Interest Rate Contracts		听	Total		听

Beginning balance, January听1, 2012	听	$	27	听	$	27	听
Transfers into Level听3	听	听	鈥�	听	听	鈥�	听
Transfer out of Level听3(1)	听	听	(27	)	听	(27	)
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	听	听	鈥�	听	听	鈥�	听
Purchases, sales, issuances and settlements	听	听	鈥�	听	听	鈥�	听
听	听	听		听	听		听
Ending balance, March听31, 2012	听	$	鈥�	听	$	鈥�	听
听	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 March听31, 2012	听	$	鈥�	听	$	鈥�	听
听	听	听		听	听		听

听

Fair Value Measurements Using Significant Unobservable Inputs (Level听3)	听	Cross-Currency Interest Rate Contracts		听	Total		听

Beginning balance, January听1, 2011	听	$	19	听	$	19	听
Transfers into or out of Level听3	听	听	鈥�	听	听	鈥�	听
Total (losses) gains:	听	听	听	听	听	听	听
Included in earnings	听	听	鈥�	听	听	鈥�	听
Included in other comprehensive income	听	听	(15	)	听	(15	)
Purchases, sales, issuances and settlements	听	听	鈥�	听	听	鈥�	听
听	听	听		听	听		听
Ending balance, March听31, 2011	听	$	4	听	$	4	听
听	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 March听31, 2011	听	$	鈥�	听	$	鈥�	听
听	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 three months ended March听31, 2012, this credit valuation adjustment has 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.

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 as follows (dollars in millions):

听	听	Interest expense		听	Other comprehensive income		听

Total net gains included in earnings	听	$	鈥�	听	$	鈥�	听
Changes in unrealized gains relating to assets still held at March听31, 2012	听	听	鈥�	听	听	鈥�	听

听

听	听	Interest expense		听	Other comprehensive income		听

Total net gains included in earnings	听	$	鈥�	听	$	鈥�	听
Changes in unrealized losses relating to assets still held at March听31, 2011	听	听	鈥�	听	听	(15	)

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 three months ended March听31, 2012 and 2011, we had no impairments related to these 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.

+ References

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Reference 13: http://www.xbrl.org/2003/role/presentationRef

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+ Details