(;&(/9%$ 0$&52%$6,&6

([FHO9%$&RXUVH1RWHV0DFUR%DVLFV
)LOH9%$0DFURV[OV

8VLQJWKH0DFUR5HFRUGHU
2SHQ([FHODQGWKH9%(9LVXDO%DVLF(GLWRU8QOHVVLWKDVEHHQFKDQJHGWKH9%(ZLQGRZFRQWDLQVWKH
3URMHFW ([SORUHU ZLQGRZDQGWKH 3URSHUWLHV ZLQGRZWKHVHFDQEH DFFHVVHGIURPWKH 9LHZ PHQX

3URMHFW([SORUHU:RUNVOLNHDILOHPDQDJHU+HOSV\RXQDYLJDWHDURXQGWKHFRGHLQ\RXUZRUNERRN

3URSHUWLHV:LQGRZ 6KRZVWKHSURSHUWLHVRIWKHFXUUHQWO\DFWLYHREMHFWHJ 6KHHWRIWKHFXUUHQWZRUNERRN

HJ %RRN

([HUFLVH5HFRUGLQJD0DFUR
7KLVH[HUFLVHVKRZVZKDWKDSSHQVZKHQDPDFURLVUHFRUGHGDQGGHPRQVWUDWHVWKHGLIIHUHQFHEHWZHHQUHFRUGLQJ
DEVROXWHDQGUHODWLYHUHIHUHQFHV

 2QDQHPSW\ZRUNVKHHWLQDQHZZRUNERRNVHOHFWFHOO &

 6WDUWWKH0DFUR5HFRUGHU ZLWKRSWLRQWRVDYHPDFURLQ 7KLV:RUNERRN$WWKLVSRLQWWKH9%(FUHDWHVDQHZ

0RGXOHV IROGHU,W
VTXLWHVDIHWRJRDQGORRNDWLW  \RXUDFWLRQVZRQ
WEHUHFRUGHG&OLFNWKH >@ QH[WWRWKH
IROGHUDQGVHHWKDWWKH9%(KDVSODFHVDPRGXOHLQWKHIROGHUDQGQDP HGLW0RGXOH'RXEOHFOLFNWKHPRGXOHLFRQ
WRRSHQLWVFRGHZLQGRZ6ZLWFKEDFNWR([FHO

 0DNHVXUHWKDWWKH 5HODWLYH5HIHUHQFHEXWWRQRQWKH6WRS5HFRUGLQJ WRROEDULV127SUHVVHGLQ

 6HOHFWFHOO% DQGVWRSWKHUHFRUGHU

 6ZLWFKWRWKH9%(DQGORRNDWWKH FRGH

5DQJH%6HOHFW

 1RZUHFRUGDQRWKHUPDFURH[DFWO\WKHVDPHZD\EXWWKLVWLPHZLWKWKH 5HODWLYH5HIHUHQFH EXWWRQSUHVVHGLQ

 6ZLWFKWRWKH9%(DQGORRNDWWKHFRGH

$FWLYH&HOO2IIVHW5DQJH$6HOHFW

 1RZUHFRUGDQRWKHUPDFUREXWLQVWH DGRIVHOHFWLQJFHOO%VHOHFWDEORFNRIFHOOV[VWDUWLQJDW%VHOHFWFHOOV

%)

 6ZLWFKWRWKH9%(DQGORRNDWWKHFRGH

$FWLYH&HOO2IIVHW5DQJH$%6HOHFW

 3OD\EDFNWKHPDFURVKDYLQJILUVWVHOHFWHGDGLIIHUHQWFHOOWKDQ&IRU0DF URDQG0DFURWKHVWDUWLQJFHOOPXVW

EHLQURZRUEHORZ  VHHVWHSEHORZ

0DFUR  DOZD\VPRYHVWKHVHOHFWLRQWR%
0DFUR  PRYHVWKHVHOHFWLRQWRDFHOOURZVXSDQGFROXPQWRWKHOHIWRIWKHVHOHFWHGFHOO
0DFUR  DOZD\VVHOHFWVDEORFNRIVL [FHOOVVWDUWLQJURZVXSDQGFROXPQWRWKHOHIWRIWKHVHOHFWHGFHOO

 5XQ0DFUREXWIRUFHDQHUURUE\VHOHFWLQJDFHOOLQURZRUDERYH7KHPDFURWULHVWRVHOHFWDQRQ H[LVWHQWFHOO

EHFDXVHLWVFRGHLVWHOOLQJLWWRVHOHFWDFHOOURZVDERYHWKHVW DUWLQJSRLQWDQGWKDW
VRIIWKHWRSRIWKHVKHHW
3UHVV'HEXJ WREHWDNHQWRWKHSDUWRIWKHPDFURWKDWFDXVHGWKHSUREOHP

