MATERIAL SCREEN
Tobias Ebsen
PhD dissertation 2013
MATERIAL SCREEN
Intersections of media, art, and architecture
TOBIAS EBSEN
DO
NOT
DISTRIBUTE
!"#$%&'!($')*!
MATERIAL SCREEN
Intersections of media, art, and architecture
!"#$% &#$$'(!)!#*+% ")$% ,''+% $-,.#!!'&% /*(%
'0)1-)!#*+%,2%!"'%3"&%4*..#!''%)+&%#$%+*!%!*%
,'%.)&'%3-,1#4%#+%)+2%/*(.5
+,-!.%'')/0&0%#*!1234
7KLV GLVVHUWDWLRQ LV VXEPLWWHG LQ SDUWLDO IXO¿OOPHQW RI WKH UH!
"#$%&'&()*+,-%+).&+/&0%&&+-,+1-2)-%+-,+3.$4-*-5.6+73.18+)-+).&+
9:2#4)6+-,+;%)*<+;:%.#*+=($>&%*$)6<+1&(':%?@
A+B-C$:*+DC*&(+EFGH
I-56&/$)$(0+C6+J$2.:&4:+K2$-*2$:
3%$()&/+C6+K2:(/$(:>$:(L--?
CONTENTS
3MD9;ID+@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ G
NOBMP1=IBNPO+@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ Q
3%&4#/&+@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ R
B.&+':)&%$:4+*2%&&(+@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ S
J-)$>:)$-(+@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ GQ
I:*&*+@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ GT
J2U#.:(+@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ EF
6FUHHQDUWLQWKHH[SDQGHG¿HOG+@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ EV
I.:5)&%*+@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ ES
KIMDDO+@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ HG
W$(/-X+@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ HR
;22&**+@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ VG
1&5).+@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ VH
1$*&'C-/$'&()+@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ VR
1&':)&%$:4$Y:)$-(+@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ QZ
K#'':%6+@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ ZE
&
!"
!!"#$%&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&
$'()*"%(+,&&&&&&&&&&&&&&&&&&&&&&&&&&&&&&
J;BDMN;UNB[+@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ ZR
J:))&%+@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ RE
9-%'+@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ SF
\-)+:(/+2-4/+@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ TF
P()-4-06+@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ TS
9$0#%&+:(/+0%-#(/+@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@GGG
3#))$(0+':)&%$:4$)6+)-+X-%?+@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ GEV
K#'':%6+@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ GES
JD1N;+;MI\NBDIB=MD+@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ GHG
J&/$:+,:2:/&*+@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ GHZ
K5:)$:4+*2%&&(*+@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ GHT
D'&%0&(2&+@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ GVE
;+5%&!.$*)-%6+@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ GVS
N()&%5%&):)$-(*+@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ GZF
K#'':%6+@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ GZZ
I;KDK+@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ GZR
;:%.#*+C6+U$0.)+@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ GRH
M#(($(0+K2#45)#%&+@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ GSG
I4$':)&+W:44+@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ GSR
;)'-*5.&%&+@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ GTH
1&(':%?+3:>$4$-(+@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ GTT
9$(/$(0*+@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ EGH
IPOIU=KNPO+@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ EEG
5HVHDUFKJRDOVDQG¿QGLQJV@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ EES
I-()%$C#)$-(*+@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ EHE
9$(:4+%&':%?*+@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ EHH
UNKB+P9+9N]=MDK+@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ EHQ
LNLUNP]M;3\[+@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ EHR
PREFACE
3MD9;ID
B.$*+/$**&%):)$-(+$*+).&+%&*#4)+-,+,-#%+6&:%*+-,+%&*&:%2.+2-(*$*)!
$(0+-,+4$)&%:)#%&+*)#/$&*<+2-(,&%&(2&+5:%)$2$5:)$-(<+/&*$0(+X-%?<+
:(/+:%)$*)$2+5%:2)$2&@
J-*)+ -,+ ).&+ X-%?+ .:*+ C&&(+ 2:%%$&/+ -#)+ :)+;:%.#*+ =($>&%*$)6+
$(+ ).&+ 2-()&^)+ -,+ ).&+ %&*&:%2.+ 5%-_&2)+ !"#$%& '%(%#")+ 7EFFR!
EFGF8<+ 4:)&%+ $()&0%:)&/+ $()-+ ).&+ 4:%0&%+ 5%-_&2)<+ *$+$,%-& ./0%1&
2$3$1++ 7EFFS!EFGE8@+ B.&*&+ 5%-_&2)*+ .:>&+ ,#%($*.&/+ :+ 2-44:C!
-%:)$>&+54:),-%'<+,#(/$(0<+:(/+5#C4$2!5%$>:)&+5:%)(&%*.$5*+,-%+
).&+%&*&:%2.&%*+$(>-4>&/@+B.&+?(-X4&/0&+5%&*&()&/+$(+).$*+/$*!
*&%):)$-(+ $*+ /&/#2&/+ ,%-'+ ).&+ ).&-%&)$2:4+ :(/+ 5%:2)$2:4+ X-%?+
RQ VSHFL¿F FDVHV SHUIRUPHG LQ WKH 0HGLD )DFDGHV UHVHDUFK
5%-_&2)@
J6+ ':*)&%`*+ ).&*$*<+ 456%/#)& %& !"#$%& 7/(8$,"(,9/"+ 7DC*&(<+
DWWHPSWHGWRGH¿QHWKHHPHUJLQJ¿HOGRI:"#$%&%/(8$,"(;
,9/"+:*+).&+.$*)-%$2:4+2-(>&%0&(2&+-,+*2%&&(!C:*&/+'&/$:+:(/+
:%2.$)&2)#%:4+ 5%:2)$2&@+ B.$*+ X:*+ C:*&/+ -(+ '6+ C:2?0%-#(/+ $(+
:%)+.$*)-%6<+:(/+'6+5:%)$2#4:%+$()&%&*)+$(+:%2.$)&2)#%&@+B.$*+/$*!
*&%):)$-(+$*+:(+&^)&(*$-(+-,+).&+$/&:*+$(+).&+':*)&%`*+).&*$*<+C#)+
$(*)&:/+-,+/&*2%$C$(0+'&/$:+:%2.$)&2)#%&+:4-(&<+$)+:(:46Y&*+).&+
EURDGHU¿HOGRIVFUHHQEDVHGDUWDVDVHWRIDSSURDFKHVWRWKH
':)&%$:4$)6+-,+).&+*2%&&(+:)+).&+$()&%*&2)$-(+-,+'&/$:<+:%)<+:(/+
:%2.$)&2)#%&@+N(+'6+%&*&:%2.+N+.:>&+2-'&+)-+%&:4$Y&+).:)+'&/$:+
DUFKLWHFWXUHLVQRWDWWKHFHQWHURIWKLV¿HOGEXWUDWKHUDSUR!
,-#(/+&^:'54&+-,+$)*+:554$2:)$-(@+B.$*+.:*+4&/+'&+)-+).&+5%&*!
&()+ 5&%*5&2)$>&+ -,+ ).&+ :%,"/$%-& )(/""1<+ X.$2.+ :(:46*&*+ ).&*&+
&^5&%$'&():4+ :55%-:2.&*+ )-+ ).&+ *2%&&(<+ $(24#/$(0+ '&/$:+ :%)*+
:(/+'&/$:+:%2.$)&2)#%&@
;*+:+5:%)+-,+'6+%&*&:%2.<+N+.:>&+5:%)$2$5:)&/+$(+':(6+2-(,&%!
&(2&*+:(/+:%)+,&*)$>:4*+%&4:)$(0+)-+).$*+5%-_&2)@+B.$*+.:*+5%->$/!
&/+:+*#C*):()$:4+C-/6+-,+$(,-%':)$-(<+:*+X&44+:*+:(+$()&%(:)$-(:4+
-#)4--?@
H
3MD9;ID
N(+).&+X$()&%+-,+EFGE<+N+X:*+$(>$)&/+)-+C&2-'&+:+'&'C&%+-,+
).&+ !"#$%& 7/(8$,"(,9/"& <1),$,9,"<+ C:*&/+ $(+ a$&((:<+ X.$2.+
.:*+ -%0:($Y&/+ *&>&%:4+ 2-(,&%&(2&*+ *$(2&+ EFFR<+ :(/+ C&&(+ :2!
)$>&+ $(+ *.:%$(0+ ?(-X4&/0&+ ).%-#0.+ ).&$%+ -(4$(&+ C4-0+ 7*&&+
+'&/$::%2.$)&2)#%&@-%08@+B.$*+.:*+,#%).&%+4&/+)-+).&+%&:4$Y:)$-(+
-,+).&+*&2-(/+!"#$%&7/(8$,"(,9/"&=$"11%-"<+X.$2.+X:*+.-*)&/+
$(+;:%.#*+$(+O->&'C&%+EFGE@
!"#$%&'()*(+($,B.&+ X-%?+ 5%&*&()&/+ $(+ ).$*+ /$**&%):)$-(+ $*+ ':/&+ 5-**$C4&+ C6+
:+,-#%!6&:%+0%:()+5%->$/&/+C6+_-$()+,#(/$(0+,%-'+).&+9:2#4)6+
-,+ \#':($)$&*+ 7(-X+ 9:2#4)6+ -,+ ;%)*8+ :)+ ;:%.#*+ =($>&%*$)6<+
).&+I&()&%+,-%+1$0$):4+=%C:(+U$>$(0+71=U8<+X.$2.+$*+,#(/&/+
C6+B.&+bNOP+3%-0%:'+-,+B.&+1:($*.+O:)$-(:4+K)%:)&0$2+M&!
*&:%2.+9-#(/:)$-(<+:(/+C6+).&+'#($2$5:4$)6+-,+;:%.#*@
N+X-#4/+4$?&+)-+).:(?+'6+*#5&%>$*-%*<+3%-,&**-%+b$'+\:4*?->+
:(/+;**-2$:)&+3%-,&**-%+Kc%&(+3-4/<+:(/+'6+2-44&:0#&*+:)+).&+
1$0$):4+;&*).&)$2*+M&*&:%2.+I&()&%+:(/+).&+N()&%:2)$-(+1&*$0(+
0%-#5@+J6+:55%&2$:)$-(+0-&*+-#)+)-+I;aN+:(/+J-%)&(+U&%>$0<+
X.-+.:>&+5%->$/&/+,:2$4$)$&*+:(/+>$):4+*#55-%)+,-%+).&+&^5&%$!
'&():4+5%-_&2)*+$(+X.$2.+N+.:>&+C&&(+$(>-4>&/@+;+*5&2$:4+).:(?*+
0-&*+)-+J:%)$(+L%6(*?->+:(/+M#(&+O$&4*&(<+X.-+.:>&+C&&(+&^!
2&44&()+5%-_&2)+':(:0&%*+:(/+5%->$/&/+$(*5$%:)$-(:4+0#$/:(2&<+
,&&/C:2?<+:(/+,%$&(/46+:/>$2&@
;+X:%'+).:(?*+)-+'6+,:'$46<+:(/+I&2$4$&+'-*)+-,+:44@
B-C$:*+DC*&(
V
INTRODUCTION
NOBMP1=IBNPO
./01230
7&:%1&6%->)&51&,8"&)$#"6%->?&7&(%/&)-56-@&A%))")&$1&,8"&0%(>;
+/591#?&!5/"&A"5A-"&%AA"%/B&0-9//@B&%-:5),&$1#$),$1+9$)8%0-"&
C/5:&51"&%15,8"/?&*",%$-)&%/"&(5:A-","-@&%0)"1,B&09,&,8"/"&$)&
),$--&%&)"1)"&5C&%&-$3"-@&%,:5)A8"/"?&48$)&:53$1+&$:%+"&$)&:%#"&
RIDIHZKXQGUHGUHGGRWVWKDWÀLFNHUDVWKHVFHQHLVSOD\HGRXW
D&09,&51"&)$#"&5C&,8"&$:%+"&$)&:5/"&(51,$1959)&,8%1&,8"&5,8"/?&
$V¿JXUHVHQWHUIURPWKHOHIWVLGHRIWKHLPDJHWKH\JUDGXDOO\
,/%1)("1#&,8"&),%,"&5C&#$)(/","&A5$1,)&,5&0"(5:"&(511"(,"#&%/;
"%)&D&C/5:&),%//@&1$+8,&,5&:$),@&(-59#?
B.$*+ /&*2%$C&*+ :+ X-%?+ C6+ ).&+;'&%$2:(+ :%)$*)+ d$'+ I:'5C&44<+
X.-+':?&*+4-X!%&*-4#)$-(+*2%&&(*+).:)+):?&+>$*#:4+5&%2&5)$-(+
)-+$)*+4$'$)*@+B.&+:%)X-%?+/&*2%$C&/+:C->&+$*+)$)4&/+E89/(8&51&
'$C,8&73"19"+7EFFG8<+:(/+,&:)#%&*+RZS+%&/+4$0.)*+).:)+:%&+54:2&/+
C&.$(/+ :+ /$,,#*$(0+ 34&^$04:*+ 5:(&@+B.$*+ $*+ 54:2&/+ :)+ :(+ :(04&+
).:)+ ':?&*+ ).&+ $':0&+ *&&'+ '-%&+ 2-.&%&()+ :(/+ C4#%%6+ :)+ ).&+
%$0.)+*$/&+-,+).&+$':0&@+B.&+0%:/#:4+&,,&2)+:4*-+':%?*+).&+'&):!
5.-%$2:4+2-()$(##'+,%-'+:+e/$0$):4+%&5%&*&():)$-(+)-+:(+:(:4-0+
-(&f<+:*+(-)&/+-(+I:'5C&44`*+X&C*$)&+7I:'5C&44<+EFFG8@+;)+).&+
*:'&+)$'&<+).&+-5&($(0+5%->$/&/+C6+).$*+04:**+5:(&+&(:C4&*+).&+
:#/$&(2&+)-+4--?+eC&.$(/+).&+*2&(&*f+:(/+0&)+:+04$'5*&+-,+).&+
:2)#:4+ 4$0.)+ &'$))&%*+ ).:)+ 5%->$/&+ ).&+ *-#%2&+ -,+ ).&+ $':0&@+ N(+
).$*+X:6<+I:'5C&44+/$*24-*&*+).&+)%:(*,-%':)$-(+,%-'+4$0.)+)-+
$':0&<+:(/+).&+5%-2&**+-,+:55&:%:(2&+:(/+5&%2&5)$-(@
B.&+:%)X-%?+$*+24&:%46+(-)+6-#%+&>&%6/:6+)&4&>$*$-(+*&)<+(-%+$*+$)+
:+)%:/$)$-(:4+>$/&-+:%)+$(*):44:)$-(@+D>&%6+2-'5-(&()+g+,%-'+).&+
*2%&&(+)-+).&+2#*)-'+&4&2)%-($2*+g+$*+':/&+C6+I:'5C&44+.$'!
*&4,<+_#*)+:*+:+5:$()&%+'$0.)+'$^+.$*+-X(+2-4-%*+:(/+:5546+.$*+
-X(+)&2.($"#&@+;(/+&:2.+-,+.$*+':(6+:%)X-%?*+$*+':/&+,-%+).&+
5:%)$2#4:%+'->$(0!$':0&+4--5+).:)+$)+/$*54:6*@+I:'5C&44+X-%?*+
(-)+ -(46+ X$).+ &4&2)%-($2+ *2%&&(*+ :*+ '&:(*+ -,+ %&5%&*&():)$-(<+
R
NOBMP1=IBNPO
NOBMP1=IBNPO
C#)+:4*-+X$).+).&+*2%&&(+$)*&4,<+2-(*)%#2)$(0+$)*+':)&%$:4+:(/+&^!
5%&**$>&+ C:*&*@+ \$*+ :%)+ /&2-(*)%#2)*+ ).&+ >$*#:4+ %&5%&*&():)$-(+
)-+ :+ 4&>&4+ :)+ X.$2.+ $)+ :4'-*)+ C&2-'&*+ )-):4+ :C*)%:2)$-(@+ B.&+
$'5%&**$-(*+2-(*):()46+C:4:(2&+C&)X&&(+).&+%&2-0($Y:C4&+:(/+
WKHDEVWUDFWEXWDWWKHVDPHWLPHUHPLQGXVKRZHI¿FLHQWO\RXU
5&%2&5)$-(+X-%?*<+:(/+$*+:C4&+)-+2-(*)%#2)+$':0&*+,%-'+-(46+:+
IHZKXQGUHGÀDVKLQJOLJKWV
I:'5C&44`*+ X-%?+ %&5%&*&()*+ :(+ :55%-:2.+ )-+ ).&+ &4&2)%-($2+
VFUHHQ WKDW JRHV EH\RQG WKH SXUHO\ YLVXDO ,W H[HPSOL¿HV D
5%:2)$2&+$(+:%)+).:)+$*+,-2#*&/+(-)+-(46+-(+).&+$':0&+2-()&()<+C#)+
://%&**&*+).&+':)&%$:4+'&/$#'@+N(+).&+%&:4'+-,+*2%&&(!C:*&/+
:%)<+$)+://%&**&*+).&+:%,"/$%-&)(/""1@
45067!40/8!169:/00;
7KHYLVXDODUWVKDYHDKLVWRU\WKDWVLJQL¿FDQWO\SUHGDWHVHOHF!
)%-($2+*2%&&(*@+;%)+5%:2)$2&*+*#2.+:*+5:$()$(0+.:>&+/$*54:6&/+:+
X$/&+%:(0&+-,+&^5&%$'&():4+:55%-:2.&*+)-+$':0&+5%-/#2)$-(<+
&^5%&**$(0+:C*)%:2)+:(/+5:$()&%46+:&*).&)$2*+-,+%&5%&*&():)$-(@+
B.$*+&^5&%$'&():4+5%:2)$2&+%&4:)&*+(-)+-(46+)-+).&+>$*#:4+&,,&2)*+
-,+).&+2:(>:*<+C#)+:4*-+$)*+':)&%$:4+:(/+-()-4-0$2:4+,-#(/:)$-(*+
X.&(+ :%)X-%?*+ ://%&**+ :4)&%(:)$>&+ '-/&*+ -,+ 5&%2&5)$-(+ -%+
5-$()+)-X:%/+).&$%+-X(+2-(*)$)#)$-(+:*+X-%?*+-,+:%)@
7KLVGLVVHUWDWLRQRSHUDWHZLWKLQWKH¿HOGRI:"#$%&%/,<+X.$2.+
.&%&+%&,&%*+)-+:%)X-%?+).:)+$(2-%5-%:)&*+&4&2)%-($2+'&/$:+7&@0@+
)&4&>$*$-(+ *&)*<+ '->$&+ 5%-_&2)-%*<+ 2-'5#)&%*<+ &)2@8<+ :(/+ $(+
X.$2.+ ).&*&+ '&/$:+ *&%>&+ :*+ '-%&+ ).:(+ '&%&46+ ).&+ '&:(*+ -,+
UHSUHVHQWDWLRQ7KH¿HOGRIPHGLDDUWKDVDPXFKVKRUWHUKLV!
)-%6+).:(+)%:/$)$-(:4+:%)<+C#)+.:*+$(>-4>&/+*$'$4:%+&^5&%$'&():!
)$-(+:(/+:55%-:2.&*+)-+$)*+':)&%$:4+*#C*)%:)&@+B.&*&+:%)X-%?*+
$(24#/&+*-#(/+:%)+:(/+>$/&-+:%)+/:)$(0+C:2?+)-+).&+*$^)$&*<+C#)+
:4*-+).&+'-%&+%&2&()+/$0$):4+:%)+:(/+N()&%(&)+:%)@+B.$*+/$**&%):!
WLRQIRFXVHVRQDSDUWLFXODUVXE¿HOGRIPHGLDDUWWKDWLVEDVHG
'$+9/"&FG&H$:&E%:A0"--&D&E89/(8&51&'$C,8&73"19"&IJKKFL
M85,5&0@&N%/%8&E8/$),$%1)51
'$+9/"&JG&H$:&E%:A;
0"--&D&E89/(8&51&
'$C,8&73"19"&IJKKFLB&
)$#"&3$"6
M85,5&0@&450$%)&O0)"1
S
T
NOBMP1=IBNPO
-(+,8"&)(/""1@+K2%&&(*+.:>&+C&&(+:+5:%)+-,+-).&%+0&(%&*+-,+:%)<+
(-):C46+>$/&-+:%)@+L#)+X.&%&+).&+0&(%&+-,+>$/&-+:%)+)65$2:446+
/&(-)&*+:+)65&+-,+:%)X-%?+).:)+,-2#*&*+-(+*2%&&(!2-()&()+).:)+
LVQRWVSHFL¿FWRDVLQJOHPHGLXPRWKHUDUWSUDFWLFHVKDYHDOVR
/%:X(+:))&()$-(+).&+'&/$#'+$)*&4,@
7KURXJKRXWWKLVGLVVHUWDWLRQ,SUHVHQWDVLJQL¿FDQWQXPEHURI
H[DPSOHVWKDWH[KLELWVRPHFRPPRQIHDWXUHVLQUHODWHG¿HOGV
-,+5%:2)$2&@+B.&6+*5:(+:+/$>&%*&+%:(0&+-,+0&(%&*<+,%-'+'&/$:+
:%)<+)-+4$0.)+$(*):44:)$-(*+:(/+2-''#($2:)$>&+:%2.$)&2)#%&@+B.&6+
$(24#/&+).&+:>:()!0:%/&+&^5&%$'&()*+X$).+)&4&>$*$-(+*&)*+$(+).&+
4:)&+*$^)$&*+C6+O:'+d#(&+3:$?<+(&-(+*$0(+$(*):44:)$-(*+C6+L%#2&+
O:#':(+ $(+ ).&+ &$0.)$&*<+ ).&+ *4$/&+ 5%-_&2)-%+ $()&%>&()$-(*+ -(+
5#C4$2+:%2.$)&2)#%&+C6+b%Y6*Y)-,+W-/$2Y?-+7'$/!&$0.)$&*8<+:(/+
).&+ >$/&-+ 5%-_&2)$-(+ -,+ ,:2&*+ :(/+ 2%&:)#%&*+ C6+ B-(6+ P#%*4&%+
7'$/!($(&)$&*+-(X:%/8@+;4*-<+'-%&+%&2&()+:%)$*)*+X.-+X-%?+$(+
WKH¿HOGRIQHZPHGLDDUWKDYHFRQWULEXWHGWRH[SHULPHQWDWLRQ
X$).+*2%&&(+'&/$:@+O-):C4&+:%)$*)*+:%&+d$'+I:'5C&44<+X$).+.$*+
4-X!%&*-4#)$-(+ 5$^&4+ *2%&&(*<+ L&(+ M#C$(<+ 2%&:)$(0+ )&^)!C:*&/+
VFUHHQVLQVSDWLDOFRQ¿JXUDWLRQVDQG$UDP%DUWKROOZKRKDV
':/&+,:?&+*2%&&(*+#*$(0+'-%&+)%:/$)$-(:4+4$0.)+*-#%2&*@+9$(:446<+
,H[WHQGP\DQDO\VLVLQWRWKH¿HOGRI:"#$%&%/(8$,"(,9/"<+X.&%&+
(-):C4&+&^:'54&*+*#2.+:*+=<P+7EFFH8+:)+b#(*).:#Y+]%:Y<+:(/+
).&+*"1:%/>&M%3$-$51+:)+D^5-+EFGF+$(+K.:(0.:$+5%->$/&+:/!
/$)$-(:4+0%-#(/$(0+,-%+).$*+#(/&%*):(/$(0@+B.&+4:))&%+$*+-(&+-,+
).&+2:*&+*)#/$&*+X$).+X.$2.+N+X:*+5&%*-(:446+$(>-4>&/<+:(/+.:*+
$(,-%'&/+).$*+/$**&%):)$-(+5%-,-#(/46@
9%-'+'6+24-*&+:(:46*$*+-,+).&+&^:'54&*+5%&*&()&/<+:*+X&44+:*+
P\ZRUNDVDGHVLJQHUDQGDUWLVW,KDYHLGHQWL¿HGDSDUWLFXODU
5&%*5&2)$>&+).:)+5&%>:/&*+).&+&^5&%$'&():4+5%:2)$2&*+2-(2&%(!
$(0+*2%&&(*@+B.&+2-''-(+,&:)#%&+-,+).&*&+&^:'54&*+$*+:(+&^!
5&%$'&():4+5%:2)$2&+).:)+0-&*+C&6-(/+).&+>$*#:4+5:%:/$0'+).:)+
GF
'$+9/"&QG&R%:&H91"&M%$>&D&!%+1",&4S&IFTUVL
NOBMP1=IBNPO
NOBMP1=IBNPO
.:*+ C&2-'&+ 2-(>&()$-(:4+ X$).+ )&4&>$*$-(<+ 2$(&':<+ :(/+ 2-'!
5#)&%+*2%&&(*@+B.$*+5%:2)$2&+:55%-:2.&*+).&+*2%&&(+:*+'-%&+).:(+
).&+$':0&<+://%&**$(0+$)*+"#:4$)$&*+:)+':(6+4&>&4*+-,+$()&%5%&):!
)$-(@+L#)+$(+-%/&%+)-+#(/&%*):(/+).&+-,,*&)+,-%+&^5&%$'&():4+:5!
5%-:2.&*+)-+).&+*2%&&(<+$)+$*+(&2&**:%6+)-+%&:4$Y&+$)*+2-(*)$)#)$-(+
:*+:+2#4)#%:4+:%)$,:2)+&(2-/&/+X$).+'&:($(0*+:(/+2-(>&()$-(*@
$(+'-/&%(+:(/+5-*)'-/&%(+:%)@+B.$*+':6+$(/$2:)&+).:)<+:4).-#0.+
).&+'&/$#'+.:*+2.:(0&/<+>$*#:4+%&5%&*&():)$-(+).%-#0.+'&/$:+
$*+*)$44+:+5%-C4&':)$2+*#C_&2)+).:)+(&&/*+)-+C&+://%&**&/@
;%)+.:*+:+4-(0+.$*)-%6+-,+*&4,!2%$)$2:4+5%:2)$2&*+).:)+"#&*)$-(+).&+
%&5%&*&():)$-(+:(/+$44#*$-(+-,+:(+$':0&@+B.$*+.:*+4&/+)-+)65&*+-,+
:%)+).:)+:%&+2%$)$2:4+-,+).&+'&/$#'+).%-#0.+X.$2.+$)+$*+5%&*&()&/@+
K):%)$(0+X$).+5:$()$(0<+).&+2:(>:*+$)*&4,+C&2:'&+).&+'&/$#'+-,+
$()&%&*)+:(/+2%$)$2:4+"#&*)$-($(0+$(+'-/&%($*'<+&*5&2$:446+X$).+
).&+73%1,;+%/#"@+U:)&%+:55%-:2.&*+$(+:%)+$(>-4>&/+(&X+)65&*+-,+
'&/$:<+).&+2#4)#%:4+#(/&%*):(/$(0*+-,+X.$2.+C&2:'&+):%0&)&/+:*+
*#C_&2)+,-%+2%$)$2$*'+:(/+(&X+$()&%5%&):)$-(*@+B.&+5-*)!'-/&%(+
5%:2)$2&+-,+/&2-(*)%#2)$-(+-,)&(+$(>-4>&/+).&+2%$)$"#&+-,+2-(!
>&()$-(*+*#%%-#(/$(0+:+5:%)$2#4:%+'&/$#'<+X.&%&+$)*+0%-#(/!
$(0+2-(/$)$-(*+X&%&+&^5-*&/+).%-#0.+>:%$-#*+&^5&%$'&():4+:5!
SURDFKHV7KHDGRSWLRQRIHOHFWURQLFPHGLDLQWRWKH¿HOGRIDUW
.:*+&4$2$)&/+*$'$4:%+2%$)$2:4+:(/+&^5&%$'&():4+:55%-:2.&*<+)%&:)!
$(0+).&+'&/$#'+$)*&4,+:*+':)&%$:4+,-%+).&+5%-/#2)$-(+-,+:%)@+L#)+
#(4$?&+5:$()$(0<+&4&2)%-($2+'&/$:+:%&+'-*)+-,)&(+#*&/+,-%+-).&%+
5#%5-*&*+).:(+:%)<+:(/+&>&(+,#(2)$-(+:*+X:6*+-,+%&!5%&*&()$(0+
:%)X-%?*@+;(/+:*+/$0$):4+)&2.(-4-0$&*+:%&+:4*-+#)$4$Y&/+:*+)--4*+
,-%+5%-/#2$(0+0&(&%$2+>$*#:4+:(/+:#/$)-%6+2-()&()<+).&+/$0$):4+
DUWJHQUHKDVEHFRPHGH¿QHGQRWRQO\E\LWVPHGLXPEXWDOVR
C6+:+5:%)$2#4:%+5%:2)$2&+*#%%-#(/$(0+).&+'&/$#'@+B.#*<+'&/$:+
:%)+C&2-'&*+4&**+:C-#)+).&+%&5%&*&():)$-(+:(/+'-%&+:C-#)+).&+
2%$)$"#&+-,+).&+'&/$#'+$)*&4,@
B.&+':)&%$:4+*2%&&(+/&*2%$C&*+).&+%&:4$Y:)$-(+).:)+'&/$:+*2%&&(*+
:%&+':)&%$:4+:%)$,:2)*+$(+)&2.(-4-06<+$(+2-(2&5)<+:(/+).&$%+5.6*$!
2:4+ $(*):()$:)$-(@+ ;(/+ :2?(-X4&/0$(0+ ).&+ '-%&!).:(!>$*#:4+
DVSHFWV RI WKH VFUHHQ PD\ SRWHQWLDOO\ KHOS UH¿QH RXU FXUUHQW
XQGHUVWDQGLQJRIPHGLDDUWDVLWFURVVHVLQWRWKH¿HOGVRIVFXOS!
)#%&<+ $(*):44:)$-(+ :%)<+ :(/+ :%2.$)&2)#%&@+ =(/&%*):(/$(0+ *2%&&(*+
:*+':)&%$:4+2#4)#%:4+:%)$,:2)*+:4*-+5-$()*+)-+).&$%+.$0.46+2-(>&(!
W&+ 4$>&+ $(+ :(+ :0&+ $(+ X.$2.+ *2%&&(*+ .:>&+ C&2-'&+ 5&%>:*$>&+
).%-#0.-#)+ 5#C4$2+ :(/+ 5%$>:)&+ *5:2&*@+ K2%&&(*+ .:>&+ C&2-'&+
VXFK D ODUJH SDUW RI RXU GDLO\ OLYHV WKDW ZH QR ORQJHU UHÀHFW
'#2.+-(+).&$%+5%&*&(2&@+B.&+2#%%&()+/&>&4-5'&()+-,+).&+*2%&&(+
$*+&>-4>$(0+:+2-(*):()46+$'5%->$(0+$':0&+"#:4$)6<+2%&:)$(0+&>&(+
PRUHLPPHUVLYHHIIHFWV6FUHHQUHVROXWLRQDQGGH¿QLWLRQKDYH
$(2%&:*&/+)-+:+4&>&4+X.&%&+5$^&4*+:%&+(-+4-(0&%+5&%2&5)$C4&<+:(/+
WKHSUHYDLOLQJÀDWSDQHOVFUHHQVKDYHUHGXFHGWKHSK\VLFDODS!
5&:%:(2&+-,+).&+*2%&&(!:%)$,:2)+)-+).&+&(24-*$(0+,%:'&@+W&+4$>&+
LQDKLJKGH¿QLWLRQFXOWXUHZKHUHWKHH[SHULHQFHRIPHGLDLV
LQFUHDVLQJO\ DPSOL¿HG WKURXJK WHFKQRFDO PHDQV7KLV LV DOVR
X.6+ $)+ $*+ $'5-%):()+ )-+ /$*2#**+ ).&+ *2%&&(+ :*+ :+ 5.&(-'&(-(<+
&*5&2$:446+X.&(+:%)$*)*<+/&*$0(&%*<+:(/+:%2.$)&2)*+:55%-:2.+$)+$(+
ZD\VWKDWGRQRW¿WRXUFRQYHQWLRQDOFRQFHSWLRQVDQGPHWKRGV
-,+:(:46Y$(0+'&/$:@+B.&%&+$*+:+(&&/+,-%+:(+:&*).&)$2+:(/+5.&!
