Financial Accounting Ch15

$ , 0 ! . 6)"-

BAEFD7F;D7?7@F47@7RFE

,KHFBL>LLNGLBHGI:RF>GMLA>:EMABGLNK:GK:@>:G=EB?>BGLNK:G;>G>`MLF:=>;R>FIEHR>KLMH>EB@B;E>>FIEHR>>LMH;>K>BO>=:?M>KMA>BG=BOB=N:ELK>:=K>MBK>F>GM:@>

>7EE77

I:KMRMA:MI:RLNL>H?:G:LL>MBG:E>:L>GM:E:@K>>F>GMPA>K>MA>;>G>`ML:G=KBLDLH?HPG>KLABI:K>GHMR>=?KHFMA>E>LLHKMHMA>E>LL>>

*0)/$)"!*-' . .

" ( $ $ % * , )

MMA>>G=H?MABLL>GMLLAHNE=;>:;E>MHF>>MMA>?HEEHPBG@H;C>L

+@67DEF3@6F:7F:7AD7F;53>6;Q7D7@5747FI77@3@AB7D3F;@9>73E73@6353B;F3>>73E7

(75A9@;L7F:3F3>7EE77I;>>47D7CG;D76FA355AG@F8AD3>73E73E7;F:7D3@AB7D3F;@9>73E7AD3

53B;F3>>73E743E76A@F:7EB75;R5F7D?EA8F:75A@FD35F +@67DEF3@6F:75A@57BFA8AQ43>3@57E:77FR@3@5;@9 JB>3;@F:7F7D?OEG4EF3@57AH7D8AD?P3@6:AI;F3BB>;7EFAF:7R@3@5;3>D7BADF;@9A8353B;F3>

>73E7

-=HGJLAF?9'A9:ADALQ>GJ'=9K=7 E7DH7 3E F:7 BD76A?;@3@F EAGD57 A8 >A@9F7D? V@3@5;@9 ;@ F:7 ,@;F76*F3F7E -;DFG3>>K 3>> 5A?B3@;7E D3;E7 E;9@;V53@F EG?E A8 ?A@7K 4K ;@5GDD;@9 674FE A8 F:;E FKB7 AI7H7D 3CG;5= B7DGE3> A8 F:7 43>3@57 E:77FE A8 ?AEF I7>>=@AI@ 5A?B3@;7E V@6E 3 4DA36 3DD3K A8 AF:7D @A@5GDD7@F>;34;>;F;7EEA?7A8EF3997D;@9E;L7

< #.*;A@9F7D?53B;F3>>73E7A4>;93F;A@EA8?;>>;A@3EA8!3@G3DK

< #8>=1@.;F;7EA83BBDAJ;?3F7>K4;>>;A@A@757?47D

< 5,8*7, 3F757?47D>;EFE4;>>;A@;@>;34;>;F;7EE>;9:F>KG@67DB7D57@FA8F:75A?B3@KQEFAF3>>347>763E355DG76 87; @AF7E 3@64A@6E *A?7 G@67DEF3@6;@9 A8 F:7E7 43>3@57E ;E @757EE3DK FA 5A?BD7:7@6 F:7 ;@8AD?3F;A@ 47;@9 5A@H7K76;@ 3 E7F A8 V@3@5;3> EF3F7?7@FE +:7 D7BADF;@9 A8 >;34;>;F;7E EG5: 3E F:AE7 34AH7 ;E 7JB>AD76 ;@ 67BF: ;@GBB7D>7H7> V@3@5;3> 355AG@F;@9 5AGDE7E AI7H7D 3 43E;5 >7H7> A8 =@AI>7697 ;E 7EE7@F;3> 8AD 7H7DK BAF7@F;3>675;E;A@?3=7D@AFEI:A5:AE7FA?3>797

#73E7 >;34;>;F;7E I;>> 47 7JB>AD76 VDEF ;@ F:;E 5:3BF7D +A ;>>GEFD3F7 3EEG?7 F:3F F:7 4;>7@7 A?B3@K@776E 3@ 3;DB>3@7 FA GE7 ;@ ;FE 63;>K AB7D3F;A@E )3F:7D F:3@ 4GK F:;E 3EE7F 4;>7@7 >73E7E A@7 8DA? 34GE;@7EE F:3F AI@E 3 H3D;7FK A8 3;D5D38F +:7 >73E7 ;E 8AD E7H7@ K73DE 3F 3@ 3@@G3> 5AEF A8 @G?47D A8 D73EA@E ?;9:F 7J;EF 8AD 5:AAE;@9 FA >73E7 D3F:7D F:3@ 4GK '7D:3BE 4;>7@7 ;E 34>7 FA @79AF;3F7 7EB75;3>>K 9AA6 F7D?E 8AD F:7 3;DB>3@7 4753GE7 A8 F:7 5A?B3@KQE I;>>;@9@7EE FA 5A??;F FA EG5: 3 >A@9 B7D;A6 A8F;?7

&@ F:7 63K F:3F F:7 >73E7 ;E E;9@76 E:AG>6 4;>7@7 D7BADF 3 >;34;>;FK 3@6 ;8 EA ;E F:7 3?AG@F >?7@F F:7 FAF3> A8 3>> B3K?7@FE AD EA?7 AF:7D V9GD7 '1.7 * ,869*7B5.*

53B;F3>>73E7

K>GM:E:@K>>F>GMPA>K>MA>;>G>`ML:G=KBLDLH?HPG>KLABI:K>R>=?KHFMA>E>LLHKMHMA>E>LL>>LHMA:M;HMAMA>:LL>M:G=EB:;BEBMR:K>K>IHKM>=BGBMB:EER;RMA>E>LL>>:MMA>IK>L>GMO:EN>H?MA>GML?HK:QBLMLPA>GHG>H??HNK>LM:;EBLA>=KB::K>F>M

AQ43>3@57E:77FR@3@5;@9

>L=?HK:GH;EB@:MBHGPA>K>:G:FHNGMH?FHG>RFNLM;>I:B=MA:MBLE:K@>KMA:GMA>`@NK>K>IHKM>=HGMA>;:E:GLA>>M?HK:E>LL>>:GHI>K:MBG@E>:L>IKHOB=>L:G>Q:FIE>H?H_;:E:GLA>>M`G:G :AD=F= :MQAF? L@= 9AJ

HD9F= /@= AFALA9D DA9:ADALQ J=;G?FAR=< :Q :AD=F= AK L@= HJ=K=FL N9DM= G> L@=

L@= =FLAJ= 9EGMFLG> ;9K@ LG := H9A< GN=J L@=K= K=N=F Q=9JK /@= HJ=K=FL N9DM= AK 9J=9KGF9:D=J9L=G>AFL=J=KL

* ) * / % + ( ) "

'G7EF;A@

E>LL>> LB@GL : E>:L> :@K>>F>GM LH MA:M : IB> H? IKHI>KMR NL>= ?HK MA> LI>= I>KBH= H? MBF> "KHF:G:PA:M:K>MA>MPHMRI>LH?E>:L>L

: "BQ>=E>:L>L:G=O:KB:;E>E>:L>L; +I>K:MBG@E>:L>L:G=:L>L< %GE>:L>L:G=>QI>G=BMNK>;:L>=E>:L>L= *HGL:G=L

@EI7D

0A>KBLK:MBG@E>:L>L:G=:L>L

JB>3@3F;A@

"HK MA> E>LL>> :EE E>:L>L :K> = ?HK `G:GIHKMBG@ INKIHL>L :L >BMA>K : K>GM:E :G HI>K:MBG@ E>:L> HKMA>>JNBO:E>GMH?:INK::L>

G=K9'=KK==+J=>=JLG-=HGJL9F*H=J9LAF?GJ9HAL9D'=9K=

(G7EF;A@ +:7 BD7H;AGE 3@EI7D D3;E7E 3 @G?47D A8 ;??76;3F7 CG7EF;A@E 34AGF >73E7 355AG@F;@9 'DA434>KF:7 VDEF A8 F:7E7 D7>3F7E FA F:7 BD35F;53> 9A3> A8 AX5;3>E I:A I3@F FA BDA6G57 V@3@5;3> EF3F7?7@FE F:3F?3=7 F:7;D 5A?B3@K >AA= 3E V@3@5;3>>K :73>F:K 3E BAEE;4>7 >73E7 39D77?7@F 53@ 47 D7BADF76 3E 3 3@AB7D3F;@9 >73E7 I;F: A@>K F:7 ;@;F;3> B3K?7@F D75AD676 3E 3 >;34;>;FK AD 4 3 53B;F3> >73E7 I:7D7 F:7BD7E7@FH3>G7A83>>B3K?7@FE3?G5:>3D97D@G?47D;EE:AI@3EF:7>;34;>;FK

&X5;3>E 8AD F:7 >7EE77 ?GEF EGD7>K BD787D FA 5>3EE;8K 3>> >73E7E 3E AB7D3F;@9 >73E7E FA D76G57 F:7 D7BADF76674F FAF3> 7 I7*7,2*5 *,,8>7=270 -8.< * 5.

* ) * / % + ( ) "

'G7EF;A@

E>LL>> BL G>@HMB:MBG@ : G>P E>:L> ?HK : E:K@> IB> H? IKHI>KMR 3AB ?HEEHPBG@ BL FHLM EBD>ER MH ;>MKN>

: 0A>E>LL>>PBEEMKRMHLMKNMABL:L>MHM:D>:=O:GM:@>H?H_;:E:GLA>>M`G:GE>LL>>PBEEGHMPA>MA>KMA>=:L:GHI>K:MBG@E>:L>HK::L>< 0A>E>LL>>PBEEMKRMHLMKNMABLBFIEB>M

`G:GE>LL>>PBEELMKNMA>KP:RBLFHLMGB>GM?HKMA>E>LLHKMA>:K

H?MA>IKHI>KMR

@EI7D

0A> K BL E>LL>> PBEE MKR MH LMKN MABL :L> MH M:D> :=O:GM:@>H?H_;:E:GLA>>M`G:G3@3F;A@

0A> EB:;BEBMR ;:E:G K>IHKM>= ?HK :G HI>K:MBG@ E>:L> BL HGER MA> :FHNGM GMER =N> "HK FHLM E>:L>L MA:M BL :K>E:MBO>ER LF:EE :FHNGM E>LL>> PBEE MRIB?>K MH :M> MABL MRI> H? E>:L> LH MA:M MA> K>IHKM>= EB:;BEBMRMHM:E BL EHP>K 0A> K>F:BG=>K H? MA> H;EB@:MBHG PBEE GHM ;> K>= NGMBE BM L =N> 0A> :;BEBMR MH NL> ::FHNGMH?=>;MBL>M`G:G>=J=FLA9LAF?9F*H=J9LAF?'=9K=>JGE99HAL9D'=9K=

(G7EF;A@ AD 3 >7EE77 3 D36;53> 6;U7D7@57 ;@ D7BADF;@9 7J;EFE 47FI77@ AB7D3F;@9 >73E7E 3@6 53B;F3> >73E7EA?B3@K AX5;3>E BD787D FA D7BADF AB7D3F;@9 >73E7E EA F:3F F:7 3?AG@F A8 >;34;>;F;7E 3BB73D;@9 A@ F:7 43>3@57E:77F;E>AI7D'1*=2 LAE=#GO=N=J AF KM:KL9F;= 9 D=9K= 9?J==E=FL E9Q ?G :=QGF< 9 HMJ= J=FL9D 9?J==E=FL !AF9F;A9D 9;;GMFL

AF? @9K DGF? @=D< L@9L 9 >9AJDQ HJ=K=FL=< HGJLJ9AL G> 9F =FLALQXK _F9F;A9D GH=J9LAGFK 9F< =;GFGEA; @=9DL@AK GFDQ 9;@A=N=< :Q DGGCAF? H9KL L@= >GJE G> 9 LJ9FK9;LAGF LG J=HGJL L@= 9;LM9D KM:KL9F;= G> O@9L AK L9C