127(:KHQWKH9%(LVLQ'HEXJPRGHWKHOLQHRIFRGHWKDWFDXVHGWKHSUREOHPLVKLJKOLJKWHGLQ\HOORZ<RX
PXVWUHVHWWKHPDFUR EHIRUH\RXFDQSURFHHG&OLFNWKH 5HVHW EXWWRQRQWKH9%(WRROEDURUJRWR 5XQ±
±5HVHW
7KH\HOORZKLJKOLJKWLQJGLVDSSHDUVDQGWKH9%(FRPHVRXWRI'HEXJPRGH

 ,WLVLPSRUWDQWWRWU\DQGDQWLFLSDWHXVHUHUURUOLNHWKLV7KHVLPSOHVWZD\LVWRPRGLI\WKHFRG HWRVLPSO\LJQRUH

HUURUVDQGPRYHRQWRWKHQH[WWDVN'RWKLVE\DGGLQJWKHOLQH«

2Q(UURU5HVXPH1H[W

«LPPHGLDWHO\DERYHWKHILUVWOLQHRIWKHPDFURXQGHUQHDWKWKHOLQH 6XE 0DFUR

 5XQ0DFUR DVEHIRUHVWDUWLQJWRRKLJKRQWKHVKHHW7KLVWLPHWKH OLQH\RXW\SHGWHOOV([FHOWRLJQRUHWKHOLQHRI

FRGHWKDWLWFDQ
WH[HFXWH7KHUHLVQRHUURUPHVVDJHDQGWKHPDFURH[LWVKDYLQJGRQHDOOLWFDQ8VHWKLVPHWKRG
RIKDQGOLQJHUURUVZLWKFDXWLRQ7KLVLVDYHU\VLPSOHPDFUR$PRUHFRPSOH[PDFURZRXOGSUR EDEO\QRWSHUIRUP
DVH[SHFWHGLIHUURUVZHUHVLPSO\LJQRUHG$OVRWKHXVHUKDVQRLGHDWKDWVRPHWKLQJKDVJRQHZURQJ

 0RGLI\WKHFRGHRI 0DFURWRLQFOXGHDPRUHVRSKLVWLFDWHGHUURUKDQGOHUWKXV

‹0DUWLQ*UHHQ ZZZIRQWVWXIIFRP  RI

(;&(/9%$ 0$&52%$6,&6

6XE0DFUR
2Q(UURU*R7R(UURU+DQGOHU
$FWLYH&HOO2IIVHW5DQJH$6HOHFW
([LW6XE
(UURU+DQGOHU
0VJ%R[<RXPXVWVWDUWEHORZ5RZ
(QG6XE

 7KLVWLPHWKHXVHULVSUHVHQWHGZLWKDGLDORJER[ZKHQVRPHWKLQJJRHVZURQJ,IWKHUHLVQRHUURUWKHOLQH
([LW 6XE FDXVHVWKHPDFURWRILQLVKDIWH ULWKDVGRQHLWVMRE  RWKHUZLVHWKHXVHUZRXOGVHHWKHPHVVDJHHYHQLI
WKHUHZHUHQRHUURU

,PSURYLQJ5HFRUGHG0DFURV
7KHJRRGZD\WROHDUQWKHEDVLFVRI9%$LVWRUHFRUGDPDFURDQGVHHKRZ([FHOZULWHVLWVRZQFRGH2IWHQWKRXJK
UHFRUGHGPDFURVFRQWD LQPXFKPRUHFRGHWKDQLVQHFHVVDU\7KHIROORZLQJH[HUFLVHVGHPRQVWUDWHKRZ\RXFDQ
LPSURYHDQGVWUHDPOLQHFRGHWKDWKDVEHHQSURGXFHGE\DUHFRUGHGPDFUR

([HUFLVH,PSURYLQJRQ5HFRUGHG0DFURV
7KLVH[HUFLVHVKRZVWKDWZKHQPDFURVDUHUHFRUGHGRIWHQPRUHFRGHLVJHQHUDWHGWKDQQHFHVVDU\,WGHPRQVWUDWHV
WKHXVHRIWKH:LWKVWDWHPHQWWRSUpFLVWKHFRGH

 6HOHFWDQ\FHOORUEORFNRIFHOOV

 6WDUWWKHPDFURUHFRUGHUDQGFDOOWKHPDFUR)RUPDW&HOOV7KH5HODWLYH5HIHUHQFHVVHWWLQJZLOOQRWEHUHOHYDQW

 *RWR )RUPDW±
±&HOOV±±)RQW DQGFKRRVH7LPHV1HZ5RPDQ DQG5HG
*RWR3DWWHUQV DQGFKRRVH<HOORZ
*RWR$OLJQPHQW DQGFKRRVH+RUL]RQWDO&HQWHU
*RWR1XPEHU DQGFKRRVH&XUUHQF\

