&RPSXWHU3URJUDPPLQJ Q SULQWI7KHUHDUHGGD\\VLQDZHHN?QQ ` 2XWSXW 7KHUHDUHGD\\VLQDZHHN ([DPSOH YRLGPDLQ ^ LQWQXP SULQWI(QWHUQXPEHU VFDQIG?Q QXP SULQWI7KHQXPEHULVG?QQXP ` 2XWSXW (QWHUQXPEHU 7KHQXPEHULV ([DPSOH YRLGPDLQ ^ LQWQXP SULQWI(QWHUQXPEHU VFDQIG?Q QXP SULQWI7KHQXPEHULVG?QQXP ` &8 ,'2/ 6(/) /($51,1* 0$7(5,$/ 6/0
2SHUDWRUVDQG([SUHVVLRQV 2XWSXW (QWHUQXPEHU 7KHQXPEHULV I
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
2SHUDWRUVDQG([SUHVVLRQV $ULWKPHWLFRSHUDWRUV $VVLJQPHQWRSHUDWRUV 5HODWLRQDORSHUDWRUV /RJLFDORSHUDWRUV %LWZLVHRSHUDWRUV &RQGLWLRQDORSHUDWRUVWHUQDU\\RSHUDWRUV ,QFUHPHQWGHFUHPHQW RSHUDWRUV 6SHFLDORSHUDWRUV 7\\SH &RQYHUVLRQ :KHQ YDULDEOHV DQG FRQVWDQWV RI GLIIHUHQW W\\SHV DUH FRPELQHG LQ DQ H[SUHVVLRQWKHQWKH\\DUHFRQYHUWHGWRVDPHGDWDW\\SH7KHSURFHVVRIFRQYHUWLQJRQHSUHGHILQHG W\\SHLQWRDQRWKHULVFDOOHGW\\SHFRQYHUVLRQRUW\\SHFDVWLQJ 7\\SHFRQYHUVLRQLQ&FDQEHFODVVLILHGLQWRWKHIROORZLQJWZRW\\SHV D ,PSOLFLW7\\SH&RQYHUVLRQ E ([SOLFLW7\\SH&RQYHUVLRQ 2SHUDWRUV3UHFHGHQFHLQ&2SHUDWRUSUHFHGHQFHGHWHUPLQHVWKHJURXSLQJRIWHUPVLQDQ H[SUHVVLRQDQGGHFLGHVKRZDQH[SUHVVLRQLVHYDOXDWHG&HUWDLQRSHUDWRUVKDYHKLJKHUSUHFHGHQFH WKDQRWKHUV IRUH[DPSOHWKHPXOWLSOLFDWLRQRSHUDWRUKDVDKLJKHUSUHFHGHQFHWKDQWKHDGGLWLRQ RSHUDWRU .H\\:RUGV$EEUHYLDWLRQV z 2SHUDWRU $QRSHUDWRULV D V\\PERO WKDW WHOOV WKH FRPSLOHU WR SHUIRUP D FHUWDLQ PDWKHPDWLFDORUORJLFDOPDQLSXODWLRQ z 2SHUDQG2SHUDQGVDUHWKHREMHFWVWKDWDUHPDQLSXODWHGDQGRSHUDWRUVDUHWKHV\\PEROV WKDW UHSUHVHQW VSHFLILF DFWLRQV )RU H[DPSOH LQ WKH H[SUHVVLRQ [ [ DQG DUH RSHUDQGVDQGLVDQRSHUDWRU$OOH[SUHVVLRQVKDYHDWOHDVWRQHRSHUDQG z ,2IXQFWLRQV7KHVHIXQFWLRQVDUHXVHGWRSHUPLWWKHWUDQVIHURILQIRUPDWLRQEHWZHHQ WKHFRPSXWHUDQGWKHVWDQGDUGLQSXWRXWSXWGHYLFH7KHEDVLFLQSXWRXWSXWIXQFWLRQVDUH JHWFKDUSXWFKDUSXWVVFDQIDQGSULQWI7KHILUVWWZRIXQFWLRQVJHWFKDUDQGSXWFKDUDUH XVHGWRWUDQVIHUVLQJOHFKDUDFWHUV &8 ,'2/ 6(/) /($51,1* 0$7(5,$/ 6/0
&RPSXWHU3URJUDPPLQJ /HDUQLQJ$FWLYLW\\ :KDWGR\\RXPHDQE\\RSHUDWRUVLQ&\"([SODLQWKHW\\SHVRIRSHUDWRUVLQGHWDLO BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB :ULWHDQRWHRQW\\SHFDVWLQJLQ& BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB :ULWHDSURJUDPLQ&WRVZDSEHWZHHQWZRQXPEHUV BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB :ULWHDSURJUDPLQ&WRILQGWKHDUHDRIWULDQJOH BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB :ULWHDSURJUDPLQ&WRFDOFXODWHVLPSOHLQWHUHVW BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 8QLW(QG4XHVWLRQV0&4DQG'HVFULSWLYH $'HVFULSWLYH7\\SH6KRUW$QVZHU7\\SH4XHVWLRQV ([SODLQGLIIHUHQW$ULWKPHWLFRSHUDWRUVZLWKH[DPSOHRIHDFK 'HVFULEHWKHIRXUUHODWLRQDORSHUDWRUVLQFOXGHGLQ&:LWKZKDWW\\SHRIRSHUDQGVFDQ WKH\\EHXVHG\":KDWW\\SHRIH[SUHVVLRQLVREWDLQHG\" 'HVFULEHWKHWZRORJLFDORSHUDWRUVLQFOXGHGLQ&:KDWLVWKHSXUSRVHRIHDFK\":LWK ZKDWW\\SHRIRSHUDQGVFDQWKH\\EHXVHG\" +RZLVWKHW\\SHRIDQDVVLJQPHQWH[SUHVVLRQGHWHUPLQHGZKHQWKHWZRRSHUDQGVDUHRI GLIIHUHQWGDWDW\\SHV\" :KDWDUHXQDU\\RSHUDWRUV\"+RZPDQ\\RSHUDQGVDUHDVVRFLDWHGZLWKDXQDU\\RSHUDWRU\" 6WDWHSXUSRVHRIHDFK &8 ,'2/ 6(/) /($51,1* 0$7(5,$/ 6/0
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³G?Q´N ` D &RPSLOHWLPHHUURU E F G 1RQH :KDWLVWKHYDOXHRI[LQWKLV&FRGH\" YRLGPDLQ ^ LQW[ ` D E F G &8 ,'2/ 6(/) /($51,1* 0$7(5,$/ 6/0
