E-Z-GO 2015 Annual Report Download - page 40

Download and view the complete annual report

Please find page 40 of the 2015 E-Z-GO annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 88

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88


$WWKHRXWVHWRIHDFKFRQWUDFWZHHVWLPDWHWKHLQLWLDOSURILWERRNLQJUDWH7KHLQLWLDOSURILWERRNLQJUDWHRIHDFKFRQWUDFWFRQVLGHUV
ULVNV VXUURXQGLQJ WKH DELOLW\ WR DFKLHYH WKH WHFKQLFDO UHTXLUHPHQWV IRU H[DPSOH D QHZO\GHYHORSHG SURGXFW YHUVXV D PDWXUH
SURGXFW VFKHGXOH IRU H[DPSOH WKH QXPEHU DQG W\SH RI PLOHVWRQH HYHQWV DQG FRVWV E\ FRQWUDFW UHTXLUHPHQWV LQ WKH LQLWLDO
HVWLPDWHGFRVWVDWFRPSOHWLRQ3URILWERRNLQJUDWHVPD\LQFUHDVHGXULQJWKHSHUIRUPDQFHRIWKHFRQWUDFWLIZHVXFFHVVIXOO\UHWLUH
ULVNVVXUURXQGLQJWKHWHFKQLFDOVFKHGXOHDQGFRVWVDVSHFWVRIWKHFRQWUDFW/LNHZLVHWKHSURILWERRNLQJUDWHPD\GHFUHDVHLIZH
DUHQRWVXFFHVVIXOLQUHWLULQJWKHULVNVDQGDVDUHVXOWRXUHVWLPDWHGFRVWVDWFRPSOHWLRQLQFUHDVH$OORIWKHHVWLPDWHVDUHVXEMHFW
WRFKDQJHGXULQJWKHSHUIRUPDQFHRIWKHFRQWUDFWDQGWKHUHIRUHPD\DIIHFWWKHSURILWERRNLQJUDWH:KHQDGMXVWPHQWVDUHUHTXLUHG
DQ\ FKDQJHV IURP SULRU HVWLPDWHV DUH UHFRJQL]HG XVLQJ WKH FXPXODWLYH FDWFKXS PHWKRG ZLWK WKH LPSDFW RI WKH FKDQJH IURP
LQFHSWLRQWRGDWHUHFRUGHGLQWKHFXUUHQWSHULRG
7KHIROORZLQJWDEOHVHWVIRUWKWKHDJJUHJDWHJURVVDPRXQWRIDOOSURJUDPSURILWDGMXVWPHQWVWKDWDUHLQFOXGHGZLWKLQVHJPHQWSURILW
IRUWKHWKUHH\HDUVHQGHG-DQXDU\
(In millions) 2015 2014 2013
*URVVIDYRUDEOH      
*URVVXQIDYRUDEOH   
1
HWDGMXVWPHQWV      
Goodwill
:HHYDOXDWHWKHUHFRYHUDELOLW\RIJRRGZLOODQQXDOO\LQWKHIRXUWKTXDUWHURUPRUHIUHTXHQWO\LIHYHQWVRUFKDQJHVLQFLUFXPVWDQFHV
VXFKDVGHFOLQHVLQVDOHVHDUQLQJVRUFDVKIORZVRUPDWHULDODGYHUVHFKDQJHV LQ WKH EXVLQHVVFOLPDWHLQGLFDWHWKDWWKHFDUU\LQJ
YDOXH RI D UHSRUWLQJ XQLW PLJKW EH LPSDLUHG  7KH UHSRUWLQJ XQLW UHSUHVHQWV WKH RSHUDWLQJ VHJPHQW XQOHVV GLVFUHWH ILQDQFLDO
LQIRUPDWLRQLVSUHSDUHGDQGUHYLHZHGE\VHJPHQWPDQDJHPHQWIRUEXVLQHVVHVRQHOHYHOEHORZWKDWRSHUDWLQJVHJPHQWLQZKLFK
FDVHVXFKFRPSRQHQWLVWKHUHSRUWLQJXQLW,QFHUWDLQLQVWDQFHVZHKDYHDJJUHJDWHGFRPSRQHQWVRIDQRSHUDWLQJVHJPHQWLQWRD
VLQJOHUHSRUWLQJXQLWEDVHGRQVLPLODUHFRQRPLFFKDUDFWHULVWLFV
:H FDOFXODWH WKH IDLU YDOXH RI HDFK UHSRUWLQJ XQLW SULPDULO\ XVLQJ GLVFRXQWHG FDVK IORZV 7KHVH FDVK IORZV LQFRUSRUDWH
DVVXPSWLRQVIRUVKRUWDQGORQJWHUPUHYHQXHJURZWKUDWHVRSHUDWLQJPDUJLQVDQGGLVFRXQWUDWHVWKDWUHSUHVHQWRXUEHVWHVWLPDWHV
RIFXUUHQWDQGIRUHFDVWHGPDUNHWFRQGLWLRQVFRVWVWUXFWXUHDQWLFLSDWHGQHWFRVWUHGXFWLRQVDQGWKHLPSOLHGUDWHRIUHWXUQWKDWZH
