E-Z-GO 2015 Annual Report Download - page 61


Note 8. Derivative Instruments and Fair Value Measurements
:HPHDVXUHIDLUYDOXHDWWKHSULFHWKDWZRXOGEHUHFHLYHGWRVHOODQDVVHWRUSDLGWRWUDQVIHUDOLDELOLW\LQDQRUGHUO\WUDQVDFWLRQ
EHWZHHQPDUNHWSDUWLFLSDQWVDWWKHPHDVXUHPHQWGDWH:HSULRULWL]HWKHDVVXPSWLRQVWKDWPDUNHWSDUWLFLSDQWVZRXOGXVHLQSULFLQJ
WKHDVVHWRUOLDELOLW\LQWRDWKUHHWLHUIDLUYDOXHKLHUDUFK\7KLVIDLUYDOXHKLHUDUFK\JLYHVWKHKLJKHVWSULRULW\/HYHOWRTXRWHG
SULFHVLQDFWLYHPDUNHWVIRULGHQWLFDODVVHWVRUOLDELOLWLHVDQGWKHORZHVWSULRULW\/HYHOWRXQREVHUYDEOHLQSXWVLQZKLFKOLWWOHRU
QRPDUNHWGDWDH[LVWUHTXLULQJFRPSDQLHVWRGHYHORSWKHLURZQDVVXPSWLRQV2EVHUYDEOHLQSXWVWKDWGRQRWPHHWWKHFULWHULDRI
/HYHO  ZKLFK LQFOXGH TXRWHG SULFHV IRU VLPLODU DVVHWV RU OLDELOLWLHV LQ DFWLYH PDUNHWV RU TXRWHG SULFHV IRU LGHQWLFDO DVVHWV DQG
OLDELOLWLHVLQPDUNHWVWKDWDUHQRWDFWLYHDUHFDWHJRUL]HGDV/HYHO/HYHOLQSXWVDUHWKRVHWKDWUHIOHFWRXUHVWLPDWHVDERXWWKH
DVVXPSWLRQV PDUNHW SDUWLFLSDQWV ZRXOG XVH LQ SULFLQJ WKH DVVHW RU OLDELOLW\ EDVHG RQ WKH EHVW LQIRUPDWLRQ DYDLODEOH LQ WKH
FLUFXPVWDQFHV9DOXDWLRQWHFKQLTXHVIRUDVVHWVDQGOLDELOLWLHVPHDVXUHGXVLQJ/HYHOLQSXWVPD\LQFOXGHPHWKRGRORJLHVVXFKDV
WKHPDUNHWDSSURDFKWKHLQFRPHDSSURDFKRUWKHFRVWDSSURDFKDQGPD\XVHXQREVHUYDEOHLQSXWVVXFKDVSURMHFWLRQVHVWLPDWHV
DQGPDQDJHPHQW¶VLQWHUSUHWDWLRQRIFXUUHQWPDUNHWGDWD7KHVHXQREVHUYDEOHLQSXWVDUHXWLOL]HGRQO\WRWKHH[WHQWWKDWREVHUYDEOH
LQSXWVDUHQRWDYDLODEOHRUFRVWHIIHFWLYHWRREWDLQ
Assets and Liabilities Recorded at Fair Value on a Recurring Basis
:H PDQXIDFWXUH DQG VHOO RXU SURGXFWV LQ D QXPEHU RI FRXQWULHV WKURXJKRXW WKH ZRUOG DQG WKHUHIRUH ZH DUH H[SRVHG WR
PRYHPHQWV LQ IRUHLJQ FXUUHQF\ H[FKDQJH UDWHV :H XWLOL]H IRUHLJQ FXUUHQF\ H[FKDQJH FRQWUDFWV WR PDQDJH WKLV YRODWLOLW\  2XU
IRUHLJQFXUUHQF\H[FKDQJHFRQWUDFWVDUHPHDVXUHGDWIDLUYDOXHXVLQJWKHPDUNHWPHWKRGYDOXDWLRQWHFKQLTXH7KHLQSXWVWRWKLV
WHFKQLTXHXWLOL]HFXUUHQWIRUHLJQFXUUHQF\H[FKDQJHIRUZDUGPDUNHWUDWHVSXEOLVKHGE\WKLUGSDUW\OHDGLQJILQDQFLDOQHZVDQGGDWD
SURYLGHUV  7KHVH DUHREVHUYDEOH GDWD WKDW UHSUHVHQW WKHUDWHV WKDWWKHILQDQFLDOLQVWLWXWLRQ XVHV IRU FRQWUDFWVHQWHUHGLQWR DW WKDW
GDWHKRZHYHUWKH\DUHQRWEDVHGRQDFWXDOWUDQVDFWLRQVVRWKH\DUHFODVVLILHGDV/HYHO$W-DQXDU\DQG-DQXDU\
ZHKDGIRUHLJQFXUUHQF\H[FKDQJHFRQWUDFWVZLWKQRWLRQDODPRXQWVXSRQZKLFKWKHFRQWUDFWVZHUHEDVHGRIPLOOLRQDQG