&RPSXWHU3URJUDPPLQJ :KDWLVWKHRXWSXWRIWKLV&FRGH\" YRLGPDLQ ^ LQWN LQW[ N SULQWI³GG?Q´[N `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
'HFLVLRQ DQG /RRS &RQWURO 6WUXFWXUH 81,7 '(&,6,21$1'/223&21752/ 6758&785( 6WUXFWXUH /HDUQLQJ2EMHFWLYHV ,QWURGXFWLRQ &RQWURO6WDWHPHQWVIRU'HFLVLRQ0DNLQJ %UDQFKLQJ,I6WDWHPHQW /RRSLQJ:KLOH/RRS -XPS6WDWHPHQWV 6XPPDU\\ .H\\:RUGV$EEUHYLDWLRQV /HDUQLQJ$FWLYLW\\ 8QLW(QG4XHVWLRQV0&4DQG'HVFULSWLYH 5HIHUHQFHV /HDUQLQJ2EMHFWLYHV $IWHUVWXG\\LQJWKLVXQLW\\RXZLOOEHDEOHWR z 'HILQHWKHFRQFHSWRIGHFLVLRQPDNLQJ z $SSO\\YDULRXVGHFLVLRQPDNLQJVWDWHPHQWV z 'LIIHUHQWLDWHEHWZHHQLIHOVH DQGVZLWFKVWDWHPHQW z ([SODLQWKHQHFHVVLW\\RIORRS z 'HVFULEHYDULRXVORRSLQJVWDWHPHQWV z $QDO\\]HWKHQHVWLQJRIORRSV z 'HPRQVWUDWHWKHXVHRIEUHDNDQGFRQWLQXHVWDWHPHQWV z (ODERUDWHJRWRVWDWHPHQW &8 ,'2/ 6(/) /($51,1* 0$7(5,$/ 6/0
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²GLIIHUHQWWDVNVEDVHGRQWKHFRQGLWLRQV&ODQJXDJHKDQGOHVGHFLVLRQPDNLQJ LQYDULRXVZD\\VDVIROORZV 6HTXHQWLDO 6HTXHQWLDOPHDQVWKHSURJUDPIORZPRYHVIURPRQHVWDWHPHQWWRWKHQH[WDQGWKHQWRWKH ODWHUDQGWKHQWRWKHRQHDIWHUDQGVRRQ ,WLV WKHVLPSOHVWIRUPRIVWUXFWXUHVDQGLWLVQRWOLNHO\\WREHVHTXHQWLDOVWUXFWXULQJZKHQ GHYHORSLQJFRPSOH[SURJUDPV 6HOHFWLRQ'HFLVLRQ 6HOHFWLRQVWUXFWXUHVPDNHGHFLVLRQVDQGSHUIRUPFRPPDQGVDFFRUGLQJWRWKHGHVLFLRQPDNLQJ 6HOHFWLRQVWUXFWXUHVLQYROYH³LIVWDWHPHQWV´ZKLFKDUHVWDWHPHQWVOLNH³LIWKLVWKHQGRWKDW´DQG³LI QRWWKLVWKHQGRWKDW´ :LWK³LIVWDWHPHQWV´ZHFDQDOVRLQFOXGH³QHVWHGLIVWDWHPHQWV´ZKLFKDUH³LIVWDWHPHQWV´ LQVLGHRWKHU³LIVWDWHPHQWV´$QRWKHUIRUPRIVHOHFWLRQVWUXFWXUHVLVFDOOHGD³VZLWFKVWDWHPHQW´ &8 ,'2/ 6(/) /($51,1* 0$7(5,$/ 6/0
'HFLVLRQ DQG /RRS &RQWURO 6WUXFWXUH ZKLFKLVYHU\\SRZHUIXOIRUFHUWDLQVLWXDWLRQVEXWQRWIRURWKHUV³6ZLWFKVWDWHPHQWV´IRFXVRQWKH YDOXHRIDSDUWLFXODUYDULDEOHDQGSHUIRUPGLIIHUHQW³FDVHV´DFFRUGLQJO\\ 5HSHWLWLRQ/RRSV 5HSHWLWLRQVWUXFWXUHVDUHXVHGZKHQVRPHWKLQJQHHGVWREHUHSHDWHGDFHUWDLQQXPEHURIWLPHV WKURXJKWKHXVHRI³ORRSV´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` 7KH VWPW7 FDQ EH D VLPSOH RU FRPSRXQG VWDWHPHQW 6LPSOH LQYROYHV VLQJOH VWDWHPHQW &RPSRXQGLQYROYHVRUPRUHVWDWHPHQWVHQFORVHGZLWKFXUO\\EUDFHV^`$FRPSRXQGVWDWHPHQWLV FDOOHGDEORFNVWDWHPHQW 7KHLIVWDWHPHQWHYDOXDWHVWKHWHVWH[SUHVVLRQLQVLGHSDUHQWKHVLV ,IWHVWH[SUHVVLRQLVHYDOXDWHGWRWUXHQRQ]HURVWDWHPHQWVLQVLGHWKHERG\\RILILVH[HFXWHG ,IWHVWH[SUHVVLRQLVHYDOXDWHGWRIDOVHVWDWHPHQWVLQVLGHWKHERG\\RILILVVNLSSHG &8 ,'2/ 6(/) /($51,1* 0$7(5,$/ 6/0
&RPSXWHU3URJUDPPLQJ )ORZFKDUWRILI6WDWHPHQW )LJ)ORZFKDUWRILI6WDWHPHQW ([DPSOH LQFOXGHVWGLRK! YRLGPDLQ ^ LQW[ LQW\\ LI[\\ ^ SULQWI9DULDEOH[LVOHVVWKDQ\\ ` JHWFK ` &8 ,'2/ 6(/) /($51,1* 0$7(5,$/ 6/0
'HFLVLRQ DQG /RRS &RQWURO 6WUXFWXUH 2XWSXW 9DULDEOH[LVOHVVWKDQ\\ ,I(OVH6WDWHPHQW 0XOWLZD\\GHFLVLRQVWDWHPHQWVLQYROYHXVLQJLIHOVHLIVWDWHPHQWVQHVWHGLIVRUVZLWFK VWDWHPHQWV7KH\\ DUH DOO XVHG WR HYDOXDWH DORJLFDOH[SUHVVLRQ WKDWFRXOGKDYHVHYHUDOSRVVLEOH YDOXHVLIHOVHLIVWDWHPHQWVDUHRIWHQXVHGWRFKRRVHEHWZHHQUDQJHVRIYDOXHV 7KHLIHOVHVWDWHPHQWH[HFXWHVVRPHFRGHLIWKHWHVWH[SUHVVLRQLVWUXHQRQ]HURDQGVRPH RWKHUFRGHLIWKHWHVWH[SUHVVLRQLVIDOVH 6\\QWD[RILIHOVH LIWHVW([SUHVVLRQ ^ FRGHVLQVLGHWKHERG\\RILI ` HOVH ^ FRGHVLQVLGHWKHERG\\RIHOVH ` ,IWHVWH[SUHVVLRQLVWUXHFRGHVLQVLGHWKHERG\\RILIVWDWHPHQWLVH[HFXWHGDQGFRGHVLQVLGH WKHERG\\RIHOVHVWDWHPHQWLVVNLSSHG ,I WHVWH[SUHVVLRQLV IDOVH FRGHV LQVLGH WKHERG\\RIHOVHVWDWHPHQWLVH[HFXWHGDQGFRGHV LQVLGHWKHERG\\RILIVWDWHPHQWLVVNLSSHG &8 ,'2/ 6(/) /($51,1* 0$7(5,$/ 6/0