 &OLFN2. DQGVWRSWKHUHFRUGHU

 &OLFNWKH8QGR EXWWRQRU&WUO=WRXQGR\RXUFKDQJH VWRWKHZRUNVKHHW

 6HOHFWDEORFNRIFHOOVDQGUXQWKH )RUPDW&HOOV PDFUR1RWHWKDWLWFDQQRWEHXQGRQH7\SHLQWKHFHOOVWRFKHFN

WKHUHVXOWRIWKHIRUPDWWLQJ

 /RRNDWWKHFRGH

6XE )RUPDW6HOHFWLRQ
6HOHFWLRQ1XPEHU)RUPDW 
:LWK6HOHFWLRQ
+RUL]RQWDO$OLJQPHQW [O&HQWHU
9HUWLFDO$OLJQPHQW [O%RWWRP
:UDS7H[W )DOVH
2ULHQWDWLRQ 
6KULQN7R)LW )DOVH
0HUJH&HOOV )DOVH
(QG:LWK
:LWK 6HOHFWLRQ)RQW
1DPH 7LPHV1HZ5RPDQ
)RQW6W\OH 5HJXODU
6L]H 
6WULNHWKURXJK )DOVH
6XSHUVFULSW )DOVH
6XEVFULSW )DOVH
2XWOLQH)RQW )DOVH
6KDGRZ )DOVH
8QGHUOLQH [O8QGHUOLQH6W\OH1RQH
&RORU,QGH[ 
(QG:LWK
:LWK 6HOHFWLRQ,QWHULRU
&RORU,QGH[ 
3DWWHUQ [O6ROLG
3DWWHUQ&RORU,QGH[ [O$XWRPDWLF
(QG:LWK
(QG6XE

‹0DUWLQ*UHHQ ZZZIRQWVWXIIFRP  RI

(;&(/9%$ 0$&52%$6,&6

 1RWHDOOWKHH[WUDLQVWUXFWLRQVWKDWKDYHEHHQUHFRUGHG'HOHWHOLQHVRIFRGHVRWKDWRQO\ WKHIROORZLQJUHPDLQV

6XE )RUPDW6HOHFWLRQ
6HOHFWLRQ1XPEHU)RUPDW 
:LWK 6HOHFWLRQ
+RUL]RQWDO$OLJQPHQW [O&HQWHU
(QG:LWK
:LWK 6HOHFWLRQ)RQW
1DPH 7LPHV1HZ5RPDQ
&RORU,QGH[ 
(QG:LWK
:LWK 6HOHFWLRQ,QWHULRU
&RORU,QGH[ 
(QG:LWK
(QG6XE

 5XQWKHPDFURWRWHVWWKHHGLWHGFRGH,WVWLOOZRUNVDVEHIRUH

 1RZPRGLI\WKHFRGHHYHQIXUWKHU

6XE )RUPDW6HOHFWLRQ
:LWK 6HOHFWLRQ
1XPEHU)RUPDW 
+RUL]RQWDO$OLJQPHQW [O&HQWHU
)RQW1DPH 7LPHV1HZ5RPDQ
)RQW&RORU,QGH[ 
,QWHULRU&RORU,QGH[ 
(QG:LWK
(QG6XE

 7HVWWKHPDFUR(YHU\WKLQJVWLOOZRUNVDQGWKHFRGHZLOOUXQPXFKIDVWHU

 7U\UHFRUGLQJWKHVDPHPDFURXVL QJWRROEDUEXWWRQVLQVWHDGRIJRLQJWRWKHGLDORJER[

&KDQJHWKH)RQWWR 7LPHV1HZ5RPDQ
&KDQJHWKH)RQW&RORXUWR 5HG
&KDQJHWKH)LOO&RORUWR <HOORZ
&OLFNWKH&HQWHU EXWWRQ
&OLFNWKH&XUUHQF\ EXWWRQ

 /RRNDWWKHFRGH<RXVWLOOJHWORWVRIVWXIIWKDW\RX GRQ¶WQHFHVVDULO\ZDQW([FHOLVUHFRUGLQJDOOWKH GHIDXOW

VHWWLQJV0RVWRIWKHVHDUHVDIHWRGHOHWH

 ([SHULPHQWZLWKHGLWLQJGLUHFWO\LQWRWKHFRGHWRFKDQJHFRORXUVWKHIRQWWKHQXPEHUIRUPDWHWF

([HUFLVH:DWFKD0DFUR%HLQJ5HFRUGHG
7KLVH[HUFLVHVKRZVWKDW\RXFDQOHDUQE\ZDWFKLQJWKHPDFUREXLOGDVLWLVEHLQJUHFRUGHG,WLVDOVRDQH[DPSOHRI
ZKHQVRPHWLPHVWKH:LWKVWDWHPHQWLVQ¶WDSSURSULDWH