AF?HD9;=Y.M:KL9F;=GN=J>GJEZAK9E9FLJ9G>L=F@=9J

>7EEAD

I:KMRMA:MK>BO>LNL>H?HPG>=IKHI>KMRMH:E>LL>>MAKHN@A:E>:L> L@GK= L@=GH=J9LAF?D=9K=;9L=?GJQK==EKDAC=DQAFL@=F=PL>=OQ=9JK

:1L@=HJGH=JLQALAK9;9HAL9DD=9K=/@AK;JAL=JAGFAKJGEL@=_JKLLOGO@=J=L@=LJ9FK9;LAGFO9KBMKL9=L@9LL@=D=KK==G:L9AFK9N9KLE9BGJALQG>ALKMLADALQDL@GM?@L@=H=J;=FLKL9F

* ) * / % + ( ) "

'G7EF;A@

E>LL>> LB@GL : MAK>>R>:K E>:L> ?HK I>K R>:K MH @:BG NL> H? : F: 0A> F: A:L :G >QI>=NL>?NE EB?> H? `O> R>:KL M MA> >G= H? MABL MAK>>R>:K I>KBH= MA> F: BL >QI>= MH ;> PHKMA 0A>E>LL>> A:L MA> KB@AM MH ;NR BM :M MA:M MBF> ?HK 0A> K>JNBK>= I:RF>GML :K> GHM MA> >JNBO:E>GM H? MA> :H?MABL:LL>M3AB?HEEHPBG@BLMKN>?HKMA>E>LL>>

: 0A>E>:L>BL::L>; 0A>E>:L>BL:GHI>K:MBG@E>:L>< 0A>E>:L>FB@AM;>::L>;NMGHM>GHN@ABG?HKF:MBHGBL:O:BE:;E>= 0A>E>:L>PBEE;>:GHI>K:MBG@E>:L>B?HG>H?MA>?HNKKB:BLF>M

@EI7D

0A>KBL:L>FB@AM;>::L>;NMGHM>GHN@ABG?HKF:MBHGBL:O:BE:;E>

JB>3@3F;A@

%? HG> H? MA> ?HNK KB: >LM:;EBLA>= ;R "/ BL F>M MABL E>:L> BL K>IHKM>= :L : :L> +G> H? MA> KB:BL LMBEE BG JN>LMBHG %L : INK HIMBHG OB>P>= :L : ;:K@:BG B? MA> >QI>= ?:BK O:EN> BL %L MA> =BL:LHG:;ER :LLNK>= EMAHN@A MA> KNE>L :K> :K MAHL> CN=@F>GML >QMK>F>ER =Bb BG IK:GHN@A BG?HKF:MBHG BL IKHOB=>= A>K> MH =>M>KFBG>PA>MA>KMABLINKHIMBHGBL:;:K@:BG

! / * ! - /

E>LL>> : K :G HI>K:MBG@ E>:L> HK : :L> =>I>G=BG@ HG MA> LI>KFL H? MA> :@K>>F>GM +b E>LL>> PBEE EBD>ER IK>?>K MA> :L> ;> : LF:EE>K EB:;BEBMR BL K>IHKM>= 0ANL MA> K>IHKMBG@ H? :G HI>K:MBG@ E>:L> BL : Q:FIE> H?H_;:E:G LA>>M `G:G : LB@GB` GHM BG= :L EB:;BEBMB>L HG MA> ;:E:G LA>>M %G MA> IK>L>GM O:EN> H? :EE ?NMNK> K>IHKM>= :L : EB:;BEBMR 0H =B_>K>GMB:M> HI>K:MBG@ E>:L>L ?KHF :L>L ?HNK KB: A:O> ;>>G >LM:;EBLA>=PBMABG 1/ #, %? :GR HG> H? MA>L> KB: BL F>M MA> E>LL>> ::L> BG E>@:E ?HKF MA> = :L : INK BG LN;LM:G :G= K>IHKM>= BG MA:MF:GG>K

*+ -/$)"' . .1 -.0.+$/'' . .

" ( $ $ % * , )


55AG@F8AD3@AB7D3F;@9>73E7D73>;L;@9F:3FF:7A@>K>;34;>;FKFA47D7BADF76;EF:73?AG@FF:3F;E5GDD7@F>K6G7

+@67DEF3@6F:3FF:7A@>K3EE7FD7BADF76;@5A@@75F;A@I;F:3@AB7D3F;@9>73E7;EBD7B3;6D7@F;8B3K?7@FE3D7?367;@36H3@57

(75AD6F:7;@;F;3>7@FDK8AD353B;F3>>73E7I;F:4AF:F:73EE7F3@6F:7>;34;>;FK53>5G>3F763FF:7BD7E7@FH3>G7A8F:78GFGD753E:SAIE

JB>3;@F:7;@F7D7EFD3F7FA47GE764KF:7>7EE77;@67F7D?;@;@9F:7BD7E7@FH3>G7A8353B;F3>>73E73@6F:73?AG@FA8;@F7D7EF7JB7@E7FA47D75A9@;L76735:B7D;A6

7F7D?;@73@6D75A9@;L7F:767BD75;3F;A@A83@3EE7FD75AD6763EF:7D7EG>FA8353B;F3>>73E7

/@=!AF9F;A9D-=HGJLAF?G>9F*H=J9LAF?'=9K=

(G7EF;A@ +:7 4;>7@7 A?B3@K :3E 39D776 FA B3K B7D K73D 8AD E7H7@ K73DE FA >73E7 3@ 3;DB>3@7EEG?7 F:3F >793> F;F>7 I;>> @AF 47 D757;H76 4K 4;>7@7 3@6 @A BGD5:3E7 ABF;A@ ;E ?7@F;A@76 ;@ F:7 5A@FD35F EEG?7 3>EA F:3F F:7 >;87 A8 F:7 3;DB>3@7 ;E G7A8F:7;F7?

$$"%+$*$,()%$

2013 Flat World Knowledge, Inc. All rights reserved. Created exclusively for [email protected]

+:7 5A@FD35F ;E E;9@76 A@ 757?47D 073D &@7 I;F: F:7 VDEF 3@@G3> B3K?7@F ?367 ;??76;3F7>K3E76 A@ F:7 67E5D;BF;A@ A8 F:7 39D77?7@F @A@7 A8 F:7 8AGD 5D;F7D;3 8AD 3 53B;F3> >73E7 :3H7 477@ ?7F+:GE4;>7@7:3E3@AB7D3F;@9>73E7'1*=I7*7,2*5*,,8>7=2702GMJ;JAL=JA9>GJ9;9HAL9DD=9K=AKE=LAFL@AKLJ9FK9;LAGF

'=?9DGOF=JK@AHAKFGL;GFN=Q=L@=DA>=G>9KK=LK=N=FQ=9JKGMLG>L=FQ=9JKGJH=J;=FL

+9QE=FLKL@=9KK=L

/@MK :AD=F= AK BMKL J=FLAF? L@= 9AJHD9F= 9F< 9?J==K GF 9F GH=J9LAF? D=9K= /@= _JKL 9FFM9D H9QE=FLO9KE9?7@FA8%B7D3F;@9"73E7

=;9MK= L@= _JKL H9QE=FL @9K :==F E9

9K AFL=J=KL ;;GJGJ;=< LG H9Q LG :GJJGO L@AKK9E= 9EGMFL G> EGF=Q >JGE 9 :9FC GJ GL@=J D=FGJ :AD=F= AK H=J;=FL H=J Q=9J $> L@= ;GEH9FQ @9< KA?F=< 9 DG9F LG :MQ L@AK 9AJHD9F=AFKL=9< G> D=9K= AL L@= 9KKMEHLAGF AK L@9L L@= D=F

AK

68+9+4:L=J L@= HJ=K=FL N9DM= @9K :==F 9F GH=J9LAF? D=9K= 9F< 9 ;9HAL9D D=9K= AK KLJACAF?/@= GJ K==CAF? 9F GH=J9LAF?D=9K=J9L@=JL@9F9;9HAL9DD=9K=

$$"%+$*$,()%$


+( A?B3D;EA@A8@;F;3>>K(7BADF76?AG@FE8AD3@%B7D3F;@9"73E73@68AD33B;F3>"73E7

* ) * / % + ( ) "

'G7EF;A@

:L> HG &:GN:KR 5>:K +G> MH E>:L> : F: ?HK >B@AM R>:KL ,:RF>GML :K> I>KR>:K PBMA MA> `KLM I:RF>GM F:=> BFF>=B:M>ER 0A> GM:E ;HKKHPBG@ K:M> H? I>KGM0ABL E>:L> JN:EB`>L :L : :L> 0A> IK>L>GM O:EN> H? :G HK=BG:KR :GGNBMR H? ?HK >B@AM I>KBH=L :M :G :GGN:E BGM>K>LM K:M> H? I>KGM BL 0A> IK>L>GM O:EN> H? :G :GGNBMR =N> H? ?HK >B@AM I>KBH=L :M :G :GGN:E BGM>K>LM K:M> H? I>KGM BL %? `G:GF>GML :K> IKH=N= :?M>K MABL E>:L> A:L ;>>G LB@G>=:G=L>MME>=PAB?HEEHPBG@;:E:GLPBEE;>K>IHKM>=KHNG=>=

: (>:L>=:LL>MH?:G=E>:L>EB:;BEBMRH?; (>:L>=:LL>MH?:G=E>:L>EB:;BEBMRH?< (>:L>=:LL>MH?:G=E>:L>EB:;BEBMRH?= (>:L>=:LL>MH?:G=E>:L>EB:;BEBMRH?

@EI7D

0A>KBL=:LL>MH?:G=E>:L>EB:;BEBMRH?

JB>3@3F;A@

> MA> `KLM I:RF>GM BL F:=> BFF>=B:M>ER MABL ;HMA MA> :LL>M :G= MA> EB:;BEBMR :K> BGBMB:EER K>IHKM>= :M MA> IK>L>GM O:EN> H? MA>L> E>LL>>ZL BGF>GM:E ;HKKHPBG@ K:M> HK U $HP>O>K MA> `KLM I:RF>GM BL :ELH F:=> :MMA:MMBF>LHMA>EB:;BEBMR;:E:GBLK>=N=;RMA:M:FHNGM

;;GMFLAF?>GJ99HAL9D'=9K=GN=J/AE=

(G7EF;A@ @ 3 53B;F3> >73E7 BDAB7DFK ;E @AF 4AG9:F 4GF ;E 355AG@F76 8AD 3E ;8 ;F :36 477@ BGD5:3E76 .:7@F:7 5A@FD35F ;E E;9@76 ;@ F:7 BD7H;AGE 7J3?B>7 4;>7@7 D75AD6E 4AF: F:7 >73E76 3;DB>3@7 3@6 F:7 >;34;>;FK 3FF:7 BD7E7@F H3>G7 A8 F:7 D7CG;D76 53E: B3K?7@FE'1*= ;.98;=270 =*4.< 95*,. +.7= =8 =1. 272=2*5 ;.,8;-2708/*,*92=*55.*= O@=J= H9QE=FLK =PL=F< AFLG L@= >M

LMJ= L@= ;GKL G> L@= 9KK=L AK = G> L@= D=9K= /@= J=;GJ L@= 9KK=L AK

+( 757?47D/73D*IAM7BD75;3F;A@A8;DB>3@7%4F3;@76;@3B;F3>"73E7

+( 757?47D/73D*IAM@F7D7EFA@"73E7";34;>;FK8DA?3B;F3>"73E7

+( 757?47D/73D*IAM)75A@6&3K?7@FA@3B;F3>"73E7

* ) * / % + ( ) "