&RPSXWHU3URJUDPPLQJ )ORZFKDUWRILIHOVHVWDWHPHQW 7HVW )DOVH H[SUHVVLRQ %RG\\RIHOVH 7UXH %RG\\RILI 6WDWHPHQWMXVW EHORZLIHOVH )LJ)ORZFKDUWRILI(OVH6WDWHPHQW ([DPSOH & LIHOVH VWDWHPHQW 3URJUDPWRFKHFNZKHWKHUDQLQWHJHUHQWHUHGE\\WKHXVHULVRGGRUHYHQ LQFOXGHVWGLRK! YRLGPDLQ ^ LQWQXPEHU SULQWI(QWHUDQLQWHJHU VFDQIG QXPEHU 7UXHLIUHPDLQGHULV LIQXPEHU SULQWIGLVDQHYHQLQWHJHUQXPEHU HOVH SULQWIGLVDQRGGLQWHJHUQXPEHU UHWXUQ ` &8 ,'2/ 6(/) /($51,1* 0$7(5,$/ 6/0
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` HOVHLIWHVW([SUHVVLRQ ^ VWDWHPHQWVWREHH[HFXWHGLIWHVW([SUHVVLRQLVIDOVHDQGWHVW([SUHVVLRQLVWUXH ` HOVHLIWHVW([SUHVVLRQ ^ VWDWHPHQWVWREHH[HFXWHGLIWHVW([SUHVVLRQDQGWHVW([SUHVVLRQLVIDOVHDQG WHVW([SUHVVLRQLVWUXH ` HOVH ^ &8 ,'2/ 6(/) /($51,1* 0$7(5,$/ 6/0
&RPSXWHU3URJUDPPLQJ VWDWHPHQWVWREHH[HFXWHGLIDOOWHVWH[SUHVVLRQVDUHIDOVH ` 7KHIRUPRIDPXOWLZD\\GHFLVLRQXVLQJQHVWHGLIVLVDVIROORZV LIFRQGLWLRQ$ ^ LIFRQGLWLRQ% VWPW%7 HOVH VWPW%) ` HOVH VWPW$) ,I FRQGLWLRQ$ LV HYDOXDWHG WR WUXH WKHQ H[HFXWLRQ PRYHV LQWR WKH QHVWHG LI DQG HYDOXDWHV FRQGLWLRQ%,IFRQGLWLRQ$LVHYDOXDWHGWRIDOVHWKHQVWPW$)LVH[HFXWHG ([DPSOH&1HVWHGLIHOVHVWDWHPHQW 3URJUDPWRUHODWHWZRLQWHJHUVXVLQJ !RU LQFOXGHVWGLRK! YRLGPDLQ ^ LQWQXPEHUQXPEHU SULQWI(QWHUWZRLQWHJHUV VFDQIGG QXPEHU QXPEHU FKHFNVLIWZRLQWHJHUVDUHHTXDO LIQXPEHU QXPEHU ^ &8 ,'2/ 6(/) /($51,1* 0$7(5,$/ 6/0
'HFLVLRQ DQG /RRS &RQWURO 6WUXFWXUH SULQWI5HVXOWG GQXPEHUQXPEHU ` FKHFNVLIQXPEHULVJUHDWHUWKDQQXPEHU HOVHLIQXPEHU!QXPEHU ^ SULQWI5HVXOWG!GQXPEHUQXPEHU ` LIERWKWHVWH[SUHVVLRQLVIDOVH HOVH ^ SULQWI5HVXOWGGQXPEHUQXPEHU ` JHWFK ` 2XWSXW (QWHUWZRLQWHJHUV 5HVXOW 6ZLWFK6WDWHPHQW $VZLWFKVWDWHPHQWLV\\HWDQRWKHURSWLRQIRUZULWLQJFRGHWKDWGHDOVZLWKPXOWLZD\\GHFLVLRQV 6ZLWFKFDVHVWDWHPHQWVDUHPRVWO\\XVHGZKHQZHKDYHDQXPEHURIRSWLRQVRUFKRLFHVDQGZHPD\\ QHHGWRSHUIRUPDGLIIHUHQWWDVNIRUHDFKFKRLFH 7KHIROORZLQJDUHWKHIHDWXUHRIDVZLWFKFRQVWUXFW ([SUHVVLRQPXVWEHDQLQWHJHUH[SUHVVLRQ (DFKFDVHLVODEHOOHGE\\DQLQWHJHURUFKDUDFWHUFRQVWDQW &DVHVDQGGHIDXOWVPD\\RFFXULQDQ\\RUGHU &8 ,'2/ 6(/) /($51,1* 0$7(5,$/ 6/0
&RPSXWHU3URJUDPPLQJ &DVHVPXVWDOOEHGLIIHUHQW $IWHUWKHFRGHIRURQHFDVHLVGRQHH[HFXWLRQIDOOVWKURXJKWRWKHQH[WXQOHVV\\RXWDNH H[SOLFLWDFWLRQWRHVFDSH 7KHEUHDNVWDWHPHQWFDXVHVDQLPPHGLDWHH[LWIURPWKHVZLWFK )DOOLQJWKURXJKFDVHVLVDPL[HGEOHVVLQJ 3RVLWLYHVLGHLVWRKDYHRQHFRGHIRUPXOWLSOHFDVHVUHGXQGDQF\\DYRLGHG 1HJDWLYHVLGHLVWRSXWEUHDNDIWHUHDFKFDVH 6ZLWFKVWDWHPHQWVRIIHUDQDOWHUQDWLYHWRDQHOVHLIVWUXFWXUHZKLFKKDVPXOWLSOHSRVVLEOH SDWKVEDVHGRQWKHYDOXHRIDVLQJOHH[SUHVVLRQ $UHYLVHGIRUPIRUDVZLWFKVWDWHPHQWLVDVIROORZV VZLWFKLQWH[SUHVVLRQ ^ FDVHODEHO VWPWOLVW EUHDN FDVHODEHO VWPWOLVW EUHDN FDVHODEHO VWPWOLVW EUHDN FDVHODEHOQ VWPWOLVWQ EUHDN &8 ,'2/ 6(/) /($51,1* 0$7(5,$/ 6/0