(-'&(-4-0$2:4+#(/&%*):(/$(0+-,+).&+*2%&&(<+$(+-%/&%+)-+2-(2&5!
)#:4$Y&+).&*&+5%:2)$2&*@+B.&+$/&:*+$'54$&/+$(+).&+:%,"/$%-&)(/""1+
:%&+5%-5-*:4*+,-%+*#2.+:(+#(/&%*):(/$(0@
;(+&4&2)%-($2+*2%&&(+':6+C&+*&&(+:*+:+'&/$#'+C&4-(0$(0+)-+).&+
*:'&+>$*#:4+5:%:/$0'+:*+5:$()$(0<+5.-)-0%:5.6<+:(/+:44+)65&*+
-,+>$*#:4+'&/$:@+L6+%&2-0($Y$(0+).&+*$'$4:%$)$&*+:'-(0+).&*&+
)65&*+-,+$':0&+)&2.(-4-0$&*<+$)+C&2-'&*+&>$/&()+).:)+$(+*-'&+
%&0:%/*<+*-'&+-,+).&+:%)$*)$2+:55%-:2.&*+$(+)-/:6`*+(&X+'&/$:+
:%)+$(*):44:)$-(*+&2.-+5%&>$-#*+*)%:)&0$&*+:(/+2%$)$2$*'*+,-#(/+
GE
GH
NOBMP1=IBNPO
NOBMP1=IBNPO
)$-(:4+(:)#%&<+-5&%:)$(0+X$).$(+).&+>$*#:4+5:%:/$0'+-,+$':0&*<+
EHLQJÀDWUHFWDQJXODUVXUIDFHV6FUHHQVKDYHEHFRPHHQFRGHG
X$).+ '&:($(0+ $(+ ).&+ X:6+ ).&6+ :%&+ /&54-6&/+ $(+ *-2$&)6<+ :(/+
).&+':(6+X:6*+$(+X.$2.+X&+2-(*#'&+).&$%+$':0&*+:*+2#4)#%:4+
5%-/#2)*@+B.$*+ 2#4)#%:4+ 2-(*)%#2)+ -,+ *2%&&(*+ .:*+ :4*-+ C&2-'&+
':)&%$:4+,-%+'&/$:+:%)<+5%->$/$(0+:+/$,,&%&()+$()&%5%&):)$-(+-,+
:%,"/$%-$,@+ :*+ :+ /&*2%$5)$>&+ )&%'@+ L#)+ $)+ $*+ :4*-+ $'5-%):()+ )-+
&'5.:*$Y&+).&+:'C$0#$)6+-,+)&%'*+*#2.+:*+:%,"/$%-+:(/+:%,"/$;
%-$,@<+X.$2.+%&*#4)+$(+'#4)$54&+$()&%5%&):)$-(*+-,+).&$%+'&:($(0*@+
B.&+$(>&*)$0:)$-(*+-,+).&+*2%&&(+:(/+$)*+':)&%$:4+(:)#%&+'#*)+
2-(*&"#&()46+&():$4+:(+&^54-%:)$-(+-,+).&*&+)&%'*@
2.$)&2)#%&@+U:)&%<+N+:%0#&+).:)+#(/&%*):(/$(0+'&/$:+:%2.$)&2)#%&+
:*+:+5%:2)$2&+).:)+%&0:%/*+).&+*2%&&(+:*+':)&%$:4+':6+5-)&()$:446+
.&45+)-+#(/&%*):(/+$)*+%&4&>:(2&+$(+).&+#%C:(+4:(/*2:5&@+W.$4&+
&4&2)%-($2+'&/$:+.:>&+C&&(+:+5:%)+-,+).&+C#$4)+&(>$%-('&()+,-%+
:)+4&:*)+:+/&2:/&<+$)*+%&4:)$-(+)-+:%2.$)&2)#%&+.:*+-,)&(+C&&(+2%$)$!
2$Y&/+:*+/$*2-((&2)&/+:(/+2-(2&5)#:446+/&':)&%$:4$Y$(0+,-%+).&+
5&%2&5)$-(+ -,+ 5.6*$2:4+ *5:2&@+ L6+ #(/&%*):(/$(0+ ).&+ ':)&%$:4+
C:*$*<+X&+':6+C&+:C4&+)-+2-(2&5)#:4$Y&+.-X+'&/$:+2:(+$()&%:2)+
X$).+:%2.$)&2)#%&+-(+>:%$-#*+4&>&4*@+M&:4$Y$(0+).&+':)&%$:4$)6+-,+
WKHVFUHHQPD\EHRQHRIWKH¿UVWVWHSVWRZDUGDEHWWHULQWHJUD!
)$-(+-,+).&+>$%)#:4+*5:2&+-,+$':0&*+:(/+).&+':)&%$:4+*5:2&+-,+
:%2.$)&2)#%&@
3&%.:5*+).&+'-*)+&4-"#&()+#*&+-,+*2%&&(*+:*+':)&%$:4+:%)$,:2)*+$*+
IRXQGLQWKHVWLOOHPHUJLQJ¿HOGRI:"#$%&%/(8$,"(,9/"<+-%$0$(:)!
LQJIURPWKH¿HOGVRIDUFKLWHFWXUHDQGQHZPHGLDDUW7KLVWHUP
.:*+ 2-'&+ )-+ /&(-)&+ ).&+ #*&+ -,+ *2%&&(+ )&2.(-4-06+ :(/+ 5$^&4*+
:*+:(+$()&0%:)&/+5:%)+:%2.$)&2)#%:4+*)%#2)#%&*+g+&*5&2$:446+#*&/+
-(+).&+,:2:/&*+-,+4:(/':%?+C#$4/$(0*@+9:2:/&*+X$).+$()&0%:)&/+
*2%&&(*<+ :4*-+ ?(-X(+ :*+ :"#$%& C%(%#")<+ ':6+ C&+ *&&(+ -(+ *#2.+
(-):C4&+C#$4/$(0*+:*+).&+b3O+B-X&%+$(+M-))&%/:'<+b#(*).:#*+
]%:Y+7]%:Y<+;#*)%$:8<+1&^$:+B-X&%+7L%#**&4*<+L&40$#'8<+B-%%&+
;0C:%+7L:%2&4-(:<+K5:$(8<+:(/+).&+=($":+B-X&%+7a$&((:<+;#*!
)%$:8@+B.$*+$*+_#*)+)-+(:'&+:+,&X@+;4).-#0.+).&+)&%'+:"#$%&%/;
(8$,"(,9/"+$*+"#$)&+(&X+$(+).$*+2-()&^)+:(/+.:*+(-)+C&&(+X$/&46+
HVWDEOLVKHGLQDFDGHPLDLWLVRIWHQXVHGLQWKH¿HOGVRIDUFKL!
)&2)#%&+:(/+$(/#*)%$:4+4$0.)$(0<+:(/+.:*+C&&(+#*&/+)-+/&*2%$C&+
>:%$-#*+ '&/$:+ $(*):44:)$-(*+ ).:)+ C-%/&%+ :%)+ :(/+ /&*$0(@+ J:(6+
$()&%&*)$(0+"#&*)$-(*+':6+C&+%:$*&/+2-(2&%($(0+'&/$:+:%2.$)&2!
)#%&<+&*5&2$:446+$)*+%-4&+$(+5#C4$2+*5:2&*@+\-X&>&%<+).&+5%&*&()+
*)#/6+$*+2-(2&%(&/+X$).+).&+"#&*)$-(*+%&0:%/$(0+).&+:%,"/$%-&
)(/""1<+$(24#/$(0+).&+:%)$*)$2+:55%-:2.&*<+).&+&^5%&**$>&+5-)&(!
)$:4<+:(/+-()-4-0$2:4+$'54$2:)$-(*+-,+'&%0$(0+*2%&&(*+X$).+:%!
GV
D^5:(/$(0+).&+#*&+-,+*2%&&(*+,%-'+)%:/$)$-(:4+)&4&>$*$-(<+2$(!
HPDDQGFRPSXWHUVFUHHQVWRWKH¿HOGVRIDUWDQGDUFKLWHFWXUH
.:*+ :4*-+ *.$,)&/+ ).&+ ).&-%&)$2:4+ 5&%*5&2)$>&<+ )-+ :22-''-/:)&+
WKHVHUHODWHG¿HOGVRIVWXG\7KHUHIRUHWKLVWH[WGUDZVRQWKHR!
ULHVWKDWVSDQWKHVH¿HOGVZKLOHDOVREXLOGLQJH[WHQVLYHO\RQ
'&/$:+ ).&-%6+ ).:)+ %&4:)&*+ )-+ >$*#:4+ '&/$:@+ I-(*&"#&()46<+ ).&+
).&-%&)$2:4+2-()%$C#)$-(*+-,+&^54-%$(0+).&+':)&%$:4+*2%&&(+':6+
C&+54:2&/+:)+).&+$()&%*&2)$-(+-,+'&/$:<+:%)<+:(/+:%2.$)&2)#%&+7*&&+
9$0#%&+ V+ -(+ 5:0&+ GZ8<+ -,,&%$(0+ :+ 5-**$C4&+ )%:(*!/$*2$54$(:%6+
:55%-:2.@+W.$4&+).&+5%:2)$2:4+,-2#*+-,+).$*+/$**&%):)$-(+$*+':$(!
46+-(+*2%&&(*<+).&+).&-%&)$2:4+,-#(/:)$-(+$*+C:*&/+-(+).&-%$&*+-,+
'&/$:+:(/+:%)+$(+'-%&+0&(&%:4+)&%'*@+W$).+,#%).&%+%&*&:%2.<+).&+
$/&:*+5%&*&()&/+.&%&+':6+).&%&C6+C&+&^)&(/&/+)-+:5546+)-+-).&%+
)65&*+-,+'&/$:@
7<48=!48<;
B.$*+/$**&%):)$-(+$*+C:*&/+-(+).&+.65-).&*$*+).:)+).&%&+$*+:+/$*!
_#(2)$-(+C&)X&&(+).&+2-(>&()$-(:4+2-(2&5)+-,+,8"&)(/""1+:(/+:+
'-%&+-5&(+2-(2&5)+&>$/&()+$(+).&+5%:2)$2&*+).:)+:%&+:554$&/+C6+
GQ
NOBMP1=IBNPO
NOBMP1=IBNPO
ART
MEDIA ART
Video Art
Digital Art
INSTALLATION ART
Conceptual Architecture
Critical Urbansim
MATERIAL
SCREEN
MEDIA
!"#$ X56&(%1&6"&"YA%1#&,8"&,/%#$,$51%-&(51("A,$51)&5C&,8"&
)(/""1&,5&#")(/$0"&,/%1)C5/:%,$51%-&%AA/5%(8")&,8%,&+5&
0"@51#&,8"&A9/"-@&3$)9%-Z
ARCHITECTURE
MEDIA ARCHITECTURE
Media Facades
Urban Screens
'$+9/"&WG&7KUHH¿HOGVRIWKHPDWHULDOVFUHHQ
VRPHFRQWHPSRUDU\DUWLVWVZKRZRUNLQWKHLQWHUVHFWLQJ¿HOGV
RI PHGLD DUW DQG DUFKLWHFWXUH 7KLV GLYHUJHQFH UHÀHFWV WKH
,#(/:'&():4+/#:4$)6+-,+).&+(-)$-(*+-,+).&+*2%&&(+$':0&+:*+%&5!
%&*&():)$-(+:(/+).&+*2%&&(+'&/$#'+:*+:+':)&%$:4+5%&*&(2&@+B.$*+
).&*$*+ C#$4/*+ -(+ &^$*)$(0+ X-%?+ $(+ '&/$:+ :%)+ :(/+ :%2.$)&2)#%&<+
:(/+-(+).&-%&)$2:4+:%0#'&()*+).:)+*#00&*)+).:)+).&+*2%&&(<+:*+:+
>$*#:4+'&/$#'<+$(.&%$)*+5&%2&5)#:4+5%-5&%)$&*+-,+&:%4$&%+'&/$:<+
X.$2.+ .:>&+ .$*)-%$2:446+ 5%->$/&/+ :+ *):%)$(0+ 5-$()+ ,-%+ &^5&%$!
'&():)$-(+:(/+2%$)$2$*'+$(+).&+>$*#:4+:%)*@
B.&+ ,-%&0-$(0+ .65-).&*$*+ .:*+ &'&%0&/+ ,%-'+ '6+ %&*&:%2.+ $(+
'&/$:+:%)+:(/+'&/$:+:%2.$)&2)#%&<+:*+X&44+:*+'6+&^5&%$'&():4+
5%:2)$2&+:*+/&*$0(&%+:(/+>$*#:4+:%)$*)@+B.$*+X-%?+.:*+%&>&:4&/+
).:)+ *2%&&(*+ :%&+ (-)+ _#*)+ /&>$2&*+ ,-%+ $':0&+ 5%&*&():)$-(<+ C#)+
':6+ $(24#/&+ *&>&%:4+ -).&%+ ':)&%$:4+ :(/+ :&*).&)$2+ 5%-5&%)$&*+
GZ
).:)+:%&+%:%&46+:22-#()&/+,-%<+$(+*-'&+2:*&*+'-%&+).:(+-).&%*@+
;4).-#0.+'6+%&*&:%2.+-%$0$(:446+)--?+$)*+5-$()+-,+/&5:%)#%&+$(+
'&/$:+:%2.$)&2)#%&<+).&+*#C_&2)+-,+).&+:%,"/$%-&)(/""1+.:*+5%-!
>$/&/+:+'#2.+'-%&+0&(&%:4+#(/&%*):(/$(0+-,+).&+5%:2)$2&+).:)+
OLHVEHKLQGPHGLDDUFKLWHFWXUHDQGLWVUHODWHG¿HOGVLQFOXGLQJ
'&/$:+:%)@
N(>&*)$0:)$(0+).&+':)&%$:4+*2%&&(+:*+:+*#C_&2)<+).&+:$'+-,+).$*+
/$**&%):)$-(+$*+)-+:(*X&%+).&+,-44-X$(0+"#&*)$-(*h
!%#$ X56&(%1&,8"&15,$51&5C&[:%,"/$%-$,@\&%(,&%)&%&,8"5/",$(%-&
C591#%,$51&C5/&91#"/),%1#$1+&%1#&#")(/$0$1+&,8"&)(/""1&
$1&:"#$%&%/,&%1#&%/(8$,"(,9/"Z
!&#$ +RZFDQZHGHVFULEHWKHHPHUJLQJ¿HOGRI³PHGLDDUFKL;
,"(,9/"\&%)&$135-3$1+&%&)",&5C&A/%(,$(")&,8%,&%AA/5%(8")&
,8"&)(/""1&%)&:%,"/$%-Z
B.&*&+"#&*)$-(*+:%&+$()&(/&/+)-+5%->$/&+:(+->&%:%2.$(0+/$%&2!
)$-(+ ,-%+ ).&+ %&*&:%2.+ 5%&*&()&/+ $(+ ).$*+ /$**&%):)$-(@+ B.&+ )$)4&<+
!%,"/$%-&N(/""1<+*&%>&*+:*+:+54:2&.-4/&%+,-%+).&+-).&%X$*&+#(!
)$)4&/+ 5%:2)$2&*+ ).:)+ N+ X:()+ )-+ /&*2%$C&+ :(/+ $()&%5%&)@+ N'54$2$)+
$(+ ).&+ (-)$-(+ -,+ :%,"/$%-& )(/""1+ $*+ :4*-+ ).&+ ).&*$*+ ).:)<+ :*+ :+
'&/$#'<+).&+*2%&&(+$*+2-(>&()$-(:446+%&0:%/&/+:*+$'':)&%$:4@+N+
*.:44+24:%$,6+).&+:%0#'&()+4:)&%+-(<+C#)+).&+->&%:44+-C*&%>:)$-(+
$*+ ).:)+ /$*2-#%*&*+ %&0:%/$(0+ *2%&&(*<+ *#2.+ :*+ ).-*&+ -,+ '&/$:+
).&-%6<+$()&%:2)$-(+/&*$0(<+:(/+'&/$:!:%)+).&-%6<+.:>&+':$(46+
C&&(+2-(2&%(&/+X$).+).&+>$*#:4+$':0&+5%-/#2&/+-(+).&+*2%&&(<+
%:).&%+ ).:(+ ).&+ *2%&&(+ $)*&4,@+ B.$*+ $*+ 5:%)$2#4:%46+ %&':%?:C4&<+
GR
NOBMP1=IBNPO
NOBMP1=IBNPO
*$(2&+-).&%+:%)+,-%'*<+*#2.+:*+5:$()$(0<+*2#45)#%&<+:(/+$(*):4!
4:)$-(+ :%)<+ .:>&+ C&&(+ X$/&46+ :2?(-X4&/0&/+ :(/+ /&*2%$C&/+ $(+
)&%'*+-,+).&+':)&%$:4$)6+-,+).&$%+'&/$:@
24&:%46+-(+).&+*2%&&(+$)*&4,@
;44+).&*&+%&4:)&/+*)#/$&*+X-#4/+6$&4/+/$,,&%&()+%&*#4)*<+-X$(0+)-+
).&$%+>:%$-#*+5&%*5&2)$>&*<+:(/+X-#4/+2-()%$C#)&+)-+:(+&>&(+C&)!
)&%+#(/&%*):(/$(0+-,+*2%&&(*<+:%)<+:(/+:%2.$)&2)#%&@+\-5&,#446<+
).$*+ )&^)+ X$44+ $(*5$%&+ ,#%).&%+ $(>&*)$0:)$-(*<+ :(/+ 5-**$C46+ ).&+
*2.-4:%*.$5+-,+-).&%+(#:(2&*+-,+).$*+*#C_&2)@
N)+*.-#4/+,#%).&%+C&+(-)&/+).:)+).&+)&%'+:"#$%+$)*&4,+$*+%:).&%+
:'C$0#-#*@+ N(+ '&/$:+ *)#/$&*<+ $)+ $*+ -,)&(+ #*&/+ )-+ /&(-)&+ ).&+
C#*$(&**+ C&.$(/+ 5#C4$2+ 2-''#($2:)$-(+ 2.:((&4*@+ B.$*+ )65&+
-,+ *)#/6+ $*+ -,)&(+ ,-2#*&/+ -(+ %.&)-%$2+ :(/+ %&2&5)$-(+ :(:46*$*<+
).&%&C6+ &>:4#:)$(0+ ).&+ *)%:)&0$&*+ :55%-5%$:)&/+ C6+ *#2.+ 2.:(!
(&4*@+\-X&>&%<+).$*+)&^)+X$44+':$(46+%&,&%+)-+:"#$%+:*+).&+54#%:4+
-,+:"#$9:@+N(*)&:/+-,+:(:46Y$(0+).&+2-()&()+-,+'&/$:<+N+*.:44+
,-2#*+-(+).&+'&/$#'+$)*&4,@+B.&+5%$':%6+'&/$#'+$(+).$*+)&^)+
$*+).&+*2%&&(<+C#)+:*+N+:%0#&+4:)&%<+).&+*2%&&(+*.:%&*+':(6+*$'$!
ODULWLHVZLWKRWKHUYLVXDOPHGLDVXFKDV¿OPSKRWRJUDSK\DQG
5:$()$(0@+B.&%&,-%&<+$)+$*+%&:*-(:C4&+)-+:5546+C-).+>$*#:4+).&-%6+
:(/+'&/$#'+).&-%6+)-+).&+C-/6+-,+4$)&%:)#%&+).:)+$*+$(>-4>&/+$(+
).&+/$*2#**$-(+-,+).&+':)&%$:4$)6+-,+'&/$:@
N+*.:44+:%0#&+).:)+).&+X-%/+)(/""1+g+:(/+$)*+2#4)#%:4+2-(*)%#2)$-(+
g+$*+$(:/&"#:)&+)-+/&*2%$C&+).&+-5)$2:4+2-'54&^$)6+:(/+5&%2&5!
)#:4+:'C$0#$)6+).:)+$*+5%-/#2&/+C6+&^5&%$'&():4+':)&%$:4+)%:(*!
IRUPDWLRQV LQ WKH LQWHUVHFWLQJ ¿HOGV RI PHGLD DUW DQG DUFKL!
)&2)#%&@+N(*)&:/<+$)+$*+'-%&+5%-/#2)$>&+)-+/&*2%$C&+$)+:*+:+>$*#:4+
'&/$#'<+:(/+$)*+':)&%$:4+)%:(*,-%':)$-(*+:*+%&4:)$(0+)-+$/&:*+
-,+'&/$:+)&2.(-4-0$&*+:*+2-'5-(&()+&4&'&()*+-,+:%2.$)&2)#%&@
N(+-%/&%+)-+#(/&%*):(/+).&+':)&%$:4+:*5&2)+-,+*2%&&(*<+$)+$*+(&2!
&**:%6+)-+&^54-%&+).&+'&:($(0*+:(/+5-)&()$:4+-,+$)*+5%-5&%)$&*@+
B.$*+*#C_&2)+-,+$(>&*)$0:)$-(+$*+).&+':$(+).&'&+).%-#0.-#)+).$*+
/$**&%):)$-(@+\-X&>&%<+$)+$*+$'5-%):()+)-+*)%&**+).:)+$(+).$*+2-(!
WH[WWKDWWKHUHDUHQRULJLGGH¿QLWLRQVRI:%,"/$%-$,@+-%+:%,";
/$%-@+M:).&%<+$()&%5%&):)$-(*+.:>&+C&&(+*#C_&2)+)-+*-'&+/&C:)&+
-(+*&>&%:4+:22-#()*+$(+*2.-4:%46+)&^)*<+X.$2.+:%&+5%&*&()&/+,#%!
).&%+-(@+N+:%0#&+).:)+:%,"/$%-$,@+':6+5%->$/&+:+/&&5+:(/+%$2.+
#(/&%*):(/$(0+-,+).&+*2%&&(<+X.$2.+':6+C&+&^)&(/&/+)-+-).&%+
)65&*+-,+'&/$:+$(+X.$2.+%&4:)$-(*+C&)X&&(+2-()&()+:(/+'&/$#'+
:%&+&^5-*&/+)-+&^5&%$'&():4+5%:2)$2&@+3-)&()$:446<+).$*+':6+4&:/+
)-+,#%).&%+/$*2#**$-(*+).:)+:%&+C&6-(/+).&+*2-5&+-,+).$*+)&^)@
N)+ *.-#4/+ C&+ (-)&/+ ).:)+ ).&%&+ :%&+ ':(6+ 5:).*+ -,+ *)#/6+ :)+ ).&+
$()&%*&2)$-(+-,+)(/""1)+:(/+%/,+).:)+X-#4/+C&+%&4&>:()+:(/+$()&%!
&*)$(0+)-+,-44-X<+C#)+#(,-%)#(:)&46+:%&+C&6-(/+).&+*2-5&+-,+).$*+
/$**&%):)$-(@+ B.&*&+ $(24#/&+ /&*$0(+ ).&-%6<+ &>:4#:)$-(<+ %&2&5!
)$-(+:(:46*$*<+:(/+*)#/$&*+-,+#%C:(+5-4$)$2:4+$'54$2:)$-(*@+J6+
-X(+X-%?+.:*+-,)&(+,-2#*&/+-(+*#C_&2)*+2-(2&%($(0+$1,"/%(,$3;
$,@+:(/+/&*$0($(0+$1,"/%(,$51)<+C#)+N+.:>&+/&4$C&%:)&46+-'$))&/+
).&*&+5&%*5&2)$>&*+$(+).$*+/$**&%):)$-(<+$(+-%/&%+)-+,-2#*+'-%&+
GS
:!909
;5:%)+,%-'+).&+).&-%6+:(/+.$*)-%$2:4+0%-#(/$(0+-,+).&+':)&%$:4!
$)6+-,+).&+*2%&&(<+).$*+).&*$*+$*+$(,-%'&/+C6+:+4:%0&+:'-#()+-,+
5%:2)$2:4+X-%?+).:)+N+.:>&+/-(&+:*+:+/&*$0(&%+:(/+:%)$*)+X-%?$(0+
X$).+ '&/$:+ :%)+ :(/+ /&*$0(+ $(*):44:)$-(*@+;+ ,&X+ 5%-_&2)*+ .:>&+
C&&(+'6+-X(+2%&:)$-(*<+X.&%&:*+-).&%*+.:>&+C&&(+2-!/&*$0(&/+
X$).+:+*':44+0%-#5+-,+)X-+-%+).%&&+/&*$0(&%*@+B.$*+X-%?+$*+/&!
*2%$C&/+:(/+/$*2#**&/+$(+-(&+-,+).&+4:*)+2.:5)&%*<+X.&%&+N+:4*-+
5%&*&()+:+*&4&2)$-(+-,+).&+X-%?*+$(+/&):$4@+B.&*&+$(*):44:)$-(*+
,#(2)$-(+:*+2:*&+*)#/$&*<+:(/+N+%&)%-*5&2)$>&46+:(:46Y&+).&$%+':!
)&%$:4$)6@+B.&+ (-)$-(+ -,+ X-%?$(0+ X$).+ )&2.(-4-06+ %)& :%,"/$%-+
.:*+C&&(+:+5%-(-#(2&/+:*5&2)+-,+5%-/#2$(0+).&*&+$(*):44:)$-(*<+
GT
NOBMP1=IBNPO
NOBMP1=IBNPO
:4).-#0.+:/'$))&/46<+$)+.:*+(-)+C&&(+).&+':$(+,-2#*+$(+).&$%+$(!
*):()$:)$-(@+O&>&%).&4&**<+).&+2:*&*+*.-X+.-X+':)&%$:4+:*5&2)*+
X&%&+$:A-$($,-@+:+5:%)+-,+).&+2-(2&5)$-(+-,+).&*&+5%-_&2)*<+:(/+
.-X+ ':)&%$:4$)6+ ':6+ C&+ >&%C:4$Y&/+ %&)%-*5&2)$>&46<+ :(/+ ,-%'+
(&X+#(/&%*):(/$(0*+-,+2-(2&5)*+*#2.+:*+,8"&)(/""1@+B.&6+.:>&+
:4*-+5%->&/+)-+&'5.:*$Y&+.-X+%&4:)$-(*+C&)X&&(+/$,,&%&()+':!
)&%$:4+/-':$(*+.:>&+C&&(+2-(2&5)#:4$Y&/+).%-#0.+).&+5%:2)$2&+
:(/+$()&%5%&):)$-(*+-,+).&+X-%?*@
DQ\ VSHFL¿F PHGLD FRQWHQW EXW LQVWHDG LQWHUSUHWHG WKH HPHU!
0&(2&<+:(/+).&+2:#*&*+:(/+&,,&2)*+-,+'&/$:+)&2.(-4-0$&*@+N)+$*+
'-*)+&^54$2$)46+&^5%&**&/+$(+).&+,-44-X$(0+5:**:0&h
7"125!;
B.&+ &^54-%:)$-(+ -,+ '&/$:+ ':)&%$:4$)6+ $*+ ':$(46+ C:*&/+ -(+ ).&+
$/&:*+:(/+).&-%$&*+-,+I:(:/$:(+*2.-4:%+:(/+5.$4-*-5.&%+J:%!
*.:44+J2U#.:(+7GTGG!SF8<+X.-+.:*+':/&+*#C*):()$:4+2-()%$C#!
)$-(*+)-+$/&:*+:C-#)+).&+5&%2&5)#:4+"#:4$)$&*+-,+'&/$:@+J2U#.:(+
$*+?(-X(+,-%+.$*+-(&!4$(&+*):)&'&()*<+X.$2.+.:>&+C&&(+*#C_&2)+
)-+ &^)&(*$>&+ $()&%5%&):)$-(<+ 5&%.:5*+ &>&(+ ->&%!$()&%5%&):)$-(<+
:*+.:*+C&&(+*#00&*)&/+7U-0:(<+EFGG8@+K-'&+2%$)$2*+%&0:%/+.$'+
:*+:+5%-5.&)<+-).&%*+:*+:+*.-X':(+-%+:+5%->-2:)&#%@
0F/XKDQZDVDPRQJWKH¿UVWWRUHFRJQL]HWKHYDVWLPSDFWRI
&4&2)%-($2+'&/$:+-(+*-2$&)6<+:(/+.-X+$)+2.:(0&/+).&+5&%2&5)$-(+
-,+).&+X-%4/@+\$*+*&'$(:4+X-%?<+.1#"/),%1#$1+&!"#$%+7GTZV8+
X:*+:4%&:/6+5%:$*&/+:*+).-#0.)!5%->-?$(0+$(+).&+6&:%*+$''&!
/$:)&46+,-44-X$(0+$)*+5#C4$2:)$-(<+C#)+$)+.:*+0:$(&/+(&X+'&%$)+
$(+).&+/$0$):4+:0&<+X.&(+$)*+%:/$2:4+5%-24:':)$-(*+.:>&+5%->&(+
$(*$0.),#4+$(+':(6+%&*5&2)*@
B.&%&+:%&+*&>&%:4+%&:*-(*+,-%+:5546$(0+J2U#.:(`*+).&-%$&*+)-+
).&+*#C_&2)+-,+'&/$:+':)&%$:4$)6@+9$%*)<+.&+%&2-0($Y&/+).&+$'!
5-%):()+4$(?*+C&)X&&(+).&+&'&%0$(0+&4&2)%-($2+'&/$:+:(/+).&+
.$*)-%6+-,+).&+>$*#:4+:%)*@+B.$*+':?&*+.$*+).&-%$&*+%&4&>:()+)-+
(-)$-(*+-,+'&/$:+$(+:%)<+:*+X&44+:*+)-+2-(*#'&%+2#4)#%&@+K&2-(/<+
KHSXWVJUHDWHPSKDVLVRQWKHVLJQL¿FDQFHRIWKHPHGLXPLWVHOI
:*+2%#2$:4+)-+#(/&%*):(/$(0+'&/$:@+J2U#.:(+/$/+(-)+:(:46Y&+
EF
]9/&(513"1,$51%-&/")A51)"&,5&%--&:"#$%B&1%:"-@&,8%,&$,&$)&856&
,8"@&%/"&9)"#&,8%,&(591,)B&$)&,8"&19:0&),%1("&5C&,8"&,"(815-5+$;
(%-&$#$5,?&'5/&,8"&[(51,"1,\&5C&%&:"#$9:&$)&-$>"&,8"&^9$(@&A$"("&
5C&:"%,&(%//$"#&0@&,8"&09/+-%/&,5&#$),/%(,&,8"&6%,(8#5+&5C&,8"&
:$1#?&48"&"CC"(,&5C&,8"&:"#$9:&$)&:%#"&),/51+&%1#&$1,"1)"&^9),&
0"(%9)"&$,&$)&+$3"1&%15,8"/&:"#$9:&%)&[(51,"1,?\+7J2U#.:(<+
GTZV<+5@+GT8
M:).&%+ ).:(+ *)#/6$(0+ ).&+ 5:%)$2#4:%+ '&/$#'+ :(/+ $)*+ 2-()&()<+
J2U#.:(+ :%0#&/+ ).:)+ ).&+ &,,&2)*+ -,+ '&/$:+ *.-#4/+ C&+ *)#/$&/+
:)+:+04-C:4+*2:4&<+X.&%&+2-()&()+$*+-,+4$))4&+$'5-%):(2&@+B.&+&,!