EHOLHYHDPDUNHWSDUWLFLSDQWZRXOGUHTXLUHIRUDQLQYHVWPHQWLQDEXVLQHVVKDYLQJVLPLODUULVNVDQGEXVLQHVVFKDUDFWHULVWLFVWRWKH
UHSRUWLQJ XQLW EHLQJ DVVHVVHG  7KH UHYHQXH JURZWK UDWHV DQG RSHUDWLQJ PDUJLQV XVHG LQ RXU GLVFRXQWHG FDVK IORZ DQDO\VLV DUH
EDVHGRQRXUVWUDWHJLFSODQVDQGORQJUDQJHSODQQLQJIRUHFDVWV7KHORQJWHUPJURZWKUDWHZHXVHWRGHWHUPLQHWKHWHUPLQDOYDOXH
RIWKHEXVLQHVVLVEDVHGRQRXUDVVHVVPHQWRILWVPLQLPXPH[SHFWHGWHUPLQDOJURZWKUDWHDVZHOODVLWVSDVWKLVWRULFDOJURZWKDQG
EURDGHUHFRQRPLFFRQVLGHUDWLRQVVXFKDVJURVVGRPHVWLFSURGXFWLQIODWLRQDQGWKHPDWXULW\RIWKHPDUNHWVZHVHUYH:HXWLOL]HD
ZHLJKWHGDYHUDJHFRVWRIFDSLWDOLQRXULPSDLUPHQWDQDO\VLVWKDWPDNHVDVVXPSWLRQVDERXWWKHFDSLWDOVWUXFWXUHWKDWZHEHOLHYHD
PDUNHWSDUWLFLSDQWZRXOGPDNHDQGLQFOXGHDULVNSUHPLXPEDVHGRQDQDVVHVVPHQWRIULVNVUHODWHGWRWKHSURMHFWHGFDVKIORZVRI
HDFK UHSRUWLQJ XQLW:H EHOLHYH WKLV DSSURDFK \LHOGV D GLVFRXQW UDWH WKDW LV FRQVLVWHQW ZLWK DQ LPSOLHG UDWH RI UHWXUQ WKDW DQ
LQGHSHQGHQW LQYHVWRU RU PDUNHW SDUWLFLSDQW ZRXOG UHTXLUH IRU DQ LQYHVWPHQW LQ D FRPSDQ\ KDYLQJ VLPLODU ULVNV DQG EXVLQHVV
FKDUDFWHULVWLFVWRWKHUHSRUWLQJXQLWEHLQJDVVHVVHG
,IWKHUHSRUWLQJXQLW¶VHVWLPDWHGIDLUYDOXHH[FHHGVLWVFDUU\LQJYDOXHWKHUHLVQRLPSDLUPHQWDQGQRIXUWKHUDQDO\VLVLVSHUIRUPHG
2WKHUZLVHWKHDPRXQWRIWKHLPSDLUPHQWLVGHWHUPLQHGE\FRPSDULQJWKHFDUU\LQJDPRXQWRIWKHUHSRUWLQJXQLW¶VJRRGZLOOWRWKH
LPSOLHG IDLU YDOXH RI WKDW JRRGZLOO  7KH LPSOLHG IDLU YDOXH RI JRRGZLOO LV GHWHUPLQHG E\ DVVLJQLQJ D IDLU YDOXH WR DOO RI WKH
UHSRUWLQJXQLW¶VDVVHWVDQGOLDELOLWLHVLQFOXGLQJDQ\XQUHFRJQL]HGLQWDQJLEOHDVVHWVDVLIWKHUHSRUWLQJXQLWKDGEHHQDFTXLUHGLQD
EXVLQHVVFRPELQDWLRQ,IWKHFDUU\LQJDPRXQWRIWKHJRRGZLOOH[FHHGVWKHLPSOLHGIDLUYDOXHDQLPSDLUPHQWORVVLVUHFRJQL]HGLQ
DQDPRXQWHTXDOWRWKDWH[FHVV
%DVHGRQRXUDQQXDOLPSDLUPHQWUHYLHZWKHIDLUYDOXHRIDOORIRXUUHSRUWLQJXQLWVH[FHHGHGWKHLUFDUU\LQJYDOXHVDQGZHGRQRW
EHOLHYHWKDWWKHUHLVDUHDVRQDEOHSRVVLELOLW\WKDWDQ\XQLWVPLJKWIDLOWKHLQLWLDOVWHSRIWKHLPSDLUPHQWWHVWLQWKHIRUHVHHDEOHIXWXUH
Retirement Benefits
:HPDLQWDLQYDULRXVSHQVLRQDQGSRVWUHWLUHPHQWSODQVIRURXUHPSOR\HHVJOREDOO\7KHVHSODQVLQFOXGHVLJQLILFDQWSHQVLRQDQG
SRVWUHWLUHPHQWEHQHILWREOLJDWLRQVZKLFKDUHFDOFXODWHGEDVHGRQDFWXDULDOYDOXDWLRQV.H\DVVXPSWLRQVXVHGLQGHWHUPLQLQJWKHVH
REOLJDWLRQV DQG UHODWHG H[SHQVHV LQFOXGH H[SHFWHG ORQJWHUP UDWHV RI UHWXUQ RQ SODQ DVVHWV GLVFRXQW UDWHV DQG KHDOWKFDUH FRVW
SURMHFWLRQV:HDOVRPDNHDVVXPSWLRQVUHJDUGLQJHPSOR\HHGHPRJUDSKLFIDFWRUVVXFKDVUHWLUHPHQWSDWWHUQVPRUWDOLW\WXUQRYHU
DQGUDWHRIFRPSHQVDWLRQLQFUHDVHV:HHYDOXDWHDQGXSGDWHWKHVHDVVXPSWLRQVDQQXDOO\
7(;7521$118$/5(3257