'HFLVLRQ DQG /RRS &RQWURO 6WUXFWXUH GHIDXOW VWPWOLVW ` 'XULQJH[HFXWLRQWKHH[SUHVVLRQLVHYDOXDWHG,IWKHYDOXHRIWKHH[SUHVVLRQPDWFKHVODEHO WKHQVWPWOLVWZLOOEHH[HFXWHG,IQRWH[HFXWLRQZLOOPRYHRQWRFKHFNODEHODQGVRRQ,IQR ODEHOVPDWFKWKH H[SUHVVLRQGHIDXOWZLOOEHH[HFXWHG,QVLGHHDFKFDVHDQGDWWKHHQGRIHYHU\\ VWDWHPHQW OLVW H[FHSW GHIDXOW WKHUH PXVW EH D EUHDN VWDWHPHQW ZKLFK WHUPLQDWHV WKH LQQHUPRVW HQFORVLQJVZLWFKRUORRSVWDWHPHQW +HUHDUHVRPHILQDOQRWHVDERXWVZLWFKVWDWHPHQWVWKHH[SUHVVLRQEHLQJWHVWHGPXVWUHVXOWLQ DQLQWHJUDOYDOXHLQWRUVLQJOHFKDUFDVHODEHOVPXVWEHLQWHJUDOFRQVWDQWVHLWKHUOLWHUDOVRUQDPHG FRQVWDQWVHDFKODEHOZLWKLQDVZLWFKVKRXOGEHXQLTXHDQGHDFKVWPWOLVWPD\\FRQWDLQRUPRUH VWDWHPHQWVZKLFKGRQRWQHHGWRHQFORVHGZLWKFXUO\\EUDFHV^` VZLWFKBH[SUHVVLRQ &DVH (TXDO &DVHFRGHEORFN 1RW(TXDO (TXDO &DVHFRGHEORFN &DVH 1RW(TXDO (TXDO &DVHFRGHEORFN &DVH 'HIDXOWFRGHEORFN 1RW(TXDO 'HIDXOW 1H[W6WDWHPHQWDIWHU 6ZLWFK )LJ)ORZFKDUWRI6ZLWFK6WDWHPHQW &8 ,'2/ 6(/) /($51,1* 0$7(5,$/ 6/0
&RPSXWHU3URJUDPPLQJ ([DPSOH YRLGPDLQ ^ LQWL VZLWFKL ^ FDVH SULQWI&DVH EUHDN FDVH SULQWI&DVH EUHDN FDVH SULQWI&DVH EUHDN FDVH SULQWI&DVH EUHDN GHIDXOW SULQWI'HIDXOW ` JHWFK ` 2XWSXW &DVH &8 ,'2/ 6(/) /($51,1* 0$7(5,$/ 6/0
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` 7KHZKLOHORRSHYDOXDWHVWKHWHVWH[SUHVVLRQ ,IWKHWHVWH[SUHVVLRQLVWUXHQRQ]HURFRGHVLQVLGHWKHERG\\RIZKLOHORRSLVHYDOXDWHG7KH WHVWH[SUHVVLRQLVHYDOXDWHGDJDLQ7KHSURFHVVJRHVRQXQWLOWKHWHVWH[SUHVVLRQLVIDOVH :KHQWKHWHVWH[SUHVVLRQLVIDOVHWKHZKLOHORRSLVWHUPLQDWHG )ORZFKDUWRIZKLOHORRS )LJ)ORZFKDUWRI:KLOH/RRS &8 ,'2/ 6(/) /($51,1* 0$7(5,$/ 6/0
&RPSXWHU3URJUDPPLQJ ([DPSOH LQFOXGHVWGLRK! LQFOXGHFRQLRK! YRLGPDLQ ^ LQWFRXQW ZKLOHFRXQW ^ SULQWIGFRXQW FRXQW ` JHWFK `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
'HFLVLRQ DQG /RRS &RQWURO 6WUXFWXUH $GRZKLOHORRSVWDWHPHQWVZLOOEHSHUIRUPHGDQGWKHQFKHFNVWKHWHVWH[SUHVVLRQRIWKHORRS GR ^ FRGHVRUVWDWHPHQWV `ZKLOHWHVW([SUHVVLRQ 7KHFRGHEORFNORRSERG\\LQVLGHWKHEUDFHVLVH[HFXWHGRQFH 7KHQWKHWHVWH[SUHVVLRQLVHYDOXDWHG,IWKHWHVWH[SUHVVLRQLVWUXHWKHORRSERG\\LVH[HFXWHG DJDLQ7KLVSURFHVVJRHVRQXQWLOWKHWHVWH[SUHVVLRQLVHYDOXDWHGWRIDOVH :KHQWKHWHVWH[SUHVVLRQLVIDOVHQRQ]HURWKHGRZKLOHORRSLVWHUPLQDWHG 7KHVWDWHPHQWLQWKHORRSPD\\EHVLQJOHRUFRPSOH[&RPSOH[VWDWHPHQWVPXVWEHHQFORVHG ZLWKFXUO\\EUDFHV^`/HW VORRNDWDFRXSOHRIH[DPSOHVRIGRZKLOHORRSV %RG\\RI/RRS WUXH 7HVW H[SUHVVLRQ IDOVH 6WDWHPHQWMXVW EHORZ/RRS ([DPSOH )LJ)ORZFKDUWRIGR:KLOH/RRS 3URJUDPWRSULQWILUVWWHQPXOWLSOHRI LQFOXGHVWGLRK! LQFOXGHFRQLRK! YRLGPDLQ &8 ,'2/ 6(/) /($51,1* 0$7(5,$/ 6/0
&RPSXWHU3URJUDPPLQJ ^ LQWDL D L GR ^ SULQWIG?WD L L ` ZKLOHL JHWFK `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
'HFLVLRQ DQG /RRS &RQWURO 6WUXFWXUH 7KH V\\QWD[RI IRU ORRS ORRNV OLNH WKLV± IRULQLWLDOL]DWLRQFRQGLWLRQWHVWFRQWUROIORZ ^ &RGH & VWDWHPHQWV QHHGV WR EH UHSHDWHG `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` &8 ,'2/ 6(/) /($51,1* 0$7(5,$/ 6/0
&RPSXWHU3URJUDPPLQJ 7KHIRUORRSLVFRPPRQO\\XVHGZKHQWKHQXPEHURILWHUDWLRQVLVNQRZQ ,QJHQHUDODIRUORRSFDQEHZULWWHQDVDQHTXLYDOHQWWRDZKLOHORRSDQGYLFHYHUVD IRUH[SUHVVLRQH[SUHVVLRQH[SUHVVLRQ VWDWHPHQW LV HTXLYDOHQW WR H[SUHVVLRQ ZKLOHH[SUHVVLRQ ^ 6WDWHPHQWV H[SUHVVLRQ ` )RU/RRS)ORZ'LDJUDP ,QLWLDOL]DWLRQ )RUORRS )DOVH FRQGLWLRQ 7UXH )RUORRSFRGHEORFN ,QFUHPHQW8SGDWH 6WDWHPHQWV 6WDWHPHQWDIWHUIRUORRS FRGHEORFN )LJ)ORZFKDUWRI)RU/RRS ([DPSOH « LQWL IRUL L L &8 ,'2/ 6(/) /($51,1* 0$7(5,$/ 6/0