,&2)+-,+)&4&>$*$-(<+:22-%/$(0+)-+J2U#.:(<+$*+(-)+%&4:)&/+)-+).&+
VSHFL¿FLQVWDQFHRUFRQWHQWEXWUDWKHUWKHEDVLFIDFWWKDWZHDUH
X:)2.$(0+)&4&>$*$-(+:)+:44@+B.&+:2)+-,+>$&X$(0+:(/+5&%2&5)$-(+
-,+)&4&>$*$-(+$*+).&+%&:4+'&**:0&+-,+)&4&>$*$-(<+$(+J2U#.:(`*+
).$(?$(0@
E51("/1&6$,8&"CC"(,&/%,8"/&,8%1&:"%1$1+&$)&%&0%)$(&(8%1+"&5C&
59/&"-"(,/$(&,$:"B&C5/&"CC"(,&$135-3")&,8"&,5,%-&)$,9%,$51B&%1#&15,&
%& )$1+-"& -"3"-& 5C& $1C5/:%,$51& :53":"1,?+ 7J2U#.:(<+ GTZV<+ 5@+
ES8
1HYHUWKHOHVV 0F/XKDQ GLG XVH D QXPEHU RI VSHFL¿F PHGLD
$(*):(2&*+:(/+2-()&()+:*+&^:'54&*+$(+.$*+X%$)$(0*<+X.$2.+.:*+
&(2-#%:0&/+:(/+'-)$>:)&/+).&+&^5&%$'&():4+:554$2:)$-(+-,+.$*+
).&-%$&*+ )-+ ).&+ :%,"/$%-& )(/""1+ $(+ ).$*+ /$**&%):)$-(@+;4).-#0.+
.$*+ X%$)$(0*+ /&*2%$C&+ '&/$:+ $(+ 0&(&%:4+ :*5&2)*<+ .&+ :4*-+ .$()*+
:)+ :%)$*)$2+ 5%:2)$2&*+ ).:)+ ':6+ 5%->$/&+ :4)&%(:)$>&+ '&:*#%&*+ )-+
EG
NOBMP1=IBNPO
NOBMP1=IBNPO
2-#()&%!:2)+).&+*-'&)$'&*+5%-C4&':)$2+&,,&2)*+-,+'&/$:@+B.&*&+
:4)&%(:)$>&+5:).*+:%&+$'5-%):()+,-%+#(/&%*):(/$(0+).&+:%,"/$%-&
)(/""1+5%:2)$2&*+:*+/$>&%0$(0+,%-'+0&(&%:4$Y&/+'&/$:@
B.&+*)%-(0+&'5.:*$*+-(+).&+'&/$#'+$)*&4,+.:*+4&/+d-*.#:+J&6!
%-X$)Y+)-+*#00&*)+).:)+J2U#.:(`*+:55%-:2.+*.-#4/+C&+(:'&/+
e'&/$#'+).&-%6f<+)-+/$*)$(0#$*.+$)+,%-'+7-).&%8+'&/$:+).&-%$&*+
7J&6%-X$)Y<+GTSQ<+5@+GS8@+;4).-#0.+J&6%-X$)Y+':?&*+:+>:4$/+
:%0#'&()+%&0:%/$(0+).$*+/$*)$(2)$-(+$(+,-2#*<+J2U#.:(+X-#4/+
5%-C:C46+/$*:0%&&+X$).+*#2.+:+*&5:%:)$-(<+*$(2&+.$*+).&-%6+-,+
'&/$:+*#5&%*&/&*+).&+/$*)$(2)$-(+C&)X&&(+).&+&,,&2)*+-,+'&/$:+
2-()&()+:(/+'&/$:+.:%/X:%&@+N(*)&:/<+J2U#.:(`*+).$(?$(0+$'!
54$&*+).:)+X&+2:((-)+://%&**+'&/$:+2-()&()+X$).-#)+):?$(0+).&+
'&/$#'+$()-+:22-#()@
.1#"/),%1#$1+&!"#$%+*):(/*+-#)+:*+).&+C--?+$(+X.$2.+J2U#!
.:(+,%:'&*+.$*+>$&X*+-(+'&/$:@+B.&+(-)$-(+-,+'&/$:+:*+)&2.(-!
4-0$2:4+&^)&(*$-(*+-,+).&+.#':(+C-/6+:(/+*&(*&*+$*+).&+5%&>:$4!
$(0+$/&:+).%-#0.-#)+).&+%&*)+-,+.$*+X%$)$(0*@+B.$*+0&(&%:4+$/&:+$*+
SUREDEO\DOVRWKHUHDVRQKLVWKHRULHV¿WVRZHOOZLWKUHÀHFWLRQV
-(+ 2-()&'5-%:%6+ /$0$):4+ )&2.(-4-06@+ J2U#.:(`*+ '-)$>:)$-(+
,-%+X%$)$(0+.1#"/),%1#$1+&!"#$%+X:*+).&+&'&%0&(2&+-,+)&4&>$!
*$-(+ :*+ :+ %:/$2:446+ (&X+ '&/$#'+ ).:)+ %&>-4#)$-($Y&/+ 2-()&'!
5-%:%6+*-2$&)6<+:(/+).&+&'&%0&(2&+-,+)&2.(-4-0$&*+:*+%&4:)$-(*+
C&)X&&(+2:#*&*+:(/+&,,&2)*+$*+:+?&6+).&'&+$(+.$*+X%$)$(0@
$OWKRXJK0F/XKDQ¶VWKHRULHVDUHQRWVSHFL¿FWRDQ\SDUWLFX!
4:%+'&/$#'+-%+*&(*-%6+'-/:4$)6<+.&+%&2-0($Y&/+3$)$51+:*+C&$(0+
D SULYLOHJHG VHQVH7KLV LV WKH UHDVRQ KLV WKHRULHV ¿W VR ZHOO
X$).+>$*#:4+'&/$:<+:(/+5%->$/&+$(*$0.),#4+.65-).&*&*+).:)+:5!
546+)-+).&+#(/&%*):(/$(0+-,+*2%&&(*@+L6+):?$(0+:+*&(*-%6+'-/&+
:*+ *):%)$(0+ 5-$()+ ,-%+ :+ 5:%)$2#4:%+ '&/$#'<+ ).&+ #(/&%*):(/$(0+
-,+,8"&)(/""1+C&2-'&*+'#2.+'-%&+:+':))&%+-,+5&%2&5)$-(+).:(+
:(6).$(0+&4*&@
N(+.1#"/),%1#$1+&!"#$%<+J2U#.:(+/&>&4-5&/+:+X:6+-,+2-'!
5:%$(0+%&4:)&/+'&/$:+$(+)&%'*+-,+).&$%+2-''#($2:)$>&+2:5:C$4$!
)$&*@+B.&+/$*)$(2)$-(+C&)X&&(+85,+:(/+(5-#+'&/$:+/&*2%$C&*+).&+
DPRXQWRILQIRUPDWLRQ±RUWKH³GH¿QLWLRQ´DV0F/XKDQGH!
*2%$C&*+ $)+ g+ ).:)+ $*+ 5%->$/&/+ C6+ :+ 5:%)$2#4:%+ )65&+ -,+ '&/$#'@+
B.$*+(-)$-(+$*+:554$&/+)-+$(*):(2&*+-,+).&+*2%&&(<+4:)&%+$(+).$*+
)&^)@
N(+ 48/59+8& ,8"& S%1$)8$1+& M5$1,+ 7GTZS8<+ J2U#.:(+ :(/+ :%)!
$*)+ \:%4&6+ 3:%?&%+ /&>&4-5&/+ :+ 5.$4-*-5.6+ -,+ ).&+ *&(*&*+ ).:)+
4$(?&/+).&+)%:/$)$-(+-,+5:$()$(0+)-+).&+5&%2&5)$-(+-,+*5:2&@+N(+
).$*+ C--?<+ ).&6+ /&*2%$C&+ :(+ &>-4#)$-(+ ,%-'+ 5%&.$*)-%$2+ :%)+ #5+
WR WKH FRQWHPSRUDU\ PHGLD RI ¿OP DQG WHOHYLVLRQ 7KLV DOVR
5%->$/&*+:(+$(*$0.),#4+>$&X+-,+.-X+).&+'-/&%($*)+:C*)%:2)$-(+
LQSDLQWLQJUHÀHFWHGDQRYHOSHUVSHFWLYHRQWKHLQWHUSUHWDWLRQ
RIVSDFH7KHUHÀHFWLRQVRQVSDWLDOUHSUHVHQWDWLRQDQGSHUFHS!
)$-(+:%&+&^)&(/&/+)-+).&+2-(2&5)+-,+).&+':)&%$:4+*2%&&(<+4:)&%+-(@
K.-%)46+C&,-%&+.$*+/&:).<+J2U#.:(+2-44:C-%:)&/+X$).+.$*+*-(<+
D%$2<+ $(+ :+ %&X%$)$(0+ -,+ ).&+ $/&:*+ ,%-'+ .1#"/),%1#$1+& !"#$%@+
B.&+%&*#4)+X:*+5#C4$*.&/+5-*).#'-#*46+$(+GTSS<+X$).+).&+)$)4&+
-,+2%6)&5C&!"#$%G&48"&R"6&N($"1("+7GTSS8<+:(/+'-*)+(-):C46<+
5%&*&()&/+:+)&)%:/+'-/&4+,-%+#(/&%*):(/$(0+).&+&,,&2)*+-,+:(6+
)&2.(-4-06<+$(24#/$(0+&4&2)%-($2+'&/$:@+B.&+C--?+:4*-+,&:)#%&/+
).&+2-(2&5)*+-,+¿JXUH+:(/++/591#<+:*+:(+#(/&%*):(/$(0+-,+).&+
5&%2&5)$-(+-,+'&/$:+).:)+X:*+/&%$>&/+,%-'+0&*):4)+5*62.-4-06@+
B.$*+ 2-(2&5)+ X:*+ :+ %&$()&%5%&):)$-(+ -,+ J2U#.:(`*+ &'5.:*$*+
RQWKHPHGLXPWKDWZDV¿UVWLQWURGXFHGLQ.1#"/),%1#$1+&!";
#$%@+N)+/&*2%$C&/+).&+5&%2&5)$-(+-,+'&/$:+$(+)&%'*+-,+:%&:*+-,+
DWWHQWLRQWKH¿JXUHDQGWKHVXUURXQGLQJDUHDVRILQDWWHQWLRQ
7).&+0%-#(/8<+X.$2.+2-#4/+C&+$()%-/#2&/+-(+/$,,&%&()+4&>&4*@+N(+
).&+2.:5)&%+)$)4&/+eJ:)&%$:4$)6f<+N+:%0#&+).:)+¿JXUH+:(/++/591#+
5%->$/&+:+5%-/#2)$>&+'-/&4+,-%+#(/&%*):(/$(0+2&%):$(+:*5&2)*+
-,+).&+':)&%$:4$)6+-,+).&+*2%&&(@
EE
EH
NOBMP1=IBNPO
NOBMP1=IBNPO
9:/00;6!/468;645060>.!;3036?8013
I:)&0-%$Y$(0+:%)+:(/+'&/$:+.:*+-,)&(+5%->&/+5%-C4&':)$2@+D^!
5&%$'&():4+:%)+5%:2)$2&*+.:>&+-,)&(+(&2&**$):)&/+).&+&^5:(*$-(+
-,+)%:/$)$-(:4+0&(%&*<+*#2.+:*+5:$()$(0<+*2#45)#%&<+:(/+$(*):44:!
)$-(+:%)<+:(/+.:*+%&*#4)&/+$(+(&X+.6C%$/+0&(%&*<+*#2.+:*+>$/&-+
:%)<+C$-+:%)<+:(/+'&/$:+:%)@+d#*)+:*+).&+'-/&%(+*2#45)#%&+'->&/+
LQWRDQH[SDQGHG¿HOGLQSRVWPRGHUQLVPDVGHVFULEHGE\5R!
*:4$(/+b%:#**+7GTRT8<+*-+.:*+-).&%+>$*#:4+'&/$:<+*#2.+:*+>$/&-+
:(/+ 2$(&':<+ (-)&/+ C6+ ]&(&+ [-#(0C4--/+ $(+ eD^5:(/&/+ I$(!
&':f+7GTRF8<+:*+).&6+X&%&+:/-5)&/+$()-+:%)$*)$2+5%:2)$2&@+K$'$!
4:%46<+ :(+ #(/&%*):(/$(0+ -,+ ).&+ :%)$*)$2+ 5%:2)$2&*+ %&4:)&/+ )-+ ).&+
':)&%$:4+*2%&&(+':6+C&+/&*2%$C&/+:*+:(+&^)&(*$-(+-,+)%:/$)$-(:4+
JHQUHVDQGPHGLDLQWRDQH[SDQGHG¿HOGZKHUHGLVWLQFWLRQVDUH
$(2%&:*$(046+C4#%%&/@+d#*)+:*+M-*:4$(/+b%:#**+*$)#:)&/+).&+5-*)!
PRGHUQVFXOSWXUHLQWKHH[SDQGHG¿HOGEHWZHHQ³ODQGVFDSH´
:(/+e:%2.$)&2)#%&f<+$)+':6+C&+5-**$C4&+)-+5-*$)$-(+).&+:%)+-,+).&+
PDWHULDOVFUHHQLQD¿HOGEHWZHHQWKRVHRIYLGHRDUWDQGLQVWDO!
4:)$-(+:%)@
B.&+%&4:)$>&46+(&X+0&(%&+-,+$(*):44:)$-(+:%)+$*+:4*-+:(+$(/$2:)$-(+
-,+).&+%$0$/+C-#(/:%$&*+).:)+2$%2#'*2%$C&+)%:/$)$-(:4+:%)+,-%'*@+
I4:$%&+L$*.-5<+X.-+.:*+X%$))&(+-(&+-,+).&+'-%&+&^)&(*$>&+5#C!
4$2:)$-(*+-(+).&+*#C_&2)<+.:*+:%0#&/+).:)+ei$(*):44:)$-(`+.:*+(-X+
&^5:(/&/+)-+/&*2%$C&+:(6+:%%:(0&'&()+-,+-C_&2)*+$(+:(6+0$>&(+
*5:2&<+)-+).&+5-$()+X.&%&+$)+':6+C&+.:55$46+:554$&/+&>&(+)-+:+
2-(>&()$-(:4+/$*54:6+-,+5:$()$(0*+-(+:+X:44@f+7L$*.-5<+EFFQ<+5@+
%XWWKLVGRHVQRWPHDQWKDWDOOLQVWDOODWLRQVRIDUW¿WWKHFDW!
&0-%6+-,+$(*):44:)$-(+:%)@+;22-%/$(0+)-+L$*.-5<+$(*):44:)$-(+:%)+
$*+2.:%:2)&%$Y&/+C6+:+5%$>$4&0&/+%&4:)$-(*.$5+C&)X&&(+).&+*5:2&+
:(/+).&+>$&X&%+g+:+5%&*&(2&+).:)+-).&%+:%)+,-%'*+:%&+#(:C4&+)-+
:2.$&>&@+ eN(*)&:/+ -,+ %&5%&*&()$(0+ )&^)#%&<+ *5:2&<+ 4$0.)+ :(/+ *-+
-(<+ $(*):44:)$-(+ :%)+ 5%&*&()*+ ).&*&+ &4&'&()*+ /$%&2)46+ ,-%+ #*+ )-+
&^5&%$&(2&@f+7L$*.-5<+EFFQ<+5@+GG8@+\&%&<+L$*.-5+(-)&*+).:)+).&+
)%:/$)$-(:4+ :%)+ ,-%'*<+ 5:$()$(0+ :(/+ *2#45)#%&<+ :4X:6*+ ://%&**+
%&5%&*&():)$-(+7-(+:+>$*#:4+4&>&48<+&).&%+/$%&2)46<+-%+C6+$(/$2:)!
$(0+).&+,:2)+).:)+).&6+:%&+%&5%&*&():)$-(:4+'&/$:@+P(+).&+-).&%+
.:(/<+ $(*):44:)$-(+ :%)+ &'5.:*$Y&*+ $''&%*$-(+ :(/+ 5%&*&(2&+ $(+
*5:2&@+eM:).&%+).:(+$':0$($(0+).&+>$&X&%+:*+:+*&)+-,+/$*&'C-/!
$&/+&6&*+).:)+*#%>&6+).&+X-%?+,%-'+:+/$*):(2&<+$(*):44:)$-(+:%)+
5%&*#55-*&*+:(+&'C-/$&/+>$&X&%+jklf+X$).+:+e.&$0.)&(&/+jkl+
*&(*&+-,+>$*$-(@f+7L$*.-5<+EFFQ<+5@+Z8@+B.$*+&():$4*+:+5&%2&5)$-(+
).:)+0-&*+C&6-(/+e-5)$2:4+2-()&'54:)$-(f+7L$*.-5<+EFFQ<+5@+Z8<+
%&,&%%$(0+)-+5&%2&5)#:4+'-/&*+-).&%+).:(+).&+5#%&46+>$*#:4@
$OWKRXJK %LVKRS LGHQWL¿HV PDQ\ DUWZRUNV WKDW DSSO\ PHGLD
)&2.(-4-06<+*.&+(&>&%+%&,&%*+)-+'&/$:+:%)+-%+>$/&-+:%)+:*+$(*):4!
4:)$-(*@+;%)+.$*)-%$:(+]%:.:'+I-#4)&%!K'$).+5%->$/&*+:+5-**$!
C4&+&^54:(:)$-(+$(+).&+$()%-/#2)$-(+)-+.$*+C--?<+*"(51),/9(,$1+&
<1),%--%,$51&7/,+7I-#4)&%!K'$).<+EFFZ8h
EV
S$#"5&$1),%--%,$51&$)&:"1,$51"#&$1&,8"&(9//"1,&(5::"1,%/$")&51&
$1),%--%,$51&%/,&jC6+L$*.-5lB&09,&1"3"/&$1&+/"%,&#"A,8?&48$)&$)&
91#"/),%1#%0-"&0"(%9)"&,8"&:%$1&0/"%>,8/59+8&#"3"-5A"#&$1&
3$#"5&%/,&$1&,8"&FTTK)&6%)&:9-,$;)(/""1&"#$,$1+_&:%$1-@&%/,$(9;
ODWHGYLDÀDWUDWKHUWKDQVFXOSWXUDOVFUHHQFRQ¿JXUDWLRQV,I
WKHPRVWIXQGDPHQWDOGH¿QLWLRQRILQVWDOODWLRQLVWKHFUHDWLRQ
5C&%&65/>&5C&%/,&,8%,&51"&(%1&6%->&$1,5B&,8"1&,65;#$:"1)$51%-&
3$#"5& %/,& )859-#& 15,& 0"& /"C"//"#& ,5& %)& $1),%--%,$51?+ 7I-#4)&%!
K'$).<+EFFZ8
\&%&<+ ).&+ #(/&%46$(0+ 2%$)$2$*'+ 5$(5-$()*+ ).&+ 5-**$C$4$)6+ -,+
L$*.-5+ .:>$(0+ :+ 4$'$)&/+ #(/&%*):(/$(0+ -,+ >$/&-+ :%)@+ N,+ >$/&-+
:%)+$*+%&0:%/&/+:*+:+/$*54:6+$(+:+eC4:2?+C-^f+g+X.&%&+*5:2&+$*+
(&04&2)&/+$(+5%&,&%&(2&+)-+).&+$':0&+*#%,:2&+g+).&(+$)+.:*+4$))4&+
%&*&'C4:(2&+ )-+ $(*):44:)$-(+ :%)@+ P(+ ).&+ -).&%+ .:(/<+ I-#4)&%!
K'$).+:%0#&*+).:)+*2%&&(+:%)+/-&*+.:>&+).&+5-)&()$:4+)-+C&2-'&+
EQ
NOBMP1=IBNPO
NOBMP1=IBNPO
$(*):44:)$-(*<+C6+%&:4$Y$(0+$)*+$()&%:2)$>&+5-)&()$:4@+U$?&+d&,,&%6+
K.:X`*+2"+$0-"&E$,@+7GTST8<+$()&%:2)$>&+'&/$:+:%)+2:(+&(0:0&+
).&+.#':(+C-/6+$(+:+X:6+).:)+%&2:44*+).&+*5:)$:4+&^5&%$&(2&+5%-!
/#2&/+C6+X-%?*+-,+$(*):44:)$-(+:%)@+9-%+).$*+%&:*-(<+.&+:/-5)*+
e$()&%:2)$>&+'&/$:+:%)f+$()-+).&+$(*):44:)$-(+:%)+0&(%&<+).$*+C&$(0+
-(&+-,+).&+':$(+-C_&2)$>&*+-,+.$*+C--?@+\&+:%0#&*+).:)+'&/$:+
DUWLVJHQHUDOO\QHJOHFWHGE\¿QHDUWDQGWKDWPHGLDDUWLVFXU!
%&()46+ -(&+ -,+ ).&+ '-*)+ &^5&%$'&():4+ :(/+ %:/$2:4+ ,-%'*+ -,+ :%)+
:>:$4:C4&@+ eN(+ *.-%)<+ (&X+ '&/$:+ :%)+ $*+ ).&+ (&X+ :>:()!0:%/&@f+
7I-#4)&%!K'$).<+EFFZ8@+;(/<+4$?&+).&+:>:()!0:%/&+-,+).&+*$^)$&*<+
(&X+ '&/$:+ :%)+ $*+ ':%0$(:4$Y&/@+;22-%/$(0+ )-+ I-#4)&%!K'$).<+
WKLVLVDVLJQWKDW¿QHDUWKDV³FDSLWXODWHGZLWKWKHFRUHYDOXHV
).:)+*#*):$(+$)f+7NC$/@8@
1&*5$)&+.$*+&,,-%)*+)-+$(24#/&+'&/$:+:%)+$(+).&+$(*):44:)$-(+:%)+
0&(%&<+I-#4)&%!K'$).+$(24#/&*+-(46+$1,"/%(,$3"+(&X+'&/$:+:%)+
$(+.$*+/&*2%$5)$-(*<+:(/+(-)+151;$1,"/%(,$3"+'&/$:+:%)+$(*):44:!
)$-(*@+B.&+%&:*-(+$*+5%-C:C46+.$*+5%&>$-#*+:%0#'&()<+).:)+$(!
)&%:2)$>$)6+$*+X.:)+)%:(*,-%'*+).&+'&/$:+:%)+&^5&%$&(2&+$()-+:+
C-/$46+&^5&%$&(2&<+).&%&C6+:,,&2)$(0+).&+>$&X&%`*+5&%2&5)$-(+-(+
:+5.6*$2:4+4&>&4@
;%)+ .$*)-%$:(+ b:)&+ J-(/4-2.+ :%0#&*+ ).:)+ *2%&&(!C:*&/+ :%)+
*.-#4/+C&+%&0:%/&/+:*+'&/$:+:%)+$(*):44:)$-(*<+X.&%&+*5&2):)-%!
*.$5+:(/+5&%2&5)$-(+2-(2&%(+).&+)-):4$)6+-,+).&+>$&X$(0+*5:2&<+
$(*)&:/+ -,+ ).&+ $*-4:)&/+ %&2):(0#4:%+ $':0&+ 7J-(/4-2.<+ EFGF8@+
6KHDUJXHVWKDWDOWKRXJKSUHYLRXVZULWHUVKDYHWKHPDWL]HG¿OP
:%)<+>$/&-+:%)<+-%+/$0$):4+'&/$:+:%)<+).&*&+X%$)&%*+.:>&+e(&04&2)!
&/+).&+5%->-2:)$>&+4$(?*+:(/+/$,,&%&(2&*+C&)X&&(+).&'+).:)+:%&+
:'-(0+ ).&+ ,#(/:'&():4+ 2-(2&%(*+ jklf+ 7J-(/4-2.<+ EFGF<+ 5@+
^>8@+ J-(/4-2.+ .:*+ >&%6+ &^54$2$)46+ :%)$2#4:)&/+ ).&+ (&&/+ ,-%+ :+
:%,"/$%-+ #(/&%*):(/$(0+ -,+ *2%&&(*@+ K.&+ 5:%)$2#4:%46+ &'5.:!
*$Y&*+).&+>$/&-+:%)+:(/+$(*):44:)$-(+:%)+-,+).&+*$^)$&*+:(/+*&>!
&()$&*+:*+':($,&*):)$-(*+-,+&:%46+*$0(*+-,+*#2.+).$(?$(0@+B.$*+
$(24#/&/+).&+X-%?+-,+:%)$*)*+*#2.+:*+a:4&%$&+D^5-%)<+9%:(?+]$4!
4:))&+ :(/+ N%:+ K2.(&$/&%<+ 1:(+ ]%:.:'<+ d-:(+ d-(:*<+ ;().-(6+
J2I:44<+ J:%2&4+ L%--/).:&%*<+ L%#2&+ O:#':(<+ 3&)&%+ I:'5#*<+
3:#4+K.:%$)*<+:(/+J$2.:&4+K(-X@+B.&6+e$(>$)&/+).&+>$&X&%*+)-+
#(/&%*):(/+).&+*2%&&(+g+:*+X&44+:*+).&+*$)&+:(/+&^5&%$&(2&+-,+
*2%&&(+ *5&2):)-%*.$5+ g+ :*+ ':)&%$:4@f+ 7J-(/4-2.<+ EFGF<+ 5@+ E8@+
B.$*+2%&:)&/+:+(&X+#(/&%*):(/$(0+-,+).&+*2%&&(+$(+:%)<+X.$2.+
.:/+2-(>&()$-(:446+C&&(+->&%4--?&/h+:(+$/&:+-,+).&+*2%&&(+:*+
C-).+'&/$#'+:(/+-C_&2)@
J-(/4-2.+ :4*-+ '&()$-(*+ ).&+ :%)$*)$2+ 5%:2)$2&*+ ).:)+ &^)&(/&/+
).&+#*&+-,+2$(&':)$2+'&/$:+)&2.(-4-0$&*<+&*5&2$:446+$(+).&+*$^!
)$&*+:(/+*&>&()$&*@+B.&*&+5%:2)$2&*+.:>&+C&&(+/&*2%$C&/+'-*)+
&4:C-%:)&46+C6+]&(&+[-#(0C4--/+:*+OYA%1#"#&E$1":%<+$(+.$*+
C--?+ -,+ ).&+ *:'&+ )$)4&+ 7[-#(0C4--/<+ GTRF8@+ B.$*+ C--?+ X:*+
/&)&%'$(&/+)-+e&^:'$(&+*-'&+-,+).&+$':0&!':?$(0+)&2.(-4-!
0$&*+ ).:)+ 5%-'$*&+ )-+ &^)&(/+ ':(`*+ 2-''#($2:)$>&+ 2:5:2$)$&*+
C&6-(/+.$*+'-*)+&^)%:>:0:()+>$*$-(*@f+7[-#(0C4--/<+GTRF<+5@+
VG8@+B.$*+&(/&:>-%+*.-X&/+.-X+:+X$/&+%:(0&+-,+:%)$*)$2+5%:2!
)$2&*+X&%&+*5:X(&/+C6+)&2.(-4-0$&*+*#2.+:*+2$(&':)$2+5%-_&2!
)$-(<+ )&4&>$*$-(+ *2%&&(*<+ :(/+ -*2$44-*2-5&*@+ 9-%+ [-#(0C4--/<+
).&+&^5:(*$-(+-,+2$(&':+X:*+(-)+_#*)+:+':))&%+-,+&^)&(/$(0+).&+
>$*#:4+2:5:C$4$)$&*+-,+'&/$:+-(+).&+2-()&()+4&>&4<+C#)+$(*)&:/<+:+
,-2#*+-(+).&+e5%-2&**+-,+C&2-'$(0<+':(`*+-(0-$(0+.$*)-%$2:4+
/%$>&+)-+':($,&*)+.$*+2-(*2$-#*(&**+-#)*$/&+.$*+'$(/<+$(+,%-()+
-,+.$*+&6&*@f+7[-#(0C4--/<+GTRF<+5@+VG8@
7KH WHUP ³H[SDQGHG FLQHPD´ ZDV ¿UVW FRLQHG E\ DUWLVW 6WDQ
a:(1&%L&&?+ $(+ ).&+ '$/!*$^)$&*<+ )-+ /&*2%$C&+ .$*+ '#4)$!5%-!
_&2)$-(+ $(*):44:)$-(<+ !53$";*/5:"+ 7GTZH!ZQ8<+ 2-'5%$*&/+ -,+
PXOWLSOH ¿OP DQG VOLGH SURMHFWRUV GLVSOD\LQJ LPDJHV LQVLGH D
/-'&!*.:5&/+*)%#2)#%&@+B.&+!53$";*5:"+X:*+:(+&^5&%$'&():4+
%&*&:%2.+5%-_&2)+:(/+:(+:))&'5)+)-+/&>&4-5+:+(&X+>$*#:4+4:(!
0#:0&+,-%+2-''#($2:)$-(@+OYA%1#"#&E$1":%+X:*+4:)&%+5$2?&/+
EZ
ER
NOBMP1=IBNPO
NOBMP1=IBNPO
#5+ C6+ ]&(&+[-#(0C4--/<+ X.-+ )--?+ ).&+ e&^5:(/&/f+ 4$)&%:446<+
:(/+ C%-:/&(&/+ ).&+ $'54$2:)$-(*+ )-+ :(+ &>&(+ 0%&:)&%+ &^)&()@+
[-#(0C4--/+ *#00&*)*+ ).&+ /&*$0(:)$-(+ $1,"/:"#$%<+ )-+ /&*2%$C&+
D VSHFL¿F VXEVHW RI SUDFWLFHV WKDW H[WHQG EH\RQG WKH QRUPDO
#*&+-,+'&/$:+)&2.(-4-06@+B.$*+$(24#/&*+).&+'#4)$!*2%&&(+5%-!
_&2)$-(*+-,+M-':(+b%-$)-%+:)+D^5-+iZR<+:(/+).&+5&%,-%':(2&*+
:)+).&+'#4)$!'&/$:+($0.)24#C<+E"/"0/9:<+$(+K-\-<+O&X+[-%?+
I$)6<+X.$2.+-5&(&/+$(+GTZS@
+
5HFRJQL]LQJ WKH KHWHURJHQHRXV ¿HOG RI DUW WKDW LQFRUSRUDWHV
).&+ #*&+ -,+ *2%&&(*<+ X.&).&%+ )&4&':)$2+ -%+ 2$(&':)$2<+ 4&:/*+ )-+
"#&*)$-(*+:C-#)+).&+2#%%&()+2-(2&5)$-(+-,+0&(%&*+*#2.+:*+>$/&-+
:%)<+X.$2.+,:$4+)-+/&*2%$C&+).$*+/$>&%*$)6@+N)+':6+C&+).:)+).&+2-(!
2&5)+-,+)(/""1+$'54$2$)46+%&4:)&*+)-+).&+>$/&-+2-()&()<+:(/+(-)+
).&+ &^5:(/&/+ #*&+ -,+ ).&+ *2%&&(+ '&/$#'@+ B.&%&,-%&<+ X&+ ':6+
QHHGWR¿QGQHZZD\VWRGHVFULEHDUWWKDWEXLOGVRQYLVXDOWHFK!
(-4-0$&*+:(/+'&/$:<+C#)+&^)&(/*+C&6-(/+-#%+2#%%&()+,%:'&*+-,+
%&,&%&(2&+-,+'&%&+)(/""1)@
).&+>$%)#:4@+9-%+).&+*:?&+-,+/$*2#**$-(<+N+/%:X+-(+*-'&+-,+).&+
'-%&+2%$)$2:4+>-$2&*+$(+).&+4$)&%:)#%&+:C-#)+*2%&&(*<+'&/$:<+:(/+
%&4:)&/+)-5$2*@+B.$*+&'5.:*$Y&*+).&+5%-C4&':)$2+(:)#%&+-,+).&+
*2%&&(<+ :(/+ $)*+ 5.$4-*-5.$2:4+ $'54$2:)$-(*@+ N+ :%0#&+ ).:)+ ).&%&+
.:*+C&&(+:+0&(&%:4+)&(/&(26+)-+%&0:%/+).&+*2%&&(+:*+$'':)&%$:4<+
C:*&/+-(+:+,-2#*+-(+).&+$':0&+:(/+$)*+&,,&2)*<+%:).&%+).:(+-(+).&+
*2%&&(+:*+:+':)&%$:4+:%)$,:2)@+B.$*+&*):C4$*.&*+).&+C:2?0%-#(/+
,-%+).&+:%0#'&()*+$(+).&+,-44-X$(0+2.:5)&%@
:5!.40/9
7KLVGLVVHUWDWLRQLVGLYLGHGLQWR¿YHFKDSWHUVHDFKRIZKLFK
5%->$/&*+:+5:%)+-,+).&+#(/&%*):(/$(0+-,+).&+$/&:*+2-(*)$)#)$(0+
).&+2-(2&5)+-,+).&+':)&%$:4+*2%&&(@+B.&*&+2.:5)&%*+5%-0%&**$>&!
