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

9 Months Ended

Sep. 30, 2011

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	September听30, 2011					听	December听31, 2010					听

听	听	Carrying Amount		听	Estimated Fair Value		听	Carrying Amount		听	Estimated Fair Value		听
Non-qualified employee benefit plan investments	听	$	10	听	$	10	听	$	11	听	$	11	听
Cross-currency interest rate contracts	听	听	19	听	听	19	听	听	19	听	听	19	听
Interest rate contracts	听	听	(15	)	听	(15	)	听	(9	)	听	(9	)
Long-term debt (including current portion)	听	听	(4,077	)	听	(4,095	)	听	(4,146	)	听	(4,371	)

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 nonqualified employee benefit plan investments is estimated 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 September听30, 2011 and December听31, 2010. 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 September听30, 2011, 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	September听30, 2011		听	Quoted prices in active markets for identical assets (Level听1)		听	Significant other observable inputs (Level听2)		听	Significant unobservable inputs (Level听3)		听
Assets:			听	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
听	听	Equity mutual funds	听	$	10	听	$	10	听	$	聴	听	$	聴	听
听	Derivatives:		听	听	听	听	听	听	听	听	听	听	听	听	听
听	听	Cross-currency interest rate contracts(1)	听	听	19	听	听	聴	听	听	聴	听	听	19	听
听			听	听		听	听		听	听		听	听		听
Total assets			听	$	29	听	$	10	听	$	聴	听	$	19	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
听	Derivatives:		听	听	听	听	听	听	听	听	听	听	听	听	听
听	听	Interest rate contracts(2)	听	$	(15	)	$	聴	听	$	(15	)	$	聴	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, 2010		听	Quoted prices in active markets for identical assets (Level听1)		听	Significant other observable inputs (Level听2)		听	Significant unobservable inputs (Level听3)		听
Assets:			听	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
听	听	Equity mutual funds	听	$	11	听	$	11	听	$	聴	听	$	聴	听
听	Derivatives:		听	听	听	听	听	听	听	听	听	听	听	听	听
听	听	Cross-currency interest rate contracts(1)	听	听	19	听	听	聴	听	听	聴	听	听	19	听
听			听	听		听	听		听	听		听	听		听
Total assets			听	$	30	听	$	11	听	$	聴	听	$	19	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
听	Derivatives:		听	听	听	听	听	听	听	听	听	听	听	听	听
听	听	Interest rate contracts(2)	听	$	(9	)	$	聴	听	$	(9	)	$	聴	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.
(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.

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):

听		听	Three months ended September听30, 2011		听	Nine months ended September听30, 2011		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	$	(5	)	$	19	听
Total gains or losses		听	听	听	听	听	听	听
听	Included in earnings	听	听	聴	听	听	聴	听
听	Included in other comprehensive income (loss)	听	听	24	听	听	聴	听
Purchases, issuances, sales and settlements		听	听	聴	听	听	聴	听
听		听	听		听	听		听
Ending balance September听30, 2011		听	$	19	听	$	19	听
听		听	听		听	听		听
The amount of total gains (losses) for the period included in earnings attributable attributable to the change in unrealized gains (losses) relating to assets still held at September听30, 2011		听	$	聴	听	$	聴	听

听

听		听	Three months ended September听30, 2010		听	Nine months ended September听30, 2010								听

Fair Value Measurements Using Significant Unobservable Inputs (Level听3)		听	Cross-Currency Interest Rate Contract		听	Retained Interest in Securitized Receivables		听	Cross-Currency Interest Rate Contract		听	Total		听
Beginning balance		听	$	51	听	$	262	听	$	聴	听	$	262	听
Total gains or losses		听	听	听	听	听	听	听	听	听	听	听	听	听
听	Included in earnings	听	听	(2	)	听	聴	听	听	12	听	听	12	听
听	Included in other comprehensive income (loss)	听	听	(34	)	听	聴	听	听	3	听	听	3	听
Purchases, issuances, sales and settlements(1)		听	听	聴	听	听	(262	)	听	聴	听	听	(262	)
听		听	听		听	听		听	听		听	听		听
Ending balance September听30, 2010		听	$	15	听	$	聴	听	$	15	听	$	15	听
听		听	听		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 September听30, 2010		听	$	(2	)	$	聴	听	$	12	听	$	12	听
听		听	听		听	听		听	听		听	听		听

(1): Upon adoption of ASU 2009-16, sales of our accounts receivable under our A/R Programs no longer met the criteria for derecognition. Accordingly, beginning January听1, 2010, the amounts outstanding under the A/R Programs were accounted for as secured borrowings and the retained interest in securitized receivables was no longer relevant.

Gains and losses (realized and unrealized) included in earnings for the three and nine months ended September听30, 2011 and 2010, respectively, are reported in interest expense and other comprehensive loss as follows (dollars in millions):

听	听	Three months ended September听30, 2011					听	Nine months ended September听30, 2011					听

听	听	Interest expense		听	Other comprehensive loss		听	Interest expense		听	Other comprehensive loss		听
Total net gains included in earnings	听	$	聴	听	$	聴	听	$	聴	听	$	聴	听
Changes in unrealized losses relating to assets still held at September听30, 2011	听	听	聴	听	听	24	听	听	聴	听	听	聴	听

听

听	听	Three months ended September听30, 2010					听	Nine months ended September听30, 2010					听

听	听	Interest expense		听	Other comprehensive loss		听	Interest expense		听	Other comprehensive loss		听
Total net gains included in earnings	听	$	(2	)	$	聴	听	$	12	听	$	聴	听
Changes in unrealized gains (losses) relating to assets still held at September听30, 2010	听	听	(2	)	听	(34	)	听	12	听	听	3	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.

+ References

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+ Details