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TableofContents
thereportingunitgoodwillwiththecarryingamountofthatgoodwill.Anyexcessofthereportingunitgoodwillcarryingvalueoveritsimpliedfairvalueis
recognizedasanimpairmentloss.
InaccordancewithASC360-05-4,ImpairmentorDisposalofLong-livedAssets,wetestotherlong-livedassets,includingproperty,equipmentandleasehold
improvementsandotherintangibleassetssubjecttoamortization,forrecoverabilitywhenevereventsorchangesincircumstancesindicatethatthecarryingvalues
ofthoseassetsmaynotberecoverable.Weassesstherecoverabilityofanassetgroupbydeterminingifthecarryingvalueoftheassetgroupexceedsthesumofthe
projectedundiscountedcashflowsexpectedtoresultfromtheuseandeventualdispositionoftheassetsovertheremainingeconomiclifeoftheprimaryassetinthe
assetgroup.Iftherecoverabilitytestindicatesthatthecarryingvalueoftheassetgroupisnotrecoverable,wewillestimatethefairvalueoftheassetgroupand
compareittoitscarryingvalue.Theexcessofthecarryingvalueoverthefairvalueisallocatedproratatoderivetheadjustedcarryingvalueofeachassetinthe
assetgroup.Theadjustedcarryingvalueofeachassetintheassetgroupisnotreducedbelowitsfairvalue.
RecentAccountingPronouncements
See"Item8.FinancialStatementsandSupplementaryData—Note1.BasisofPresentationandSummaryofSignificantAccountingPolicies"forinformation
regardingtheeffectofnewaccountingpronouncementsonourfinancialstatements.
ITEM7A.QUANTITATIVEANDQUALITATIVEDISCLOSURESABOUTMARKETRISK
Wehaveexposuretomarketrisksduetothevolatilityofinterestrates,foreigncurrencyexchangerates,equityandbondmarkets.Aportionoftheserisksare
hedged,butfluctuationscouldimpactourresultsofoperations,financialpositionandcashflows.Additionally,wehaveexposuretodowngradesinthecredit
ratingsofourcounterpartiesaswellasexposurerelatedtoourcreditratingchanges.
InterestRateRisk.Ourexposuretomarketriskforchangesininterestratesrelatesprimarilytoourinvestmentportfolio.AsofJuly1,2016,theCompany
hadnomaterialavailable-for-salesecuritiesthathadbeeninacontinuousunrealizedlosspositionforaperiodgreaterthan12months.TheCompanydeterminedno
materialavailable-for-salesecuritieswereother-than-temporarilyimpairedasofJuly1,2016.Wecurrentlydonotusederivativefinancialinstrumentsinour
investmentportfolio.
Wehavefixedratedebtobligations.Weenterintodebtobligationsforgeneralcorporatepurposesincludingcapitalexpendituresandworkingcapitalneeds.
Thetablebelowpresentsprincipalamountsandrelatedweighted-averageinterestratesbyyearofmaturityforourinvestmentportfolioanddebtobligationsas
ofJuly1,2016.
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