'HFLVLRQ DQG /RRS &RQWURO 6WUXFWXUH ^ SULQWIKHOOR:RUOG ` «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
&RPSXWHU3URJUDPPLQJ /LNHLQLWLDOL]DWLRQ\\RXFDQDOVRVNLSWKHLQFUHPHQWSDUWDVZHGLGEHORZ,QWKLVFDVH VHPLFRORQLVPXVWDIWHUFRQGLWLRQORJLF7KHLQFUHPHQWSDUWLVEHLQJGRQHLQIRUORRS ERG\\LWVHOI IRUQXP QXP ^ &RGH QXP ` %HORZFDVHLVDOVRSRVVLEOHLQFUHPHQWLQERG\\DQGLQLWGXULQJGHFODUDWLRQRIFRXQWHU YDULDEOH LQWQXP IRUQXP ^ 6WDWHPHQWV QXP ` &RXQWHUFDQEHGHFUHPHQWHGDOVR,QWKHEHORZH[DPSOHWKHYDULDEOHJHWVGHFUHPHQWHG HDFKWLPHWKHORRSUXQVXQWLOWKHFRQGLWLRQQXP!EHFRPHVIDOVH IRUQXP QXP!QXP 1HVWHG/RRSV 1HVWHGORRSVRUQHVWLQJRIORRSLVSODFLQJRQHORRSLQWRDQRWKHUORRSWRH[HFXWHDSURJUDP EDVHGRQPXOWLSOHFRQGLWLRQVDQGFKHFNV +HUHZHKDYHDQH[DPSOHRIQHVWLQJRIIRUORRSOLNHZLVH\\RXFDQXVHQHVWLQJRIYDULRXVORRSV VXFKDVZKLOHZKLOHGRRUIRU %DVLFV\\QWD[LVIRUQHVWLQJIRUORRSLV IRULQLWLDOL]DWLRQFRQGLWLRQFRQWUROIORZ ^ &8 ,'2/ 6(/) /($51,1* 0$7(5,$/ 6/0
'HFLVLRQ DQG /RRS &RQWURO 6WUXFWXUH IRULQLWLDOL]DWLRQFRQGLWLRQFRQWUROIORZ ^ VWDWHPHQW ` ` ([DPSOH3URJUDPWRSULQWKDOI3\\UDPLGRIQXPEHUV LQFOXGHVWGLRK! LQFOXGHFRQLRK! YRLGPDLQ ^ LQWLM IRUL LL ^ SULQWI?Q IRUM LM!M ^ SULQWIGM ` ` JHWFK ` 2XWSXW &8 ,'2/ 6(/) /($51,1* 0$7(5,$/ 6/0
&RPSXWHU3URJUDPPLQJ ,QILQLWH/RRSV ,QILQLWHORRSLVDORRSWKDWQHYHUVWRSVXQWLO\\RXSUHVVFWUOEUHDNRQ\\RXUNH\\ERDUG,QRUGHUWR DYRLGLQILQLWHORRSV\\RXQHHGDVWDWHPHQWVLQVLGHWKHERG\\RIWKHORRSWKDWFKDQJHVVRPHSDUWRI WKHORJLFDOH[SUHVVLRQ ([DPSOH LQFOXGHVWGLRK! LQFOXGHFRQLRK! LQWPDLQ ^ LQWD ZKLOHD! ^ SULQWIGD D ` UHWXUQ ` ,QILQLWHORRSDZLOODOZD\\VKDYHYDOXH! VRWKHORRSZRXOGQHYHUHQG ([DPSOH LQFOXGHVWGLRK! LQWPDLQ ^ LQW[ ZKLOH[ ^ SULQWIG[ &8 ,'2/ 6(/) /($51,1* 0$7(5,$/ 6/0
'HFLVLRQ DQG /RRS &RQWURO 6WUXFWXUH [ ` UHWXUQ `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
&RPSXWHU3URJUDPPLQJ )ORZFKDUWRIEUHDNVWDWHPHQW )LJ)ORZFKDUWRI%UHDN6WDWHPHQWV :RUNLQJ RI EUHDN VWDWHPHQW ZKLOHWHVW([SUHVVLRQ ^ FRGHV ,IFRQGLWLRQIRUEUHDN ^ EUHDN ` FRGHV ` IRULQLWFRQGLWLRQXSGDWH &8 ,'2/ 6(/) /($51,1* 0$7(5,$/ 6/0
'HFLVLRQ DQG /RRS &RQWURO 6WUXFWXUH ^ FRGHV LIFRQGLWLRQIRUEUHDN ^ EUHDN ` FRGHV ` <RX FDQ DOVR XVH FKDUDFWHUV LQ VZLWFK FDVH )RU H[DPSOH YRLGPDLQ ^ FKDUFK E VZLWFKFK ^ FDVH G SULQWI&DVH' EUHDN FDVH E SULQWI&DVH% EUHDN FDVH F SULQWI&DVH& EUHDN FDVH ] SULQWI&DVH= EUHDN &8 ,'2/ 6(/) /($51,1* 0$7(5,$/ 6/0
&RPSXWHU3URJUDPPLQJ GHIDXOW SULQWI'HIDXOW ` JHWFK ` 2XWSXW &DVH% ,QDGGLWLRQWRWKLVWKHEUHDNVWDWHPHQWFDQDOVREHXVHGWRWHUPLQDWHORRSVRUWRH[LWIURPD VZLWFK,WFDQEHXVHGZLWKLQDZKLOHDGR²ZKLOHDIRURUDVZLWFKVWDWHPHQW ZKLOHFRQGLWLRQFKHFN ^ VWDWHPHQW VWDWHPHQW LIVRPHFRQGLWLRQ ^ EUHDN ` VWDWHPHQW VWDWHPHQW ` -XPSVRXWRIWKHORRSQRPDWWHUKRZ PDQ\\F\\FOHVDUHOHIWORRSLVH[LWHG &RQWLQXHDQGJRWR6WDWHPHQWV &RQWLQXH6WDWHPHQW 7KHFRQWLQXHVWDWHPHQWVNLSVVRPHVWDWHPHQWVLQVLGHWKHORRS7KHFRQWLQXHVWDWHPHQWLVXVHG ZLWKGHFLVLRQPDNLQJVWDWHPHQWVXFKDVLIHOVH &8 ,'2/ 6(/) /($51,1* 0$7(5,$/ 6/0
'HFLVLRQ DQG /RRS &RQWURO 6WUXFWXUH 6\\QWD[RIFRQWLQXH6WDWHPHQW FRQWLQXH )ORZFKDUWRI&RQWLQXH6WDWHPHQW )LJ)ORZFKDUWRI&RQWLQXHDQGJRWRVWDWHPHQWV &RQWLQXHVWDWHPHQWZRUNVIROORZLQJZD\\ ZKLOHWHVW([SUHVVLRQ ^ FRGHV ,IFRQGLWLRQIRUFRQWLQXH ^ FRQWLQXH ` FRGHV ` &8 ,'2/ 6(/) /($51,1* 0$7(5,$/ 6/0