'G7EF;A@

:L>L : MKNK:MBHGL 0A> :M>KFBG> B? MABL E>:L> BL : :L>HK:GHI>K:MBG@E>:L>3AB?HEEHPBG@LM:M>F>GMLBLMKN>

: 0A>K>IHKM>=EB:;BEBMR;:E:GBLEBD>ERMH;>AB@A>KBG:GHI>K:MBG@E>:L>; IK>I:B=K>GM:E:K>IHKM>=BG::L>< 0A>E>:L>=:LL>MPBEE:II>:KBGMA>`G:GF>GMLB?MABLBL:GHI>K:MBG@E>:L>= HMA=>IK>QI>GL>:G=BGM>K>LM>QI>GL>:K>K>=?HK::L>

@EI7D

0A> K BL IK>QI>GL> :G= BGM>K>LM >QI>GL> :K> K>= ?HK : :L>

JB>3@3F;A@

%G :G HI>K:MBG@ E>:L> : IK>I:B= K>GM := ;R MA> GML PBMA MA:M :FHNGM MA>G K>= MH K>GM >QI>GL> :L MBF> I:LL>L (BMME> HK GH EB:;BEBMR BL K>IHKM>= %G : :L> ;HMA MA> :LL>M :G=MA> EB:;BEBMR :K> K>IHKM>= :M MA> IK>L>GM O:EN> H? MA> ?NMNK> GML 0A> = MH MA> :LL>M BL=>IK>=PABE>BGM>K>LM>QI>GL>FNLM;>K>=HGMA>EB:;BEBMR;:E:G>:KBH=

*3>=;@9I;F:3@@67B7@67@FG6;FAD34AGF@F7D@3F;A@3>;@3@5;3>(7BADF;@9)F3@63D6E

"HEEHPBG@ BL : KOB>P PBMA .H;>KM 2:EE>CH I:KMG>K PBMA MA> : :KK:G@>F>GM F>>ML :GR HG> H? ?HNK KB: MA> MK:GL:IHKM>= :L ::L> HFI:GB>L H?M>G =>LB@G MK:GL:BMA>K :OHB= HK F>>M MA>L> KB: ;:L>= HG MA> =>LBK>=F>MAH= H? :

Rob Vallejo 0ABL BL =BbK ;:L>= HG MA> GM LM:MNL H? MA> "/ :G= %/ZL CHBGM IKHC>:L>L\ MA:M ;>@:G PBMA : =BLK BG ?M>K K>BOBG@ : E:K@> GNF;>K H? GML HG : =K:?MO>KLBHG H? : G>P LM:G=:K= MA> "/ :G= %/ :K> GMER F:DBG@ K>OBLBHGL :G= PBEE K>E>:L> : G>P =K:?M O>KLBHG BG MA> `KLM A:E? H? .>@:K=E>LL H? MA> HNM :?M>K MA> G>P LM:G=:K= BL BLLN>= >_> =:M> :L >:KER :L MA> =BLMBGMP>>G HI>K:MBG@ :G= :L>L PBEE ;> >EBFBG:M>= :L :EE E>:L>L PBEE;> MK>:M>= :L `G:G E>:L>L :G= BG= HG MA> ;:E:G LA>>M :M BGIMBHG "HK HK@:GBS:MBHGL MA:M A:O> LMKN= E>:L>L MH F>>M MA> =>`GBMBHG H? :G HI>K:MBG@ E>:L> MA> G>P LM:G=:K= PBEE A:O> : LB@GB` BFIEBBK `G:GF>GML :G= HG@HBG@ `G:GIHKMBG@ 0H E:M>LM LM:MNL H? MA> "/ :G= %/ZL CHBGM IKHC>:L>L "/ZL P>;LBM>AMMIPPP"/HK@ NKK>GMER : E>:LBG@ :KK:G@>F>GM F:R P>EE ;> = =B_>K>GMER NG=>K %"./ MA:G NG=>K 1/ #, 0ABL BL :G >Q:FIE> H? PA>K> >QBLMBG@ 1/ #, A:L KNE>L :G= %"./ A:L IKBGL 1G=>K MH=:RZL1/ #, @NB=:G BL O>KR LI>= HG MA> ?HNK KB@B= KB: >LM:;EBLA>= ;R "/ $HP>O>K NG=>K %"./MA> @NB=:G ?HL HG MA> LN;LM:G H? MA> MK:GL:K> :K> GH JN:GMBM:MBO> ;K>:DIHBGML HK ;KB@AMEBG>L MH :IIER "HK >Q:FIE> MA>K> BL GH =>`GBMBO> KNE> LN [ I>KGM H? MA> :LL>MZL EB?>\ KBHG ?HNG=BG 1/ #, %"./ LBFIER :LDL MA> JN>LMBHG A:O> :EE MA> KBLDL :G= K>P:K=L H? HPG>KLABI ;>>G LN;LM:GMB:EERMK:GL?>KK>=

! / * ! - /

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

- *")$/$*)*! ! -- $)*( /3 .

" ( $ $ % * , )


+@67DEF3@6F:3FF:7D75A9@;F;A@A8D7H7@G7E3@67JB7@E7EG@67D+)&6;Q7DE3F?3@K5D;F;53>BA;@FE8DA?F:7F3J3F;A@DG>7E7EF34>;E:764KF:7@F7D@3>(7H7@G7A67

JB>3;@F:767E;D74K5ADBAD3F7AT5;3>EFA6787DF:7B3K?7@FA8;@5A?7F3J7E 7F7D?;@7F:7F;?;@98ADF:7D7BADF;@9A836787DD76;@5A?7F3J>;34;>;FK3@67JB>3;@F:75A@

@75F;A@A8F:;EBDA57EEFAF:7?3F5:;@9BD;@5;B>7 3>5G>3F7F3J34>7;@5A?73EI7>>3EF:7D7>3F766787DD76;@5A?7F3J>;34;>;FKI:7@F:7;@EF3>>

?7@FE3>7E?7F:A6;EGE76

/@=-=HGJLAF?G>=>=JJ=

6787DD76F3J>;34;>;FK

;:E:GLA>>M:>G=>E:R>=NGMBE:?NMNK>=:M>LH?M>GL>>DMH:M>MABL=>?>KK:ELHMA:MM:Q=HEE:KLNL>=BGMA>BGM>KBFMHBG:L>G>MBG

F7?BAD3DKF3J6;Q7D7@57

K>O>GN>HK>QI>GL>K>IHKM>=?HK;HMA`G:GGMMBF>I>KBH=LE>:=LMHMA>K>?>KK>=BGM:Q>L

FKO=J /@= J=HGJLAF? G> ,-.-::-, 16+75-

* ) * / % + ( ) "

'G7EF;A@

:KGL E:M> BG 5>:K +G> 0A> M:Q K:M> BL I>KGM LH MA> M:Q I:RF>GM HG MABL BG PBEE;> > H? : LI> BG MA> %GM>KG:E .>O>GN> H=> MABL BL GHM M:Q:;E> NGMBE 5>:K 0PH0ANL MA> PBEE ;> I:B= HG ):K:K 0AK>> PA>G MA> L BML 5>:K 0PH BG M:Q K>MNKG3AB?HEEHPBG@LM:M>F>GMLBLMKN>

: 0A>EB:;BEBMRBL`KLMK>=BG5>:K+G>>O>GMAHN@AI:RF>GMBLGHMF:=>NGMBE5>:K0AK>>; 0A>EB:;BEBMRBL`KLMK>=BG5>:K0PH>O>GMAHN@AI:RF>GMBLGHMF:=>NGMBE5>:K0AK>>< 0A>EB:;BEBMRBLGHMK>=NGMBE5>:K0AK>>PA>GMA>M:QK>MNKGBL`E>== 0A>K>BLGHM>GHN@ABG?HKF:MBHGIK>L>GM>=A>K>MH=>M>KFBG>PA>GMA>EB:;BEBMRLAHNE=`KLM;>

K>=

@EI7D

0A> K BL EB:;BEBMR BL `KLM K>= BG 5>:K +G> >O>G MAHN@A I:RF>GM BL GHM F:=>NGMBE5>:K0AK>>

JB>3@3F;A@

0A> BG BL K>= BG 5>:K +G> LH MA> K>E:M>= BG M:Q >QI>GL> LAHNE= ;> K>= BG MA:M L:F>I>KBH= MH F:M K> BG A:L ;>>G =>E:R>= ?HK M:QINKIHL>L : =>?>KK>= BG M:Q EB:;BEBMR BL :ELH K>IHKM>= BG 5>:K +G> MH =BL MA> ?NMNK> I:RF>GM 0A> BGP:L>:KG>=BG5>:K+G>:E:M>=EB:;BEBMRFNLM;>K>IHKM>=MA>G:LP>EE

/@=$FKL9DDE=FL.9D=K(=L@G A?B3@K 4GKE 3@ 3EE7F >3@6 8AD 7J3?B>7 8AD #3F7D F:;E 3EE7F;E EA>6 8AD 6GD;@9 073D &@7 +:7 73D@;@9 BDA57EE ;E EG4EF3@F;3>>K 5A?B>7F7 3F F:3F BA;@F ;>> D7BADFE 3 93;@ A@ ;FE 073D &@7 ;@5A?7 EF3F7?7@F A8 >7EE 753GE7 A8 F:7 F7D?EA8 F:7 E3>7E 5A@FD35F F:;E ?A@7K I;>> @AF 47 5A>>75F76 8DA? F:7 4GK7D G@F;> 073D ;H7 +:7 4GK7D ;E V@3@5;3>>K EFDA@9 3@6 E:AG>6 47 34>7 FA B3K 3F F:7 D7CG;D76 F;?7E ;>>QE 7U75F;H7 F3J D3F7 8AD F:;E FD3@E35F;A@ ;EB7D57@F

&X5;3>E 8AD ;>> 3D7 B>73E76 FA D75A9@;L7 F:7 93;@ A@ F:;E E3>7 ;@ 073D &@7 4753GE7 ;F ?3=7EF:7 5A?B3@K >AA=E 47FF7D AI7H7D F:7K BD787D FA I3;F 3E >A@9 3E BAEE;4>7 FA B3K F:7 ;@5A?7 F3J 7EB75;3>>KE;@57 @A 53E: :3E K7F 477@ 5A>>75F76 8@ ,*7 =1. ;.,8072=287 8/ 27,86. /8; =*A 9>;98

/@= =N=FLM9D L9P LG := H9A< GF L@= ?9AF OADD :=

S H=J;=FL #GO AK L@AK

J=

HGJL=H9QE=FLLGL@=?GN=JFE=FLAKFGLJ=IMAJ=L@=E9L;@AF?HJAF;AHD=L@=AF;GE=L9P=PH=FK=G>

EMKL:=J=;GJKMR ?HK :G= E:M>K L>EEL BM ?HK ,:RF>GML PBEE ;> = >JN:EERHO>K MABL R>:K :G= MA> ?HEEHPBG@ MAK>> 0A> IKH`M BL K>= BFF>=B:M>ER ?HK `G:GIHKMBG@ INKIHL>L"HK M:Q INKIHL>L :LLNF> MA:M MABL MK:GL:= ?HK NL> H? MA> BGLM:EEF>GM L:E>L F>MAH= 0A> ;NLBG>LLZL>_> M:Q K:M> BL I>KGM 3A:M :FHNGM H? =>?>KK>= BG M:Q EB:;BEBMR LAHNE= MABL >GMBMR K> :L H? >F;>K5>:K+G>

: 6>KH; < =

@EI7D

0A>KBL3@3F;A@

0A> L : IKH`M H? 1LBG@ MA> BGLM:EEF>GM L:E>L F>MAH= MA> @:BG BLM:Q>= PA>G I>KGM H? MA> `KLM R>:K H? MA:M IKH`M I>KGM U BL K>= BFF>=B:M>ER ?HK M:Q INKIHL>L +GER MA> K>F:BGBG@ E>LL BL =>?>KK>= NGMBE E:M>K R>:KL ?HK M:Q INKIHL>L M : K:M> H? I>KGM MA> =>?>KK>= M:Q EB:;BEBMR BLUI>KGM

$$"%+$*$,()%$


! / * ! - /

1/ #, :G= MA> %GM>KG:E .>O>GN> H=> :K> :M>= ;R L>I:K:M> @KHNIL PBMA =B_>K>GM @H:EL BG FBG= HGL>JN>GMER F:GR =B_>K>GL >QBLM :L MH :FHNGML :G= MBFBG@ H? BG K> F:G:@>F>GM H? :;NLBG>LL PBEE MKR MH NL> MA>L> =B_>K>GL MH IHLMIHG> I:RF>GM H? BG M:Q>L LH MA:M MA> FHG>R F:BGBG NL> :G= @>G>K:M> :==BMBHG:E IKH`ML EMAHN@A I:RF>GM BL GHM F:=> BFF>=B:M>ER MA> F:MJNBK>L MA> BG M:Q >QI>GL> MH ;> K>IHKM>= BG MA> L:F> MBF> I>KBH= :L MA> K>E:M>= K>O>GN> %? I:RF>GM BL=>E:R>= : =>?>KK>= BG M:Q EB:;BEBMR BL :M>= MA:M K>F:BGL BG MA> `G:G BG ;>L M:Q:;E> +G> H? MA> FHLM MAH=L ?HK =>?>KKBG@ BG M:Q I:RF>GML BL :IIEB BGLM:EEF>GM L:E>L F>MAH= "HK `G:GIHKMBG@ INKIHL>L :GR @:BG BL K>= BFF>=B:M>ER :L BL MA> K>E:M>= BG M:Q >QI>GL> $HP>O>K :E:R>= NGMBE BGM>KBF : =>?>KK>= M:Q EB:;BEBMR BL K>IHKM>= MH :E>KM =>KL MH MA> >O>GMN:E I:RF>GM MA:MPBEE;>K>JNBK>=

- +*-/$)"+*./- /$- ( )/ ) !$/.