46+ #(2->&%+ ).&+ "#&*)$-(*+ 5%&*&()&/+ &:%4$&%+ 75:0&+ GR8<+ X.$4&+
C#$4/$(0+#5+).&+:%0#'&()+,-%+:+/&&5&%+:(/+%$2.&%+#(/&%*):(/$(0+
-,+*2%&&(*@
I.:5)&%+G+/&*2%$C&*+).&+)(/""1+:*+:+2#4)#%:4+&()$)6<+:(/+.-X+$)+
.:*+ :,,&2)&/+ >$*#:4+ 5&%2&5)$-(@+ 9%-'+ ).&+ $($)$:4+ /&*2%$5)$-(*<+
$)+0-&*+-(+)-+/&>&4-5+:+2%$)$"#&+-,+).&+>$*#:4+5:%:/$0'<+X.$2.+
$*+$(.&%&()+$(+*2%&&(*+:(/+).&$%+.&%$):0&+-,+>$*#:4+'&/$:@+B.$*+
2.:5)&%+:4*-+/$*2#**&*+).&+(-)$-(*+-,+*$'#4:)$-(<+%&:4$*'<+:(/+
ES
I.:5)&%+ E+ 5%->$/&*+ :(+ $()&%5%&):)$-(+ -,+ ).&+ )&%'+ :%,"/$%-$,@<+
:(/+ .-X+ $)+ %&4:)&*+ )-+ '&/$:+ :(/+ *2%&&(*@+ B.$*+ C&0$(*+ X$).+ :+
).&-%&)$2:4+ &^54-%:)$-(+ -,+ :%,"/$%-+ :(/+ :%,"/$%-$,@<+ :(/+ 0-&*+
-(+ )-+ $(>&*)$0:)&+ .-X+ ).&*&+ )&%'*+ .:>&+ C&&(+ :554$&/+ )-+ C-).+
'&/$:+:(/+:%)@+N+:%0#&+).:)+':)&%$:4$)6+':6+C&+2-(2&5)#:4$Y&/+
-(+:)+4&:*)+).%&&+/$*)$(2)+4&>&4*<+:(/+2-(2&%(*+:*5&2)*+*#2.+:*+
':))&%<+,-%'<+:(/+-()-4-06@+B.&+(-)$-(+-,+':)&%$:4$)6+4&:/*+)-+
J2U#.:(`*+$/&:*+-,+¿JXUH+:(/++/591#<+X.$2.+5%->$/&+:(+$'!
5-%):()+).&-%&)$2:4+,-#(/:)$-(+,-%+#(/&%*):(/$(0+).&+2-(/$)$-(*+
-,+).&+*2%&&(+:*+:+':)&%$:4+'&/$#'@+B.%-#0.+>:%$-#*+&^:'54&*<+
N+ *#00&*)+ ).:)<+ :4).-#0.+ ).&*&+ &'54-6+ >$*#:4<+ &4&2)%-($2+ '&!
/$:<+).&6+2:((-)+C&+/&*2%$C&/+*$'546+:*+*2%&&(*+7:*+$()&(/&/+C6+
"#&*)$-(+jGl8@+B.&+2.:5)&%+:4*-+/%:X*+X$/&46+-(+&^:'54&*+-,+
:%)X-%?*+).:)+/&'-(*)%:)&+.-X+).&+5%&*&()&/+2-(2&5)*+':6+C&+
:554$&/+$(+-%/&%+)-+:2.$>&+:+C&))&%+#(/&%*):(/$(0+-,+':)&%$:4$)6+
7$(+%&*5-(*&+)-+jEl8@
&KDSWHU LV D WUHDWPHQW RI WKH HPHUJLQJ ¿HOG RI :"#$%& %/;
(8$,"(,9/"<+:(/+.-X+$)+.:*+C&&(+/&*2%$C&/+$(+2#%%&()+4$)&%:)#%&@+
, DUJXH WKDW LQVWDQFHV RI PHGLD DUFKLWHFWXUH H[HPSOL¿HV WKH
$/&:+-,+).&+':)&%$:4+*2%&&(+$(+).&+&^5&%$'&():4+:55%-:2.&*+).:)+
.:>&+C&&(+:554$&/@+9#%).&%'-%&<+N+/$*2#**+.-X+'&/$:<+:%)<+:(/+
:%2.$)&2)#%&+.:>&+$()&%*&2)&/+:)+>:%$-#*+5-$()*+).%-#0.-#)+).&+
ET
NOBMP1=IBNPO
)X&()$&).+ 2&()#%6<+ *#00&*)$(0+ ).:)+ ).&+ 2#%%&()+ /&>&4-5'&()*+
&^)&(/+:+.$*)-%$2:4+)&(/&(26+)-+'&%0&+>$*#:4+'&/$:+:(/+*5:)$:4+
5%:2)$2&*@+;+X$/&+%:(0&+-,+&^:'54&*+:%&+5%&*&()&/<+$(+-%/&%+)-+
&'5.:*$Y&+).$*+/&>&4-5'&()@+B.&+2.:5)&%+2-(24#/&*+X$).+:+/$*!
2#**$-(+-,+).&+).&-%&)$2:4+$'54$2:)$-(*+-,+2-(2&5)#:446+'&%0$(0+
'&/$:+X$).+:%2.$)&2)#%&+7).&%&C6+://%&**$(0+jHl8@
I.:5)&%+V+$*+:+2-44&2)$-(+-,+(%)")+).:)+.:>&+$(,-%'&/+).$*+/$**&%!
):)$-(<+:(/+*&%>&*+)-+&^&'54$,6+*-'&+-,+).&+$/&:*+5%&*&()&/+$(+
5%&2&/$(0+2.:5)&%*@+B.&+2:*&*+:%&+:(:46Y&/+:(/+/$*2#**&/+X$).+
%&0:%/+)-+).&+e':)&%$:4f+>-2:C#4:%6+5%&*&()&/+$(+).&+5%&>$-#*+
2.:5)&%@+B.$*+.$0.4$0.)*+).&+#*&,#4(&**+-,+).$(?$(0+$(+)&%'*+-,+
':)&%$:4$)6+,-%+).&+5#%5-*&+-,+#(/&%*):(/$(0+:(/+5%-5:0:)$(0+
&**&()$:4+:&*).&)$2+"#:4$)$&*+,-#(/+$(+).&*&+2:*&*@
B.&+ 2:*&*+ 5%&*&()&/+ :%&h+ 7%/89)& 0@& 2$+8,+ 7EFFS8+ g+ :(+ $()&%!
:2)$>&+ '&/$:+ ,:2:/&+ ,-%+ ).&+ 2-(2&%)+ .:44+ $(+;:%.#*<+ `911$1+&
N(9-A,9/"+7EFFS8+g+:+'&/$:+,:2:/&+C:2?/%-5+,-%+:+/:(2&+5&%!
,-%':(2&<+E-$:%,"&a%--+7EFFT8+g+:(+$()&%:2)$>&+X:44+5%-_&2)$-(<+
7,:5)A8"/"+7EFFT8+g+:+4$0.)+:(/+*-#(/+$(*):44:)$-(+#*$(0+2:%!
C-(+/$-^$/&+'&:*#%&'&()*<+:(/+).&+*"1:%/>&M%3$-$51+7EFGF8<+
:+2-'54&^+'&/$:+,:2:/&+,-%+).&+W-%4/+D^5-+$(+K.:(0.:$@
N+&'5.:*$Y&+.-X+':)&%$:4$)6+:(/+':)&%$:4+:*5&2)*+X&%&+$'54$2!
$)46+5:%)*+-,+).&+2-(2&5)$-(+-,+).&*&+2:*&*<+C#)+:4*-+.-X+).&*&+
5&%*5&2)$>&*+':6+C&+#*&/+%&)%-*5&2)$>&46<+)-+/&*2%$C&+':)&%$:4+
"#:4$)$&*+-,+).&+X-%?*@
I.:5)&%+Q+2-(24#/&*+).&+/$**&%):)$-(+C6+/$*2#**$(0+).&+2-()%$!
EXWLRQRIWKHUHVHDUFKDQGKRZLWH[WHQGVLQWRRWKHU¿HOGVRI
*)#/6@+N)+&>:4#:)&*+).&+#*&,#4(&**+-,+':)&%$:4$)6+:*+:+5&%*5&2!
)$>&+-(+*2%&&(!C:*&/+:%)+:(/+'&/$:+:%)+$(+0&(&%:4<+:(/+/$*2#**&*+
$)*+:554$2:)$-(+)-+:%2.$)&2)#%&+:(/+/&*$0(+$(*):44:)$-(*+*#2.+:*+
'&/$:+,:2:/&*@
HF
5,&60)/!7*)
SCREEN
KIMDDO
<,&$)&$/51$(&,8%,B&%)&59/&%"),8",$()&8%3"&0"(5:"&:5/"&%1#&:5/"&
:%,"/$%-$),B& 59/& %6%/"1"))& 5C& )(/""1)B& 68$(8& %/"& ,5#%@& ,8"&
90$b9$,59)& :"#$9:& 5C& /"("A,$51B& 8%)& )8/91>& ,5& 15,8$1+?& c???d&
,8"/"&$)&-$,,-"&%,,"1,$51&A%$#&$1&:"#$%&%1#&(5::91$(%,$51)&,5&
,8"& 1%,9/"& 5C& ,8"& )(/""1)& %)& :%,"/$%-& ,"(815-5+$")?+ 7I#C$))<+
EFGG<+5@+EG8
N(+)-/:6`*+'-/&%(+*-2$&)6<+*2%&&(*+:%&+:+4:%0&+5:%)+-,+&>&%6/:6+
4$,&@+J:(6+5&-54&+*5&(/+4:%0&+5:%)*+-,+).&$%+/:6*+X-%?$(0+-%+
%&4:^$(0+$(+,%-()+-,+*2%&&(*<+6&)+X&+%:%&46+).$(?+-,+).&+*2%&&(+
$(+)&%'*+-,+856+:(/+68@+$':0&*+:%&+5%&*&()&/+$(+).&+5:%)$2#4:%+
':((&%@
N)+ .:*+ -,)&(+ C&&(+ *#00&*)&/+ ).:)+ 2-()&'5-%:%6+ &4&2)%-($2+
*2%&&(*+ :%&<+ -(+ ':(6+ 5&%2&5)#:4+ 4&>&4*<+ 2-'5:%:C4&+ )-+ -4/&%+
'&/$:<+*#2.+:*+2$(&':<+5.-)-0%:5.6<+:(/+&>&(+5:$()$(0@+U&>+
J:(->$2.+.:*+/&*2%$C&/+X.:)+.&+2:44*+e).&+24:**$2:4+*2%&&(f<+
/&(-)$(0+).&+0&(&%$2+)65&+-,+>$*#:4+%&5%&*&():)$-(+).:)+.:*+5%&!
GRPLQDWHGVLQFHWKH5HQDLVVDQFHWKHÀDWUHFWDQJXODUVXUIDFH
X.$2.+%&5%&*&()*+e:(-).&%+>$%)#:4+*5:2&<+:(-).&%+).%&&!/$'&(!
*$-(:4+ X-%4/+ &(24-*&/+ C6+ :+ ,%:'&f+ 7J:(->$2.<+ EFFG<+ 5@+ TQ8@+
J:(->$2.+:%0#&*+).:)+).$*+'-/&+-,+>$*#:4+%&5%&*&():)$-(+*)$44+
5%&>:$4*+)-/:6@
9%-'+).$*+5&%*5&2)$>&<+).&+.&%$):0&+-,+).&+*2%&&(+$*+4-(0<+:(/+
$(24#/&*+':(6+:%)$,:2)*+-,+>$*#:4+2#4)#%&@+B.$*+.$*)-%6+':6+C&+
/&*2%$C&/+:*+:+*&%$&*+-,+)&2.($2:4+/&>&4-5'&()*<+X.-*&+-%$0$(*+
.:>&+-,)&(+C&&(+*#C_&2)+)-+).-%-#0.+&^:'$(:)$-(+C6+:2:/&'!
$2*@+J&/$:+:%2.&-4-06+&,,-%)*+.:>&+C&&(+2:%%$&/+-#)+C6+*2.-4:%*+
*#2.+ :*+ D%??$+ \#.):'-<+ U&>+ J:(->$2.<+ I.:%4$&+ ]&%&<+;((&+
9%$&/C&%0<+:(/+-).&%*<+:44+*#00&*)$(0+).:)+-#%+2#%%&()+*):)&+-,+
/&>&4-5'&()+$*+).&+%&*#4)+-,+:+4-(0+.$*)-%6+-,+)&2.($2:4+$(>&(!
)$-(@+9%-'+).&+(%:"/%&50)(9/%+:(/+:%+$(&-%1,"/1<+)-+&:%46+/&!
>$2&*+,-%+2$(&':)$2+5%-_&2)$-(+:(/+)&4&>$*#:4+2-''#($2:)$-(<+
HH
KIMDDO
KIMDDO
).&+)&2.(-4-0$&*+,-%+5%-/#2$(0+$':0&*+.:>&+#(/&%0-(&+':(6+
$)&%:)$-(*<+C#)+*)$44+2-(,-%'+)-+).&+(-)$-(+-,+,8"&)(/""1@
B.&+*$'$4:%$)$&*+C&)X&&(+).&+/$,,&%&()+$(*):(2&*+-,+).&+*2%&&(+
DUH QRW RQO\ LGHQWL¿DEOH E\ WKHLU SK\VLFDO DSSHDUDQFHV EXW
:4*-+).&$%+&,,&2)*+-(+-#%+5&%2&5)$-(+-,+)$'&+:(/+*5:2&@+B.$(?!
&%*+:(/+*2.-4:%*+*#2.+:*+J:%*.:44+J2U#.:(<+W:4)&%+L&(_:'$(<+
3:#4+a$%$4$-<+d-(:).:(+I%:%6<+:(/+d-.(+L&%0&%+.:>&+).&-%$Y&/+
:C-#)+).&+&,,&2)*+-,+>$*#:4+%&5%&*&():)$-(<+:(/+.:>&+0&(&%:4$Y&/+
:C-#)+).&+>:%$-#*+'&/$:+).%-#0.+X.$2.+).&6+:%&+%&5%&*&()&/@+
W.&(+*)#/6$(0+).&+*2%&&(+:*+:+>$*#:4+&()$)6<+$)+$*+.:*+-,)&(+C&&(+
5%-/#2)$>&+)-+4--?+:)+).&+).&-%$&*+).:)+&(2-'5:**+(-)+-(46+).&+
*2%&&(<+ C#)+ :4*-+ )-5$2*+ *#2.+ :*+ >$*#:4+ %&5%&*&():)$-(+ :(/+ ).&+
5&%2&5)$-(+&4&2)%-($2+'&/$:@
J:(6+:2:/&'$2*+:(/+5.$4-*-5.&%*+.:>&+:55%-:2.&/+).&+)-5$2+
-,+).&+*2%&&(<+5%->$/$(0+/$,,&%&()+5&%*5&2)$>&*<+*#2.+:*+$)*+.$*!
)-%6<+$)*+$':0&<+:(/+$)*+#*&+$(+>$/&-+:%)@+L#)+/&*5$)&+).&+:X:%&!
(&**+-,+*2%&&(*+$(+&^$*)$(0+4$)&%:)#%&<+).&%&+.:*+C&&(+:+4$'$)&/+
,-2#*+-(+).&+*2%&&(+:*+:+':)&%$:4+:%)$,:2)@
;((&+9%$&/C&%0`*+48"&S$/,9%-&a$1#56+7EFFZ8+$*+:+2-'5%&.&(!
*$>&+&^:'$(:)$-(+-,+).&+'&):5.-%$2:4+2.:%:2)&%+-,+).&+6$1#56<+
X.$2.+ /&%$>&*+ ,%-'+ ).&+ M&(:$**:(2&+ 5:$()&%+ U&-(+ L:))$*):+
;4C&%)$`*+ )%&:)$*&<+ *"& M$(,9/%+ 7GVHQ8@+ 9%$&/C&%0+ &^)&(/*+ ;4!
C&%)$`*+(-)$-(+-,+).&+5:$()&/+2:(>:*+%&0:%/&/+:*+:+X$(/-X<+)-+
&(2-'5:**+).&+&()$%&+>$*#:4+5:%:/$0'+).:)+$*+2&()&%&/+:%-#(/+
).&+4$(&:%+5&%*5&2)$>&<+:(/+*)$44+5%&>:$4*+$(+).&+*2%&&(*+-,+)-/:6@+
;22-%/$(0+ )-+ 9%$&/C&%0<+ ).$*+ X$(/-X+ 5:%:/$0'+ $*+ 2&()%:4+ )-+
XQGHUVWDQGLQJZK\VFUHHQVDUHÀDWVXUIDFHVZLWKDUHFWDQJXODU
C-#(/:%6+ ,%:'&<+ :(/+ X.6+ *2%&&(*+ .:>&+ &>&(+ C&2-'&+ :%2.$!
)&2)#%:4+2-'5-(&()*<+:*+).&6+C&2-'&+:+5&%':(&()+5:%)+-,+-#%+
.-'&*@+ 9%$&/C&%0+ :%0#&*+ ).:)+ *2%&&(*+ 5%->$/&+ >$%)#:4+ $':0&*+
).:)+*):(/+$(+-55-*$)$-(+)-+).&+':)&%$:4+*5:2&+$(+X.$2.+).&6+:%&+
*$)#:)&/@+B.&+*2%&&(+-%+3$/,9%-&6$1#56+$*+:+2-'5-(&()+&4&'&()+
-,+ :%2.$)&2)#%&<+ C#)+ e2.:(0&*+ ).&+ ':)&%$:4$)6+ -,+ C#$4)+ *5:2&<+
://$(0+ (&X+ :5&%)#%&*+ ).:)+ /%:':)$2:446+ :4)&%+ -#%+ 2-(2&5)$-(+
-,+ *5:2&+ jklf+ 79%$&/C&%0<+ EFFZ<+ 5@+ G8@+ 9%$&/C&%0+ 5%->$/&*+ :+
).-%-#0.+&^:'$(:)$-(+-,+).&+%&4:)$-(*.$5+C&)X&&(+*2%&&(*+:(/+
$'':)&%$:4<+ >$%)#:4+ *5:2&<+ C#)+ *.&+ /-&*+ (-)+ 2-(*$/&%+ ).&+ $'!
:0&+)9/C%("+:*+5-)&()$:446+':)&%$:4<+(-%+/-&*+*.&+/&*2%$C&+).&+
&^5&%$'&():4+%-4&+-,+*2%&&(*+$(+'&/$:+:%)@+U:)&%<+N+X$44+%&)#%(+)-+
9%$&/C&%0`*+(-)$-(+-,+).&+>$%)#:4@
B.&+ 2-'5#)&%+ *2%&&(+ $*+ :4*-+ ).&+ *#C_&2)+ -,+ U&>+ J:(->$2.`*+
*&'$(:4+X-%?<+48"&2%1+9%+"&5C&R"6&!"#$%+7EFFG8@+\$*+5-$()+
-,+/&5:%)#%&+$*+:4*-+).&+;4C&%)$:(+X$(/-X+'&):5.-%<+C6+X.$2.+
).&+ (&)X-%?&/+ 2-'5#)&%+ :(/+ $)*+ '-($)-%+ C&2-'&*+ :+ X$(/-X+
).%-#0.+X.$2.+-(&+':6+&()&%+54:2&*+).-#*:(/*+-,+'$4&*+:X:6+
75@+ TV8@+;22-%/$(0+ )-+ J:(->$2.<+ ).&+ &>-4#)$-(+ -,+ ).&+ *2%&&(<+
,%-'+).&+M&(:$**:(2&+5:$()$(0+)-+).&+2-'5#)&%+'-($)-%<+':6+
EH GHVFULEHG LQ WKUHH VWDJHV 7KH ¿UVW VWDJH LV ZKDW KH FDOOV
³WKHFODVVLFDOVFUHHQ´±WKHLQWURGXFWLRQRIWKHÀDWUHFWDQJXODU
*#%,:2&+&(24-*&/+C6+:+,%:'&+).:)+*&5:%:)&*+).&+*5:2&+-,+%&5%&!
*&():)$-(+ ,%-'+ e(-%':4+ *5:2&f@+B.$*+ $*+ M&(:$**:(2&+ 5:$()$(0+
:(/+).&+4$(&:%+5&%*5&2)$>&+).:)+':/&+).&+$44#*$-(+-,+/&5).+5-*!
*$C4&@+ B.&+ *&2-(/+ *):0&+ $*+ e).&+ /6(:'$2+ *2%&&(f<+ ':%?&/+ C6+
).&+)&2.($2:4+/&>&4-5'&()+-,+2$(&':)-0%:5.6+7-,)&(+2%&/$)&/+
)-+ ).&+ U#'$m%&+ C%-).&%*8<+ :(/+ 4:)&%<+ ).&+ &'&%0&(2&+ -,+ )&4&>$!
*$-(+*2%&&(*@+B.&+).$%/+:(/+'-*)+%&2&()+*):0&+$*+).&+2-'5#)&%+
'-($)-%<+X.-*&+-%$0$(+/-&*+(-)+)-+.:>&+/-+X$).+5#C4$2+&()&%!
):$('&()<+C#)+X$).+'$4$):%6+*#%>&$44:(2&@+J:(->$2.+:%0#&*+).:)+
).&+2-'5#)&%+*2%&&(+$*+:+/&%$>:)$>&+-,+%:/:%+)&2.(-4-06<+X.$2.+
4:$/+-#)+).&+C:*$2+5%$(2$54&*+-,+#5/:)$(0+$':0&*+$(+%&:4!)$'&@+
\&+:%0#&*+).:)+)-/:6`*+2-'5#)&%+*2%&&(*+-5&%:)&+C6+).&+*:'&+
5%$(2$54&+ -,+ %&:/$(0+ /:):+ $(*):()46+ :(/+ 2-()$(#-#*46<+ ).&%&C6+
/$>&%0$(0+ ,%-'+ 5%&>$-#*+ *):)$2+ -%+ )$'&!/&4:6&/+ *2%&&(*@+ B.&+
%&:4!)$'&+ *2%&&(+ $*+ ).&+ (&X+ 5:%:/$0'+ ,-%+ 5%&*&()$(0+ $':0&*<+
HV
HQ
KIMDDO
KIMDDO
X.$2.+:44-X*+:(+$(*):()+%&*5-(*&+)-+).&+&(>$%-('&()<+C%$(0$(0+
>$*#:4+%&5%&*&():)$-(+#5+)-+*5&&/+7J:(->$2.<+EFFG<+5@+TS8@+L#)+
/&*5$)&+ ).&+ )&2.($2:4+ &>-4#)$-(+ -,+ ).&+ '-/&%(+ /:6<+ %&:4!)$'&+
*2%&&(<+$)+$*+*)$44+%&*)%$2)&/+C6+).&+*:'&+5.6*$2:4+5%-5&%)$&*+:*+
M&(:$**:(2&+ 5:$()$(0+ :(/+ ).&+ 4:2?+ -,+ /&5).+ $(+ $)*+ %&5%&*&():!
)$-(@
D%??$+\#.):'-+.:*+5%->$/&/+-(&+-,+).&+'-%&+&^)&(*$>&+:(:4!
6*&*+ -,+ ).&+ .$*)-%6+ -,+ ).&+ *2%&&(+ $(+ ).&+ :%)$24&+ eD4&'&()*+ -,+
6FUHHQRORJ\´7KHDUWLFOHLVIRUPXODWHGDVD¿UVWVWHS
)-X:%/+:+.$*)-%6+-,+*2%&&(+5%:2)$2&*<+C6+)%:2$(0+).&+':(6+&:%46+
/&>&4-5'&()*+-,+2$(&':+5%:2)$2&<+:*+X&44+:*+).&+&^5&%$'&()*+
).:)+5%&2&/&/+$)@+;22-%/$(0+)-+\#.):'-<+$)+$*+$'5-%):()+)-+(-)+
-(46+4--?+:)+).&+.$*)-%6+-,+*2%&&(*+:*+-(&+-,+)&2.(-4-0$2:4+/&!
>&4-5'&()<+C#)+'-%&+$'5-%):()46<+)-+,-2#*+-(+).&+#*&+:(/+>$&X!
$(0+ *$)#:)$-(+ $(+ ).&+ 2-()&^)+ -,+ ).&+ e2.:(0$(0+ 2#4)#%:4<+ *-2$:4+
:(/+ &2-(-'$2+ *&))$(0*f+ 7\#.):'-<+ EFFV8@+ B.$*+ 4&:/*+ .$'+ )-+
:(:46Y&+).&+#*&+-,+5.:():*':0-%$:+4$0.)+5%-_&2)$-(*+:(/+':0$2+
4:()&%(*+$(+).&+&:%46+GT).+2&()#%6<+X.$2.+X&%&+#)$4$Y&/+,-%+5#C!
4$2+*5&2):24&*+:(/+).&:)%$2:4+5&%,-%':(2&*@+\#.):'-`*+)&^)+5%-!
>$/&*+:+.$*)-%$2:4+$(*$0.)+$()-+).&+5%&/&2&**-%*+-,+2-()&'5-%:%6+
*2%&&(*+:(/+>$&X$(0+*$)#:)$-(*<+:(/+).&+,:*2$(:)$-(+X$).+).&'+
).:)+0:>&+'&%$)+)-+).&$%+/&>&4-5'&()@
;%)+ .$*)-%$:(+ b:)&+ J-(/4-2.+ .:*+ :#).-%&/+ ).&+ C--?+ )$)4&/+
N(/""1)G&S$"6$1+&!"#$%&<1),%--%,$51&7/,+7EFGF8<+$(+X.$2.+*.&+
:%0#&*+).:)+X-%?*+-,+*2%&&(!C:*&/+:%)+*.-#4/+C&+*&&(+:*+'&/$:+
:%)+ $(*):44:)$-(*<+ X.&%&+ *5&2):)-%*.$5+ :(/+ 5&%2&5)$-(+ 2-(2&%(+
).&+)-):4$)6+-,+).&+>$&X$(0+*5:2&<+$(*)&:/+-,+).&+$*-4:)&/+%&2)!
:(0#4:%+$':0&@+\&%+':$(+-C_&2)$>&+$*+)-+:(:46Y&+).&+'-/&*+-,+
*5&2):)-%*.$5+$(+%&4:)$-(+)-+e*2%&&(!%&4$:()+$(*):44:)$-(+:%)f<+C#)+
$(+ -%/&%+ )-+ /-+ *-<+ *.&+ %&2-0($Y&*+ ).&+ /#:4+ (:)#%&+ -,+ *2%&&(*h+
eK2%&&(*+ ).&'*&4>&*<+ .-X&>&%<+ :%&+ /&2$/&/46+ :'C$>:4&()+ -C!
_&2)*+g+$44#*$-($*)+X$(/-X*+:(/+5.6*$2:4<+':)&%$:4+&()$)$&*+:)+).&+
*:'&+)$'&@f+7J-(/4-2.<+EFGF<+5@+^$$8@+J-(/4-2.+:%0#&*+,-%+:(+
$(2%&:*&/+:X:%&(&**+-,+*2%&&(*+:*+C-).+$--9)$51+:(/+:%,"/$%-<+
GUDZLQJ DWWHQWLRQ WR WKH VSHFL¿FLW\ RI WKH SK\VLFDO VLWXDWLRQ
7NC$/@8@+K.&+0-&*+-(+)-+:5546+).$*+'&/$#'!:X:%&+:55%-:2.+)-+:+
(#'C&%+-,+:%)X-%?*+,%-'+).&+*$^)$&*+#()$4+)-/:6<+C#)+:4).-#0.+
*.&+://%&**&*+*2%&&(*+:*+':)&%$:4+&()$)$&*<+*.&+/-&*+(-)+&^54-%&+
).&+'&:($(0+-,+).$*+e':)&%$:4$)6f+$(+/&5).<+4&)+:4-(&+.-X+$)+$*+
&^5%&**&/+$(+).&+'&/$#'@
HZ
L&,-%&+/$*2#**$(0+).&+':)&%$:4$)6+-,+).&+*2%&&(+$(+).&+,-44-X$(0+
FKDSWHU,¿QGLWQHFHVVDU\WRGHVFULEHLWVRSSRVLWH$::%,"/$%-;
$,@<+X.$2.+.:*+/-'$(:)&/+).&+/$*2-#%*&+-(+*2%&&(*+:(/+'&/$:+
$(+0&(&%:4@
B.$*+ 2.:5)&%+ 5%&*&()*+ *-'&+ -,+ ).&+ '-%&+ 2%$)$2:4+ >-$2&*+ :(/+
/$*2#**$-(*+).:)+.:>&+C&&(+%:$*&/+:0:$(*)+).&+*2%&&(@+D:2.+-,+
).&+,-44-X$(0+*&2)$-(*+X$44+5%&*&()+:(+:*5&2)+-,+).&+*2%&&(+).:)+
KDVEHHQHVVHQWLDOWRWKHRUHWLFDOGLVFRXUVHLQYDULRXV¿HOGVRI
*)#/6@+B.&*&+:%&h+6$1#56<+%(("))<+#"A,8<+#$)":05#$:"1,<+:(/+
#":%,"/$%-$e%,$51@+B.&6+:44+%&5%&*&()+>:%$-#*+>$&X*+:(/+$()&%!
5%&):)$-(*+).:)<+*-'&+'-%&+).:(+-).&%*<+:%&+2%$)$2:4+>$&X*+-,+).&+
*2%&&(<+-%+>$*#:4+%&5%&*&():)$-(+$(+'-%&+0&(&%:4+)&%'*@+W.$4&+
GLVFXVVLQJ WKHVH DVSHFWV , ¿QDOO\ VXJJHVW WKDW WKH FRPPRQ
/&(-'$(:)-%+$(+).&*&+$()&%5%&):)$-(*+$*+).&+2%$)$"#&+-,+).&+$:;
:%,"/$%-$,@+ -%+ #":%,"/$%-$e%,$51+ ).:)+ ).&+ *2%&&(+ ':6+ C&+ *:$/+
)-+5%-/#2&@+B.$*+X:6+-,+2-(2&5)#:4$Y$(0+).&+*2%&&(+X$44+*&%>&+
:*+:+2-#()&%5-$()+)-+).&+4:)&%+&^54-%:)$-(+-,+:%,"/$%-$,@+$(+).&+
'&/$:+:%)*@
@8;3<@
B.&+X$(/-X+'&):5.-%+$*+:+24:**$2:4+&4&'&()+$(+).&-%$&*+-,+>$!
*#:4+%&5%&*&():)$-(@+N)+-%$0$(:)&/+$(+:+)%&:)$*&+C6+M&(:$**:(2&+
5:$()&%+ U&-(+ L:))$*):+ ;4C&%)$+ )$)4&/+ *"& M$(,9/%+ 7GVHQ8+ 7]1&
HR
KIMDDO
KIMDDO
M%$1,$1+<+&(0@8<+X.&%&+;4C&%)$+/&*2%$C&*+.$*+)&2.($"#&+-,+5:$()!
$(0+:*+-C*&%>$(0+e:(+-5&(+X$(/-X+).%-#0.+X.$2.+).&+*#C_&2)+
)-+C&+5:$()&/+$*+*&&(f+7;4C&%)$<+GVHQ<+5@+QV8@+B.$*+*$(04&+*):)&!
'&()+.:*+C&2-'&+:(+&^54:(:)$-(+#*&/+C6+':(6+*2.-4:%*+X-%?!
$(0+X$).+>$*#:4+).&-%6+7D/0&%)-(<+GTZQn+9%$&/C&%0<+EFFZn+\:!
0&(<+GTSF8+,-%+.-X+M&(:$**:(2&+5:$()&%*+5&%2&$>&/+5:$()$(0*+
:*+X$(/-X*+$()-+).&+-#)*$/&+X-%4/@+;4).-#0.+$)+.:*+C&&(+/&!