&RPSXWHU3URJUDPPLQJ IRULQLWFRQGLWLRQXSGDWH ^ FRGHV LIFRQGLWLRQIRUFRQWLQXH ^ FRQWLQXH ` FRGHV ` 7KHFRQWLQXHVWDWHPHQWFDQEHXVHGLQIRUORRS 7KHFRQWLQXHDOORZV\\RXWRFRQWLQXHWKHH[HFXWLRQRIDIRURUZKLOHORRSIURPWKHEHJLQQLQJ PDNLQJLWSRVVLEOHWRVNLSWKHUHVWRIWKHVWDWHPHQWLQWKHORRSDIWHUWKHFRQWLQXHVWDWHPHQW ([DPSOH LQFOXGHVWGLRK! YRLGPDLQ ^ VWDWLFLQWPDUNV>@ ^` LQWLWRWDO IRUL LL ^ LIPDUNV>L@ ^ SWULQWQHJDWLYHPDUNVQRWDGGHG?Q FRQWLQXH ` WRWDO PDUNV>L@ ` &8 ,'2/ 6(/) /($51,1* 0$7(5,$/ 6/0
'HFLVLRQ DQG /RRS &RQWURO 6WUXFWXUH SULQWIWRWDOPDUNV G?QWRWDO JHWFK `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
&RPSXWHU3URJUDPPLQJ ([DPSOH LQFOXGHVWGLRK! YRLGPDLQ ^ ORFDOYDULDEOHGHILQLWLRQ LQWD GRORRSH[HFXWLRQ /223 GR ^ LID ^ VNLSWKHLWHUDWLRQ D D JRWR/223 ` SULQWIYDOXHRIDG?QD D ` ZKLOHD JHWFK ` :KHQWKHDERYHFRGHLVFRPSLOHGDQGH[HFXWHGLWSURGXFHVWKHIROORZLQJUHVXOW\" YDOXHRID YDOXHRID YDOXHRID YDOXHRID &8 ,'2/ 6(/) /($51,1* 0$7(5,$/ 6/0
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
&RPSXWHU3URJUDPPLQJ &RQWLQXH VWDWHPHQW 7KHFRQWLQXH VWDWHPHQWLV XVHG LQVLGHORRSV :KHQ D FRQWLQXH VWDWHPHQWLVHQFRXQWHUHGLQVLGHDORRSFRQWUROMXPSVWRWKHEHJLQQLQJRIWKHORRSIRUQH[WLWHUDWLRQ VNLSSLQJWKHH[HFXWLRQRIVWDWHPHQWVLQVLGHWKHERG\\RIORRSIRUWKHFXUUHQWLWHUDWLRQ *RWRVWDWHPHQW7KHJRWRVWDWHPHQWLVUDUHO\\XVHGEHFDXVHLWPDNHVSURJUDPFRQIXVLQJ OHVVUHDGDEOHDQGFRPSOH[$OVRZKHQWKLVLVXVHGWKHFRQWURORIWKHSURJUDPZRQ¶WEHHDV\\WR WUDFHKHQFHLWPDNHVWHVWLQJDQGGHEXJJLQJGLIILFXOW .H\\:RUGV$EEUHYLDWLRQV 3UHLQFUHPHQWRSHUDWRU$SUHLQFUHPHQWRSHUDWRULVXVHGWRLQFUHPHQWWKHYDOXHRI DYDULDEOHEHIRUHXVLQJLWLQDH[SUHVVLRQ,QWKH3UH,QFUHPHQWYDOXHLVILUVWLQFUHPHQWHG DQGWKHQXVHGLQVLGHWKHH[SUHVVLRQ 6\\QWD[ D [ +HUHLIWKHYDOXHRIµ[¶LVWKHQYDOXHRIµD¶ZLOOEHEHFDXVHWKHYDOXHRIµ[¶JHWV PRGLILHGEHIRUHXVLQJLWLQWKHH[SUHVVLRQ 3RVWLQFUHPHQWRSHUDWRU$SRVWLQFUHPHQWRSHUDWRULVXVHGWRLQFUHPHQWWKHYDOXH RIYDULDEOHDIWHUH[HFXWLQJH[SUHVVLRQFRPSOHWHO\\LQZKLFKSRVWLQFUHPHQWLVXVHG,QWKH 3RVW,QFUHPHQWYDOXHLVILUVWXVHGLQDH[SUHVVLRQDQGWKHQLQFUHPHQWHG 6\\QWD[ D [ +HUHVXSSRVHWKHYDOXHRIµ[¶LVWKHQYDOXHRIYDULDEOHµE¶ZLOOEHEHFDXVHROG YDOXHRIµ[¶LVXVHG /HDUQLQJ$FWLYLW\\ :ULWHDSURJUDPLQ&WRZKHWKHUWKHQRHQWHUHGLVHYHQRURGG BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB &8 ,'2/ 6(/) /($51,1* 0$7(5,$/ 6/0
'HFLVLRQ DQG /RRS &RQWURO 6WUXFWXUH :ULWHDSURJUDPLQ&WRZKHWKHUWKHQRHQWHUHGLVSULPHQRRUQRW BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB :ULWHDSURJUDPLQ&WRGLVSOD\\ILUVWQRV BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB :ULWHDSURJUDPLQ&WRGLVSOD\\WKHIROORZLQJSDWWHUQ BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB BBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBBB 8QLW(QG4XHVWLRQV0&4DQG'HVFULSWLYH $'HVFULSWLYH7\\SH6KRUW$QVZHU7\\SH4XHVWLRQV ([SODLQZKDWDUHWKHGLIIHUHQWFRQWUROVWUXFWXUHVDYDLODEOHLQ&ODQJXDJH ([SODLQLILIHOVHDQG1HVWHGLIZLWKV\\QWD[DQGGHPRQVWUDWHWKURXJKVXLWDEOHH[DPSOH :KDWLVPHDQWE\\ORRSLQJ\"'HVFULEHWZRGLIIHUHQWIRUPVRIORRSLQJ ([SODLQGLIIHUHQFHEHWZHHQIRUORRSDQGZKLOHORRS +RZLVWKHH[HFXWLRQRIDZKLOHORRSWHUPLQDWHG\" ([SODLQWKHIRUDQGZKLOHORRSZLWKFRQWLQXHVWDWHPHQW ([SODLQQHVWLQJRIIRUORRSZLWKDQH[DPSOH ([SODLQQHVWLQJRILIHOVHORRSZLWKDQH[DPSOH ([SODLQ,QILQLWHORRSZLWKDQH[DPSOH ([SODLQXVHRIVZLWFKVWDWHPHQW&RPSDUHVZLWFKVWDWHPHQWZLWKLIVWDWHPHQWDQGVWDWH WKHDGYDQWDJHVRIVZLWFKVWDWHPHQW &8 ,'2/ 6(/) /($51,1* 0$7(5,$/ 6/0