 2SHQWKHILOH9%$[OV

:KLOVWWKLVZRUNVKHHWLVYLVXDOO\2.DQGFDQEHXQGHUVWRRGE\WKHXVHU WKHSUHVHQFHHPSW\FHOOVFDQFDXVH
SUREOHPV7U\ILOWHULQJWKHGDWDDQGVHHZKDWKDSSHQV*RWR 'DWD±±)LOWHU±±$XWRILOWHU DQGILOWHUE\5HJLRQRU
0RQWK,WLVFOHDUWKDW([FHOGRHVQRWPDNHWKHVDPHDVVXPSWLRQVWKDWWKHXVHUGRHV7KHHPSW\FHOOVQHHGWREH
ILOOHG

 7LOHWKH([FHODQG9%(ZLQGRZVYHUWLFDOO\VRWKH\DUHVLGH E\VLGH

 6HOHFWDQ\FHOOZLWKLQWKHGDWD,ILWLVDQHPSW\FHOOLWPXVWEHDGMDFHQWWRDFHOOFRQWDLQLQJGDWD

 6WDUWWKHPDFURUHFRUGHUDQGFDOOWKHPDFUR )LOO(PSW\&HOOV6HWWRUHFRUG 5HODWLYH5HIHUHQFHV

 ,QWKH9%(ZLQGRZILQGDQGGRXEOH FOLFNWKHPRGXOH0RGXOHIRUWKHFXUUHQWZRUNERRNWRRSHQWKHHGLWLQJSDQH

WKHQVZLWFKRIIWKH3URMHFW([SORUHUZLQGRZDQGWKH3URSHUWLHVZLQGRZRQO\WRPDNHVSDFH

 5HFRUGWKHQHZPDFURDVIROORZV 

6WHS&WUO WRVHOHFWWKHFXUUHQWUHJLRQ
6WHS(GLW±
±*R7R± ±6SHFLDO± ±%ODQNV± ±2. WRVHOHFWDOOWKHHPSW\FHOOVLQWKHFXUUHQWUHJLRQ
6WHS7\SH >8S$UURZ@ WKHQSUHVV&WUO(QWHU WRSODFH\RXUW\SLQJLQWRDOOWKHVHOHFWHGFHOOV
6WHS&WUO WRVHOHFWWKHFXUUHQWUHJLRQDJDLQ
6WHS&WUO& WRFRS\WKHVHOHFWLRQ  DQ\PHWKRGZLOOGR
6WHS(GLW±
±3DVWH 6SHFLDO± ±9DOXHV± ±2. WRSDVWHWKHGDWDEDFNLQWRWKHVDPHSODFHEXWGLVFDUGLQJWKH
IRUPXODV
‹0DUWLQ*UHHQ ZZZIRQWVWXIIFRP  RI
(;&(/9%$ 0$&52%$6,&6

6WHS(VF WRFRPHRXWRI&RS\0RGH
6WHS 6WRS5HFRUGLQJ

 /RRNDWWKHFRGH

6XE )LOO(PSW\&HOOV
6HOHFWLRQ&XUUHQW5HJLRQ6HOHFW
6HOHFWLRQ6SHFLDO&HOOV[O&HOO7\SH%ODQNV6HOHFW
6HOHFWLRQ)RUPXOD5&  5>@&
6HOHFWLRQ&XUUHQW5HJLRQ6HOHFW
6HOHFWLRQ&RS\
6HOHFWLRQ3DVWH6SHFLDO3DVWH [O9DOXHV2SHUDWLRQ [O1RQH6NLS%ODQNV B
)DOVH7UDQVSRVH )DOVH
$SSOLFDWLRQ&XW&RS\0RGH )DOVH
(QG6XE

 1RWHWKHXVHRIWKHVSDFH DQGXQGHUVFRUH³B´WRGHQRWHWKHVSOLWWLQJRIDVLQJOHOLQHRIFRGHRQWRDQHZOLQH
:LWKRXW WKLV([FHOZRXOGWUHDWWKHFRGHDVWZRVHSDUDWHVWDWHPHQWV

 %HFDXVHWKLVPDFURKDVEHHQUHFRUGHGZLWKZHOOWKRXJKWRXWFRPPDQGVWKHUHLVOLWWOHXQQHFHVVDU\FRGH,QWKH
3DVWH6SHFLDO HYHU\WKLQJDIWHUWKHZRUG³[O9DOXHV´FDQEHGHOHWHG

 7U\RXWWKHPDFUR 7KHQXVHWKH$XWR)LOWHUWRRODQGQRWHWKHGLIIHUHQFH

‹0DUWLQ*UHHQ ZZZIRQWVWXIIFRP  RI