C:)&/+X.&).&%+).&+X$(/-X+'&):5.-%+X:*+:4*-+:554$&/+C6+-).&%+
M&(:$**:(2&+5:$()&%*+7J:*.&2?<+GTTG8<+$)+.:*+2&%):$(46+C&2-'&+
:+)%-5&+,-%+:%)+.$*)-%$:(*<+&*5&2$:446+C&2:#*&+$)+/&*2%$C&*+.-X+
).&+ &:%46+ 6&:%*+ -,+ 4$(&:%+ 5&%*5&2)$>&+ X&%&+ ':%?&/+ C6+ &'&%0!
$(0+)&2.($"#&*+,-%+5&%2&$>$(0+).&+).%&&!/$'&(*$-(:4+X-%4/<+:(/+
).&+:C$4$)6+)-+)%:(*4:)&+$)+)-+).&+)X-!/$'&(*$-(:4+54:(&+-,+ ).&+
2:(>:*@+B.&+X$(/-X+.:*+C&2-'&+:+'&):5.-%+,-%+).&+$/&:4*+-,+
,/%1)A%/"1(@+:(/+).&+C/%:"#&3$"6+).:)+5&%>:/&+-#%+>$*#:4+%&5!
%&*&():)$-(*<+,%-'+5:$()$(0*+)-+&4&2)%-($2+*2%&&(*@+I-'5:%$(0+
).&+*2%&&(+-%+).&+5:$()&/+2:(>:*+)-+:+X$(/-X+$'54$&*+).:)+).&+
$':0&+*#%,:2&+/$*:55&:%*<+-%+$*+e&%:*&/f<+:*+:%0#&/+C6+O-%':(+
L%6*-(+7GTSH<+5@+TE8@+\&+,#%).&%+:%0#&/+).:)+&%:*$(0+).&+*#%,:2&+
2-(2&:4&/+ :(/+ /&($&/+ ).&+ 5%-2&**+ -,+ 5:$()$(0+ $(+ ,:>-%+ -,+ ).&+
5&%,&2)&/+5%-/#2)+7L-4)&%+:(/+]%#*$(<+EFFE<+5@+EQ8@
9%&(2.+5.$4-*-5.&%+3:#4+a$%$4$-+$*+-(&+-,+).&+'-%&+5%-'$(&()+
2%$)$2*+-,+':**+'&/$:<+:(/+>$*#:4+'&/$:+$(+5:%)$2#4:%@+N(+':(6+
)&^)*+a$%$4$-+.:*+*#00&*)&/+).:)+).&+*2%&&(+.:*+C&2-'&+*#2.+:+
5&%>:*$>&+&4&'&()+).:)+$)+':6+&>&(+C&2-'&+:(+:%2.$)&2)#%:4+&4!
&'&()+$(+$)*+-X(+%$0.)<+:(/+).:)+$)+.:*+:(+$''&(*&+$'5:2)+-(+
).&+5&%2&5)$-(+-,+:%2.$)&2)#%&<+&*5&2$:446+$(+#%C:(+2-()&^)*@+N(+
25),&*$:"1)$51+7GTSV8<+.&+2.:%:2)&%$Y&*+).&+5-5#4:%$Y:)$-(+-,+
).&+)&4&>$*$-(+*2%&&(+:*+).&+$()%-/#2)$-(+-,+).&+e).$%/+X$(/-Xf+
7a$%$4$-<+GTSV<+5@+RT8@+N)*+%-4&+:*+'&/$:)-%+C&)X&&(+$()&%$-%+:(/+
&^)&%$-%+*5:2&+.:*+%&:2.&/+:+5-$()+X.&%&+$)+%$>:4*<+-%+&>&(+*#!
5&%*&/&*<+).&+:4%&:/6+&^$*)$(0+:5&%)#%&*+-,+).&+.-'&h+).&+/--%+
WKH¿UVWZLQGRZDQGWKHZLQGRZWKHVHFRQGZLQGRZ%XW
#(4$?&+).&+)%:/$)$-(:4+X$(/-X<+).&+)&4&>$*$-(+*2%&&(+$*+(-)+:(+
-5&($(0+$()-+:(+:/_-$($(0+*5:2&<+C#)+$(*)&:/+$)+e,:2&*+C&6-(/+
).&+5&%2&5)$C4&+.-%$Y-(f+75@+RT8@
B.&+ *2%&&(+ C&2-'&*+ ).&+ ).$%/+ X$(/-X+ (-)+ -(46+ C&2:#*&+ -,+
$)*+ >$*#:4+ *$'$4:%$)6+ )-+ ).&+ )%:/$)$-(:4+ X$(/-X<+ C#)+ C&2:#*&+ $)+
0$>&*+:22&**+)-+:+*5:2&+).:)+$*+*&5:%:)&+,%-'+).&+>$&X&%`*+*5:2&@+
B.$*+-).&%+*5:2&+$*+/$*54:2&/+$(+C-).+)$'&+:(/+4-2:)$-(<+2%&:)!
$(0+$()&%%#5)$-(*+$(+).&+:%2.$)&2)#%&+$(+X.$2.+$)+$*+*$)#:)&/@+B.&+
)&4&>$*$-(+ *2%&&(+ 2%&:)&*+ :+ e,:4*&+ /:6f<+ :%0#&*+a$%$4$-<+ X.&%&+
/:64$0.)+$*+)%:(*'$))&/+:%-#(/+).&+04-C&+>$:+*:)&44$)&+X$).+).&+
e*5&&/+-,+4$0.)f@+B.$*+/$*54:2&'&()+-,+/:64$0.)+:(/+)%:(*'$*!
*$-(+-,+$':0&*+2%&:)&*+:+e/$*)-%)$-(+&,,&2)f+).:)+2-44:5*&*+).&+
)%:/$)$-(:4+:%2.$)&2)-($2+*)%#2)#%&@+;*+:+)&2.(-4-06<+).&+*2%&&(+
FUHDWHVLQWHUUXSWLRQVPRGL¿FDWLRQVRIWLPHVSDFHDQGXUEDQ
:%2.$)&2)#%&<+)-+:+/&0%&&+).:)+e).&+X$(/-X+/$*54:2&*+).&+/--%f+
75@+SH8@
a$%$4$-`*+:%0#'&()+$*+C:*&/+-(+'&):5.-%$2:4+$()&%5%&):)$-(*+-,+
).&+ *2%&&(+ :*+ :(+ :%2.$)&2)#%:4+ X$(/-X<+ '#2.+ 4$?&+ ).&+ (-)$-(+
-,+ ).&+ ;4C&%)$:(+ X$(/-X@+ L#)+ a$%$4$-+ (-)+ -(46+ $()&%5%&)*+ ).&+
X$(/-X+ :*+ :(+ $44#*$-($*)+ %&5%&*&():)$-(<+ .&+ /&*2%$C&*+ $)*+ /$*!
2-((&2)&/(&**+,%-'+).&+:%2.$)&2)#%&+$)+$(.:C$)*<+:(/+'-%&->&%<+
.-X+$)+:,,&2)*<+-%+&>&(+/$*$()&0%:)&*<+$)*+5.6*$2:4+*#%%-#(/$(0*+
g+*)$44+'&):5.-%$2:446@+;4).-#0.+*5&:?$(0+$(+'&):5.-%*<+a$%$4$-+
*&&'*+2-(>$(2&/+).:)+).$*+$'5:2)+$*+"#$)&+%&:4<+C&2:#*&+$)*+&*!
*&(2&+$*+:44+:C-#)+-#%+5&%2&5)$-(<+X.$2.+$*+C&$(0+)%:(*,-%'&/@
;((&+ 9%$&/C&%0`*+ 48"& S$/,9%-& a$1#56+ 7EFFZ8+ $*+ -(&+ -,+ ).&+
'-%&+ &4:C-%:)&+ :22-#()*+ -,+ .-X+ ).&+ X$(/-X+ .:*+ C&2-'&<+
:(/+ *#*):$(*+ $)*+ %-4&+ :*+ :+ '&):5.-%+ ,-%+ >$*#:4+ %&5%&*&():)$-(@+
K$(2&+M&(:$**:(2&+5:$()$(0+:(/+#5+)-+2#%%&()+*2%&&(*<+).&+*:'&+
5:%:/$0'+*)$44+&^$*)*+$(+2-'5#)&%*+:(/+).&$%+-5&%:)$(0+*6*)&'*<+
X.$2.+ :%&+ :4*-+ C:*&/+ -(+ ).&+ >$*#:4+ '&):5.-%+ -,+ ).&+ X$(/-X@+
HS
HT
KIMDDO
KIMDDO
K&>&%:4+ 5%-5&%)$&*+ -,+ ).&+ X$(/-X<+ *#2.+ :*+ ).&+ ,%:'&+ :(/+ ).&+
*.:5&<+:%&+%&5&:)&/+$(+5:$()$(0*<+)&4&>$*$-(+:(/+2$(&':+*2%&&(*<+
:(/+ $(+ ).&+ 2-'5#)&%+ $()&%,:2&@+ B.&+ %&2):(0#4:%+ *.:5&+ -,+ ).&+
X$(/-X+,%:'&+$*+:+%&2-0($Y:C4&+2-'5-(&()+).:)+C&2-'&*+:(+
e-()-4-0$2:4+2#)f<+':%?$(0+:+*&5:%:)$-(+C&)X&&(+).&+':)&%$:4+
*5:2&+-,+).&+*5&2):)-%<+:(/+).&+>$%)#:4<+$'':)&%$:4+*5:2&+-,+).&+
$':0&+79%$&/C&%0<+EFFZ<+5@+Z8@+9%$&/C&%0+#)$4$Y&*+).$*+X$(/-X+
'&):5.-%+)-+)%:2&+).&+.$*)-%6+-,+$':0&!5%-/#2)$-(<+,%-'+5:$()!
$(0*+)-+*2%&&(*<+)-+:+*$(04&+5%&>:$4$(0+'-/&+-,+%&5%&*&():)$-(+
).:)+ ,#(2)$-(*+ C6+ /$*54:6$(0+ 3$/,9%-& $:%+")+ -(+ :+ ,%:'&/+ *#%!
,:2&@
P(&+ -,+ 9%$&/C&%0`*+ ?&6+ :%0#'&()*+ $*+ ).:)+ $':0&*<+ -%+ e>$%)#:4+
X$(/-X*f<+ .:>&+ :4X:6*+ C&&(+ 24-*&46+ %&4:)&/+ )-+ :%2.$)&2)#%&@+
B.$*+ $*+ (-)+ -(46+ $(+ ).&+ '&):5.-%$2:4+ *&(*&+ /&%$>&/+ ,%-'+;4!
C&%)$`*+ '&):5.-%<+ C#)+ :4*-+ "#$)&+ 4$)&%:446<+ $(+ ).&+ *5:)$:4+ )&2.!
($"#&*+ ).:)+ .:>&+ C&&(+ #*&/+ )-+ 5%-/#2&+ 5&%*5&2)$>:4+ $':0&*<+
:(/+$(+).&+X:6+:%2.$)&2)#%&+.:*+-,)&(+C&&(+2-(*)%#2)&/+:%-#(/+
).&+/$*54:6+-,+$':0&*<+:*+$(+).&+2-(*)%#2)$-(+-,+'->$&+).&:)&%*+
:(/+ $)*+ 5%&/&2&**-%*<+ *#2.+ :*+ 2624-%:':+ C#$4/$(0*+ :(/<+ &>&(+
&:%4$&%<+I.%$*)$:(+2.#%2.&*+X$).+).&$%+'#%:4*+:(/+*):$(&/+04:**+
X$(/-X*@
B-/:6<+).&+X$(/-X+$*+*)$44+:+/$*)$(2)+&4&'&()+$(+-#%+:55%-:2.+
)-+*2%&&(*@+J-*)+2-()&'5-%:%6+2-'5#)&%+$()&%,:2&*+:%&+C:*&/+
-(+).&+>$*#:4+'&):5.-%+-,+6$1#56)@+B.&+2.-$2&+-,+).&+X$(/-X<+
DQGQRWWKHIUDPHKDVKDGYDVWFXOWXUDOVLJQL¿FDQFHDVSRLQWHG
-#)+C6+*2.-4:%*+d:6+1:>$/+L-4)&%+:(/+1$:(&+]%-'-4:+7L-4)&%+
:(/+ ]%-':4:<+ EFFH8@+ B.&6+ :%0#&h+ eB.&+ X-%/+ C/%:"+ %&'$(/*+
#*+-,+).&+$()&%,:2&<+X.$4&+).&+X-%/+6$1#56+.&45*+#*+)-+,-%0&)+
).&+$()&%,:2&+:(/+2-(2&()%:)&+-(+).&+)&^)+-%+/:):+$(*$/&@+d#*)+:*+
X&+ 0:Y&+ ).%-#0.+ :+ X$(/-X+ $(+ ).&+ 5.6*$2:4+ X-%4/<+ ).&+ ]=N`*+
X$(/-X+'&):5.-%+*#00&*)*+).:)+).&+$()&%,:2&+2:(+5%&*&()+/:):<+
X-%/*+-%+$':0&*+:*+).&6+i%&:446+:%&`+g+X$).-#)+/$*)-%)$(0+).&'@f+
7L-4)&%+ :(/+ ]%-':4:<+ EFFH<+ 5@+ VE8@+;22-%/$(0+ )-+ L-4)&%+ :(/+
]%-'-4:<+).&+$()&%,:2&!X$(/-X+$*+:(+&^:'54&+-,+.-X+/&*$0(&%*+
C&4$&>&+).:)+).&6+2:(+':?&+).&+$()&%,:2&+e/$*:55&:%f+C6+/%:X!
$(0+-(+'&):5.-%*+,%-'+).&+:2)#:4+X-%4/@+B.&+)%:/$)$-(:4+0-:4+
,-%+$()&%,:2&+/&*$0(&%*+.:*+C&&(+)-+':?&+$()&%,:2&*+:*+(:)#%:4+
DQGHI¿FLHQWDVSRVVLEOHZKLFKLQLWVSHUIHFWLRQZRXOGUHVXOW
$(+e#('&/$:)&/f+-%+e)%:(*5:%&()f+:22&**+)-+).&+2-()&()+C&6-(/+
).&+*2%&&(@+L-4)&%+:(/+]%-'-4:+/&*2%$C&+).$*+*)%:)&06+:*+0#$/&/+
C6+eB.&+J6).+-,+B%:(*5:%&(26f+7L-4)&%+:(/+]%-':4:<+EFFH<+5@+
±DVLPSOL¿FDWLRQRIDFRPSOH[UHDOLW\GULYHQE\DGHVLUH
)-+C&+e)%#&+)-+(:)#%&f@+B.&6+:%0#&+).:)<+$(+*-'&+%&*5&2)*<+).$*+
:55%-:2.+ $*+ :+ *-'&X.:)+ '$*0#$/&/+ :))&'5)+ )-+ (:)#%:4$Y&+ ).&+
$()&%,:2&<+X.$2.+-,)&(+,:$4*@+N(*)&:/+).&6+*#00&*)+:(-).&%+'&):!
5.-%<+ e).&+ '$%%-%f<+ :*+ :(+ :4)&%(:)$>&+ 2-(2&5)+ ).:)+ ,-2#*&*+ -(+
UHÀHFWLRQ+%:).&%+).:(+,/%1)A%/"1(@@+B.$*+'->&<+,%-'+X$(/-X+
)-+'$%%-%<+%&5%&*&()*+:(+&5$*)&'-4-0$2:4+2.:(0&+-,+5&%*5&2)$>&<+
,%-'+4--?$(0+).%-#0.+).&+*#%,:2&<+)-+4--?$(0+C:2?+:)+-(&*&4,<+
:(/+2-(*&"#&()46+C&2-'$(0+:X:%&+-,+-(&`*+5&%2&5)$-(+-,+).&+
*2%&&(+*#%,:2&@+N+X$44+%&)#%(+)-+).$*+(-)$-(+$(+).&+(&^)+2.:5)&%@
9%-'+':(6+/$,,&%&()+5&%*5&2)$>&*<+).&+X$(/-X+.:*+*&%>&/+:*+:+
5%-/#2)$>&+'&):5.-%+,-%+:+*5&2$:4+$()&%5%&):)$-(+-,+).&+*2%&&(+
:*+:+,%:'&/+>$&X+$()-+:(-).&%+%&:4$)6@+B.$*+.:*+%&5%&*&()&/+).&+
)%:(*5:%&()+ $()&%,:2&+ :(/+ ).&+ $/&:+ -,+ -55>$1+& ,8/59+8<+ X.&%&+
).&+5%&*&(2&+-,+).&+*2%&&(+$*+%&0:%/&/+:*+:(+$()&()$-(+)-+/$*!
54:2&+).&+X$(/-X@+B.&+,-%).2-'$(0+*&2)$-(*++:4*-+C#$4/+-(+).$*+
5%-C4&':)$2+&^)%:5-4:)$-(+-,+).&+*2%&&(`*+5%-5&%)$&*+-,+>$*#:4+
5&%2&5)#:4+,#(2)$-(<+5-**$C46+/&%$>&/+,%-'+*$'$4:%+'&):5.-%$!
2:4+*.$,)*@
VF
!::099
a$%$4$-+ :%0#&*+ ).:)+ /&*5$)&+ $)*+ %&*&'C4:(2&+ )-+ :+ X$(/-X<+ ).&+
*2%&&(+.:*+*&>&%:4+4$'$):)$-(*+).:)+%&*)%$2)+$)+:*+:(+:4)&%(:)$>&+)-+
VG
KIMDDO
KIMDDO
).&+ )%:/$)$-(:4+ 7*&2-(/8+ X$(/-X@+B.&+ e2:).-/&!%:6+ X$(/-Xf<+
%&,&%$(0+ )-+ ).&+ )&2.(-4-06+ -,+ ).&+ )&4&>$*$-(+ *2%&&(<+ -C*)%#2)*+
).&+%(("))+)-+).&+*5:2&+$()-+X.$2.+$)+-5&(*<+:(/+5%&>&()*+).&+
5:**:0&+-,+C-/$&*+7a$%$4$-<+GTSV<+5@+RT8@+N)+$*+:+5#(2)#%&+$(+*5:2&+
).:)+:44-X*+).&+-(&!X:6+)%:(*5-%)+-,+$':0&*+,%-'+-(&+54:2&+)-+
:(-).&%@+N(+).$*+*&(*&<+).&+)&4&>$*$-(+*2%&&(+%:/$2:446+2.:(0&*+
).&+'-%5.-4-06+-,+/-'&*)$2+:%2.$)&2)#%&+C6+'&:(*+-,+).&+5&%!
2&5)#:4+:22&**+)-+e,:4*&f+*5:2&*@+P(+).&+-(&+.:(/<+).&+*2%&&(+$*+
:(+-5&($(0<+C#)+-(+).&+-).&%+.:(/<+$)+5%&>&()*+/$%&2)+:22&**<+:(/+
$(*)&:/+:2)*+:*+:(+e:#)-(-'-#*f+X$(/-X+:44-X$(0+%&:/!-(46+
:22&**+ )-+ %:(/-'+ 5-$()*@+ ;22-%/$(0+ )-+ a$%$4$-<+ ).$*+ 5:%:/-^+
-,+).&+*2%&&(+:()$2$5:)&*+).&+2-44:5*&+-,+).&+)%:/$)$-(:4+:%2.$!
)&2)-($2+*)%#2)#%&<+).%-#0.+(-)$-(*+-,+C-).+:22&**+:(/+*5:)$:4+
/$*54:2&'&()@+N(+).$*+%&0:%/<+).&+*2%&&(+%&2-%/*+*$'$4:%+)%:(*!
,-%':)$-(*+)-+).&+2$)6+:(/+$)*+,:2:/&*h
7GTTZ8h+e;(/+g+:*+X.&(+:(+;BJ+*2%&&(+%:).&%+).:(+:+/--%+$(+:+
QHRFODVVLFDOHGL¿FHRQ0DLQ6WUHHWSURYLGHVDFFHVVWRDEDQN
g+2-'5#)&%!0&(&%:)&/+0%:5.$2+/$*54:6*+:%&+%&54:2$(0+C#$4)+,:!
2:/&*+ :*+ ).&+ 5#C4$2+ ,:2&*+ -,+ $(*)$)#)$-(*@f+ 7J$)2.&44<+ GTTZ<+ 5@+
VT8@+;(/+:*+:22&**+)-+#%C:(+*5:2&*+-22#%*+$(2%&:*$(046+).%-#0.+
(&)X-%?&/+:22&**+5-$()*<+).&+4-2:)$-(+-,+:22&**+C&2-'&*+4&**+
$'5-%):()@
;4).-#0.+(&X+'&/$:+)&2.(-4-0$&*+.:>&+':/&+$()&%:2)$-(*+5-*!
*$C4&+ ).%-#0.+ >:%$-#*+ $(5#)+ /&>$2&*+ :(/+ )-#2.+ *#%,:2&*<+ ).&+
*2%&&(+ $)*&4,<+ :*+ :(+ $'5&%'&:C4&+ *#%,:2&<+ $*+ *)$44+ :+ %&:/!-(46+
:%)$,:2)@+;*+ 5-$()&/+ -#)+ C6+ J:(->$2.+ 7EFFG8<+ -#%+ $()&%:2)$-(+
X$).+).&+$()&%,:2&+$*+2-()%-44&/+:(/+4$'$)&/+C6+2-'5#)&%+2-/&+$(+
*-,)X:%&@+K$'$4:%46<+:22&**+)-+).&+*2%&&(+$*+2-()%-44&/+:(/+4$'!
$)&/+C6+$()&%,:2&*+).:)+:%&+&^5-*&/+).%-#0.+*-,)X:%&<+%&*)%$2)$(0+
-#%+5-**$C4&+$()&%:2)$-(*+)-+).-*&+$'54&'&()&/+C6+2-/&@
'/5:& ,8"& A%-$)%#"& ,5& ,8"& )(/""1B& 0@& 6%@& 5C& /%:A%/,)B& ,8"&
0591#%/@;)9/C%("& 8%)& /"(5/#"#& $119:"/%0-"& A"/("A,$0-"& %1#&
$:A"/("A,$0-"&,/%1)C5/:%,$51)B&5C&68$(8&,8"&-%,"),&$)&A/50%0-@&
,8%,& 5C& ,8"& $1,"/C%("?& ]1("& %+%$1B& 6"& 8%3"& ,5& %AA/5%(8& ,8"&
b9"),$51&5C&%(("))&,5&,8"&($,@&$1&%&1"6&:%11"/?&'5/&"Y%:A-"B&
#5")&,8"&:",/5A5-$)&A5))"))&$,)&561&C%(%#"Z&7,&68$(8&:5:"1,&
#5")&,8"&($,@&)856&$,)&C%("Z&7a$%$4$-<+GTSV<+5@+GE8
30.45
W.$4&+ ).&+ *#%,:2&+ -,+ ).&+ *2%&&(+ $*+ $'5&%'&:C4&+ $(+ ':(6+ %&!
*5&2)*<+ $)*+ $':0&+ $*+ :4*-+ %&/#2)$-(+ -,+ ).&+ 5.6*$2:4+ *5:2&+ $)+
%&5%&*&()*@+a$%$4$-+:%0#&*+).:)+:*+:22&**+)-+*5:2&*+C&6-(/+).&+
/-'&*)$2+$*+$(2%&:*$(046+-22#%%$(0+).%-#0.+$1,"/C%(")+*#2.+:*+
)&4&5.-(&*<+ )&4&>$*$-(*<+ :(/+ 2-'5#)&%*<+ X&+ :%&+ 2-(2#%%&()46+
4-*$(0+).&+/&5).+).:)+:%2.$)&2)#%:4+*5:2&+5%->$/&*@+W.&(+5.6*$!
2:4+*5:2&+C&2-'&*+4&**+$'5-%):()+).:(+>$%)#:4+*5:2&<+:%2.$)&2!
)#%&+ $*+ %&/#2&/+ )-+ :(+ $:%+"@+;22-%/$(0+ )-+a$%$4$-<+ ).&+ *2%&&(+
LVDQH[DPSOHRIWKLV2I¿FHVKDYHEHFRPHUHGXFHGWRVLPSOH
$()&%,:2&*+ X.&%&+ 2-'5#)&%+ )&%'$(:4*+ )%:(*,-%'+ ).&+ ).%&&+ /$!
'&(*$-(*+-,+2-(*)%#2)&/+*5:2&+$()-+).&+)X-+/$'&(*$-(*+-,+).&+
*2%&&(+7a$%$4$-<+GTSV<+5@+RH8@+P#%+5&%2&5)$-(+:(/+:X:%&(&**+-,+
*5:2&+:%&+%&/#2&/+,%-'+).&+%$2.(&**+-,+:%2.$)&2)#%:4+*5:2&+)-+
).&+)X-!/$'&(*$-(:4+%&5%&*&():)$-(+-,+).&+*2%&&(+$':0&@
9%-'+).&+5&%*5&2)$>&+-,+).&+>$*#:4+:%)*<+).&+$':0&+.:*+:4X:6*+
N)+$*+(-+4-(0&%+(&2&**:%6+)-+:22&**+).&+2$)6+:*+:(+:%2.$)&2)#%:4+
*5:2&<+ $(*)&:/+ ).&+ *&%>$2&*+ -,+ ).&+ '-/&%(+ 2$)6+ :%&+ 5%->$/&/+
).%-#0.+2-''#($2:)$-(+:(/+)&4&2-''#($2:)$-(+)&2.(-4-0$&*@+
N(+)&%'*+-,+:22&**<+).&+2$)6+.:*+C&&(+%&/#2&/+)-+:(+$1,"/C%("@+
K-2$:4+$()&%:2)$-(+$(+5#C4$2+54:2&*+.:*+C&&(+%&/#2&/+)-+$()&%:2!
)$-(+X$).+2-'5#)&%+)&%'$(:4*<+)&4&>$*$-(*<+:(/+)&4&2-(,&%&(2&*<+
:44+/&>-$/+-,+/&5).+75@+GE8@
W$44$:'+ d@+ J$)2.&44+ (-)&/+ :+ *$'$4:%+ 5-$()+ $(+ .$*+ E$,@& 5C& =$,)+
VE
VH
KIMDDO
KIMDDO
C&&(+2-(*)%:$(&/+C6+:+4:2?+-,+/&5).@+U$(&:%+5&%*5&2)$>&<+/$*!
FRYHUHGLQWKH5HQDLVVDQFHZDVDZD\RIRYHUFRPLQJWKHÀDW!
(&**+-,+).&+5:$()&/+2:(>:*+C6+:5546$(0+':).&':)$2:4+5%$(2$54&*+
)-+ ).&+ 2%&:)$-(+ -,+ $44#*-%6+ /&5).@+ B.$*+ )&2.($"#&+ X:*+ 0%&:)46+
$'5%->&/+C6+5$-(&&%*+*#2.+:*+;4C%&2.)+1o%&%+:(/+U&-(+L:))$*!
WD$OEHUWLZKRPDGHVFLHQWL¿FLQYHVWLJDWLRQVIRUWKHLPSURYH!
'&()+-,+5&%*5&2)$>:4+%&5%&*&():)$-(@+B.&6+#*&/+,%:'&*<+0%$/*<+
:(/+*)%$(0*+:*+)--4*+)-+)%:(*,&%+).&+).%&&!/$'&(*$-(:4+*2&(&*+)-+
)X-!/$'&(*$-(:4+$':0&*+7*&&+9$0#%&+Q8@
48"& "1(-5)$1+& )8%A"& 5C& ,8"& A$(,9/"& 6%)& %& -$:$,$1+& (51#$,$51B&
5/&15/:&,8%,&6%)&)8%/"#&6$,8&,8"&%/,&5C&,8"&,8"%,"/_&(5-5/&6%)&
%&15/:&%1#&%&:"%1)&)8%/"#&15,&51-@&6$,8&,8"&,8"%,"/B&09,&%-)5&
ZLWKVFXOSWXUH%HFDXVHÀDWQHVVZDVWKHRQO\FRQGLWLRQSDLQW;
$1+&)8%/"#&6$,8&15&5,8"/&%/,B&!5#"/1$),&A%$1,$1+&5/$"1,"#&$,)"-C&
WRÀDWQHVVDVLWGLGWRQRWKLQJHOVH+7]%&&(C&%0<+GTZF<+5@+RRQ8@+
U:)&%<+/#%$(0+).&+C:%-"#&+5&%$-/<+).&%&+X:*+:+5%-4$,&%:)$-(+-,++
).&+)&2.($"#&+-,+,/5:A"&-f5"$-+7e/&2&$)+-,+).&+&6&f8<+X.&%&+-5)$!
2:4+ $44#*$-(*+ X&%&+ :2.$&>&/+ C6+ &^)&(/$(0+ ).&+ $':0&+ -()-+ ).&+
,%:'&<+5:$()$(0+2#%):$(*+->&%+).&+)-5+-,+:+*2&(&<+-%+'&%0$(0+).&+
$':0&+ X$).+ ).&+ :%2.$)&2)#%&+ *#%%-#(/$(0+ $)@+ B.&+ &,,&2)*+ X&%&+
':*)&%46<+ C#)+ 2-#4/+ (&>&%+ ->&%2-'&+ ).&+ ,:2)+ ).:)+ ).&6+ X&%&+
%&5%&*&():)$-(*+-,+:+*$(04&+>$*#:4+5&%*5&2)$>&<+,-%+:+*$(04&<+$'!
'-C$4$Y&/+&6&@
I4&'&()+]%&&(C&%0+ :%0#&*+ ).:)+).&+5#%*#$)+-,+ %&:4$*'+:(/+$4!
4#*$-(+-,+/&5).+/&2%&:*&/+/#%$(0+'-/&%($)6<+:*+).&+'-/&%($*)+
5:$()&%*+%&:4$Y&/+).&+$(.&%&()+(:)#%&+-,+).&+$':0&<+:(/+*):%)&/+
X-%?$(0+)-X:%/+:(+$(2%&:*&/+ÀDWQHVV+$(+'-/&%(+5:$()$(0@
'$+9/"&VG&7-0/"(8,&*g/"/&;&*/%9+8,):%1&*/%6$1+&%&`"(9:;
0"1,&a5:%1&IFVJVL
VV
\&+:%0#&/+).:)+)-+:2.$&>&+:#)-(-'6<+'-/&%($*)+5:$()$(0+*&5:!
%:)&/+$)*&4,+,%-'+*2#45)#%&+C6+:C:(/-($(0+).&+).$%/+/$'&(*$-(@+
7KHPRGHUQLVWSDLQWHUVDFFHSWHGWKHÀDWQHVVLQVWHDGRIGLVUH!
0:%/$(0+$)<+:(/+':/&+).&+>$&X&%+:X:%&+-,+).$*+(51#$,$51@+B.$*+
DFFHSWDQFHRIÀDWQHVVFDPHRXWRID)"-C;(/$,$(%-+)&(/&(26+$(+
'-/&%($*'<+C:*&/+-(+b:()$:(+).$(?$(0<+X.$2.+':/&+5:$()&%*+
C&2-'&+'-%&+:X:%&+-,+).&+'&/$#'+:(/+$)*+2-(/$)$-(*@
3:$()$(0+ ,:2&/+ :+ *&4,!2%$)$2:4+ *):0&<+ X.&%&+ 5:$()$(0*+ &'5.:!
*$Y&/+).&+'&:(*+-,+).&$%+-X(+2%&:)$-(@+B.$*+X:*+:4*-+&>$/&()+
$(+2#C$*'<+/&*2%$C&/+C6+:%)+.$*)-%$:(+D%(&*)+]-'C%$2.+:*+e).&+
'-*)+%:/$2:4+:))&'5)+)-+*):'5+-#)+:'C$0#$)6+:(/+)-+&(,-%2&+-(&+
%&:/$(0+-,+).&+5$2)#%&+g+).:)+-,+:+':(!':/&+2-(*)%#2)$-(<+:+2-4!
-%&/+ 2:(>:*@f+ 7]-'C%$2.<+ GTZF<+ 5@+ EHS8@+ J:%*.:44+ J2U#.:(+
,#%).&%+(-)&/+).:)+2#C$*'+/%-55&/+).&+$44#*$-(+-,+5&%*5&2)$>&+
$(+,:>-%+-,+$(*):()+*&(*-%6+:X:%&(&**+-,+).&+X.-4&<+).&%&C6+:(!