" ( $ $ % * , )


7R@7F:7F7D?OBAEFD7F;D7?7@F47@7RFEP

JB>3;@F:7355AG@F;@9BDA4>7?E3EEA5;3F76I;F:F:7D75A9@;F;A@A8355DG76BAEFD7F;D7?7@F

47@7RFE ";EFF:7EF7BEF:3F3D78A>>AI76FA67F7D?;@735A?B3@KNED7BADF76A4>;93F;A@8ADBAEFD7F;D7

?7@F47@7RFE 67@F;8KF:7DA>7A8F:735FG3DK;@355AG@F;@98ADBAEFD7F;D7?7@F47@7RFE 3>5G>3F735A?B3@KNE674FFA7CG;FKD3F;A3@67JB>3;@;FE?73@;@9 3>5G>3F7F:7F;?7E;@F7D7EF73D@76D3F;A3@67JB>3;@;FE?73@;@9

'A9:ADALQ>GJ+GKLJ=LAJ=E=FL=F=>ALK

(G7EF;A@ 55AD6;@9 FA F:7 ;@8AD?3F;A@ BDAH;676 3F F:7 479;@@;@9 A8 F:;E 5:3BF7D 5,8* D7BADF76 3 4;>>;A@ >;34;>;FK 3F F:7 7@6 A8 8AD 355DG76 BAEFD7F;D7?7@F 47@7VFE '1*= ,87=.< * 98L@AKDA9:ADALQ9K>GDDGOKY4+7) 9DKG E9AFL9AFK @=9DL@ ;9J= 9F< DA>= AFKMJ9F;= :=F=_L HD9FK ;GN=JAF? =DA?A:D= 0. J=LAJ=< =E

HDGQ==K 9F< ;=JL9AF J=LAJ==K >JGE >GJ=A?F DG;9LAGFK "=F=J9DDQ L@= E=E=GJ+GKLJ=LAJ=E=FL=F=>ALK

(G7EF;A@ EEG?7 F:3F A@7 A8 F:7 7?B>AK77E 8AD F:7 $;5:;93@ A?B3@K ;E 5GDD7@F>K F:;DFK8AGD K73DE A>63@6 ;E 7@F;F>76 FA 57DF3;@ BAEFD7F;D7?7@F 47@7VFE EF3DF;@9 3F F:7 397 A8 E;JFKVH7 +:7 5A?B3@K :3E BDA?;E76 FA 5A@F;@G7 B3K;@9 :73>F: 53D7 3@6 >;87 ;@EGD3@57 BD7?;G?E 8AD 3>> D7F;D77E 3E >A@9 3E F:7K >;H767 ADF:;E 7?B>AK77 @A BAEFD7F;D7?7@F 47@7VFE I;>> 47 B3;6 8AD F:7 @7JF F:;DFKA@7 K73DE >7EE 8F7D F:3F3@ G@=@AI@ B3K?7@F 3?AG@F I;>> 479;@ 3@6 5A@F;@G7 8AD 3@ G@=@AI@ B7D;A6 A8 F;?7 @ A@7 A8 F:7AB7@;@9 5:3BF7DE A8 F:;E 4AA= F:7 5:3>>7@97 BD7E7@F76 FA 355AG@F3@FE 3E 3 D7EG>F A8 8GFGD7 G@57DF3;@FK I3E6;E5GEE76 'DA434>K @A 47FF7D 7J3?B>7 A8 G@57DF3;@FK 53@ 47 8AG@6 F:3@ BAEFD7F;D7?7@F 47@7VFE '3K?7@FE?3K5A@F;@G78AD675367E3@6@7;F:7DF:7;D3?AG@F@ADF:7;D6GD3F;A@;E?AD7F:3@39G7EE

&*($)*%$$")**#$*)-*$%(#*%$)%$,/%+*%*($%$+(($*""*)


35FG3DK

GBG=BOB=N:EPAHF:MA>F:MBEBD>EBAHH=H??NMNK>>O>GML

+:7 7?B>AK77 ;E :7>B;@9 F:7 5A?B3@K 97@7D3F7 D7H7@G7E 5GDD7@F>K EA F:3F 3E 3>I3KE F:7 D7>3F76 7JB7@E7 E:AG>6 47 D75A9@;L76 @AI 355AD6;@9 FA F:7 ?3F5:;@9 BD;@5;B>7 >F:AG9: F:;E A4>;93F;A@ ?;9:F @AF47 B3;6 8AD ?3@K K73DE 4AF: F:7 7JB7@E7 3@6 D7>3F76 >;34;>;FK 3D7 D75AD676 I:7@ F:7 B7DEA@ ;E 35FG3>>KIAD=;@98ADF:75A?B3@K3@673D@;@9F:7E747@7VFE

AI ;E F:7 3?AG@F A8 F:;E >;34;>;FK BAEE;4>K 67F7D?;@76 @ 7?B>AK77 ?;9:F D7F;D7 3F E;JFKVH7 3@6F:7@ 6;7 3F E;JFKE;J AD >;H7 FA 47 @;@7FK@;@7 '>GE 7EF;?3F;@9 F:7 5AEF A8 ;@EGD3@57 7EB75;3>>K ?76;53> ;@EGD3@57 AH7D E7H7D3> 675367E ;@FA F:7 8GFGD7 E77?E FA 47 3 H;DFG3>>K ;?BAEE;4>7 5:3>>7@97 +:7 E=KDA5=7F;@9 5AEF A8 :73>F: 53D7 ;E 6;X5G>F FA 3@F;5;B3F7 ?A@F:E ;@ 36H3@57 >7F 3>A@7 675367E +:7 6A>>3D 3?AG@F A8F:7 5A?B3@KQE A4>;93F;A@ 8AD F:7E7 8GFGD7 5AEFE 3BB73DE FA 47 3 @74G>AGE V9GD7 3F 47EF @ F:;E F7JF4AA=BD7H;AGE >;34;>;F;7E :3H7 477@ 5A@FD35FG3> AD 3F >73EF EG47 7EF;?3F;A@ BD;AD FA D75A9@;F;A@ 8@ 2< =1. 52*+252=B ,*5,>5*=.- =1*= @255 +. ;.98;=.- +B * ,869*7B /8; =1. 98,:RF>GML

/M>I0PH:E,K>L>GM2:EN>H?!LMBF:M>="NMNK>,:RF>GML

$$"%+$*$,()%$


* ) * / % + ( ) "

'G7EF;A@

0A> &HAGLHG HKIHK:MBHG ABK>L >FIEHR>>L BG 5>:K +G> M MA:M MBF> MA> HK@:GBS:MBHG F:D>L : IKHFBL> MH>:FIEHR>>L %? MA>R PBEE PHKD ?HK &HAGLHG ?HK MP>GMR R>:KL MA> @> >=NBK G M MA:M MBF> GHG> H? MA> >FIEHR>>L A:L : NGMBE :?M>K MA>G>QMLBQR>:KL3AB?HEEHPBG@LM:M>F>GMLBLMKN>

: 0A>IHKM:G>QI>GL>:G=:EB:;BEBMR:MMA>>G=H?5>:K+G>; 0A>IHKMBG@:G>QI>GL>:G=:EB:;BEBMR:?M>KLBQR>:KL< 0A>IHKMBG@:G>QI>GL>BG5>:K+G>;NMGHEB:;BEBMR= 0A>O>KK>IHKMMABLIKHFBL>:L:G>QI>GL>:G=:EB:;BEBMR

@EI7D

0A>KBLIHKM:G>QI>GL>:G=:EB:;BEBMR:MMA>>G=H?5>:K+G>

JB>3@3F;A@

&HAGLHG HKIHK:MBHG A:L ;>@NG MH BGQI>= G>`ML ?HK BML >FIEHR>>L 0A> K>E:M>= >QI>GL> LAHNE= ;> K>= ;>@BGGBG@ BG 5>:K +G> ;> MA>L> >FIEHR>>L :K> PHKDBG@MH @>G>K:M> K>O>GN>L G : MA> >O>GMN:E ;:L>= HG MA> :FHNGM H? PHKDI>K?HKF>= MH =:M> IK>L>GM O:EN> G ;> F:=> MH =>M>KFBG> MA> :FHNGM H? MABL >QI>GL>:G=EB:;BEBMRMA:M:K>:IIEBMHMA>`KLMR>:K

/@=GFK=IM=F;=KG>#9NAF?LG-=HGJL9'A9:ADALQ

(G7EF;A@ 5,8* D75A9@;L7E 3@ 355DG76 BAEFD7F;D7?7@F 47@7VF >;34;>;FK A@ ;FE 43>3@57 E:77F A8 4;>>;A@+:;E @G?47D ;E F:7 BD7E7@F H3>G7 A8 F:7 7EF;?3F76 3?AG@FE F:3F F:7 5A?B3@K I;>> :3H7 FA B3K EF3DF;@9I:7@ 735: 7?B>AK77 D7F;D7E J57BF 8AD F:7 ;@:7D7@F >7H7> A8 G@57DF3;@FK F:;E 355AG@F;@9 E77?E D73EA@34>7 F A@7 F;?7 675367E 39A 5A?B3@;7E I7D7 @AF D7CG;D76 FA D75A9@;L7 F:;E A4>;93F;A@ +:7 >;34;>;FK I3E;9@AD76 3@6 5AEFE I7D7 E;?B>K 7JB7@E76 3E B3;6 &@>K 38F7D 36H3@576 5A?BGF7D F75:@A>A9K 3@6 EAB:;EF;53F76 ?3F:7?3F;53> 8AD?G>3E 4753?7 3H3;>34>7 I3E F:7 D7BADF;@9 A8 F:;E >;34;>;FK ?3@63F76 '1*= 2< =1.269*,=8/;.98;=27098L@=AJ =;GFGEA; @=9DL@ 9F< NAL9DALQ #GO=N=J :=LL=J 9;= 9J= L@= J=KMDL G> HJGEAK=KL@9LO=J=E9

674FFA7CG;FKD3F;A

F>:LNK>H?:H?=>;M?HK`G:GLBMBL=;R=BOB=BG@MHM:EEB:;BEBMB>L;RMHM:ELMHKLZ>JNBMR

* ) * / % + ( ) "