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
'HFLVLRQ DQG /RRS &RQWURO 6WUXFWXUH 5HIHUHQFHV KWWSVZZZWXWRULDOULGHFRPFSURJUDPPLQJGHFLVLRQFRQWUROVWDWHPHQWVLQF SURJUDPPLQJKWP KWWSVEHJLQQHUVERRNFRPFLIVWDWHPHQW KWWSVIUHVKUHIUHVKFRPFSURJUDPPLQJFGHFLVLRQFRQWURO KWWSZZZQKFXHHGXWZaMLQQOLXWHDFKLQJFV&RQWURO6WUXFWXUHVSGI KWWSZZZQ\\XHGXFODVVHVMFI&6&,*$VOLGHVVHVVLRQ&RQWURO6WUXFWXUHV /RRSV&RQGLWLRQDOV$QG&DVH6WDWHPHQWVSGI &8 ,'2/ 6(/) /($51,1* 0$7(5,$/ 6/0
&RPSXWHU3URJUDPPLQJ 81,7 $55$<6 6WUXFWXUH /HDUQLQJ2EMHFWLYHV ,QWURGXFWLRQ 2QH'LPHQVLRQDO$UUD\\ 7ZR'LPHQVLRQDO$UUD\\V 6XPPDU\\ .H\\:RUGV$EEUHYLDWLRQV /HDUQLQJ$FWLYLW\\ 8QLW(QG4XHVWLRQV0&4DQG'HVFULSWLYH 5HIHUHQFHV /HDUQLQJ2EMHFWLYHV $IWHUVWXG\\LQJWKLVXQLW\\RXZLOOEHDEOHWR z 'HVFULEHWKHFRQFHSWVRIDUUD\\V z ,QLWLDOL]LQJ D VLQJOH GLPHQVLRQDO DUUD\\ DQG DFFHVVLQJ LWV HOHPHQWV ZLWK LWV PHPRU\\ DOORFDWLRQ z 'HFODULQJDQGLQLWLDOL]LQJDGLPHQLRQDODUUD\\DQGDFFHVVLQJLWVHOHPHQWVZLWKLWVPHPRU\\ DOORFDWLRQ z 'LIIHUHQWLDWHEHWZHHQRQHDQGWZRGLPHQVLRQDODUUD\\V &8 ,'2/ 6(/) /($51,1* 0$7(5,$/ 6/0
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¶VQDPH 2QH'LPHQVLRQDO$UUD\\ :KHQ \\RX GHFODUH DQ DUUD\\ \\RX GHFODUH D DUUD\\ WKDW FRQWDLQV PXOWLSOH VLPLODU W\\SH RI GDWD LWHPVHDFKGDWDLWHPLVRQHHOHPHQWRIWKHDUUD\\(DFKHOHPHQWKDVWKHVDPHGDWDW\\SHDQGHDFK &8 ,'2/ 6(/) /($51,1* 0$7(5,$/ 6/0
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³(QWHUWKHLWHP´ VFDQI³G´ LWHPV>L@ ` 7KHDERYHIRUORRSDVNVWKHXVHUWRHQWHUWKHLWHPWLPHV,QWKHEHJLQQLQJL ZKLFKFDXVHV WKH VFDQI VWDWHPHQW WR LQLWLDOL]H WKH DUUD\\ HOHPHQWLWHPV > @ILUVW HOHPHQW RIWKH DUUD\\7KLV SURFHVVFRQWLQXHVWLOOL DQGWKDWZRXOGLQLWLDOL]HWKHODVWHOHPHQWRIDUUD\\LWHPV>@ 1RWHWKDWWKHVFDQIIXQFWLRQLQFOXGHVDQDPSHUVDQG LQIURQWRILWHPV>L@VLQFHVLQJOHDUUD\\ HOHPHQWLVEHLQJHQWHUHGUDWKHUWKDQDQHQWLUHDUUD\\ &8 ,'2/ 6(/) /($51,1* 0$7(5,$/ 6/0
$UUD\\V $FFHVVLQJDQ$UUD\\(OHPHQW 7KHIROORZLQJVQLSSHWDOORZVDFFHVVLQJDQDUUD\\HOHPHQWIURPDUUD\\LWHPVRILQWHJHUW\\SHZLWK DFDSDFLW\\RIHOHPHQWV LQW YDOXH SULQWI³?Q9DOXHVRIDUUD\\LWHP?Q³ IRUL LL ^ YDOXH LWHPV>L@ SULQWI³?QG´YDOXH ` 7KHDERYHIRUORRSH[WUDFWVWKHHOHPHQWVVWRUHGLQDUUD\\LWHPVRQHDWDWLPHLQYDULDEOH YDOXHDQGGLVSOD\\VLWLQDSULQWIVWDWHPHQW2IFRXUVHWKHYDOXHYDULDEOHFDQEHHOLPLQDWHGDQGWKH DUUD\\HOHPHQWFRXOGKDYHEHHQGLVSOD\\HGGLUHFWO\\LQSULQWIVWDWHPHQWDVVKRZQEHORZ SULQWI³?QG´LWHPV>L@ ,QVRPHDSSOLFDWLRQVLWPD\\EHGHVLUDEOHWRDVVLJQLQLWLDOYDOXHVWRWKHHOHPHQWVRIDQDUUD\\ 7KLVUHTXLUHVWKDWWKHDUUD\\HLWKHUEHGHILQHGJOREDOO\\RUORFDOO\\ZLWKLQWKHIXQFWLRQDVDVWDWLF DUUD\\7KHIROORZLQJH[DPSOHH[SODLQVWKHVDPH LQWLWHPV>@ ^` YRLGPDLQ ^ LQWLYDOXH SULQWI³?Q9DOXHVRIDUUD\\LWHP?Q³ IRUL LL ^ YDOXH LWHPV>L@ SULQWI³?QG´YDOXH ` ` &8 ,'2/ 6(/) /($51,1* 0$7(5,$/ 6/0
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µD¶LV WKHQDPHRIWKHDUUD\\DQGµL¶DQGµM¶DUHWKHVXEVFULSWVWKDWXQLTXHO\\LGHQWLI\\HDFK HOHPHQWLQµD¶ ,QLWLDOL]DWLRQRI'$UUD\\ &RQVLGHUWKHIROORZLQJVQLSSHWWRXQGHUVWDQGWZRGLPHQVLRQDODUUD\\LQLWLDOL]DWLRQ LQWLWHPV>@>@ ^ ^` ^` ^` ^` ` 7KH DERYH VQLSSHW LQLWLDOL]HV D E\\ WZRGLPHQVLRQDO DUUD\\ WKH VDPH DUUD\\ PD\\ EH HYHQ LQLWLDOL]HGLQWKHIROORZLQJPDQQHU LQWLWHPV>@>@ ^` &8 ,'2/ 6(/) /($51,1* 0$7(5,$/ 6/0