PLOOLRQUHVSHFWLYHO\$W-DQXDU\WKHIDLUYDOXHDPRXQWVRIRXUIRUHLJQFXUUHQF\H[FKDQJHFRQWUDFWVZHUHDPLOOLRQ
DVVHWDQGDPLOOLRQOLDELOLW\$W-DQXDU\WKHIDLUYDOXHDPRXQWVRIRXUIRUHLJQFXUUHQF\H[FKDQJHFRQWUDFWVZHUHD
PLOOLRQDVVHWDQGDPLOOLRQOLDELOLW\
:HSULPDULO\XWLOL]HIRUZDUGH[FKDQJHFRQWUDFWVZKLFKKDYHPDWXULWLHVRIQRPRUHWKDQWKUHH\HDUV7KHVHFRQWUDFWVTXDOLI\DV
FDVKIORZKHGJHVDQGDUHLQWHQGHGWRRIIVHWWKHHIIHFWRIH[FKDQJHUDWHIOXFWXDWLRQVRQIRUHFDVWHGVDOHVLQYHQWRU\SXUFKDVHVDQG
RYHUKHDG H[SHQVHV  $W -DQXDU\   ZH KDG D QHW GHIHUUHG ORVV RI  PLOOLRQ LQ $FFXPXODWHG RWKHU FRPSUHKHQVLYH ORVV
UHODWHGWRWKHVHFDVKIORZKHGJHV1HWJDLQVDQGORVVHVUHFRJQL]HGLQHDUQLQJVDQG$FFXPXODWHGRWKHUFRPSUHKHQVLYHORVVRQFDVK
IORZKHGJHVLQFOXGLQJJDLQVDQGORVVHVUHODWHGWRKHGJHLQHIIHFWLYHQHVVZHUHQRWVLJQLILFDQWLQWKHSHULRGVSUHVHQWHG
:H KHGJH RXU QHW LQYHVWPHQW SRVLWLRQ LQ PDMRU FXUUHQFLHV DQG JHQHUDWH IRUHLJQ FXUUHQF\ LQWHUHVW SD\PHQWV WKDW RIIVHW RWKHU
WUDQVDFWLRQDOH[SRVXUHVLQWKHVHFXUUHQFLHV7RDFFRPSOLVKWKLVZHERUURZGLUHFWO\LQIRUHLJQFXUUHQF\DQGGHVLJQDWHDSRUWLRQRI
IRUHLJQFXUUHQF\GHEWDVDKHGJHRIDQHWLQYHVWPHQW:HUHFRUGFKDQJHVLQWKHIDLUYDOXHRIWKHVHFRQWUDFWVLQRWKHUFRPSUHKHQVLYH
LQFRPHWRWKHH[WHQWWKH\DUHHIIHFWLYHDVFDVKIORZKHGJHV&XUUHQF\HIIHFWVRQWKHHIIHFWLYHSRUWLRQRIWKHVHKHGJHVZKLFKDUH
UHIOHFWHGLQWKHIRUHLJQFXUUHQF\WUDQVODWLRQDGMXVWPHQWVZLWKLQ$FFXPXODWHGRWKHUFRPSUHKHQVLYHORVVZHUHQRWVLJQLILFDQWLQWKH
SHULRGVSUHVHQWHG
Assets Recorded at Fair Value on a Nonrecurring Basis
'XULQJWKH\HDUVHQGHG-DQXDU\DQG-DQXDU\WKH)LQDQFHJURXS¶VLPSDLUHGQRQDFFUXDOILQDQFHUHFHLYDEOHVRI
PLOOLRQDQGPLOOLRQUHVSHFWLYHO\ZHUHPHDVXUHGDWIDLUYDOXHRQDQRQUHFXUULQJEDVLVXVLQJVLJQLILFDQWXQREVHUYDEOHLQSXWV
/HYHO  ,PSDLUHG QRQDFFUXDO ILQDQFH UHFHLYDEOHV UHSUHVHQW DVVHWV UHFRUGHG DW IDLU YDOXH RQ D QRQUHFXUULQJ EDVLV VLQFH WKH
PHDVXUHPHQWRIUHTXLUHGUHVHUYHVRQRXULPSDLUHGILQDQFHUHFHLYDEOHVLVVLJQLILFDQWO\GHSHQGHQWRQWKHIDLUYDOXHRIWKHXQGHUO\LQJ
FROODWHUDO  )RU LPSDLUHG QRQDFFUXDO ILQDQFH UHFHLYDEOHV VHFXUHG E\ DYLDWLRQ DVVHWV WKH IDLU YDOXHV RI FROODWHUDO DUH GHWHUPLQHG
SULPDULO\EDVHGRQWKHXVHRILQGXVWU\SULFLQJJXLGHV)DLUYDOXHPHDVXUHPHQWVUHFRUGHGRQLPSDLUHGILQDQFHUHFHLYDEOHVUHVXOWHG
LQFKDUJHVWRSURYLVLRQIRUORDQORVVHVWRWDOLQJPLOOLRQDQGPLOOLRQIRUDQGUHVSHFWLYHO\
7(;7521$118$/5(3257