'G7EF;A@

+G BML FHLM K>GM ;:E:G LA>>M MA> .:G=E> HFI:GR K>IHKML : GHGGM EB:;BEBMR H? FBEEBHG :L :G :MBK>F>GM;>G>`MH;EB@:MBHG3AB?HEEHPBG@LM:M>F>GMLBLE>:LMEBD>ERMH;>MKN>

: 0A>:FHNGMMH;>I:B=PBEE;>FHK>MA:GFBEEBHG; 0A>MA>FBEEBHGBGGMLL=NE>=HNM:ML>MMBF>L< 0A>FBEEBHG`@NK>BL:KH?=BbLMBF:MBHGL= 0ABLEB:;BEBMRQM>G=BGMHMA>?NMNK>?HKL>O>K:E=>L

@EI7D

0A> K BL MA> FBEEBHG BG GML L=NE>= HNM :M L>MMBF>L

JB>3@3F;A@

,HLMK>MBK>F>GM ;>G>`ML :K> :FHNGML MA:M : :KL BGMH MA> ?NMNK> H?M>G ;:L>= HG MA> EB?> >QI>>L ?M>K :FHNGML :K> =>M>KFBG>= ;:L>= HG L>O>K:E >LMBF:M>L GML :K> K>=N= MHIK>L>GM O:EN> ?HK K>IHKMBG@ INKIHL>L > H? MA> E>G@MA H? MBF> BGOHEO>= IK>L>GM O:EN> BL H?M>G FNLLMA:G MA> :GMB= GML >M>KFBG:MBHG H? MA> >Q:GML BL LN;C>LMA:M:K>GHMR>MDGHPGLN>QI>

F;?7E;@F7D7EF73D@76*

F>:LNK>H?:>MH;EB@:MBHGL:LMA>R=N>BMBL=;RM:DBG@!%0>:KGBG@L;>?HK>BGM>K>LM:G=M:Q>L:G==BOB=BG@MA:MGNF;>K;RBGM>K>LM>QI>GL>?HKMA>I>KBH=

FGL@=J E=L@G< LG =N9DM9L= L@= HGL=FLA9D HJG:D=E HGK=< :Q 9 ;GEH9FQXK GJ L@= H=JAG< AK L@=F

*3>=;@9I;F:3(73>@H7EF;@9&DAA@F;@G76

"HEEHPBG@BL:KOB>PPBMA'>OBG#NKGL

Question (>:L> :KK:G@>F>GML :K> JNBM> LL >GOBKHGF>GM "HK : :L> MA>IK>L>GM O:EN> H? MA> ?NMNK> I:RF>GML BL K>IHKM>= ;R MA> E>LL>> :L : EB:;BEBMR %G K:MBG@ E>:L>HGER MA> :FHNGM GMER =N> BL BG= HG MA> ;:E:G LA>>M :L : EB:;BEBMR 0A> K>IHKMBG@ H? LN>M `G:G>G ;NLBG>LL>L H?M>G @H HNM H? MA>BK P:R MH :M> HI>K:MBG@ E>:L>L MHFBGBFBS> MA> MHM:E LAHPG ?HK MA>BK =>;ML $HP>O>K BG?HKF:MBHG :;HNM MA>L> HI>K:MBG@ E>:L>L FNLM ;> :KER=BL= BG MA> GHM>L MH MA> `G:GF>GML K> RHN = PA>G RHN L>> : >M `G:G?>K : LRLM>F PA>K> L A:= MH K>IHKM FHK> H? MA>BK =>;ML?KHF E>:LBG@ :KK:G@>F>GML H RHN ;>EB>O> H_;:E:G LA>>M `G:GF ?HK MA> NL>KL H? `G:GM `G:G?>K ?NEE HK >O>G MHHFN:L> BL : EB:;BEBMR %M LAHNE= ;> @HKBS>= :L LN:EER JNBM> LBFIE>XLAHP MA> EB:;BEBMR $:OBG@ BG?HKF:MBHG BG MA> GHM>L A>EIL ;NM EB:;BEBMB>L LAHNE= ;> K>IHKM>= HG MA> ;:E:G LA>>M ?HK :EE MH L>>>:LBER GRMABG@ MA:M K>=NL MK:GLI:K>G :HIE> K>ERBG@ HG K>IHKM>=`G:G?>K ?HK L MH A:O> E>LL =>;M NM MA>K> :K> >QIMBHGL % HPG : LM:D> BG : ;NBE=BG@ MA:M A:L A:= : LB@GB` > MA>R NL> MA:M ;NBE=BG@ MA>R :=O:GM:@> H? MA:M BG:L> BG O:EN> % LN@@>LM>= MH MA> F:G:@>F>GM MA:M MA>R L>EE MA> ;NBE=BG@ MH @>M:EE H? MA:M FHG>R :G= MA>G E>:L> MA> ;NBE=BG@ ;:R BM 0A>R PHNE= A:O> MH K>IHKM MA> EB:;BEBMR?HKMA>E>:L>;NMMA>R@>MMA>BKFHG>RBG:NL:;E>?HKFKB@AMGHP:G=MA>RF:BGBGMA>;NBE=BG@

,;67A>;B

,KH?>LLHK&H>$HRE>M:EDL:;HNMMA>`O>FHLMBFIHKM:GMIHBGMLBG A:IM>K

2B>PMA>OB=>HHGEBG>:MAMMI;BMERAHRE>

$$"%+$*$,()%$


)*!#+/ - 3 -$. .

' + ) * % $ )

0A>HFI:GR;NRL:E:K@>IB>H?>JNBIF>GMPAB=B:M>ERE>:L>LMH6>;K:HKIHK:MBHG?HKÒ>R>:KL3ABLLHK:G=PABLL>>

%GLBFIE>LMM>KFLPA:MBL:GHI>K:MBG@E>:L>%GLBFIE>LMM>KFLPA:MBL::L> +G >F;>K5>:K+G>:>LMHI:RI>KR>:K?HKMA>G>QMGBG>R>:KLMHE>:L>:

E:K@>IB>H?F:KR0A>`KLMI:RF>GMBLF:=>PA>GMA>K:MBG@E>:L>PA:M:II>:KLHGMABL>M:M >F;>K5>:K+G>

1L>MA>BG?HKF:MBHGBGJN>LMBHGMH>QIE:BGMA>M>KF[H_;:E:GLA>>M`G:GF;>K5>:K+G>:>LMHI:R:L>M:FHNGM>::K?HKLBQR>:KLMHE>:L>:E:K@>

MKNL0A>`KLMI:RF>GMBLF:=>PA>GMA>:KLHGMABL>M:M >F;>K5>:K+G>

Ò>R>:KE>:L>BLLB@G>=MMA>>G=H?MA:MMBF>MA>E>LL>>E>:L>=:LL>M?HK:G:FHNGMH?FHG>RMA:MBLOB>P>=:L:;:K@:BG3AR=H>LMABLHIMBHGF:D>MA>:L>BLLB@G>=?HKIKHI>KMRMA:MA:L:G>QI>=EB?>H?M>GR>:KL0A>E>:L>BL?HKHGER>B@AMR>:KL3AR=H>LMA>E>G@MAH?MABLE>:L>K>JNBK>MA>I:KMB>LMHK>

$HPF:GRH?MA>?HNKHbF>MMHK>JNBK>:L>:LMA:MBMLBGF>GM:E;HKKHPBG@K:M>BLI>KGM3A:MBLF>:GM;RMA>M>KF

[BGF>GM:E;HKKHPBG@K:M>\ @HMB:MBG@MHE>:L>:G:LL>M?HKNL>BGBML;NLBG>LLHI>K:MBHGL3ARPBEE:@K>>F>GM:L:GHI>K:MBG@E>:L>K:MA>KMA:G:L::L> +G&:GN:KR5>:K+G>MA>MDBGLHKIHK:MBHGLB@GL:?HNKR>:KE>:L>PBMAMA>`KLMI:RF>GMF:=>

BFF>=B:M>ER%?MABL:L>PA:MMRI>H?>QI>GL>HK>QI>GL>LPBEE;>K>=:MMA>>G=H?5>:K+G>

+G&:GN:KR5>:K+G>MA>:KE>MHGHFI:GRLB@GL:Ò>R>:KE>:L>PBMAMA>`KLMI:RF>GMF:=>BFF>=B:M>ER%?MABLH?>QI>GL>HK>QI>GL>LPBEE;>K>=:MMA>>G=H?5>:K+G>

:L>L:;NBE=BG@?HK>B@AM>>GR>:KL:G=K>3AR=H>LMA>A:G=EBG@H?MABLE>:L>BEENLMK:M>MA>=>LBK>H?:K?HKF

0A>):KE>GMHHFI:GRK>IHKMLG>MBGBG5>:K+G>?HK`G:GIHKMBG@INKIHL>LH?$HP>O>KPA>GMA>I:K>LBMLBGM:QK>MNKG?HK5>:K+G>M:Q:;E>BGBLLAHPG:LHGER%G@>G>K:EPAR:K>MA>L>MPHBGMHM:EL=B_>K>GM

3A:MBLF>:GM;RMA>M>KF[M>FIHK:KRM:Q=B_>K>G\ 0A>3RG=LHDBHKIHK:MBHGK>IHKML:@:BGH?FBEEBHGBG5>:K+G>"HKBGM:QINKIHL>LMA>@:BGBL

GHMM:Q:;E>NGMBE5>:K"HNK3BEEE:R3ARHKPARGHM 0A>(>G=FHKHKIHK:MBHG>:KGLBGH?FBEEBHGBG5>:K+G>;>?HK>BGM:Q>L$HP>O>K;R

?NEIE:GGBG@:EEH?MABLBGA:L;>>G=>?>KK>=?HKM:QINKIHL>LNGMBE5>:K"HNKLLNF>MA:MMA>M:QK:M>BLI>KGM3A:M:=CNLMBG@>GMKRB?:GRBLF:=>?HKBGM:Q>L:MMA>>G=H?5>:K+G>

0A>LMHFHKBHKIHK:MBHG;NRLE:G=?HKBG5>:K+G>:G=L>EELBM?HKBG5>:K0PH0A>:K0AK>>:G=MA>HMA>KA:E?BG5>:K"HNKLLNF>MA:MMA>M:QK:M>BLI>KGM%GPA:MR>:KBLMA>BGM:Q>QI>GL>K>=HGMABL@:BG3A:MCHNKG:E>GMKRHK:=CNLMBG@>GMKRBLNL>=MHK>BGM:Q>QI>GL>:MMA>>G=H?5>:K0PH

&:G>N>GMB&HG>LBLABK>=;RMA>E>O>E:G=HKIHK:MBHG/A>BLMABKMRR>:KLHE=0A>LMHI:RA>KF>=BLA>PHKDL?HKMA>KLA>K>MBK>L3A:MBLMA>:K>

0A>;K:A:FHFI:GRBG?HKFL:EE>FIEHR>>LMA:MMA>BKEB?>BGLNK:GPBEE;>I:B=;RMA>::K:?M>KMA>RK>MBK>3A:MFNLM;>=HG>MH=>M>KFBG>MA>:FHNGMLMH;>K>IHKM>=HGMA>GMLBGMA>GMR>:K

3A:MKHE>=H>L:G:GM;>G>`ML 3A:MBFI:IHKMBG@H?IHLMK>MBK>F>GM;>G>`MLA:O>HGFIEHR>>L `G:GGMBHGLMA:M:KM:BGIHKML!%0H?FBEEBHG3A:M=H>L!%0K>IK>L>GM 0A>&:F>LHFI:GRK>IHKMLEB:;BEBMB>LH?FBEEBHG:G=LMHKLZ>JNBMRH?FBEEBHG0A>GCNLM

;>?HK>MA>>G=H?MA>GMR>:KMA>KFEB:;BEBMRPBMABGBFI:GMHG&:F>LHFI:GRZL=>;MMH>JNBMRK:MBH

IHKML:GNF;>KH?`@NK>LHGBMLBGLM:M>F>GMBGGM>QI>GL>H?BGM>K>LM>QI>GL>H?:G=BGM:Q>QI>GL>H?0A>MBGP:LLAHPG:LFBEEBHGHFINM>MA>MBF>LBGM>K>LM>:KG>=K:MBH?HKMABL