&RPSXWHU3URJUDPPLQJ 2IFRXUVHLWLVOLWWOHGLIILFXOWWRXQGHUVWDQGVRPRVWRIWKHSURJUDPPHUVXVHWKHSUHYLRXVZD\\ WRLQLWLDOL]HWKH'DUUD\\LWHPV ,WLVLPSRUWDQWWRUHPHPEHUWKDWZKLOHLQLWLDOL]LQJD'DUUD\\LWLVQHFHVVDU\\WRPHQWLRQWKH VHFRQGFROXPQGLPHQVLRQZKHUHDVWKHILUVWGLPHQVLRQURZLVRSWLRQDO7KDWPHDQVWKHIROORZLQJ GHFODUDWLRQVDUHYDOLG LQWLWHPV>@>@ ^` LQWLWHPV>@>@ ^` ZKHUHDVWKHIROORZLQJGHFODUDWLRQVDUHQRWYDOLG LQWLWHPV>@>@ ^`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`&RQVLGHUWKHIROORZLQJH[DPSOH LQWLWHPV>@>@ ^ ^` ^` ^` ^` ` &8 ,'2/ 6(/) /($51,1* 0$7(5,$/ 6/0
$UUD\\V :KDWKDSSHQVLQPHPRU\\IRU'DUUD\\V\" 7KHDUUDQJHPHQWRI'DUUD\\HOHPHQWVLQURZVDQGFROXPQVLVRQO\\FRQFHSWXDO7KHDFWXDO PHPRU\\DOORFDWLRQVIRU'DUUD\\DUHVDPHDVRQHGLPHQVLRQDODUUD\\LHFRQWLQXRXV &RQVLGHUWKHDUUD\\ LQWD>@>@ ^` ,WVDUUDQJHPHQWLVVKRZQLQWKHIROORZLQJGLDJUDP D>@>@ D>@>@ D>@>@ D>@>@ D>@>@ D>@>@ DUUHOHPHQWV PHPRU\\ORFDWLRQ )LJ'DUUD\\LQ0HPRU\\ $QHOHPHQWRIWKHDERYHDUUD\\FDQEHDFFHVVHGXVLQJWKHIROORZLQJFRGH LQWYDOXH D>@>@ SULQWI9DOXH GD>@>@ 7KHDERYHVQLSSHWZRXOGSURGXFHWKHIROORZLQJRXWSXW 9DOXH 6XPPDU\\ z $QDUUD\\LVDJURXSRUFROOHFWLRQRIVDPHGDWDW\\SHV)RUH[DPSOHDQLQWDUUD\\KROGV WKHHOHPHQWVRILQWW\\SHVZKLOHDIORDWDUUD\\KROGVWKHHOHPHQWVRIIORDWW\\SHV z 7KHUHDUHW\\SHVRI&DUUD\\V7KH\\DUH 2QHGLPHQVLRQDODUUD\\ 0XOWLGLPHQVLRQDODUUD\\ z 7ZRGLPHQVLRQDODUUD\\ z 7KUHHGLPHQVLRQDODUUD\\ z )RXUGLPHQVLRQDODUUD\\HWF« &8 ,'2/ 6(/) /($51,1* 0$7(5,$/ 6/0
Search
Read the Text Version
- 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
- 89
- 90
- 91
- 92
- 93
- 94
- 95
- 96
- 97
- 98
- 99
- 100
- 101
- 102
- 103
- 104
- 105
- 106
- 107
- 108
- 109
- 110
- 111
- 112
- 113
- 114
- 115
- 116
- 117
- 118
- 119
- 120
- 121
- 122
- 123
- 124
- 125
- 126
- 127
- 128
- 129
- 130
- 131
- 132
- 133
- 134
- 135
- 136
- 137
- 138
- 139
- 140
- 141
- 142
- 143
- 144
- 145
- 146
- 147
- 148
- 149
- 150
- 151
- 152
- 153
- 154
- 155
- 156
- 157
- 158
- 159
- 160
- 161
- 162
- 163
- 164
- 165
- 166
- 167
- 168
- 169
- 170
- 171
- 172
- 173
- 174
- 175
- 176
- 177
- 178
- 179
- 180
- 181
- 182
- 183
- 184
- 185
- 186
- 187
- 188
- 189
- 190
- 191
- 192
- 193
- 194
- 195
- 196
- 197
- 198
- 199
- 200
- 201
- 202
- 203
- 204
- 205
- 206
- 207
- 208
- 209
- 210
- 211
- 212
- 213
- 214
- 215
- 216
- 217
- 218
- 219
- 220
- 221
- 222
- 223
- 224
- 225
- 226
- 227
- 228
- 229
- 230
- 231
- 232
- 233
- 234
- 235
- 236
- 237
- 238
- 239
- 240
- 241
- 242
- 243
- 244
- 245
- 246
- 247
- 248
- 249
- 250
- 251
- 252
- 253
- 254
- 255
- 256
- 257
- 258
- 259
- 260
- 261
- 262
- 263
- 264
- 265
- 266
- 267
- 268
- 269
- 270
- 271
- 272
- 273
- 274
- 275
- 276
- 277
- 278
- 279
- 280
- 281
- 282
- 283
- 284
- 285
- 286
- 287
- 288
- 289
- 290
- 291
- 292
- 293
- 294
- 295
- 296
- 297
- 298
- 299
- 300
- 301
- 302
- 303
- 304
- 305
- 306
- 307
- 308
- 309
- 310
- 311
- 312
- 313
- 314
- 315
- 316
- 317
- 318
- 319
- 320
- 321
- 322
- 323
- 324
- 325
- 326
- 327
- 328
- 329
- 330
- 331
- 332
- 333
- 334
- 335
- 336
- 337
- 338
- 339
- 340
- 341
- 342
- 343
- 344
- 345
- 346
- 347