(-#(2$(0+).:)+).&+e'&/$#'+$*+).&+'&**:0&f+7J2U#.:(<+GTZV<+
5@+GH8@+K#//&(46<+).&+2-()&()+-,+).&+5:$()$(0+X:*+).&+5:$()$(0+
$)*&4,@
\-X&>&%<+I4&'&()+]%&&(C&%0+:%0#&/+).:)+).&+2#4'$(:)$-(+-,+
VHOIFULWLFDO SDLQWLQJ WR KLP WKH FRPSOHWLRQ RI ÀDWQHVV ZDV
%&:2.&/+'#2.+4:)&%+$(+'-/&%($*'<+X$).+).&+(-(!%&5%&*&():)$-(!
:4+*)64&*+-,+5:$()&%*+*#2.+:*+b:(/$(*?6+:(/+J-(/%$:(+7]%&&(!
C&%0<+GTZF8@+B.&*&+5:$()&%*+%&5%&*&()&/+).&+4:*)+5.:*&+-,+'-/!
&%($*'<+ X.&%&+ 5:$()$(0+ .:/+ *&5:%:)&/+ $)*&4,+ 2-'54&)&46+ ,%-'+
*2#45)#%:4+&,,&2)*+:(/+).&+$44#*$-(+-,+/&5).@
VQ
KIMDDO
KIMDDO
*UHHQEHUJDUJXHGWKDWSDLQWLQJFRXOGQHYHUDWWDLQDEVROXWHÀDW!
QHVV(YHQÀDWPRGHUQLVWSDLQWLQJVSHUPLWDGHJUHHRIRSWLFDO
$44#*$-(n+(-)+).&+5&%*5&2)$>:4+$44#*$-(+-,+M&(:$**:(2&+5:$()$(0<+
C#)+%:).&%<+e:+?$(/+-,+$44#*$-(+).:)+*#00&*)*+:+?$(/+-,+).$%/+/$!
'&(*$-(f+7]%&&(C&%0<+GTZF<+5@+RRR8@+]%&&(C&%0+).&%&C6+':?&*+
:+/$*)$(2)$-(+C&)X&&(+).&+*2#45)#%:4+$44#*$-(+-,+%&:4$*'<+X.$2.+
'&):5.-%$2:446+:44-X*+).&+05#@+)-+&()&%+).&+5:$()$(0<+:(/+).&+
-5)$2:4+$44#*$-(+-,+'-/&%($*)+:%)<+X.$2.+-(46+:44-X*+).&+"@"+)-+
)%:>&4+).%-#0.@
;22-%/$(0+)-+O-%':(+L%6*-(<+).&+-5)$2:4+"#:4$)$&*+-,+:+5:$()!
$(0+2:((-)+C&+:55%-5%$:)&/+C6+).&+*2%&&(@+N(*)&:/<+).$*+$(.&%&()+
ÀDWQHVVLVRQHRIWKHVFUHHQ¶VNH\GLIIHUHQFHV
5&:%:(2&+).:)+*&&'*+)-+C&+*-'&).$(0+).:)+$)+$*+(-)+79%$&/C&%0<+
EFFZ<+5@+T8@+N(+).$*+2-()&^)<+9%$&/C&%0+#(/&%4$(&*+).&+,:2)+).:)+
).&+)&%'+3$/,9%-+'#*)+C&+#(/&%*)--/+(-)+_#*)+:*+/$0$):4+*$'#4:!
)$-(<+:*+5-5#4:%$Y&/+C6+).&+5.&(-'&(-(+-,+a$%)#:4+M&:4$)6<+C#)+
UDWKHULWPXVWEHEURDGHQHGWRDIRUPHUGH¿QLWLRQDV³DFWLQJ
X$).-#)+:0&(26+-,+':))&%f@+B.&+>$%)#:4+).&(+C&2-'&*+:+*#C*)$!
)#)&<+-%+:(+$'':)&%$:4+5%-^6<+,-%+).&+':)&%$:4+75@+S8@
4859+8&,8"&)(/""1&$)&%0-"&,5&A/")"1,&%&)("15+/%A8$(&#"A,8B&$,&
$)&503$59)-@&91-$>"&,8"&7-0"/,$%1&5/&`"1%$))%1("&6$1#56_&$,)&
)9/C%("&1"3"/&3%1$)8")&0"C5/"&,8"&$:%+$1%/@&#"A,8)&0"8$1#&$,B&
$,&1"3"/&,/9-@&5A"1)&$1,5&#"A,8?&=9,&,8"&)(/""1&#5")&15,&0"8%3"&
-$>"&,8"&:5#"/1$),&A%$1,$1+B&",8"/?&<,&(%115,&C5/"+/591#&,8"&:%;
,"/$%-$,@&5C&,8"&)9/C%("&I5C&A$+:"1,)&51&(%13%)L&)$1("&$,&8%)&15&
:%,"/$%-$,@& ,5& )A"%>& 5CB& 5,8"/& ,8%1& ,8"& A-%@& 5C& )8$C,$1+& -$+8,?&
7J:(->$2.<+EFFG<+5@+TQ8
;0:$(<+X&+&(2-#()&%+).&+(-)$-(+-,+$'':)&%$:4$)6+).:)+*&&'*+)-+
5&%'&:)&+).&+/$*2-#%*&+-(+*2%&&(*@+L%6*-(+/-&*+%&2-0($Y&+).&+
':)&%$:4+ *#%,:2&+ ).:)+ $*+ .$0.4$0.)&/+ $(+ '-/&%($*)+ 5:$()$(0<+ :*+
]%&&(C&%0+ :%0#&/<+ C#)+ :4*-+ 5%-24:$'*+ ).:)+ ).&+ *2%&&(!$':0&*+
/-+(-)+&^5%&**+*#2.+"#:4$)6@+B.&+X.-4&+(:)#%&+-,+$':0&*+-X&*+
)-+).&+$/&:+-,+*$'#4:)$(0+/&5).+C6+2-'5%&**$(0+).%&&+/$'&(!
VLRQVLQWRDÀDWYLUWXDOGHSWKSHUVSHFWLYH
9%$&/C&%0+ /$*)$(0#$*.&*+ C&)X&&(+ (-)$-(*+ -,+ ).&+ $:%+"+ :*+ ).&+
&,,&2)+-,+*&(*-%6+5&%2&5)$-(+7).&+>$&X+).:)+$*+5&%2&$>&/+).-#0.+
-#%+&6&*8<+:(/+).&+3$/,9%-&$:%+"<+:*+).&+%&5%&*&():)$-(+-%+:5!
VZ
38907A<3870;4
N)+.:*+C&&(+(-)&/+).:)+$(+.#':(+5&%2&5)$-(<+3$)$51+$*+5%$>$4&0&/+
->&%+).&+-).&%+5.6*$2:4+*&(*&*+7I%:%6<+EFFG<+55@+S!T8@+B.$*+.:*+
:4*-+':($,&*)&/+$)*&4,+$(+X.:)+$*+2:44&/+-#%+3$)9%-&(9-,9/"<+$(/$!
2:)$(0+).:)+-#%+*-2$&)6+$*+.$0.46+%&4$:()+-(+>$*$-(<+$(+)&%'*+-,+
:%)<+'&/$:<+:(/+2-''#($2:)$-(@+P#%+>&%C:4+2-''#($2:)$-(+.:*+
C&&(+*#554&'&()&/<+-%+&>&(+*#5&%*&/&/+C6+3$)9%-&(5::91$(%;
,$51+%&46$(0+-(+$':0&*+:*+2-(>&6&%*+-,+$(,-%':)$-(@
;*+:+>$*#:4+'&/$#'<+).&+*2%&&(+.:*+C&2-'&+:+/-'$(:()+)&2.!
(-4-06+).:)+&^)&(/*+:(/+*#55-%)*+>$*#:4+5&%2&5)$-(+C6+5%->$/!
$(0+$':0&*+,-%+).&+&6&+)-+2-(*#'&@+L#)+).&+5%$>$4&0&+-,+).&+&6&+
.:*+ :4*-+ 4&/+ )-+ 2%$)$2$*'+ -,+ ).&+ >$*#:4+ *5&2):24&<+ X.&%&+ ->&%!
*)$'#4:)$-(+-,+).&+>$*#:4+*&(*&+':6+/&!&'5.:*$Y&+).&+:))&()$-(+
-,+-).&%+C-/$46+*&(*&*@+K#2.+2%$)$2$*'+.:*+C&&(+,-%'#4:)&/+C6+
2%$)$2:4+).$(?&%*+*#2.+:*+]#6+1&C-%/<+J:%*.:44+J2U#.:(<+3:#4+
a$%$4$-<+d-(:).:(+I%:%6<+:(/+-).&%*<+:(/+$*+-,)&(+:$'&/+:)+).&+
$'C:4:(2&+C&)X&&(+).&+5#%&46+>$*#:4<+:(/+).&+X-%4/+-,+)-#2.<+
*'&44<+):*)&<+:(/+*-#(/@+B.$*+$'C:4:(2&+':6+&>&(+C&+/&*2%$C&/+
:*+:+/$*2-((&2)$-(+C&)X&&(+>$*#:4+5&%2&5)$-(+:(/+).&+-).&%+5&%!
2&5)#:4+'-/&*@
<1& ,8"& /"A/")"1,%,$51& 5C& /"%-$,@& ),/"))& $)& -%$#& 9A51& ,8"& 3$)9%-&
)"1)"&9)9%--@&%,&,8"&"YA"1)"&5C&%--&5,8"/&)"1)")?&N9(8&/"A/")"1;
,%,$51&0"+%1&6$,8&,8"&/$)"&5C&A851",$(&-$,"/%(@&%1#&(%115,&5(;
VR
KIMDDO
KIMDDO
(9/&%,&%1@&,$:"&5/&%,&%1@&A-%("&6$,859,&%&,"(815-5+@&,8%,&C%35/)&
,8"&3$)9%-&)"1)"&%,&,8"&"YA"1)"&5C&%--&5,8"/&)"1)")?+7J2U#.:(+
:(/+3:%?&%<+GTZS<+5@+EHT8
*2%&&(+:*+:(+&^)&(*$-(+-,+>$*$-(<+).$*+4&:/*+)-+e:'5#):)$-(f+-,+
).&+&6&<+$(+J2U#.:(`*+%.&)-%$2@+B.&%&,-%&<+'&/$:+:%&<+-(+-(&+
.:(/<+&^)&(*$-(*+-,+':(+:(/+).&+2&()%:4+(&%>-#*+*6*)&'<+C#)+-(+
).&+-).&%+.:(/<+e*&4,!:'5#):)$-(f<+X.$2.<+:22-%/$(0+)-+J2U#!
.:(<+$*+:(+e$''&/$:)&+%&4$&,+-,+*)%:$(f+:(/+:(+$()&0%:4+5:%)+-,+
).&+.#':(+2-(/$)$-(+75@+VR8@
;4).-#0.+ J2U#.:(`*+ %.&)-%$2+ $*+ "#$)&+ *)%-(0<+ $)+ '#*)+ C&+ %&!
0:%/&/+:*+:+'&):5.-%$2:4+&^5%&**$-(+-,+).&+$*-4:)$-(+)-+X.$2.+
-(&+.#':(+,#(2)$-(+$*+&^5-*&/<+).%-#0.+>:%$-#*+'&/$:+e&^)&(!
*$-(*f@+B.&+ &^5&%$&(2&+ -,+ X:)2.$(0+ )&4&>$*$-(+ &^)&(/*+ >$*#:4+
5&%2&5)$-(+)-+:+/&0%&&+).:)+).&+2-(*2$-#*(&**+$*+,-2#*&/+:%-#(/+
).$*+*$(0#4:%+'-/&+-,+5&%2&5)$-(<+*#00&*)$(0+).:)+).&+5&%2&5!
)#:4+ :55:%:)#*+ .:*+ :+ 4$'$)+ -%+ ':^$'#'+ 2:5:2$)6+ ,-%+ *&(*-%6+
LQSXW7KH³DPSXWDWLRQ´LVDVHOILQÀLFWHGFRQGLWLRQWKDWDF!
2-%/$(0+ )-+ J2U#.:(<+ 2-'&*+ ,%-'+ :+ (:)#%:4+ .#':(+ )&(/&(26+
)-+&^)&(/+:(/+%&4$&>&+).&+2&()%:4+(&%>-#*+*6*)&'@+;%0#:C46<+).&+
(-)$-(*+-,+:'5#):)$-(+:(/+%&4$&,+%&*&'C4&+).&+'-%&+%&2&()+$/&:+
-,+$::"/)$51<+X.$2.+$*+-,)&(+#*&/+$(+2-((&2)$-(+X$).+a$%)#:4+
M&:4$)6+)-+/&(-)&+).&+5&%2&5)#:4+:22&5):(2&+-,+:(-).&%+%&:4$)6+
:*+).&+5%$':%6+,-2#*+-,+2-(*2$-#*(&**@
$FFRUGLQJ WR 0F/XKDQ WKH KLJK GH¿QLWLRQ)%,9/%,$51+ -,+ ).&+
>$*#:4+*&(*&+2:#*&*+e/&):2.'&()f+-,+).&+&6&+:(/+).&+/$*&(0:0!
$(0+-,+2%$)$2:4+2-(*2$-#*(&**@+ea$*$-(<+:*+-#%+-(46+-C_&2)$>&+:(/+
GHWDFKHGVHQVHZKHQLQKLJKGH¿QLWLRQGLVFRXUDJHVHPSDWK\´
7J2U#.:(+:(/+3:%?&%<+GTZS<+5@+RR8@+B.$*+*#00&*)*+).:)+>$*#:4+
5&%2&5)$-(+$*+(-)+-(46+4$:C4&+)-+C&2-'&+/&):2.&/+,%-'+).&+-).&%+
*&(*&*<+$)+':6+:4*-+4&:/+)-+4&**+$(>-4>&'&()+:(/+4&**+&(0:0&!
PHQWLQWKHYLHZLQJVLWXDWLRQ7KHQRWLRQRIKLJKDQGORZGH¿!
($)$-(+*&(*&*+-%$0$(:)&*+,%-'+J2U#.:(`*+$/&:*+-,+85,+:(/+(5-#+
'&/$:<+X.$2.+:%&+2&()%:4+)-+.$*+).$(?$(0@+B.$*+(-)$-(+/&*2%$C&*+
).&+:'-#()+-,+$(,-%':)$-(+).:)+$*+)%:(*'$))&/+C6+:+'&/$#'<+:(/+
.-X+$)+$*+5&%2&$>&/+:(/+$()&%5%&)&/@+B.&%&,-%&<+GH¿QLWLRQ+$*+(-)+
J:%*.:44+J2U#.:(+.:*+2.:%:2)&%$Y&/+).&+/-'$(:(2&+-,+*-'&+
'&/$:+->&%+-).&%*+:*+:+%&*#4)+-,+(:)#%:4+*&4&2)$-(+$(+1:%X$($:(+
)&%'*+7J2U#.:(<+GTQQ8@+N,+&:2.+'&/$#'+%&5%&*&()*+:(+&^)&%!
(:4$Y&/+ *5&2$&*+ -,+ -#%+ *&(*-%6+ &^$*)&(2&<+ ).&*&+ *5&2$&*+ .:>&+
*)%#004&/+).%-#0.+e>:%$-#*+'#):)$-(*+$(+:+/&*5&%:)&+:))&'5)+:)+
:/:5):)$-(+:(/+*#%>$>:4f+75@+GFV8@+9%-'+.$*+5&%*5&2)$>&+$(+).&+
GTQF*<+.&+*:X+).$*+'&/$:+&>-4#)$-(+:*+:+.$*)-%6+).:)+C&0:(+X$).+
X%$)$(0+:(/+&(/&/+X$).+)&4&>$*$-(<+).:)+':/&+&>&%6).$(0+$(+).&+
X-%4/+*$'#4):(&-#*46+5%&*&()+)-+-#%+2-(*2$-#*(&**+75@+GGF8@
N(+.1#"/),%1#$1+&!"#$%+7GTZV8<+J2U#.:(+:%0#&*+).:)+:(6+'&!
/$#'+$*+:(+&^)&(*$-(+-,+).&+C-/6<+:(/+$*+).&%&C6+:(+&^)&%(:4!
$Y:)$-(+-,+).&+*&(*-%6+,#(2)$-(*+-,+).&+.#':(+5&%2&5)$-(@+B.$*+
&^)&%(:4$Y:)$-(+$*+)&2.(-4-0$2:446+&(.:(2&/+:(/+/&)&%'$(&/+C6+
).&+:%)$,:2)*+).:)+:%&+5%-/#2&/+C6+)&2.($2:4+$(>&()$-(*@+B.&%&!
,-%&<+'&/$:+.:>&+0$%)")<+X.$2.+,:>-%+2&%):$(+*&(*&*+->&%+-).&%*+
g+)&4&5.-(&+:(/+%:/$-+&^)&(/+.&:%$(0<+)&4&>$*$-(+&^)&(/*+>$*$-(<+
:(/+*-+,-%).@+J2U#.:(+:%0#&*+).:)+).&*&+'&/$:+.:>&+&^)&(/&/+
-#%+>&%6+(&%>-#*+*6*)&'*<+:(/+:%&+:C-4$*.$(0+C-).+*5:2&+:(/+
)$'&+ 7J2U#.:(<+ GTZV<+ 5@+ V8@+ L#)+ :*+ -#%+ C-/$&*+ :%&+ &^)&(/&/+
C6+ )&2.(-4-06<+ &:2.+ &^)&(*$-(+ $()%-/#2&*+ :+ 19:01"))+ -,+ -#%+
5&%2&5)$-(*+:*+:+2-(*&"#&(2&@+;*+:(+:44&0-%6+-,+).$*<+J2U#.:(+
5%&*&()*+).&+'6).+-,+O:%2$**#*<+X.-+,&44+$(+4->&+X$).+.$*+-X(+
UHÀHFWLRQWKHUHE\EHFRPLQJREOLYLRXVWRKLVVXUURXQGLQJVDQG
.&(2&+:+e24-*&/+*6*)&'f+75@+VQ8@+B.$*+(#'C(&**+$*+&^54:$(&/+
C6+J2U#.:(+:*+).&+C-/6`*+X:6+-,+':$():$($(0+"b9$-$0/$9:+g+:+
C:4:(2&+ :'-(0+ ).&+ 5&%2&5)#:4+ ,#(2)$-(*+ -,+ ).&+ C-/6@+ B.&%&!
,-%&<+ &^)&(/$(0+ ).&+ C-/6+ 2:#*&*+ e:'5#):)$-(f+-%+ $*-4:)$-(+ -,+
).&+&^)&(/&/+-%0:(<+*&(*&<+-%+,#(2)$-(+75@+VZ8@+N(+).&+2:*&+-,+).&+
VS
VT
KIMDDO
KIMDDO
_#*)+:+5%-5&%)6+-,+).&+'&/$#'<+C#)+:4*-+:+5&%2&5)#:4+*):)&+).:)+
/&*2%$C&*+).&+:'-#()+-,+*&(*-%6+$(5#)@
ZLWKWKHFRQWLQXRXVVXUIDFHDQG³KLJKGH¿QLWLRQ´RIWKH¿OP
$':0&<+X.$2.+).&+>$&X&%+:22&5)*+:*+e:+5:2?:0&+/&:4f+7J2U#!
.:(<+GTZV<+5@+HVE8@
;22-%/$(0+)-+J2U#.:(<+2:)&0-%$Y$(0+).&+)X-+)65&*+-,+*2%&&(*+
$*+(-)+-(46+:(+:(:46*$*+-,+/$,,&%&(2&*+$(+).&+>$*#:4+5&%2&5)$-(+
-,+).&'<+C#)+:4*-+&^54:$(*+).&+'-/&*+-,+"1+%+":"1,+).:)+%&*#4)+
,%-'+).$*+5&%2&5)$-(@+J->$&*+:%&+5&%2&$>&/+C6+e.:C$)#:4+>$&X!
$(0f+75@+HVE8<+X.$2.+':?&*+).&+'->$&+>$&X&%+'-%&+/$*5-*&/+
)-+C&+e:+5:**$>&+2-(*#'&%+-,+:2)$-(*<+%:).&%+).:(+:+5:%)$2$5:()+
LQUHDFWLRQV´S7KLVVXJJHVWVWKDWWKHSHUFHSWLRQRI¿OP
-22#%*+X$).+4$))4&+X$).+$()&%5%&):)$>&+:2)$>$)6<+).&%&C6+*.-%)$(0+
-#)+ 2-(*2$-#*+ 2%$)$2:4+ :**&**'&()@+ J2U#.:(+ 2-()%:*)*+ ).$*+ )-+
).&+%(,$3"+&(0:0&'&()+$(>-4>&/+$(+>$&X$(0+)&4&>$*$-(<+X.&%&+
WKHYLHZHULVLQYROYHGDQGSDUWLFLSDWHVLQ¿OOLQJLQWKHPLVVLQJ
$(,-%':)$-(@+;0:$(<+X&+'#*)+%&2:44+).&+%&4:)$>&46+5--%+"#:4$)6+
-,+)&4&>$*&/+$':0&*+$(+).&+&:%46+*$^)$&*@+B.$*+:4*-+&^54:$(*+).&+
(&&/+,-%+2-(2&()%:)$-(+:(/+:C*-%5)$-(+,-44-X$(0+,%-'+).&+:2!
)$>&+ '-/&+ -,+ 5&%2&5)$-(@+ eBa+ X$44+ (-)+ X-%?+ :*+ C:2?0%-#(/@+
N)+&(0:0&*+6-#@+[-#+.:>&+)-+C&+X$).+$)<f+75@+HVF8@+L-).+)&4&>$!
VLRQDQG¿OPLPSO\VLJQL¿FDQWLPSDFWRQWKHYLVXDOVHQVHEXW
).&+/$,,&%&(2&+*&&'*+)-+C&+$(+).&+:2)$>$)6+-,+5&%2&5)$-(<+X.$2.+
%:(0&*+,%-'+A%))$3"+2-(*#'5)$-(+)-+%(,$3"<+$(!/&5).+5:%)$2$5:!
)$-(@
N(+ 4$(&+ X$).+ J2U#.:(`*+ ).$(?$(0<+ d-(:).:(+ I%:%6+ .:*+ :%0#&/+
).:)+2-()&'5-%:%6+.#':(+5&%2&5)$-(+$*+*.:5&/+C6+).&+2:5:2$)6+
,-%+e5:6$(0+:))&()$-(f<+%&*#4)$(0+,%-'+).&+/$*&(0:0&'&()+,%-'+
DEURDGHU¿HOGRI%,,"1,$51<+$(*)&:/+$*-4:)$(0+-%+,-2#*$(0+-(+:+
%&/#2&/+(#'C&%+-,+*)$'#4$+7I%:%6<+EFFG<+5@+G8@+I%:%6+:4*-+(-)&/+
).&+5:%)$2#4:%+%-4&+-,+).&+&6&+$(+.#':(+5&%2&5)$-(+:*+e:+5&%>:!
*$>&+5%$>$4&0$(0+-,+>$*$-(+->&%+).&+*&(*&*+-,+)-#2.+:(/+*'&44f+
75@+T8@+B.$*+:4*-+%&4:)&*+)-+5&%2&5)$-(+C:*&/+-(+).&+*2%&&(h
7& 85,& :"#$9:& $)& 51"& ,8%,& "Y,"1#)& 51"& )$1+-"& )"1)"& $1& [8$+8&
GH¿QLWLRQ´+LJKGH¿QLWLRQLVWKHVWDWHRIEHLQJZHOO¿OOHGZLWK
GDWD$SKRWRJUDSKLVYLVXDOO\³KLJKGH¿QLWLRQ´$FDUWRRQLV
³ORZGH¿QLWLRQ´VLPSO\EHFDXVHYHU\OLWWOHYLVXDOLQIRUPDWLRQ
$)&A/53$#"#?+7J2U#.:(<+GTZV<+5@+EV8
9-%+J2U#.:(+).$*+'&:(*+).:)+'&/$:+$(/#2&+/$,,&%&()+4&>&4*+-,+
"1+%+":"1,<+*$'546+-X$(0+)-+).&+:'-#()+-,+$(,-%':)$-(+).:)+
(&&/*+)-+C&+5%-2&**&/+C6+).&+*&(*&*@+;+2--4+'&/$#'<+*#2.+:*+
DFDUWRRQOHDYHV³EODQNVSDFHV´WREH¿OOHGLQRUFRPSOHWHG
ZKHUHDVDKRWPHGLXPVXFKDVDSKRWRJUDSKÀRRGVWKHYLHZ!
&%`*+ *&(*&*+ X$).+ $(,-%':)$-(@+ B.&%&,-%&<+ .-)+ '&/$:+ :%&+ e4-X+
$(+5:%)$2$5:)$-(f<+:(/+2--4+'&/$:+:%&+e.$0.+$(+5:%)$2$5:)$-(+-%+
2-'54&)$-(+C6+).&+:#/$&(2&f+7NC$/@8@
B.$*+ /$*)$(2)$-(+ ':6+ :4*-+ C&+ :554$&/+ )-+ *2%&&(!C:*&/+ '&/$:<+
VXFKDVWHOHYLVLRQDQG¿OP:KLOH0F/XKDQUHJDUGV¿OPDQG
).&+5.-)-0%:5.+:*+.-)<+)&4&>$*$-(+$*+/&*2%$C&/+:*+2--4@+B.&+&^!
SODQDWLRQIRUWKLVFODVVL¿FDWLRQLVSUREDEO\WREHIRXQGLQWKH
)&2.($2:4+*):)&+-,+)&4&>$*$-(+:)+).&+)$'&@+W.&(+J2U#.:(+5#C!
4$*.&/+.1#"/),%1#$1+&!"#$%+7GTZV8<+)&4&>$*$-(+X:*+$(+$)*+&:%4$!
&*)+/:6*<+X.&(+$':0&+"#:4$)6+X:*+5--%<+:(/+-(46+:%-#(/+Hp+
-,+:44+)&4&>$*$-(+*&)*+X&%&+2-4-%+Ba*+7]&(->:<+EFFG8@+B.$*+X:*+
'-*)+4$?&46+:+2-()%$C#)$(0+,:2)-%+)-+J2U#.:(`*+2:)&0-%$Y:)$-(+
-,+)&4&>$*$-(+:*+:+2--4+'&/$#'@+eB.&+Ba+$':0&+$*+>$*#:446+4-X+
$(+/:):@+jkl+B.&+Ba+$':0&+-,,&%*+*-'&+).%&&+'$44$-(+/-)*+5&%+
*&2-(/+)-+).&+%&2&$>&%@+9%-'+).&*&+.&+:22&5)*+-(46+:+,&X+/-Y&(+
&:2.+$(*):()<+,%-'+X.$2.+)-+':?&+:(+$':0&@f+7J2U#.:(<+GTZV<+
5@+HVG8@+B.&+)&2.($2:4+2.:%:2)&%$*)$2+-,+).&+)&4&>$*$-(+$':0&+:*+
:+e'-*:$2+'&*.+-,+4$0.)+:(/+/:%?+*5-)*f+7NC$/@8<+$*+2-()%:*)&/+
QF
QG
KIMDDO
KIMDDO
a8",8"/&$,&$)&856&6"&0"8%3"&$1&C/51,&5C&,8"&-9:$159)&)(/""1&5C&
%&(5:A9,"/&5/&856&6"&"YA"/$"1("&%&A"/C5/:%1("&$1&%1&5A"/%&
859)"B&chd&6"&%/"&$1&%&#$:"1)$51&5C&(51,":A5/%/@&"YA"/$"1("&
,8%,& /"b9$/")& ,8%,& 6"& "CC"(,$3"-@& (%1("-& 59,& 5/& "Y(-9#"& C/5:&
(51)($59)1"))& :9(8& 5C& 59/& $::"#$%,"& "13$/51:"1,?+ 7I%:%6<+
EFFG<+5@+G8
;22-%/$(0+ )-+ I%:%6<+ ).&+ 2:(2&44:)$-(+ -%+ e*#*5&(*$-(f+ -,+ 5&%!
2&5)#:4+ '-/&*+ $*+ :+ 2.:%:2)&%$*)$2+ -,+ ).&+ /&>&4-5'&()+ -,+ '-!
/&%($)6<+:(/+$*+C-).+:+2-(/$)$-(+:(/+:+*6'5)-'+-,+*#2.@+B.&+
/-'$(:()+,-%'*+-,+>$*#:4+2#4)#%&+$(+D#%-5&+:(/+O-%).+;'&%$2:+
2:'&+)-+C&+2.:%:2)&%$Y&/+C6+:+e%&4:)$>&+*&5:%:)$-(+-,+:+>$&X&%+
,%-'+:+'$4$&#+-,+/$*)%:2)$-(+:(/+).&+/&):2.'&()+-,+:(+$':0&+
,%-'+:+4:%0&%+C:2?0%-#(/f+7I%:%6<+EFFE<+5@+T8@+I%:%6`*+$()&()+$*+
)-+*.-X+.-X+).&+2.:(0&+$(+e:))&()$>&+(-%'*+:(/+5%:2)$2&*f+.:*+
EHHQUHÀHFWHGWKURXJKWKHSURGXFWLRQRIDUWLQWKHSHULRGIURP
&:%46+ )-+ .$0.+ '-/&%($*'@+B.$*+ (-)$-(+ -,+ e*#*5&(/&/+ 5&%2&5!
)$-(f+/&*2%$C&*<+$(+*$'$4:%$)6+)-+J2U#.:(`*+(-)$-(+-,+e:'5#):!
)$-(f<+).&+/$*&(0:0&'&()+-,+).&+%&':$($(0+*&(*-%6+$(5#)*+X.&(+
:))&()$-(+$*+/$%&2)&/+)-X:%/+:+*$(04&+>$*#:4+&4&'&()@+B.$*+:C$4$)6+
)-+,-2#*+).&+>$*#:4+:))&()$-(+$*<+:22-%/$(0+)-+I%:%6<+:+%&*#4)+-,+
>$*$-(+C&$(0+/$*2$54$(&/+C6+:+>$*#:4+4$)&%:26<+X.$2.+':6+C&+:)!
)%$C#)&/+)-+(#'C&%+-,+2.:(0&*+$(+:%)+:(/+'-/&%(+2#4)#%&+$(+).&+
*&2-(/+.:4,+-,+).&+($(&)&&().+2&()#%6@
I%:%6`*+(-)$-(+-,+e:))&()$-(f+$*+*-'&X.:)+$(*5$%&/+C6+W:4)&%+
L&(_:'$(`*+48"&a5/>&5C&7/,&$1&,8"&7+"&5C&!"(8%1$(%-&M/5#9(;
,$51+ 7GTHQ8<+ X.&%&+ .&+ /&*2%$C&*+ '-/&*+ -,+ %&2&5)$-(+ ).:)+ :%&+
DSSOLHGWR¿QHDUWDUFKLWHFWXUHDQG¿OP%HQMDPLQDUJXHV³$
':(+X.-+2-(2&()%:)&*+C&,-%&+:+X-%?+-,+:%)+$*+:C*-%C&/+C6+$)@+
\&+&()&%*+$()-+).$*+X-%?+-,+:%)+jklf+7L&(_:'$(<+GTHQ<+5@+EHE8@+
B.&+ %&2&5)$-(+ /&*2%$C&/+ .&%&+ $*+ :(+ :))&()$>&+ ,-2#*$(0+ -(+ ).&+
5:%)$2#4:%+X-%?+-,+:%)+).:)+&>&()#:446+:C*-%C*+).&+>$&X&%@+B.$*+
QE
'$+9/"&UG&FTUK)&,"-"3$)$51&%#3"/,$)":"1,
QH
KIMDDO
KIMDDO
$*+:4*-+%&,&%%&/+)-+:*+(51,":A-%,$51<+X.$2.<+:22-%/$(0+)-+L&(!