* ( + % ( " )

9999E>LL>>MA:MBLK>IHKMBG@MA>>_>PBEEK>IK>QI>GL>HGMA>E>:L>=IKHI>KMR

9999:L>BL:Q:FIE>H?H_;:E:GLA>>M`G:GLL>>G>@HMB:M>LMA>E>:L>H?:IB>H?>JNBIF>GM0A>E>LL>>PBEEEBD>ER:MM>FIMMHLMKNMA>

E>:L>:L:GHI>K:MBG@E>:L> 9999E>:L>A:L;>>GLB@G>=MA:MF>>MLHGERMPHH?MA>?HNKKB:?HK::L>0ANLMABL

MK:GL:K>=:L:GHI>K:MBG@E>:L> 9999(>LL>>LNLN:EERIK>?>KMHK>:L>L:LHI>K:MBG@E>:L>LK:MA>KMA:G:L>L 9999 >IK>K>LM:K>;HMAK>=;R:E>LL>>BG;NMGHM

:GHI>K:MBG@E>:L> 9999E>:L>BLLB@G>=HG >F;>K5>:K+G>MA:MGMLH?0A>IK>L>GM

O:EN>H?MA>L>I:RF>GMLBL0A>E>:L>BL:GHI>K:MBG@E>:L>+GBML >F;>K5>:K+G>;:E:GLA>>MMA>:L>:LL>MA:L:G>QI>=EB?>H?MP>EO>R>:KL0A>E>LL>>:LL>M:MMA>>G=H?LBQR>:KL?HK0A>E>:L>A:LMH;>K>=:L:M

9999+G&:GN:KR5>:K+G>:E>:L>BLLB@G>=MA:MBL::L>0A>GML:K>I>KR>:KLM:KMBG@HG&:GN:KR5>:K+G>0A>IK>L>GMO:EN>H?MA>?HK>MA>`KLMI:RF>GMBL%?MA>BGF>GM:E;HKKHPBG@K:M>BLI>KGMMA>E>LL>>K>LBGM>K>LMH??HKMA>`KLMR>:K

9999:K+G>BGLM:M>F>GMK>IHKMLG>MBGH?0A>BG?HKMA:ML:F>R>:KPBEE:ELH;>

9999%?:@:BGBL>:KG>=BG5>:K+G>;NMM:Q>=BG5>:K0AK>>MA>K>E:M>=>QI>GL>BLK>IHKM>=BG5>:K+G> 9999%?:@:BGBL>:KG>=BG5>:K+G>;NMM:Q>=BG5>:K0AK>>:=>?>KK>=M:QEB:;BEBMRBLK>IHKM>=:MMA>>G=H?

5>:K+G> 99990A>=>?>KK:EH?BGM:QI:RF>GMLBLOB>P>=:L:LMK:M>@R?HKBG:LBG@K>IHKM>=G>MBG 99993A>GNLBG@MA>BGLM:EEF>GML:E>LF>MAH=?HKM:QINKIHL>L@:BGL:K>@>G>K:EERM:Q>=PA>GMA>L:E>BL

F:=> 9999,HLMK>MBK>F>GM;>G>`ML:K>GHM>QI>GL>=NGMBEMA>R:K>I:B= 99990A>EB:;BEBMRK>=?HKIHLMK>MBK>F>GM;>G>`MLK>a>QI>GL>PBEE;>K>=BGG>`MLMA:MLA>PBEEK>BO>:?M>KA>KK>MBK>F>GMBG 9999HFI:GB>LPHKDMHK>=NMA>BK=>;MMH>JNBMRK:MBH;>H?MA>KBLDMA:MMABL`@NK>K>a>LBGM>K>LM>:KG>=BL?HNG=;R=BOB=BG@BGM>K>LM>QI>GL>?HKMA>I>KBH=;RMA>

MHM:E:FHNGMH?GHGGMEB:;BEBMB>L

$$"%+$*$,()%$


# + " * & " %

3B:L>L:E:K@>F:PBMA:EB?>H?MP>GMRR>:KL3AB?HEEHPBG@=H>LGHMG>LLBM:M>K>IHKMBG@MABLE>:L>BLHGER?HKLBQM>>GR>:KL; MMA>>G=H?MA>E>:L>3BMH;NRMA>F::M:G:FHNGM

LB@GB`EHP>QI>=?:BKO:EN>< MMA>>G=H?MP>EO>R>:KLMBME>MHMA>F:@H>LMH3B::KHO>K:E>:L>EB?>H??HNKM>>GR>:KL

/BS>FHK>HKIHK:MBHGE>:L>L:;NBE=BG@MHNL>?HKMA>G>QMMP>GMRR>:KL3AB?HEEHPBG@BLMKN>:;HNM/BS>FHK>ZLK>IHKMBG@

: %?MABLGM>QI>GL>BLK>=>:KBH=; %?MABL:L>=>IK>QI>GL>BLK>=>:KBH=< %?MABL:L>BGM>K>LM>QI>GL>:G=K>GM>QI>GL>:K>K>=>:KBH== %?MABLIK>QI>GL>:G=BGM>K>LM>QI>GL>:K>K>=>:KBH=

E;>F:KE>HKIHK:MBHGE>:L>L:MKN:KL:G=BLMKRBG@MH=>M>KFBG>PA>MA>KMA>K:MBG@E>:L>HK::L>3AB?HEEHPBG@BLMKN>

: E;>F:KE>PBEEP:GMMA>E>:L>MH;>::L>;>E>LLBGM>K>LMBLK>IHKM>=; E;>F:KE>PBEEP:GMMA>E>:L>MH;>::L>;>E>LL=>IK>IHKM>=< E;>F:KE>PBEEP:GMMA>E>:L>MH;>:GHI>K:MBG@E>:L>;>MA>K>IHKM>=EB:;BEBMRPBEE;>

EHP>K= E;>F:KE>PBEEP:GMMA>E>:L>MH;>:GHI>K:MBG@E>:L>;>MA>K>IHKM>=:LL>M;:E:GPBEE

;>E:K@>K

)R>KLHFI:GRE>:L>L:;H:MHG&:GN:KR5>:K+G>0A>E>:L>=H>LJN:EB?R:L::L>0A>E>:L>KL?HNKR>:KLPBMAI:RF>GMLH?:GGN:EER;>@BGGBG@HG&:GN:KR5>:K+G>0A>>QI>=EB?>H?MA>;H:MBLLBQR>:KL)R>KL:GGN:EBGF>GM:E;HKKHPBG@K:M>BLI>KGM0A>IK>L>GMO:EN>H?:GHK=BG:KR:GGNBMR?HK?HNKR>:KL:M:I>KGMK:M>BL0A>IK>L>GMO:EN>H?:G:GGNBMR=N>?HK?HNKR>:KL:M:I>KGMK:M>BL3A:M:FHNGMH?=>IK>=LAHNE=)R>KLK>HGMA>;H:M?HK5>:K+G>B?)R>KLLMHNL>MA>LMK:B@AMEBG>F>MAH=

: ; < =

A:KEHMM>HFI:GRE>:L>L:IB>H?>JNBIF>GMHG">;KN:KR0A>E>:L>KLMPHR>:KL:EMAHN@AMA>EB?>H?MA>>JNBIF>GMBL?HNKR>:KL0A>GM=H>LGHMMK:GL?>KMHA:KEHMM>:MMA>>G=H?MA>E>:L>:G=MA>I:RF>GML=HGHM:IIKHQBF:M>MA>?:BKO:EN>H?MA>>JNBIF>GM0A>:GGN:EI:RF>GML:K>=N>>:;KN:KR

: +(

&*($)*%$$")**#$*)-*$%(#*%$)%$,/%+*%*($%$+(($*""*)


; +(

< +(

= +(

+G >F;>K5>:K+G>MA>K:G@=HGHKIHK:MBHGE>:L>L:MKNBGBMLHI>K:MBHGL0A>MKNH?M>GR>:KL:EMAHN@AMA>E>:L>BLHGER?HKLBQR>:KL,:RF>GML:K>I>KR>:KPBMAMA>`KLMI:RF>GMF:=>BFF>=B:M>ER*HBGM>K>LMI:RF>GML:K>F:=>;NMK:G@L=HGA:L:GBGF>GM:E;HKKHPBG@K:M>H?I>KGM0A>IK>L>GMO:EN>H?:G:GGNBMR=N>:M:I>KGMK:M>?HKLBQI>KBH=LBL0A>IK>L>GMO:EN>H?:GHK=BG:KR:GGNBMR:M:I>KGMK:M>?HKLBQI>KBH=LBL%?MABLBL:GHI>K:MBG@E>:L>PA:M`@NK>BLK>=BGBMB:EER:LMA>=MKNKH; < =

+G >F;>K5>:K+G>MA>/EBROHB=HKIHK:MBHGE>:L>L:E:K@>F:?HKÒ>R>:KLBML>GMBK>>QI>=EB?> >IK>=NLBG@MA>LMK:B@AMEBG>F>MAH=,:RF>GML:K>I>KR>:KLM:KMBG@HG >F;>K5>:K+G>:G=>O>KR >F;>KMA>K>:?M>K0A>BGF>GM:E;HKKHPBG@K:M>BLI>KGMI>KR>:K0A>IK>L>GMO:EN>H?:G:GGNBMR=N>:M:I>KGMK:M>?HKÒ>I>KBH=LBL0A>IK>L>GMO:EN>H?:GHK=BG:KR:GGNBMR:M:I>KGMK:M>?HKÒ>I>KBH=LBL3A:MBLMA>G>M;HHDO:EN>H?MA>E>:L>=:LL>MHG >F;>K5>:K0PH

: ; < =

1L>MA>L:F>BG?HKF:MBHG:LBGIKH;E>F >M>KFBG>MA>BGM>K>LM>QI>GL>MH;>K>=BG5>:K0PH

: ; < =

1L>MA>L:F>BG?HKF:MBHG:LBGIKH;E>F >M>KFBG>MA>E>:L>EB:;BEBMRMH;>K>IHKM>=HGMA>>M:MMA>>G=H?5>:K0PH

:

$$"%+$*$,()%$


; < =

+G >F;>K5>:K+G>HFI:GRE>:L>L::KL:G=I:RLI>KR>:KPBMAMA>`KLMI:RF>GMF:=>BFF>=B:M>ERHFI:GR;>EB>O>LMA>:LL>MA:L:EB?>H?LBQR>:KL:G=K>K:MBG@E>:L>+G >F;>K5>:K+G>HFI:GRE>:L>L:GB=>GMBKR>:KPBMAMA>`KLMI:RF>GMF:=>BFF>=B:M>ERHFI:GR;>EB>O>LMA>:LL>MA:L:EB?>H?`O>R>:KL:G=K>0A>LMK:B@AMEBG>F>MAH=H?=>IK>=HMALA:O>:G:GGN:EBGF>GM:E;HKKHPBG@K:M>H?I>KGM0A>IK>L>GMO:EN>H?:G:GGNBMR=N>H?HO>K?HNKR>:KL:M:I>KGMBGM>K>LMK:M>BL3AB?HEEHPBG@BLMKN>

: HFI:GRPBEEK>IHKMFHK>>QI>GL>BG5>:K0PHMA:GHFI:GR;R; HFI:GRPBEEK>IHKMFHK>>QI>GL>BG5>:K0PHMA:GHFI:GR;R< HFI:GRPBEEK>IHKMFHK>>QI>GL>BG5>:K0PHMA:GHFI:GR;R= HFI:GRPBEEK>IHKMFHK>>QI>GL>BG5>:K0PHMA:GHFI:GR;R

