EFTA01366599.pdf

Amendment #4 Page 170 of 868 .1111t .-!( tort, rit Derivative financial Instruments and hedging tiCtIVItleS All dement instruments are recocyszed in the combined balance sheet at far value Denvaaves not designated tor redge accounting and used to hedge foreign. currency denortilreted balance street dens are reported directly in earnings along with offsetting transaction gains and losses cri the /ems erg hedged Demettres used to hedge foreignourtency denomnated cash flows and floattg rate dent may be accounted for as cash flows hedges as deemed awropnate Gams and lasses on derivatives designated as cash haws hedges are recorded in other cornaenensive (less) income and reclassded to ea rnirgs in a manner Mat matches the bring of the earreigs need of the ?edged transactor. The net tictive potion of all reapers if are. is reccgniaed washy in earnings The effectse portion of the hedge wil be recorded in tre same manner as foreign currency translation adjustment n other cousiereene (toes) income When the hedge position is diseased and we recognize a gem or loss n other income (expense) tie associated hedge gall or loss in other comprehensive (loss) wcome will be reclassded to other income (expense). Stock-bond compensation On September 29, 2014 and March 31, 2015, we grants 20,450 shares and 35 245 shares of restnaed stock, respeetwely, to certain employees or SunEdson tat will perform services for as. Tin represents 5 6% of the estimated fair value of the total equty in Globe as of the grail date Upon the completon of our initial public stock dfenng, the restricted shares we be convertde to a rurrber of shares of Oass A common stock that represents the percertage irterest noted above, or 3657,464 and 6,303537 shares of Class A cannon stock for September 29, 201a and March 31, 2015 giants, respectively We will begin recapturing tlodc•besed compensation expense on the date of the este public offering eased on the grant-dale lair wake of theee awards using tre straight-line attribution method, net of estimated forfeitures. Income faxes Our income tax balances are deferinned and reported using a 'seperate return' method. Income taxes as presented herein allocate current and deferred room taxes of the parent to us n a meaner the is systematic, rational and cinders with the asset and liability method ire sum cl tie mans allocated to the Company's carved' tax provisions may not equal the ristorical consolidated provison. Under the separate return metrod, deferred tax assets and liabilities are recognized tor the faux tax consequences attributebie to differences between the !rancor statement carryirg annals of existng assets and habeas and their respective tax bases and operating loss carry forwards. Deferred tar assets and meshes we measured utirg enacted tax rates expected to apply to taxable income in the years n When those temporary Offerences are expects to be recovered or settled The effect on deterred tax assets and liabilities of a chance in tax rate is recognized a operations in the period that incrulee the enactment date Valuation allowances are established when managernere determines that is more likely than not that some porton or at of the deferred tax asset will not be realized The finer -cal effect of changes in tax laws or tales is accounted for in tie period of enactment Deferred income lazes anse pnmanty because d Offerences in the bases of assets or habibtes between financial statemerd accourting and tax accounting which are known as temporary differences. We record the tax effect of these temporary differences as deferred tax assets (generally items that can be used as a tax deduction o credt n Uwe periods) and deferred tax liabilities (generally ferns for which we receive a tax deduction, tut have rot yet been recorded in the combined statement of °peat ons) We regularly review our deletred lax assets for tea:liability. taking Into consideration an available evidence, both positive and regative, includrg historical pre-tax and taxable income. projected future pre-tax and 162 http://cfdocs.btogo.com:27638/cf/drv7/pub/edgar/2015/07/20/0001193125-15-256461/d78... 7/20/2015 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) DB-SDNY-0058127 CONFIDENTIAL SONY GM_00204311 EFTA01366599