_:'$(<+$*+5#%&46+:+':))&%+-,+-5)$2:4+%&2&5)$-(@+L&(_:'$(+%&0:%/*+
2-()&'54:)$>&+%&2&5)$-(+:*+:+*):)&+-,+:C*-%5)$-(+).:)+$*+$(/#2&/+
C6+).&+>$*#:4+*&(*&<+C6+).&+&6&@+W.&(+&()&%$(0+).&+:%)X-%?<+:*+
.&+/&*2%$C&*<+).&+>$&X&%+4&:>&*+).&+/-':$(+*#%%-#(/$(0+.$'+-%+
.&%<+:(/+5&%2&5)#:446+&(0:0&*+:(-).&%+-5)$2:4+/-':$(@
>$*$-(<+ ).&+ &6&+ C&2-'&*<+ '&):5.-%$2:446+ *5&:?$(0<+ e/$*2-(!
(&2)&/f+,%-'+).&+%&*)+-,+).&+*&(*$(0+C-/6@+B.&+>$&X&%`*+$1%0$-;
$,@+)-+2.:(0&+).&+5&%*5&2)$>&+C6+'->$(0+).&+&6&+$*+6&)+:(-).&%+
*6'5)-'+-,+).&+/$*&'C-/$'&()+).:)+$*+$'5-*&/+C6+).&+$':0&@+
B.$*+$*+&*5&2$:446+*6'5)-':)$2+-,+5:$()$(0+:(/+5.-)-0%:5.6<+:*+
*):)$2+'-/&*+-,+%&5%&*&():)$-(@+;*+(-)&/+C6+J2U#.:(h+e5.-!
)-0%:5.6+$*+).&+'&2.:($Y:)$-(+-,+).&+5&%*5&2)$>&+5:$()$(0+:(/+
).&+:%%&*)&/+&6&@f+7J2U#.:(<+GTRF<+5@+GZ8@
7KH¿OPFDPHUDDQGLWVPRELOLW\LQWURGXFHGPRYLQJSHUVSHF!
)$>&+ )-+ >$*#:4+ 5%&*&():)$-(<+ :(/+ 2%&:)&/+ :+ e'-C$4$Y&/+ >$%)#:4+
0:Y&f<+:*+(-)&/+C6+;((&+9%$&/C&%0+79%$&/C&%0<+GTTV<+5@+V8@+L#)+
).&+ '-C$4$)6+ X:*+ -(46+ 5&%2&5)#:4+ $(+ )&%'*+ -,+ ).&+ *5&2):)-%`*+
LGHQWL¿FDWLRQ ZLWK WKH FDPHUD¶V YLVXDO SHUVSHFWLYH $V 0D!
(->$2.+ /&*2%$C&*h+ eB.&+ C-/6+ -,+ ).&+ *5&2):)-%+ %&':$(*+ $(+ .&%+
*&:)+X.$4&+.&%+&6&+$*+2-#54&/+X$).+:+'-C$4&+2:'&%:f+7J:(->!
$2.<+EFFG<+5@+GFR8@+B.$*+-(46+2&'&()*+).&+/$*&'C-/$'&()+:(/+
e$'5%$*-('&()+ -,+ ).&+ C-/6f<+ :(/+ 2-(2&5)#:446+ ':?&*+ '->$&+
).&:)&%*+$()-+e5%$*-(+.-#*&*f<+:22-%/$(0+)-+J:(->$2.+7NC$/@8@+
N''-C$4$)6+.:*+C&&(+$(*)$)#)$-(:4$Y&/@
P(&+-,+).&+'-%&+%&2&()+:))&'5)*+)-+->&%2-'&+).&+$''-C$4$)6+
&(,-%2&/+C6+).&+$':0&+.:*+C&&(+).&+$()%-/#2)$-(+-,+a$%)#:4+M&!
:4$)6<+:(/+$)*+#*&+-,+\&:/+J-#()&/+1$*54:6*@+B.$*+e*2%&&(!4&**+
%&5%&*&():)$-(:4+:55:%:)#*f<+:*+J:(->$2.+/&*2%$C&*+$)+75@+GFT8<+
X.$2.+.:/+:+0%&:)+,#)#%&+5%&/$2)&/+,-%+$)+$(+).&+GTTF*<+2-(*)$)#)!
&/+:+,#(/:'&():4+C%&:?+X$).+).&+5%&>$-#*+)%:/$)$-(+-,+*2%&&(*<+
C#)+X:*+4:%0&46+:C:(/-(&/@+B.&+&,,&2)+$*+e:*+).-#0.+).&+2:'&%:+
X&%&+'-#()&/+-(+).&+#*&%`*+.&:/@f+7NC$/8@+;4*-<+).&+*2%&&(+$*+
(-+ 4-(0&%+ 54:2&/+ $(+ ).&+ *5:2&+ C&,-%&+ ).&+ >$&X&%<+ C#)+ /$%&2)46+
$(+,%-()+-,+.$*+&6&*@+J:(->$2.+(-)&*+).:)+:4).-#0.+).&+>$&X&%+
$*+ :C4&+ )-+ *.$,)+ ).&+ 5&%*5&2)$>&+ -,+ ).&+ >$&X<+ ).&+ C-/6+ $*+ *)$44+
2-(*)%:$(&/+C6+$)*+/&5&(/&(2&+-(+).&+2-'5#)&%@+eU$?&+)-/:6`*+
2-'5#)&%+'-#*&<+).&+C-/6+X:*+)$&/+)-+).&+2-'5#)&%@+N(+,:2)<+).&+
8++%BC'C,D
W.:)+':6+C&+/&*2%$C&/+:*+:+/$*2-((&2)$-(+C&)X&&(+).&+&6&+:(/+
).&+C-/6+.:*+:4*-+:55&:%&/+$(+-#%+)&2.($"#&*+-,+>$*#:4+%&5%&!
*&():)$-(@+U&>+J:(->$2.+:%0#&*+).:)+&>&%+*$(2&+).&+/$*2->&%6+
-,+ 4$(&:%+ 5&%*5&2)$>&<+ ).&+ $':0&+ .:*+ $''-C$4$Y&/+ ).&+ >$&X&%+
LQD¿[HGSRVLWLRQIURPZKLFKWKHVXEMHFWLVUHSUHVHQWHG+H
:%0#&*+).:)+).&+0%$/!4$(&*+#*&/+C6+5:$()&%*+)-+5%-/#2&+5%-5-%!
)$-(:446+ 2-%%&2)+ $':0&*+ 7*&&+ 9$0#%&+ Q+ -(+ 5:0&+ VV8+ C&2-'&+
:+>$*#:4+'&):5.-%+,-%+).&+e$'5%$*-('&()+-,+).&+C-/6f<+X.$2.+
LV ¿[HG DQG LPPRELOL]HG WKURXJK WKH VWDWLF UHQGHULQJ RI WKH
$':0&@+B.&+'&):5.-%+/&*2%$C&*+).&+W&*)&%(+*2%&&(!C:*&/+%&5!
%&*&():)$-(:4+:55:%:)#*+).:)+$*+C:*&/+-(+).$*+*):)$2+'-(-2#4:%+
5&%*5&2)$>&+7J:(->$2.<+EFFG<+5@+GFV8@
>«@WKH¿UVWVFUHHQDSSDUDWXV$OEHUWL¶VSHUVSHFWLYDOZLQGRZ
68$(8B& %((5/#$1+& ,5& :%1@& $1,"/A/","/)& 5C& -$1"%/& A"/)A"(,$3"B&
A/")"1,)&,8"&65/-#&%)&)""1&0@&%&[)$1+9-%/&"@"\&D&),%,$(B&910-$1>;
LQJDQG¿[DWHG$VGHVFULEHGE\1RUPDQ%U\VRQSHUVSHFWLYH
[C5--56"#&,8"&-5+$(&5C&,8"&i%e"&/%,8"/&,8%1&,8"&i-%1("B&,89)&
A/5#9($1+&%&3$)9%-&,%>"&,8%,&6%)&","/1%-$e"#B&/"#9("#&,5&51"&
jA5$1,&5C&3$"6f&%1#&#$)":05#$"#?\+7J:(->$2.<+EFFG<+5@+GFQ8
B.&+/$*&'C-/$'&()+/&*2%$C&/+C6+J:(->$2.+%&,&%*+)-+).&+/$*!
2-((&2)$-(+C&)X&&(+).&+e*$(0#4:%+&6&f+:(/+).&+%&':$($(0+*&(*!
$(0+C-/6@+W.&(+5&%2&5)$-(+$*+%&*)%$2)&/+)-+C&$(0+/-'$(:)&/+C6+
QV
QQ
KIMDDO
KIMDDO
C-/6+X:*+%&/#2&/+)-+(-).$(0+&4*&+q+:(/+(-).$(0+'-%&+q+).:(+
:+0$:()+'-#*&<+-%+'-%&<+5%&2$*&46<+:+0$:()+_-6*)$2?@f+75@+GGF8@+
B.&+.&4'&)<+X$).+$)*+)#C&*+:(/+X$%&*<+/$/+(-)+,%&&+).&+>$&X&%+
,%-'+ ).&+ *2%&&(<+ $(*)&:/+ $)+ )$&/+ .$'+ '-%&+ 24-*&46+ )-+ $)@+;(/<+
:4).-#0.+>$*#:4+%&5%&*&():)$-(+.:/<+)-+*-'&+/&0%&&<+'->&/+C&!
6-(/+).&+/&5).!4$'$):)$-(*+-,+).&+*2%&&(<+$)+2-()$(#&/+)-+4$'$)+
).&+'-C$4$)6+-,+).&+C-/6@
e$(2%&:*$(046+$(/&5&(/&()+-,+.:(/!X-%?+:(/+).&+5.6*$2:4+5%&*!
&(2&+-,+:(+:%)$*)!5%-/#2&%@f+7K.$,,<+EFGF<+5@+RV8@+;22-%/$(0+)-+
K.$,,<+).$*+/&2%&:*&/+2-((&2)$-(+)-+):2)$4&+'&:(*+-,+5%-/#2)$-(+
$*+:(-).&%+*$0(+-,+).&+/&2%&:*&/+':)&%$:4$)6+-,+>$*#:4+$':0&%6<+
)-+:(+&^)&()+).:)+$)+e.:%/46+%&':$(*+:+,:2)-%+$(+2-''#($2:)$-(f+
7NC$/@8@+B.&+5.6*$2:4+'&/$#'+C&2-'&*+$%%&4&>:()+)-+).&+$':0&@
B.&+*-'&X.:)+/6*)-5$:(+>$&X+-(+&4&2)%-($2+'&/$:+/&>$2&*+:*+
*-#%2&*+ -,+ /&':)&%$:4$Y:)$-(+ &'&%0&/+ ,%-'+ ).&+ 5-*)'-/&%(+
2%$)$"#&+ -,+ ':**+ '&/$:+ :(/+ $':0&*+ :*+ %&5%&*&():)$-(*+ -,+ ,8"&
/"%-@+J-*)+,:'-#*46<+L:#/%$44:%/+:%0#&/+).:)+X&+.:>&+%&:2.&/+
:+*):0&+$(+-#%+*-2$&)6+X.&%&+*&'$-)$2+)$+1)<+:(/+'-*)+(-):C46<+
$':0&*<+:%&+(-+4-(0&%+%&5%&*&():)$-(*+-,+).&+%&:4<+C#)+$(*)&:/+
).&+8@A"//"%-<+).:)+X.$2.+eC&:%*+(-+%&4:)$-(+)-+:(6+%&:4$)6+X.:)!
*-&>&%h+$)+$*+$)*+-X(+5#%&+*$'#4:2%#'f+7L:#/%$44:%/<+GTTV<+5@+
Z8@+;22-%/$(0+)-+L:#/%$44:%/<+).&+5%-2&**+-,+2%&:)$(0+*$0(*+$*+:+
5%-2&**+-,+#$))$:9-%,$51ZKHUHDUWL¿FLDOUHVXUUHFWLRQVHPHUJH
IURPWKHUHDOLWVHOI7KLVLQVHUWVWKH¿JXUDWLYH³ZKHUHWKHRE!
_&2)+:(/+*#C*):(2&+.:>&+/$*:55&:%&/f+75@+R8@+B.&+/$*:55&:%:(2&+
-,+*#C*):(2&<+).&(<+$*+).&+%&*#4)+-,+*$0(+5%-/#2)$-(+g+:*+$(+).&+
2:*&+-,+':**+'&/$:@
W.$4&+ L:#/%$44:%/`*+ 2%$)$"#&+ $*+ :%)$2#4:)&/+ -(+ :+ .$0.46+ 5.$4-!
*-5.$2:4+4&>&4<+3:#4+a$%$4$-+.:*+'-%&+&^54$2$)46+2%$)$2$Y&/+'&/$:+
:(/+)&2.(-4-06+,-%+/$*54:2$(0+).&+5.6*$2:4+/-':$(+$(+,:>-%+-,+
).&+ >$%)#:4+ -%+ $'':)&%$:4@+ N(+ 48"& 25),& *$:"1)$51+ 7GTSV8<+ .&+
:%0#&*+).:)+).&+&4&2)%-($2+*2%&&(+7).&+e).$%/+X$(/-Xf8+.:*+C&!
2-'&+).&+(&X+5%$(2$54&+:22&**+5-$()+)-+).&+-#)*$/&+-,+).&+.-'&<+
).#*+%&54:2$(0+).&+-%$0$(:4+:5&%)#%&*+-,+).&+.-#*&h+).&+/--%+:(/+
).&+X$(/-X@+B.$*+:%0#'&()+'#*)+C&+#(/&%*)--/+:*+:+2%$)$"#&+-,+
)&2.(-4-0$&*`+ $(2%&:*$(0+ )&(/&(26+ )-+ ):?&+ ->&%+ ,#(2)$-(*+ ).:)+
X&%&+5%&>$-#*46+:**$0(&/+)-+).&+5.6*$2:4<+:%2.$)&2)#%:4+*5:2&@
B.&+&,,&2)+-,+':**+'&/$:+.:*+:+.#0&+$'5:2)+-(+:%2.$)&2)#%&<+
:(/+&>&(+#%C:(+'-%5.-4-06h+eB.&+*2%&&(+:C%#5)46+C&2:'&+).&+
307!40/8!18E!48<;
I4-*&46+%&4:)&/+)-+).&+*#C_&2)+-,+/$*&'C-/$'&()+$*+).&+(-)$-(+
-,+ #":%,"/$%-$e%,$51@+B.$*+ )--+ *#00&*)*+ :+ *&5:%:)$-(+ C&)X&&(+
:(+ $((&%+ :(/+ -#)&%+ ,-%'<+ '$(/+ :(/+ C-/6<+ -%+ $'':)&%$:4+ :(/+
':)&%$:4@+L#)+X.$4&+/$*&'C-/$'&()+2-(2&%(*+).&+.#':(+C-/6+
:(/+$)*+'-/&*+-,+5&%2&5)$-(<+/&':)&%$:4$Y:)$-(+$*+2-(2&5)#:446+
5&%2&$>&/+:*+4-2:)&/+-#)*$/&+).&+C-/6@
;'&%$2:(+:%)*+*2.-4:%+L$44+L%-X(+/&*2%$C&*+:+5%&>:$4$(0+/$*!
2-#%*&+ $(+ '&/$:+ ).&-%6+ ).:)+ .&+ 2:44*+ eB.&+ 1&':)&%$:4$Y:)$-(+
\65-).&*$*f<+X.$2.+$*+:+5&%>:*$>&+2%$)$2$*'+-,+'&/$:+:*+:+).%&:)+
WRPDWHULDOLW\%URZQS%URZQLGHQWL¿HVWKLVK\!
5-).&*$*+X$).+:+%:(0&+-,+).$(?&%*<+*#2.+:*+I-4$(+M&(,%&X<+D%(*)+
I:**$%&%<+:(/+N'':(#&4+b:()<+X.-+*.:%&+).&+$/&:+).:)+'&/$:+
)&2.(-4-0$&*+:%&+%&54:2$(0+':)&%$:4*+:%)$,:2)*+X$).+$'':)&%$:4+
%&5%&*&():)$-(*@+B.$*+)&(/&(26+4&:/*+)-+).&+.65-).&*$*+).:)+).&+
5.6*$2:4+ X-%4/+ C&2-'&*+ '&):5.-%$2:446+ e>:5-%$Y&/+ C6+ &4&2!
)%-($2+'&/$:f+75@+QG8<+:(/+).#*+/&':)&%$:4$Y&/@
L%-X(+:%0#&*+).:)+-(&+-,+).&+%&:*-(*+).$*+.65-).&*$*+5&%*$*)*+
$(+).&+/$*2-#%*&+-,+'&/$:+)&2.(-4-06+$*+C&2:#*&+-,+).&+.$*)-%$!
2:4+/&>&4-5'&()+-,+).&+26C&%(&)$2+5:%:/$0'+$)*&4,<+:(/+C&2:#*&+
e&:%46+ %&*&:%2.+ $(+ 26C&%(&)$2*+ 2-(2&5)#:4$Y&/+ $(,-%':)$-(+ :*+
/$*&'C&//&/+:(/+/$*&'C-/$&/f+75@+QQ8@
;*+(-)&/+C6+:%)+.$*)-%$:(+M$2.:%/+K.$,,<+).&+5%:2)$2&+-,+2%&:)!
$(0+ $':0&*+ .:*+ '->&/+ ,%-'+ C&$(0+ e.:(/!-%$&()&/f+ )-+ C&$(0+
QZ
QR
KIMDDO
KIMDDO
2$)6+ *"#:%&<+ ).&+ 2%-**%-:/*+ -,+ :44+ ':**+ '&/$:@f+ 75@+ EQ8@+ B.&+
-4/+2%-**%-:/*+-,+).&+2$)6+.:*+C&&(+/$*54:2&/+C6+:(+&4&2)%-($2+
*#C*)$)#)&@+9#%).&%'-%&<+e).&+':(+r+':2.$(&+$()&%,:2&+%&54:2&*+
).&+,:2:/&*+-,+C#$4/$(0*+:*+*#%,:2&*+-,+5%-5&%)6+:44-)'&()*@f+75@+
GV8@+;22-%/$(0+)-+a$%$4$-<+).&+*#%,:2&*+-,+C#$4/$(0*+X&%&+'&):!
5.-%$2:446+ $()&%2.:(0&/+ X$).+ :(-).&%+ *#%,:2&<+ ).&+ $()&%,:2&@+
B.$*+:4*-+*.-X&/+$)*+)%:2&*+$(+).&+(&X+:%2.$)&2)#%&+-,+04:**+:(/+
*)&&4<+X.&%&+).&+2-(*)%#2)$-(+-,+*2:(!4$(&*+C&.:>&*+'#2.+4$?&+
2-'5#)&%+*2%&&(*<+-(46+e).&+5$^&4+%&54:2&*+).&+C-4)+:(/+%$>&)f+
75@+TH8@
,Q DQ LQWHUYLHZ E\ $QGUHDV 5XE\ 9LULOLR UHÀHFWV RQ 7/(8$;
,"(,9/"&$1&,8"&7+"&5C&$,)&S$/,9%-&*$)%AA"%/%1("+7a$%$4$-+&)+:4@<+
GTTH8@+\&%&<+a$%$4$-+&^54$2$)46+/&*2%$C&*+).&+5%-2&**+-,+/&':)&!
%$:4$Y:)$-(+$(+).&+:0&+-,+$(,-%':)$-(+)&2.(-4-06h
).&+ $':0&+ 75@+ GSG8@+B.&+ e/&':)&%$:4$Y:)$-(+ ).:)+ 0-&*+ 5:%:44&4+
)-+ /&)&%%$)-%$:4$Y:)$-(+ :(/+ /&2-%5-%:)$-(f+ 75@+ GSF8+ :,,&2)*+ :%!
2.$)&2)#%&<+C#)+:4*-+e:(6+?$(/+-,+':)&%$:4$)6f+75@+GSZ8<+:(/+$*+
':%?&/+ C6+ /$*:55&:%:(2&+ %:).&%+ ).:(+ &4$'$(:)$-(<+ X.&%&+ ).&+
':)&%$:4+C&2-'&*+50)5-","+:(/+$13$)$0-"@
a$%$4$-`*+2%$)$"#&+%&*&'C4&*+).-*&+-,+':(6+5-*)!'-/&%(+).$(?!
%&*&'C4&*+).-*&+-,+':(6+5-*)!'-/&%(+).$(?!
+).-*&+-,+':(6+5-*)!'-/&%(+).$(?!
&%*<+ *#2.+ :*+ do%0&(+ \:C&%':*<+ d:(&+ d:2-C*<+ M$2.:%/+ K&(!
(&)<+ 1:>$/+ \:%>&6<+ ]#6+ 1&C-%/<+ :(/+ ).&+ K$)#:)$-($*)+ 0%-#5<+
:44+ -,+ X.-'+ :%0#&/+ ).:)+ 5#C4$2+ 4$,&+ .:/+ /&24$(&/+ $(+ ,:>-%+ -,+
:+X$)./%:X:4+$()-+/-'&*)$2$)6+:(/+).&+5%$>:)&+*5.&%&<+4:%0&46+
:*+:+%&*#4)+-,+'&/$:+&>&()*+:(/+*5&2):24&*+C&$(0+/&2&()%:4$Y&/+
$(+5%$>:)&+.-'&*@+K$'$4:%+2%$)$"#&*+':6+C&+,-#(/+$(+X%$)$(0*+
-(+(&X+'&/$:<+*#2.+:*+J:(#&4+I:*)&44*`+:%0#'&()+).&+X&+:%&+
LQFUHDVLQJO\OLYLQJLV³VSDFHVRIÀRZV´LQVWHDGRI³VSDFHVRI
54:2&f+7I:*)&44*<+EFFV8+:(/+W$44$:'+J$)2.&44`*+/&*2%$5)$-(+-,+
e).&+0%-X$(0+/-'$(:)$-(+-,+*-,)X:%&+->&%+':)&%$:4$Y&/+,-%'f+
7J$)2.&44<+GTTZ<+5@+Q8@
9%$&/%$2.+b$))4&%+.:*+:4*-+:%0#&/+).:)+$(,-%':)$-(+)&2.(-4-06<+
&*5&2$:446+2-'5#)&%*<+':6+C&+*:$/+)-+/&':)&%$:4$Y&+).&+':)&%$:4+
X-%4/@+eN(*$/&+).&+2-'5#)&%*+).&'*&4>&*+&>&%6).$(0+C&2-'&*+
:+ (#'C&%h+ "#:()$)6+ X$).-#)+ $':0&<+ *-#(/+ -%+ >-$2&f+ 7b$))4&%<+
GTTT<+5@+G8@+N(+.$*+C--?<+]A,$(%-&!"#$%+7EFGF8<+b$))4&%+$*+2-(!
2&%(&/+X$).+).&+,-#(/:)$-(*+-,+X.:)+.&+2:44*+5A,$(%-&:"#$%<+:(/+
&*5&2$:446+ ).&+ ':)&%$:4+ 2-(/$)$-(*+ -,+ ).&$%+ *)-%:0&+ :(/+ )%:(*!
'$**$-(@+ L:*&/+ -(+ I4:#/&+ K.:((-(`*+ '-/&4+ -,+ 2-''#($2:!
)$-(<+b$))4&%+&^:'$(&*+).&+.$*)-%6+:(/+5%&.$*)-%6+-,+'&/$:+X$).+
%&*5&2)+)-+).&$%+2:5:2$)6+)-+*)-%&+:(/+)%:(*'$)+$(,-%':)$-(@+L&!
0$(($(0+X$).+5$-(&&%$(0+/&>$2&*+*#2.+:*+).&+:%+$(&-%1,"/1+:(/+
(%:"/%&50)(9/%<+.&+/&*2%$C&*+>:%$-#*+.$*)-%$2:4+'&/$:+/&>$2&*+
:(/+&>:4#:)&*+).&'+:22-%/$(0+)-+5.6*$2:4+:(/+)&2.($2:4+)%:(*!
'$**$-(+-,+$':0&*@+N(+.$*+:(:46*&*<+b$))4&%+&'5.:*$Y&*+.-X+).&+
-%$0$(:4+'&/$:+/&>$2&*+X&%&+C:*&/+-(+5A,$()+g+).&+)%:(*'$**$-(+
&HQWXULHV DJR PDWWHU ZDV GH¿QHG E\ WZR GLPHQVLRQV PDVV
%1#&"1"/+@?&45#%@&,8"/"&(5:")&%&,8$/#&51"&,5&$,G&$1C5/:%,$51?&
=9,&68$-"&:%))&$)&),$--&-$1>"#&,5&+/%3$,@&%1#&:%,"/$%-$,@B&$1C5/;
:%,$51&,"1#)&,5&0"&C9+$,$3"?&chd&C5/&9)&%&:591,%$1&(51,%$1)&%&
685-"&65/-#&5C&$1C5/:%,$51&68"/"%)&C5/&A/"8$),5/$(&:%1&$,&6%)&
GH¿QHGVROHO\DVDQREVWDFOH&7a$%$4$-+&)+:4@<+GTTH<+5@+GSF8
I$)&/+:4'-*)+:+/&2:/&+:,)&%+25),&*$:"1)$51<+a$%$4$-+#5/:)&*+.$*+
>$&X*+-(+:%2.$)&2)#%&+:22-%/$(0+)-+(&X+)&2.(-4-0$&*<+*#2.+:*+
>$%)#:4+%&:4$)6@+;0:$(<+.&+:%0#&*+).:)+':)&%$:4+&4&'&()*+-,+:%2.$!
)&2)#%&+:%&+C&$(0+%&54:2&/+X$).+4&**+5.6*$2:4+*#C*)$)#)&*+,%-'+
)&2.(-4-06h+ ).&+ *):$%2:*&+ C&$(0+ %&54:2&/+ C6+ ).&+ &4&>:)-%<+ ).&+
)-X&%+:*+:+>:():0&+5-$()+C&$(0+%&54:2&/+C6+).&+:$%54:(&<+:(/+*-+
-(@+a$%$4$-+*&&*+).&*&+%&54:2&'&()*+:*+*$0(*+-,+).&+#$)%AA"%/;
%1("+-,+:%2.$)&2)#%&<+$(+:+%&:4+*&(*&@+\&+&>&(+(-)&*+).:)+*-'&+
;*$:(+2$)$&*+,&:)#%&+C#$4/$(0*+X$).+e,:2:/&*+&()$%&46+':/&+-,+
*2%&&(*f<+X.&%&+).&+C#$4/$(0+$)*&4,+4$)&%:446+/$*:55&:%*+C&.$(/+
QS
QT
KIMDDO
KIMDDO
-,+$':0&*+:*+4$0.)+).%-#0.+4&(*&*<+'$%%-%*+:(/+/:%?+2.:'C&%*<+
WREHFRPHSURMHFWHGRQDZDOODFDQYDVRUFHOOXORLG¿OP7R
b$))4&%<+).$*+-5)$2:4+)%:(*'$**$-(+%&5%&*&()*+:+/$%&2)+)%:(*,&%+-,+
$':0&*+X$).-#)+:(6+)%:(*4:)$-(+-%+/&0%:/$(0+-,+).&+*-#%2&@+B.$*+
2-()%:*)*+).&+X:6+(&X&%+)&2.(-4-0$&*<+*):%)$(0+X$).+)&4&>$*$-(<+
)%&:)+).&+$':0&h
'&:(*+-,+4$0.)+%:6*+&^5-*$(0+).&+(&0:)$>&<+).&+/$0$):4+$':0&+$*+
5#%&46+*6'C-4$2<+:%C$)%:%6<+:(/+(-(!':)&%$:4@
b$))4&%+:4*-+(-)&*+).:)+).&+/$0$):4+$':0&+$*+(-)+&^24#*$>&+)-+).&+
2-'5#)&%<+ C#)+ X:*+ 2-(2&$>&/+ X$).+ ).&+ &:%4$&*)+ 5%&!)&4&>$*$-(+
&^5&%$'&()*+ X$).+ '&2.:($2:4+ )&4&>$*$-(<+ &*5&2$:446+ ).&+ O$5!
?-X+ 1$*?<+ $(>&()&/+ $(+ GSSV+ C6+ 3:#4+ ]-))4$&C+ O$5?-X@+ B.$*+
X:*+:+'&2.:($2:4+/&>$2&+2-(*$*)$(0+-,+:+%-):)$(0+/$*?+X$).+:+
*&%$&*+-,+.-4&*@+B.&*&+.-4&*+X-#4/+).&(+:2)+:*+*2:(!4$(&*+X.&(+
).&+ /$*?+ X:*+ %-):)$(0<+ ).&%&C6+ C%&:?$(0+ ).&+ $':0&+ $()-+ >&%)$!
2:4+4$(&*@+B.&+O$5?-X+/$*?+X-%?&/+:*+C-).+:+%&2-%/$(0+:(/+:+
54:6C:2?+/&>$2&<+X.&%&+).&+%&2-%/&%+.:/+:+4$0.)+*&(*-%<+:(/+).&+
54:6C:2?+*2%&&(+#*&/+:+4$0.)+C#4C+,-%+$44#'$(:)$-(@+B.&+-%$0$(:4+
/&>$2&+ .:/+ -(46+ GS+ *2:(+ 4$(&*<+ X.$2.+ X&%&+ 2#%>&/+ :4-(0+ ).&+
2$%24&*+-,+%-):)$-(<+-X$(0+)-+).$*+2$%2#4:%+0&-'&)%6@+B.&+/&*$0(+
X:*+$'5%->&/+C6+L%$)$*.+$(>&()-%+d-.(+U-0$&+L:$%/<+X.-+$'!
54&'&()&/+:+O$5?-X+/$*?+X$).+HF+.-4&*+:(/+*#22&*,#446+)%:(*!
'$))&/+:+4$>&+$':0&+C6+%:/$-+X:>&*+$(+GTEQ+7*&&+9$0#%&+R8@+B.$*+
GHVLJQ ZDV GLI¿FXOW WR LPSURYH XSRQ EXW GHVSLWH LWV OLPLWD!
)$-(*<+).&+O$5?-X+/$*?+5%->$/&/+).&+C:*$2+5%$(2$54&+).:)+X-#4/+
C&2-'&+,#(/:'&():4+)-+).&+4:)&%+2:).-/&!%:6+*2%&&(<+).:)+-,+).&+
*2:(!4$(&+/&2-(*)%#2)$-(+-,+).&+>$*#:4+$':0&@+;4).-#0.+.$0.46+
$'5%:2)$2:4<+(-$*6<+:(/+4$'$)&/+$(+:(+-5)$2:4+*&(*&<+).&+O$5?-X+
/$*?+':/&+).&+2-(*)%#2)$-(+-,+$':0&*+>$*$C4&+).%-#0.+$)*+*$'!
54&<+'&2.:($2:4+/&*$0(@
;22-%/$(0+)-+b$))4&%<+).&+/&2-(*)%#2)$-(+-,+).&+$':0&+$()-+/$*!
2%&)&+4$(&*<+:*+5$-(&&%&/+C6+).&+O$5?-X+/$*?+:(/+4:)&%+/&>&4!
RSHGLQWRWKHFDWKRGHUD\VFUHHQZDVWKH¿UVWVWDJHRIWKH#$+$;
,%-&$:%+"<+:4).-#0.+$)+X:*+2-'54&)&46+:(:4-0+$(+2-(>&()$-(:4+
)&%'*@+N(+-%/&%+)-+)%:(*'$)+).&+)X-!/$'&(*$-(:4+$':0&+->&%+:+
-(&!/$'&(*$-(:4+2.:((&4<+$)+X:*+(&2&**:%6+)-+C%&:?+/-X(+).&+
$':0&+$()-+:+4$'$)&/+(#'C&%+-,+4$(&*@+B.&+2:).-/&!%:6+*2%&&(+
,#(2)$-(&/+:22-%/$(0+)-+).&+5%$(2$54&+-,+5%-_&2)$(0+).&+$':0&<+
,QFRQWUDVWWR¿OPWHOHYLVLRQZDVDOUHDG\QRORQJHUjC:*&/+-(l&
RSWLFV,WLVSRVVLEOHWRKROGD¿OPUHHOXSWRWKHVXQDQGVHH
68%,&"3"/@&C/%:"&)856)?&<,&$)&A5))$0-"&,5&$1,"/("A,&,"-"3$)$51&
)$+1%-)B&09,&15,&,5&-55>&%,&,8":B&0"(%9)"&,8"@&51-@&"Y$),&%)&"-"(;
,/51$(& )$+1%-)?& 48"& "@")& (%1& 51-@& %(("))& ,8")"& )$+1%-)& %,& ,8"&
0"+$11$1+&%1#&"1#&5C&,8"&,/%1):$))$51&(8%$1B&$1&,8"&),9#$5&%1#&
51&,8"&)(/""1?&*$+$,%-&$:%+"&A/5("))$1+&,89)&9-,$:%,"-@&/"A/";
)"1,)& ,8"& -$b9$#%,$51& 5C& ,8$)& -%),& /":%$1#"/& 5C& ,8"& $:%+$1%/@?+
7b$))4&%<+EFGF<+5@+EEZ8
N)+ $*+ 24&:%+ ).:)+ b$))4&%`*+ #(/&%*):(/$(0+ -,+ '&/$:+ /&>$2&*+ 2-(!