,HMLEBMBGBHKIHK:MBHGA:L:E:K@>:FHNGMH?BGMA:MBL>:KG>=BG5>:K+G>;NMPBEEGHM;>LN;C>LNGMBE5>:K0AK>>3AB?HEEHPBG@LM:M>F>GMLBLMKN>?HK`G:GIHKMBG@INKIHL>L

: 0A>BGM:Q>QI>GL>BLK>IHKM>=PA>GMA>BG:II>:KLHGMA>MNKG

; 0A>BGM:Q>QI>GL>BLK>IHKM>=PA>GMA>M:QFHG>RBLIARLB@HO>KGF>GM< 0A>BGM:Q>QI>GL>BLK>IHKM>=BG5>:K+G>PA>GMA>BGBL>:KG>== 0A>BGM:Q>QI>GL>K>IHKM>=BGMABLIKH;E>FBG5>:K0AK>>

":K@HHKIHK:MBHG>:KGLK>O>GN>BG5>:K+G>MA:MPBEE;>K>IHKM>=HGBML5>:K+G>BGLM:M>F>GM;NMPBEEGHM;>K>IHKM>=HGBMLM:QK>MNKGNGMBE5>:K0AK>>0ABLK>O>GN>:FHNGMLMH:G=":K@HZLM:QK:M>BLI>KGM3AB?HEEHPBG@LM:M>F>GMLBLMKN>

: ":K@HLAHNE=K>IHKM:=>?>KK>=M:QEB:;BEBMRH?:MMA>>G=H?5>:K+G>; ":K@HLAHNE=GHMK>:GR=>?>KK>=M:QEB:;BEBMRNGMBE5>:K0AK>>< ":K@HLAHNE=K>IHKM:=>?>KK>=M:QEB:;BEBMRH?:MMA>>G=H?5>:K+G>= ":K@HLAHNE=K>:=>?>KK>=M:QEB:;BEBMRPA>GMA>I:RF>GMBL>O>GMN:EERI:B=

0A>/BGLHGHFI:GR;NRLE:G=BG5>:K+G>?HK:G=MA>GL>EELBMBG5>:K0PH?HK0A>:K"HNK"HKBGM:QINKIHL>L/BGLHGPBEENL>MA>BGLM:EEF>GML:E>LF>MAH=/BGLHGA:L:M:QK:M>H?I>KGM3AB?HEEHPBG@LM:M>F>GMLBLMKN>

: /BGLHGK>QI>GL>H?BG5>:K0PH; /BGLHGK>QI>GL>H?BG5>:K"HNK< /BGLHGK>?>KK>=BGM:QEB:;BEBMRH?:MMA>>G=H?5>:K0PH= /BGLHGK>?>KK>=BGM:QEB:;BEBMRH?:MMA>;>@BGGBG@H?5>:K"HNK

3AB?HEEHPBG@BL @AF :MKN>LM:M>F>GM:;HNMIHLMK>MBK>F>GM;>G>`ML

: MBK>F>GM;>G>`MLBLJNBM>=BbLMBF:M>; G>QI>GL>?HK:G>FIEHR>>ZL?NMNK>IHLMK>MBK>F>GM;>G>`MLLAHNE=;>K>==NKBG@MA>

I>KBH=MA>>FIEHR>>A>EIL@>G>K:M>K>O>GN>< 0A>EB:;BEBMR?HKIHLMK>MBK>F>GM;>G>`MLBLK>IHKM>=:MBMLIK>L>GMO:EN>= 0A>EB:;BEBMRK>IHKM>=?HKIHLMK>MBK>F>GM;>G>`MLK>IK>L>GMLMA>:MH

;>I:B=

MMA>LM:KMH?5>:K+G>MA>KD:GL:LHFI:GRIKHFBL>L:EE>FIEHR>>LMA:MBMPBEEI:RMA>BKF>=BKMA>RK>MBK>L:K>LNEMMA:M:EB:;BEBMRPBEEA:O>MH;>K>IHKM>=0ABLIKHFBL>BL>QI>=MHG>QMR>:KL3AHFHLMEBD>ER=>M>KFBG>=MABL`@NK>

: G:MMHKG>R; GBGLNK:G:@>GM< G:A>:=H?MA>>FIEHR>>@KHNI

1L>MA>BG?HKF:MBHGBGIKH;E>F3A:MEB:;BEBMR=H>LKD:GL:LA:O>MHK>IHKM:MMA>>G=H?5>:K+G>

: FBEEBHG;

&*($)*%$$")**#$*)-*$%(#*%$)%$,/%+*%*($%$+(($*""*)


< 0A>IK>L>GMO:EN>H?FBEEBHG= 6>KH

+GBMLE:M>LM;:E:GLA>>MMA>/>EE>KLHKIHK:MBHGK>IHKML:LL>MLH?:G=EB:;BEBMB>LH?3A:MBL/>EE>KLZ=>;MMH>JNBMRK:MBH

: MH; MH< MH= MH

0A>4BHFI:GRBLLM:KM>=:MMA>;>@BGGBG@H?5>:K+G>PA>GBMLHPG>KLBGIHKMLG>MBGH?:G=I:RLG=LH?>O>KRR>:KMA>K>:?M>KMMA>>G=H?5>:K0AK>>MA>IHKMLMHM:E:LL>MLH?+GMA:M=:M>PA:MBLMA>=>;MMH>JNBMRK:MBH

: MH; MH< MH= MH

;MMH>JNBMRK:MBHH?MH0A>BFI:=>;MMH>JNBMRK:MBH

: 0A>=>;MMH>JNBMRK:MBHPBEEBG:L>; 0A>=>;MMH>JNBMRK:MBHPBEE=>:L>< 0A>=>;MMH>JNBMRK:MBHPBEEGHM;>:_>== *H=>M>KFBG:MBHGH?MA>BFI:=>;MMH>JNBMRK:MBHF:=>PBMAMA>BG?HKF:MBHG

IKHOB=>=

$R=>HKIHK:MBHGA:LEHG@M>KFEB:;BEBMB>LLNL:G=E>:L>L?HKPABK>LM>QI>GL>FNLM;>::K+G>$R=>K>IHKM>=G>MBGH?:?M>KBGM:Q>LH?:G=BGM>K>LM>QI>GL>H?3AB?HEEHPBG@BL$R=>ZLMBF>LBGM>K>LM>:KG>=

: MBF>L; MBF>L< MBF>L= MBF>L

$$"%+$*$,()%$


, % & ( % " # )

,KH?>LLHK &H> $HRE> =BLL MA> :GLP>KL MH MA>L> MPH IKH;E>FL :M MA> EBGDL MA:M :K> BG=B= ?M>K ?HKFNE:MBG@RHNK:GLP>KLP:M:HMHL>>AHP,KH?>LLHK$HRE>:GLP>KLMA>L>JN>LMBHGL

5HNKKHHFF:M>BL:G!G@EBLAF:CHK0A>KHHFF:M>ZLI:K>GMLHPG:

& ( % " # )

+G+K5>:K+G>1GBM>=HFI:GRE>:L>L:GHbLI:BG:=HPGMHPG;NBE=BG@0ABLK:MBG@E>:L>1GBM>=I:RLBG:=O:G?HKK>GM>O>KRR>:K.>GMKB>L:G=:=CNLMBG@>GMKB>L?HK1GBM>=?HKMA>?HEEHPBG@=:M>LBGKMR

: +K5>:K+G>; >F;>K5>:K+G>< />IM>F;>K5>:K0PH

.:EIAHKIHK:MBHG:@K>>=MHE>:L>:IB>H?>JNBIF>GMMHFRHFI:GRHG&:GN:KR5>:K+G>0A>?HEEHPBG@BG?HKF:MBHGK>E:M>LMHMABLE>:L>

< 0A>E>:L>M>KFBLÒ>R>:KL:MMA>>G=H?PABMA>>JNBIF>GMPBEEK>O>KM;:EB?>H?MA>>JNBIF>GMBL>QI>=MH;>LBQR>:KL

< ,:RF>GMLH?PBEE;>=N>:MMA>;>@BGGBG@H?>::KPBMAMA>`KLMI:RF>GMMH;>F:=>:MMA>LB@GBG@H?MA>E>:L>

< FRZLBGF>GM:E;HKKHPBG@K:M>BLI>KGM0A>IK>L>GMO:EN>H?:LBG@E>I:RF>GMH?BGÒ>R>:KL:M:G:GGN:EBGM>K>LMK:M>H?I>KGMBL0A>IK>L>GMO:EN>H?:GHK=BG:KR:GGNBMRH??HKÒ>R>:KL:M:G:GGN:EBGM>K>LMK:M>H?I>KGMBL0A>IK>L>GMO:EN>H?:G:GGNBMR=N>H??HKÒ>R>:KL:M:G:GGN:EBGM>K>LMK:M>H?I>KGMBL

,K>I:K>MA>?HEEHPBG@CHNKG:E>GMKB>L?HKFR

: .>LB@GBG@H?MA>E>:L>HG&:GN:KR5>:K+G>; .>`KLMI:RF>GMHG&:GN:KR5>:K+G>< .>IK>>JNBIF>GMHG >F;>K5>:K+G>= .>K>LMHGMA>EB:;BEBMRHG >F;>K5>:K+G>> .>L>GMHG&:GN:KR5>:K0PH

+G&:GN:KR5>:K+G>(:G=HGHKIHK:MBHG=>LMHE>:L>:MKNKR>:K?HKMAK>>R>:KL0A>:GGN:EBGF>GM:E;HKKHPBG@K:M>?HK(:G=HGBLI>KGM0A>MKNH?Ò>R>:KL(:G=HGMHMA>MKNIK>L>GMO:EN>H?:G:GGNBMR=N>H??HKMAK>>R>:KL:M:G:GGN:EBGM>K>LMK:M>H?I>KGMBLMMA>E:LMFHF>GM(:G=HGLMA>:=H?MAK>>*HHMA>KL:K>F:=>0A>IK>L>GMO:EN>H?:G:GGNBMR=N>H??HK?HNKR>:KL:M:G:GGN:EBGM>K>LMK:M>H?I>KGMBL

: $HP=B=MA>?KHFMAK>>R>:KLMH?HNKR>:KL:_>>QI>GL>MH;>K>IHKM>=;R(:G=HGBG5>:K+G>

; $HP=B=MA>?KHFMAK>>R>:KLMH?HNKR>:KL:_>>QI>GL>MH;>K>IHKM>=;R(:G=HGBG5>:K0PH

< ?M>KM;HHDO:EN>PBEE;>LAHPG?HKMA>E>:L>=MKN>G=H?5>:K+G>

= ?M>K:L>EB:;BEBMR;:E:GPBEE;>LAHPG:MMA>>G=H?5>:K+G>

+G >F;>K5>:K+G>MA>;>KMBHGHFI:GR=>LMHE>:L>:IB>H?>JNBIF>GMK:MA>KMA:G;NRBM0A>E>:L>BL?HKR>:KL,:RF>GML:K>>:F;>K;>@BGGBG@HG >F;>K5>:K+G>;>KMBHGA:L:G:GGN:EBGF>GM:E;HKKHPBG@K:M>H?I>KGM0A>IK>L>GMO:EN>H?:G:GGNBMR=N>H?:MI>KGM?HKI>KBH=LBL

: LLNF>MABLE>:L>BL:GHI>K:MBG@E>:L>3A:MCHNKG:E>GMKB>L:K>F:=>BG5>:K+G>:G=5>:K0PH; LLNF>MABLE>:L>BL:GHI>K:MBG@E>:L>3A:MBLLAHPGHGMA>>M:MMA>

>G=H?5>:K0PH< LLNF>MABLE>:L>BL::L>3A:MCHNKG:E>GMKB>L:K>F:=>BG5>:K+G>:G=5>:K0PH= LLNF>MABLE>:L>BL::L>3A:MBLLAHPGHGMA>>M:MMA>>G=H?

5>:K0PH

0A>==:FLHKIHK:MBHGBLIK>I:KBG@MHE>:L>L>O>K:EE:K@>IB>LH?>JNBIF>GM0A>IK>LB=>GMA:L:LD>=MA>LMBHGL:;HNME>:L>::L>BL:GHI>K:MBG@E>:L>HK::L>; 3A:MBLF>:GM;RH_;:E:GLA>>M`G:GLH_;:E:GLA>>M`G:GE:M>MH

MA>K>IHKMBG@H?E>:L>L< 3ARBL:=BLK?HKFH?M>GA>:K=BG`G:GIHKMBG@

H?::L>

$$"%+$*$,()%$


+G&:GN:KR5>:K+G>(HKB%G=:`O>R>:K:L>?HKMA>NL>H?:G:LL>M,:RF>GML:K>HG>:@BGGBG@PBMA5>:K+G>(HKBZLBGF>GM:E;HKKHPBG@K:M>BLI>KGM0A>IK>L>GMO:EN>H?:G:GGNBMR=N>H?:MI>KGM?HKI>KBH=LBL

: >M>KFBG>(HKBZLBGM>K>LM>QI>GL>?HK5>:K+G>; LLNF>(HKBZLK>IHKM>=>:KGBG@L?HK5>:K+G>;>?HK>BGM>K>LM:G=M:Q>L:K> >M>KFBG>

(HKBZLMBF>LBGM>K>LM>:KG>=< LLNF>MA:MHG&:GN:KR5>:K+G>;>?HK>LB@GBG@MABLE>:L>:@K>>F>GM(HKBK>IHKM>=:LL>MLH?

:G=EB:;BEBMB>LH?3A:MBFI:JNBMRK:MBH

M >F;>K5>:K+G>MA>!B@AHKGHKIHK:MBHGA:LG>MBG:G=M:Q:;E>BGH?0A>_>M:QK:M>H?I>KGM0:Q>LA:O>GHMR>M;>>GK>=0A>GHGMA>E:LM=:RH?MA>R>:KMA>EELE:G=MA:MBM;HN@AML>O>K:ER>:KL:@H?HK0A>L:E>LIKBBL0A>FHG>RPBEE;>=BG5>:K0AK>>0A>MA>BGLM:EEF>GML:E>LF>MAH=MHK>IHKMMABLMK:GL:L

: 3A:M=H>LMA>IHKM:LBMLG>MBG?HK5>:K+G>; 3A>GBLMA>EB:;BEBMR?HKMA>BGM:QHGMA>@:BGHGMA>L:E>H?MA>E:G=K>IHKM>=3ARBLMABL

MBFBG@:IIKHIKB:M>

0A>5>EEHPHKIHK:MBHGK>IHKML:=>?>KK>=BGM:QEB:;BEBMRH?BGBML >F;>K5>:K+G>;:E:GLA>>M

: 3AR:K>=B_>K>GL:M>=;>MP>>G:IHKM>=G>MBG:G=MA>M:Q:;E>BG`@NK>LAHPGHGBMLBGM:QK>MNKG

; 3A:MBLF>:GM;RMA>M>KF[M>FIHK:KRM:Q=B_>K>G\< %G@>G>K:EPA:MBLMA>F>:GBG@H?:=>?>KK>=BGM:QEB:;BEBMR= %G:G:ERSBG@:L:K>@>G>K:EEROB>P>=:L:G>@:MBO>3AR=H=>?>KK>=BGM:QEB:;BEBMB>L

0A>#K>>G>HFI:GRA:LG>MBG;>?HK>BGM:Q>QI>GL>H?BG5>:K+G>$HP>O>K;>H?=B_>K>GL;>MP>>G1/#,:G=MA>M:QE:PLHGERI>KGMH?MABLBGBLM:Q>=BG5>:K+G>MH;>I:B=HG):K:K0PHGHMA>KI>KGMPBEE;>M:Q>=BG5>:K0PH:G=MA>`G:EI>KGMPBEE;>M:Q>=BG5>:K*BG>LLNF>MA>>_>M:QK:M>BLI>KGM

: 3A:M:=CNLMBG@>GMKRBLK>=:MMA>>G=H?5>:K+G>; 3A:M:FHNGMH?G>MBGLAHNE=;>K>IHKM>=;R#K>>G>HFI:GR?HK5>:K+G>

0A>E>NHFI:GRK>IHKML:EB:;BEBMR?HK[IHLMK>MBK>F>GM;>G>`ML\H?FBEEBHGHGBML >F;>K5>:K+G>;:E:GLA>>M

: !QIE:BGAHPMABLH;EB@:MBHGP:L:M>=; %G=>M>KFBGBG@MABLEB:;BEBMRH?FBEEBHGBKP:RMAKHN@AMPHLM>IL

>LMAHL>MPHLM>IL< /HF>LFB@AM:K@N>MA:MMABLEB:;BEBMRLAHNE=GHM;>K>IHKM>=HG:;:E:GLA>>M3A:M

:K@NF>GMPHNE=MA>RNL>?HKMABLIHLBMBHG

)RKME>%G@BGL5>:K+G>PBMAEB:;BEBMB>LH?:G=LMHKLZ>JNBMRH?+GMA>`KLM=:RH?5>:K+G>MA>?HEEHPBG@HGM>KLBGMH:GHI>K:MBG@E>:L>PA>K>BM:@K>>LMHI:RI>KFHGMA?HKP:K>AHNL>LI:0A>`KLMI:RF>GMBLF:=>

< )RKME>;HKKHPLBGO>K:EHPG>KLBGO>LM:MHM:EH?BGM>KFBG>)RKME>ZL=>;MMH>JNBMRK:MBH;>?HK>MA>:;HO>MK:GL:)RKME>ZL=>;MMH>JNBMRK:MBHKBG@MA>>_>:;HO>MK:GL:O>K:EI:LMKLP>F>M$>:MA>K)BEE>KPAHLM:KM>=A>KHPG;NLBG>LL/>PHHE0A>?HEEHPBG@:K>MA>`G:GF>GML?HK >F;>K

&*($)*%$$")**#$*)-*$%(#*%$)%$,/%+*%*($%$+(($*""*)


+( )7IAA>;@3@5;3>)F3F7?7@FE

+(

$$"%+$*$,()%$


+(

:L>=HGMA>`G:GF>GML=>M>KFBG>MA>?HEEHPBG@

: >;MMH>JNBMRK:MBH; 0BF>LBGM>K>LM>:KG>=

&*($)*%$$")**#$*)-*$%(#*%$)%$,/%+*%*($%$+(($*""*)


% # & ( $ ) , & ( % " #

0ABL IKH;E>F PBEE O>K:E KL ;NBE=BG@ BG =BbGML MH E>:KG>=BGIK>OBHNLKL

%G A:IM>K `G:GF>GML ?HK ">;KN:KR P>K> IK>I:K>= ?HK 3>;PHKDL 0A>R :K> BG= A>K> :L :LM:KMBG@IHBGM?HKMA>K>JNBK>=K>

+(

0A>?HEEHPBG@>O>GMLHO>GFHK>LBM>L:G=;BEELGML?HK; 3>;PHKDLINKLLNIIEB>LPHKMAHG:@BGGBG@H?):K;PHKDLA:=GBG>M>>GD>R;H:K=L:GMRa:LA=KBO>L

:;PHKDLNL>LI>KBH=B

= +G:B@AMRD>R;H:K=L?HK>:ANG=K>=a:LA=KBO>L?HK>: 3>;PHKDLL>EEL>B@AMR`O>D>R;H:K=L?HK:G=GBG>MRMPHH?MA>a:LA=KBO>L?HK;PHKDL;PHKDLI:RLH_H?BML:HG&:K=>M>KFBG>LMA:MLHF>H?ABL>JNBIF>GMBLGHM;>BG@NL>=:G=L>EEL

BM0A>>JNBIF>GMLHE=HKB@BG:EER;PHKDLLHE=MA>>JNBIF>GM?HK;PHKDLI:RL*:G>?HKA>KPHKD=NKBG@MA>`KLMMAK>>P>>DLH?):KHG&:MBG@:EEMA>BKPHKDGHPMA:MMA>;NLBG>LLA:L@KHPGGHMA>K:LLBLM:GM&N:G):K=3>;PHKDLI:RL&N:G?HKABLA>EI=NKBG@MA>`KLMMAK>>P>>DLH?):K;PHKDLPKBM>LH_:G:?KHF >F;>KBGMA>:FHNGMH?;>:KLNGEBD>ER

E 3>;PHKDLI:RLH_BMLL:E:KB>LI:R:;E>?KHF):K;PHKDLI:RL(>HG&:;PHKDLM>LMA>=>LB@G?HKMA>;:D>KR;NMGHMMA>IAHMH@K:IA>K?HKPABI:K>`G:GF>GML?HK):K

( ) ( ) ) $ # $ *

LLNF> MA:M RHN M:D> : CH; :L : LNFF>K >FIEHR>> ?HK :G BGO>LMF>GM :=OBLHKR L>KOB +G> H? MA> I:KMG>KL ?HKMA:M `KF BL GMER EHHDBG@ :M MA> IHLLB;BEBMR H? BGO>LMBG@ BG )GB7D,3>G @5 0A> I:KMG>K BL :P:K> MA:M )GB7D,3>G NL>L : EHM H? LMHK>L :G= MA>K>?HK> IKH;:;ER A:L MH E>:L> F:GR H? MAHL> LBM>L 0A> I:KMG>K BL MA>K MA>L> E>:L>L :K> FHLMER :L>L HK HI>K:MBG@ E>:L>L 0A> I:KMG>K :LDL RHN MH EHHD :M MA> `G:GF>GML?HK )GB7D,3>G ;R?HEEHPBG@MABLI:MA

< #HMH AMMIPPPLNI>KO:ENMHIKB@AMLB=>H?MABLL>GH?MA>G>QML>GKB@AMLB=>H?MA>G>QML>GF>GM\< +GMA>G>QML>G

))*/ .

L >QIE:BG>= BG NII>KE>O>E :K KM:BG LL>>FB@AMNL>MA>BFIEBK>LMK:M>;NBEMBGMHMA>E>:L>LLHK

+G :G !QE LIK>:=LA>>M MA> IK>L>GM O:EN> H? : I>K I>KBH= :GGNBMR =N> ?HK L>O>GI>KBH=L :M :G :LLNF>= :GGN:E BGM>K>LM K:M> H? I>KGM BL = ;R MRIBG@ MA>?HEEHPBG@=:M:BGMH:EE,2

):MMA>P :E=>KBLB L>GBHK >=BMHK L K= >=BMBHG *>P5HKDF>KBH?>KMB`>=,N;EBKK>= BG M:Q :LL>ML MA:M :KBL> ;> H? HMA>K=B_>K>GL BG 1/ #, :G= MA> %GM>KG:E .>O>GN> H=> "HK >Q:FIE> /HNMAP>LM

BKEBG>L BG= : =>?>KK>= BG M:Q :LL>M H? FBEEBHG HG BML >F;>K ;:E:G LA>>M K>= BG MABL M>QM;HHD /HF> IHKMBHG H? MABL :LL>M ;:E:G :EMAHN@A KM:BGER GHM:EE BL EBD>ER MH ;> MA> >JNBO:E>GM H? : IK>I:B= BG M:Q PA>K> /HNMAP>LM P:L K>JNBK>= MH F:D> I:RF>GML ;R MA> M:Q E:PL BG :=O:G H? K>L F>MAH= NL>= ?HK `G:GIHKMBG@ INKIHL>L ;NMHGERNG=>KO>KREBFBM>= BGLNK:G ;>G>`ML I:B= ;R :G >FIEHR>K PABE> :G >FIEHR>> BL LMBEEPHKDBG@ =H GHM IHL> :G : DGHPG :G= >QI>GL>=:L BG= 0A>L> >QI>GL>L :K> F:M= PBMA MA> K>O>GN>L ;>BG@ @>G>K:M>= ;R MA>>FIEHR>>L:MMA>GMMBF>

AMMIPPPF:MAINK=N>>=N:FB

Financial Accounting Ch15

Documents