2&%(*+ (-)+ -(46+ ).&+ %&2&5)$-(+ :(/+ ,#(2)$-(<+ C#)+ :4*-+ .-X+ ).&+
$(,-%':)$-(+$*+%&2-%/&/<+)%:(*'$))&/<+:(/+/$*54:6&/@+;22-%/$(0+
)-+ b$))4&%<+ ).&+ $(>&()$-(+ -,+ )&4&>$*$-(+ X:*+ ':%?&/+ C6+ %:/$2:4+
(&X+).$(?$(0<+X.&%&+).&+$':0&+X:*+)%:(*4:)&/+$()-+:+(-(!-5!
)$2:4+ /-':$(@+ L6+ )%:(*4:)$(0+ ).&+ $':0&+ $()-+ :(+ &4&2)%$2:4+ *$0!
(:4<+$)+$*+(-+4-(0&%+-5)$2:4<+):2)$4&+-%+-).&%X$*&+5&%2&5)$C4&@+B.&+
)&4&>$*$-(+2:'&%:+,#(2)$-(*+:*+e:+,#446+&4&2)%-($2+2-(>&%)&%+-,+
$':0&*+ $()-+ &4&2)%$2+ 2#%%&()*f<+ )#%($(0+ ).&+ )X-+ $':0&+ /$'&(!
*$-(*+$()-+e:+*$(04&+2.:((&4+/$'&(*$-(f+7b$))4&%<+EFGF<+5@+EFS8@+
L#)+X.$4&+)&4&>$*$-(+)%:(*'$**$-(+X-%?*+$(+-(&+/$'&(*$-(<+).&+
2-()$(#-#*+*)%&:'+-,+4$(&*<+).&+/$0$):4+$':0&+.:*+(-+5.6*$2:4+
&^)&(*$-(n+ $)+ $*+ ).&+ e%&/#2)$-(+ -,+ :44+ /$'&(*$-(*+ )-+ Y&%-f+ 75@+
:KHUHDVWKHROGFHOOXORLG¿OPZDVFRQFHLYHGE\DQLQ!
/&^$2:4+%&4:)$-(*.$5+C&)X&&(+$':0&+:(/+).&+5$2)#%&/+*2&(&+C6+
ZF
ZG
KIMDDO
KIMDDO
-(&+4$(&+:)+:+)$'&<+-()-+).&+C:2?+-,+).&+*2%&&(@+B.&+%&*#4)$(0+
$':0&+X:*+).&%&C6+%&/#2&/+7C6+/$*2%&)&+*:'54$(08+)-+:+4$'$)&/+
(#'C&%+-,+.-%$Y-():4+4$(&*@+B.$*+5%$(2$54&+X:*+-(46+/&>&4-5&/+
,#%).&%+X$).+2-'5#)&%+'-($)-%*<+:4*-+2#))$(0+).&+.-%$Y-():4+/$!
'&(*$-(+$()-+/$*2%&)&+5$^&4*+-(+C-).+:^&*+g+&,,&2)$>&46+/&2-(!
*)%#2)$(0+).&+$':0&+&>&(+'-%&<+:(/+,#%).&%+%&'->$(0+$)+,%-'+
).&+-5)$2:4<+).&+>$*$C4&<+:(/<+$'54$2$)46<+).&+':)&%$:4+/-':$(@
9-%+C-).+a$%$4$-+:(/+b$))4&%<+).&+/&':)&%$:4$Y:)$-(<+>$%)#:4$Y:!
)$-(<+ -%+ 4$"#$/:)$-(+ -,+ ).&+ ':)&%$:4+ /-':$(+ $*+ :+ '&):5.-%$2:4+
-(&@+ N)+ %&5%&*&()*+ ).&+ )&2.(-4-0$2:4+ %&54:2&'&()+ -,+ 2&%):$(+
5%&>$-#*+ :%)$,:2)*+ :(/+ ).&+ 5%:2)$2&+ *#%%-#(/$(0+ ).&'<+ :(/+ $(+
).$*+)%:(*,-%':)$-(<+*-'&+5&%2&5)#:4+:*5&2)*+:%&+4-*)@+9-%+a$%!
LOLR DUFKLWHFWXUH DQG LWV VSDWLDO FRQ¿JXUDWLRQV DUH GLVSODFHG
C6+ &4&2)%-($2+ '&/$:+ g+ &,,&2)$>&46+ 4-*$(0+ C-).+ /&5).+ :(/+ ).&+
5%&*&(2&+-,+):2)$4&+*5:2&@+b$))4&%<+-(+).&+-).&%+.:(/<+(-)&*+).&+
4-**+-,+5A,$(%-+"#:4$)$&*+:(/+5.6*$2*+-,+).&+$':0&+X$).+$)*+$(!
¿QLWH FRQWLQXLW\ .LWWOHU¶V H[WHQVLYH HPSKDVLV RQ 5A,$()+ '#*)+
C&+#(/&%*)--/+:*+).&+"#:4$)6+-,+C&$(0+C:*&/+-(+-5)$2:4+5.6*!
$2*<+$(+2-()%:*)+)-+&4&2)%$2:4@+B.&+-5)$2:4+$':0&+$*+).&%&C6+C:*&/+
-(+':)&%$:4+5.6*$2*<+$(+2-()%:*)+)-+).&+/$0$):4+$':0&<+X.$2.+$*+
C:*&/+ -(+ &4&2)%$2:4<+ (-(!-5)$2:4<+ )%:(*'$**$-(+ :(/+ *)-%:0&@+ N(+
).$*+*&(*&<+).&+/&':)&%$:4$Y:)$-(+/&*2%$C&/+C6+b$))4&%+$*+(-)+_#*)+
'&):5.-%$2:4<+C#)+/&*2%$C&*+).&+)%:(*,-%':)$-(*+-,+).&+-5)$2:4+
$':0&+:(/+$)*+4$)&%:4+/&2-(*)%#2)$-(@
9277!/F
B.&+*2%&&(+$*+:+2&()%:4+5.&(-'&(-(+$(+2-()&'5-%:%6+2#4)#%&<+
:*+$)+$*+:%0#:C46+).&+/-'$(:()+'&/$#'+,-%+://%&**$(0+.#':(+
5&%2&5)$-(@+B.$*+:4*-+'&:(*+).:)+$)+$*+&^5-*&/+)-+).-%-#0.+&^!
DPLQDWLRQE\WKLQNHUVLQPDQ\¿HOGVRIVWXG\
N+.:>&+:%0#&/+).:)+).&+*2%&&(+':6+C&+2-(2&5)#:4$Y&/+:*+).&+&(!
)$%&+>$*#:4+5:%:/$0'+$'54$2$)+$(+5%-/#2$(0+$':0&*@+B.&+$':0&*+
ZE
'$+9/"&kG&=%$/#f)&4"-"3$)$5/&9)$1+&%&R$A>56&*$)>
M85,5&0@&5A"1-$0/%/@?5/+
ZH
KIMDDO
KIMDDO
5%&*&()&/+ C6+ ).&+ *2%&&(+ :%&<+ 4$?&+ 5.-)-0%:5.6+ :(/+ 5:$()$(0<+
C:*&/+-(+).&+5%-5&%)6+-,+4--?$(0+,8/59+8+).&+*#%,:2&+:(/+$()-+
:(-).&%+%&:4$)6@+B.$*+.:*+':/&+*2%&&(*+:(/+-).&%+'&:(*+-,+>$*#!
:4+%&5%&*&():)$-(+*#C_&2)+)-+*-'&+2%$)$2$*'<+:*+).&+'-/&+-,+).&$%+
5&%2&5)$-(+%&'->&*+).&+:))&()$-(+,%-'+).&+$''&/$:)&+*$)#:)$-(@
J:(6+).$(?&%*+.:>&+/$*2#**&/+*2%&&(*<+C-).+$(+)&%'*+-,+).&+.$*!
)-%$2:4+&>-4#)$-(+-,+$)*+)&2.(-4-06<+:(/+).&$%+%&4:)$-(+)-+:%)@+L#)+
:*+N+.:>&+:%0#&/<+).&%&+$*+:+0&(&%:4+,:$4#%&+)-+:2?(-X4&/0&+).&+
*2%&&(+ :*+ :+ ':)&%$:4+ :%)$,:2)@+ N(*)&:/<+ ':(6+ ).$(?&%*+ *#00&*)+
).:)+).&+*2%&&(+,#(2)$-(*+:*+:(+$'':)&%$:4+X$(/-X<+2-(*&"#&()!
46+/&':)&%$:4$Y$(0+5.6*$2:4+*5:2&@
;*+ N+ .:>&+ /&*2%$C&/<+ ).&%&+ :%&+ /$,,&%&()+ 5&%*5&2)$>&*+ -(+ .-X+
*2%&&(*+ :(/+ >$*#:4+ %&5%&*&():)$-(*+ ':6+ 2:#*&+ /$*2-((&2)$-(*+
C&)X&&(+>$*#:4+5&%2&5)$-(+:(/+%&*)+-,+).&+*&(*$(0+C-/6@+J:(6+
-,+).&+2%$)$"#&*+/&*2%$C&/+.&%&+.$()+:)+:+/$*)$(2)$-(+C&)X&&(+$(!
)&%$-%+5&%2&5)$-(+:(/+&^)&%$-%+%&:4$)6<+%&*&'C4$(0+).&+I:%)&*$:(+
/#:4$*'+:(/+*&5:%:)$-(+-,+'$(/+:(/+C-/6@+B.$*+$*+&*5&2$:446+&>!
$/&()+X.&(+$)+2-'&*+)-+).&+(-)$-(+-,+#$)":05#$:"1,+/&*2%$C&/+
C6+J:(->$2.<+-%+).&+%&4:)&/+$/&:+-,+%:A9,%,$51+/&*2%$C&/+C6+
J2U#.:(@+ L#)+ *$'$4:%+ $/&:*+ :%&+ :4*-+ #(/&%4$(&/+ $(+ ).&+ -).&%+
5&%*5&2)$>&*+5%&*&()&/@
N)+ *.-#4/+ C&+ 24&:%+ ).:)+ ).&%&+ $*+ :+ /$*_#(2)$-(+ $(+ &^$*)$(0+ 4$)!
&%:)#%&+ :C-#)+ *2%&&(*@+ B.&+ "#&*)$-(+ ).:)+ ,#(/:'&():446+ /$,!
,&%&()$:)&*+).&+>:%$-#*+).$(?&%*+'&()$-(&/+#()$4+(-X+$*h+$*+).&+
*2%&&(!$':0&+ :+ ':)&%$:4+ &()$)6<+ -%+ $*+ $)+ '&%&46+ :(+ $'':)&%$:4+
%&5%&*&():)$-(s+3&%.:5*+$)+$*+(-)+:+"#&*)$-(+-,+&$).&%+-%<+C#)+$(!
*)&:/+:C-#)+$/&()$,6$(0+).&+$(*):(2&*+$(+X.$2.+).&+*2%&&(+,#(2!
)$-(*+:*+$'':)&%$:4+$':0&<+:(/+X.&(+$)+C&2-'&*+':)&%$:4@+;*+N+
X$44+24:%$,6+).%-#0.+).$*+/$**&%):)$-(<+).&+$()&%5%&):)$-(*+-*2$4!
4:)&+C&)X&&(+).&*&+)X-+2-(2&5)$-(*<+:(/+).$*+/#:4$)6+&(,-%2&*+
).&+)X-+).%-#0.+).&$%+'#)#:4+$()&%54:6@
P(&+-,+).&+%&:*-(*+,-%+).&+/$>&%*$)6+-,+5&%*5&2)$>&*+-(+*2%&&(*+
':6+C&+).&+,#(/:'&():4+5%-C4&'+-,+4-2:)$(0+).&+*2%&&(<+5.6*$!
2:446+:(/+2-(2&5)#:446@+B.$(?&%*+/&*2%$C$(0+).&+&,,&2)*+-,+).&+
*2%&&(+ :*+ #":%,"/$%-$e%,$51+ *&&'+ )-+ 4-2:)&+ ).&+ *2%&&(+ :)+ ).&+
$':0&+ *#%,:2&<+ -%+ ).&+ /$*:55&:%:(2&+ -,+ *#2.@+ 9-%+ ).&'<+ ).&+
*2%&&(+%&5%&*&()*+).&+C%9Y&/"%-<+).&+*$'#4:)$-(+-%+$44#*$-(+).:)+
/&($&*+).&+5.6*$2:4@+3:#4+a$%$4$-+$*+-(&+-,+).&+':_-%+2%$)$2*+-,+
).&+*2%&&(<+$()&%5%&)$(0+$)*+&,,&2)*+:*+.:>$(0+C-).+%&:4+:(/+'&):!
5.-%$2:4+$'':)&%$:4$)6@
N)+$*+5-**$C4&+)-+/&*2%$C&+).&+*2%&&(+$(+X:6*+).:)<+5.6*$2:446+:(/+
2-(2&5)#:446<+*$)#:)&+).&+*2%&&(+$(+:(+-55-*$)&+5-*$)$-(+X.&%&+
$)+$*+>$*$C4&<+):2)$4&<+:(/+5&%'&:)&/+X$).+'&:($(0@+N(+).&+(&^)+
2.:5)&%<+ N+ &^54-%&+ ).$*+ -55-*$)&+ :*+ ).&+ (-)$-(+ -,+ :%,"/$%-$,@<+
X.$2.+':6+C&+2-(2&$>&/+:*+/&*2%$5)$>&+-,+C-).+%&:4+:(/+'&):!
5.-%$2:4@
ZV
ZQ
5,&60)/!"8#
MATERIALITY
J;BDMN;UNB[
B.&+*2%&&(+.:*+54:6&/+:+':_-%+%-4&+$(+).&+/&>&4-5'&()+-,+-#%+
'-/&%(+*-2$&)6<+$(+-#%+X-%?!4$,&<+:*+:+*-#%2&+-,+&()&%):$('&()<+
DQGLQWKH¿HOGRIDUW\HWLWV:%,"/$%-$,@+$*+(-)+X$/&46+%&2-0!
($Y&/@+B.$*+2.:5)&%+/$*2#**&*+.-X+X&+':6+).$(?+-,+).&+*2%&&(+
:*+:+':)&%$:4+:%)$,:2)<+:(/+.-X+$)+.:*+C&&(+)%&:)&/+$(+).$*+':((&%+
C6+:%)$*)*+*$(2&+).&+*$^)$&*@
J-%&+ ).:(+ )X&()6+ 6&:%*+ :0-<+ 2&%):$(+ 5-*)'-/&%(+ 2%$)$2*+ /$*!
2#**&/+'&/$:+:(/+).&+*2%&&(+$(+)&%'*+-,+/&':)&%$:4$Y:)$-(+:(/+
).&+ $'':)&%$:4$)6+ ).:)+ %&*#4)*+ ,%-'+ $)<+ ).&%&+ (-X+ *&&'*+ )-+ C&+
:+(&X+5:%:/$0'+&'&%0$(0<+X$).+:(+$(2%&:*&/+2-(2&%(+,-%+).&+
':)&%$:4$)6+-,+'&/$:@+B.&+e-4/f+2%$)$2:4+).$(?$(0+:C-#)+>$*#:4+
%&5%&*&():)$-(+:*+:+*-#%2&+-,+/&':)&%$:4$Y:)$-(+:(/+/$*&'C-/$!
'&()+75%->$/&/+C6+).$(?&%*+*#2.+:*+L:#/%$44:%/<+1&C-%/<+a$%!
$4$-<+b$))4&%<+:(/+-).&%*8+*&&'+)-+.:>&+%&2&/&/<+$(+,:>-%+-,+(&X<+
e':)&%$:4f+ ).$(?$(0<+ X$).+ %&0:%/+ )-+ '&/$:@+ L$44+ L%-X(+ (-)&/+
).:)<+/&*5$)&+eB.&+1&':)&%$:4$Y:)$-(+\65-).&*$*f+:(/+'&/$:`*+
e:55:%&()+).%&:)+)-+':)&%$:4$)6f<+).&%&+$*+:+C-/6+-,+2-()&'5-!
%:%6+4$)&%:)#%&+).:)+5%->$/&*+e:+(&X+':)&%$:4$*)+)#%(f+7L%-X(<+
EFGF<+ 5@+ QF8@+ L#)+ X.&%&+ ).&+ &:%46+ 2%$)$2*+ .:/+ :)):2?&/+ '&/$:+
-(+ ).&+ 0%-#(/*+ -,+ C&$(0+ :%))& (5::91$(%,$51+ :(/+ '&:(*+ -,+
)$:9-%,$51<+ ).&+ (&X+ /$*2-#%*&+ $*+ C:*&/+ -(+ &'5.:*$Y$(0+ ).&+
:&*).&)$2+5-)&()$:4+-,+).&+$(/$>$/#:4+'&/$#'<+$(+).&+2-()&^)+-,+
:%)+ :(/+ )&2.(-4-06+ 7L%-X(<+ EFGFn+ \:64&*<+ EFFE8@+ N(*)&:/+ -,+
'&):5.-%$2:4+/&':)&%$:4$Y:)$-(+-,+).&+5.6*$2:4+%&:4'<+).&+(&X+
:55%-:2.&*+*&&'+)-+,-2#*+-(+:%,"/$%-$e%,$51+:(/+:%,"/$%-$,$")+
-,+ '&/$:+ )&2.(-4-0$&*<+ $(24#/$(0+ )65&*+ -,+ '&/$:+ ).:)+ :%&+ -,!
)&(+%&0:%/&/+:*+$::%,"/$%-<+4$?&+)&^)+7I#C$))<+GTTS8+-%+*-,)X:%&+
7U&-(:%/$<+EFGF8@
B.&+ &'&%0$(0+ *&(*$)$>$)6+ )-+ ':)&%$:4$)6+ $*+ &>$/&()+ $(+ ':(6+
¿HOGVHVSHFLDOO\DFDGHPLFRQHV7KLVPDQLIHVWVLWVHOILQLGHDV
*#2.+ :*+ R"6& !%,"/$%-$):+ $(+ 2#4)#%:4+ *)#/$&*<+ X.$2.+ 5%->$/&*+
:4)&%(:)$>&+:55%-:2.&*+)-+e-4/f+':)&%$:4$*'<+-,)&(+%&,&%%$(0+)-+
ZT
J;BDMN;UNB[
J;BDMN;UNB[
&$).&%+ ).&+ J:%^$:(+ ':)&%$:4$*'+ 2%$)$"#&<+ -%+ ).&+ 5-*)!'-/&%(+
2%$)$"#&+ -,+ /&':)&%$:4$Y:)$-(+ 7K&&+ ,#%).&%+ /$*2#**$-(+ -,+ e(&X+
':)&%$:4$*'f+$(+73:%$??:<+EFGF88@
N(+*)#/$&*+-,+1"6&:"#$%<+).&%&+.:*+:4*-+C&&(+:(+$(2%&:*&/+,-!
2#*+-(+).&+5.6*$2:4+:*5&2)*+-,+'&/$:@+B.$*+':6+C&+*&&(+$(+).&+
5:%:/$0':)$2+*.$,)+$(+,-2#*+,%-'+>$%)#:4+%&:4$)6+)-+:#0'&()&/+
-%+ '$^&/+ %&:4$)6+ 7J:(->$2.<+ EFFEn+ J$40%:'+ :(/+ b$*.$(-<+
GTTV8<+:(/+:4*-+:(+$(2%&:*&/+,-2#*+-(+):(0$C4&+$()&%,:2&*+7N*.$$+
:(/+=44'&%<+GTTR8<+5.6*$2:4+2-'5#)$(0+7P`K#44$>:(+:(/+N0-&<+
EFFV8<+ :(/+ &'C-/$&/+ $()&%:2)$-(+ 71-#%$*.<+ EFFV8@+ ;44+ ).&*&+
$/&:*+,-2#*+-(+:/_#*)$(0+).&+,-2#*+-,+/$0$):4+)&2.(-4-06+:X:6+
,%-'+).&+>$%)#:4<+*$'#4:)&/+&(>$%-('&()+7:(/+).&+*2%&&(8<+:(/+
-(+$(2%&:*&/+5.6*$2:4+$()&0%:)$-(@+3:#4+1-#%$*.`*+C--?<+a8"/"&
48"& 7(,$51& <)+ 7EFFV8<+ $*+ -(&+ -,+ ).&+ '-%&+ &4:C-%:)&+ :22-#()*+
-,+).$*+)#%(+,%-'+).&+>$%)#:4+7/$*&'C-/$&/8+*$'#4:)$-(+)-+e&'!
C-/$&/f+$()&%:2)$-(<+/&*2%$C$(0+).&+(&X+X:6+).:)+5.6*$2:4+:(/+
*-2$:4+5.&(-'&(:+#(,-4/+$(+%&:4+)$'&+:(/+%&:4+*5:2&+71-#%$*.<+
EFFV<+55@+GFF!GFG8@
)&%$:4$)6+:*+:+"#:4$)6+-,+:%,,"/+-%+*#C*):(2&<+%&,&%%$(0+)-+).&+>$!
*#:4+:(/+):2)$4&+&^5&%$&(2&+-,+:+'&/$#'+:*+$)+$*+5&%2&$>&/+C6+$)*+
:#/$&(2&@+B.$*+:4*-+&(2-'5:**+).&+$/&:*+-,+>$%)#:4+>&%*#*+':!
)&%$:4+%&5%&*&():)$-(@+K&2-(/+$*+).&+&^)&%$-%+C5/:+-,+5&%2&$>&/+
H[SUHVVLRQZKLFKPD\EHXQGHUVWRRGRQYDULRXVOHYHOVRIGH¿!
($)$-(+:(/+:C*)%:2)$-(+$(+&^5%&**$-(@+B.&+).$%/+$()&%5%&):)$-(+$*+
).&+)%:(*5-*&/+'&:($(0+-,+':)&%$:4$)6+:*+).&+51,5-5+@<+-%+).&+
FRQGLWLRQVDQGXQGHUO\LQJFRQVWUDLQWVWKDWDUHVSHFL¿FWRDPH!
/$#'<+:(/+).&%&C6+&'5.:*$Y&+).&+'&/$#'`*+2#4)#%:4+2-(*)%#2!
)$-(+:(/r-%+$(.&%&()+5%-C4&'*@+B.&+:$'+$*+)-+5%&*&()+:+>$&X+-,+
PHGLDDUWDQGVSHFL¿FDOO\VFUHHQEDVHGDUWWKDWDUWLFXODWHVWKH
:&*).&)$2+*)%:)&0$&*+:(/+"#:4$)$&*+).:)+&^$*)+$(+).&+:%)$*)$2+5%:2!
)$2&+ %&4:)$(0+ )-+ ,8"& :%,"/$%-& )(/""1@+B.&+ ).%&&+ $()&%5%&):)$-(*+
-,+ ':)&%$:4$)6+ X$44+ C&+ 2-()$(#:446+ :554$&/+ )-+ X-%?*+ -,+ '&/$:+
:%)+ ).%-#0.-#)+ ).$*+ 2.:5)&%<+ &^&'54$,6$(0+ .-X+ ).&*&+ &^5%&**+
).&+2-(2&5)+-,+).&+':)&%$:4+*2%&&(+$(+)&%'*+-,+).&+:&*).&)$2+:(/+
:%)$*)$2+:55%-:2.+)-+$)@
N+:%0#&+).:)+).$*+:%,"/$%-&,9/1+*.-X*+$)*&4,+$(+C-).+:(+$(2%&:*&/+
,-2#*+ -(+ ).&+ ):2)$4&+ :(/+ &'C-/$&/+ &^5&%$&(2&+ -,+ :%,,"/<+ :(/+
).&+C5/:%-TXDOLWLHVRIWKHVSHFL¿FPHGLXPEXWDOVRLQZKDW
2-#4/+C&+/&*2%$C&/+:*+51,5-5+@+-,+).&+'&/$#'<+X.&%&+).&+>:%$!
RXVIRUPVRIPHGLDDUWGHDOZLWKVSHFL¿FFRQGLWLRQVRIDSDU!
)$2#4:%+'&/$#'+:(/+$)*+2-(*)$)#)$-(@+B.&+5%&*&()+$/&:+-,+':)&!
%$:4$)6+2->&%*+:44+).%&&+2-(2&5)*<+X.$2.+$()&%)X$(&+)-+:(+&^)&()+
).:)+).&6+:%&+:4'-*)+$(*&5:%:C4&<+:(/+,#%($*.+-(&+:(-).&%+X$).+
'&:($(0@+B.$*+"#:4$)6+5%->$/&*+:+/&&5&%+$(*$0.)+$()-+).&+':)&!
%$:4+2-'54&^$)6+-,+2-()&'5-%:%6+'&/$:+:%)<+:*+N+&^54:$(+4:)&%@
N(+ ).$*+ 2.:5)&%+ N+ :%0#&+ ).:)+ :)+ 4&:*)+ ).%&&+ /$,,&%&()+ $()&%5%&):!
)$-(*+ -,+ :%,"/$%-$,@+ :%&+ >:4$/+ $(+ ).&+ #(/&%*):(/$(0+ -,+ '&/$:+
DQGPRUHVSHFL¿FDOO\PHGLDDUW)LUVWLVWKHEDVLFLGHDRIPD!
RF
1&:4$(0+X$).+,8"&:%,"/$%-+*&&'*+)-+5%&*#55-*&+:+/#:4$*'+).:)+
2-()%:*)*+).&+':)&%$:4+X$).+,8"&$::%,"/$%-<+(-)+#(4$?&+).&+I:%)&!
*$:(+/$*)$(2)$-(+C&)X&&(+C-/6+:(/+'$(/+7L%-X(<+EFGF<+5@+QR8@+
B.$*+/#:4$*'+):?&*+':(6+,-%'*+$(+2-()&'5-%:%6+*2.-4:%46+4$)!
&%:)#%&<+:*+$(,-%':)$-(r':)&%$:4<+/$*&'C-/$'&()r&'C-/$'&()<+
*-,)X:%&r.:%/X:%&<+2-(2&5)r,-%'<+$()&%$-%r&^)&%$-%<+:(/+*-+-(@+
L#)+ X.&%&:*+ :%,"/$%-+ ':6+ %&,&%+ )-+ ).&+ 4:*)!(:'&/<+ ).&+ &^)&!
%$-%<+:%,"/$%-$,@+':6+$(*)&:/+2.:%:2)&%$Y&+:*5&2)*+).:)+5&%>:/&+
).&+/$*)$(2)$-(*+-,+$()&%$-%+:(/+&^)&%$-%+7]#'C%&2.)<+GTTV<+55@+
VFG!VFE8@+W&+':6+C&0$(+)-+/$*2#**+).&+':)&%$:4+(:)#%&+-%+':!
)&%$:4+"#:4$)$&*+).:)+0-+C&6-(/+*#2.+/#:4$*'<+:(/+$(*)&:/+,-2#*+
-(+).&+*)%#2)#%:4+%&4:)$-(*.$5+C&)X&&(+2-(*)%#2)+:(/+'&:($(0@
N,+-(&+X&%&+)-+/&*2%$C&+).&+':)&%$:4$)6+-,+4:(0#:0&<+$)+X-#4/+
'-*)+2&%):$(46+$(>-4>&+).&+*6():2)$2+%#4&*+:(/+).&+*&':()$2+&(!
RG
J;BDMN;UNB[
J;BDMN;UNB[
FRGLQJWKHVWUXFWXUDOIUDPHZRUNWKDWGH¿QHVRXUXQGHUVWDQG!
LQJRIODQJXDJH,QVLPLODUWHUPVZHPD\GH¿QHWKHPDWHULDOLW\
-,+).&+*2%&&(+:*+).&+),/9(,9/"+).:)+/&*2%$C&*+.-X+X&+).$(?+-,+
VFUHHQVDVERWKWKHUXOHVWKDWGH¿QHWKHVFUHHQFXOWXUDOO\DQG
).&+'&:($(0*+).:)+).$*+2#4)#%:4+:%)$,:2)+2-()%$C#)&*+)-+*-2$&)6@
:(/+*5$%$)#:4<+:(/+,%-'+).:)+2-'&*+).&+/$*)$(2)$-(+C&)X&&(+':)!
)&%r$/&:+-%+':)&%$:4r$/&:4@
7!440/
N(+ %&2&()+ 6&:%*<+ /$0$):4+ '&/$:+ .:>&+ &^5&%$&(2&/+ :(+ $(2%&:*&/+
,-2#*+-(+).&+5.6*$2:4$)6+-,+$()&%:2)$-(*<+:(/+).&+&'C-/$&/+&^!
5&%$&(2&+71-#%$*.<+EFFV8@+9%-'+5%&>$-#*46+C&$(0+,-2#*&/+-(+
':?$(0+).&+C-/6+-C*-4&)&+).%-#0.+$/&:*+-,+26C-%0*+:(/+>$%)#:4+
%&:4$)6<+(&X+5:%:/$0'*+,-2#*+$(2%&:*$(046+-(+.:5)$2*<+):(0$C4&+
$()&%:2)$-(<+:(/+).&+?$(&*).&)$2+&^5&%$&(2&+-,+)&2.(-4-06@+B.$*+
$*+ 5:%:44&4&/+ C6+ ).&+ *.$,)+ ,%-'+ a$%)#:4+ M&:4$)6+ )-+;#0'&()&/+
M&:4$)6+:(/+):(0$C4&+2-'5#)$(0@+B.&+$(2%&:*&/+:))&()$-(+)-+':!
)&%$:4$)6+:(/+).&+5.6*$2:4+/-':$(+X:*+:4*-+(-)&/+C6+U&>+J:!
(->$2.+ $(+ .$*+ :(:46*$*+ -,+ (&X+ %9+:"1,"#& )A%("h+ eB.&+ GTTF*+
X&%&+:C-#)+).&+>$%)#:4@+jkl+N)+$*+"#$)&+5-**$C4&+).:)+).$*+/&2:/&+
-,+).&+EFFF*+X$44+)#%(+-#)+)-+C&+:C-#)+).&+5.6*$2:4+jklf+7J:!
(->$2.<+EFFE8@+N)+*&&'*+).:)+:%,,"/+.:*+0:$(&/+(&X+#%0&(26+$(+
).&+%&:4'+-,+)&2.(-4-06@
I#4)#%:4+2%$)$2+M:6'-(/+W$44$:'*+.:*+://%&**&/+).&+'&:($(0+
-,+:%,,"/+,%-'+:+.$*)-%$2:4+5-$()+-,+>$&X<+/&*2%$C$(0+).&+>:%$!
-#*+'&:($(0*+$)+.:*+.:/+*$(2&+$)*+$()%-/#2)$-(+)-+).&+D(04$*.+
>-2:C#4:%6+7W$44$:'*<+GTSQ<+5@+GTR8@+B.&+)&%'+*)&'*+,%-'+).&+
U:)$(+X-%/<+e':)&%$:f<+X.$2.+%&,&%*+)-+C#$4/$(0+':)&%$:4<+*#2.+
:*+)$'C&%@+;22-%/$(0+)-+W$44$:'*<+).$*+'&:($(0+.:*+C&&(+&^!
)&(/&/+)-+$'546+:(6+5.6*$2:4+*#C*):(2&<+:(/+C6+,#%).&%+&^)&(!
*$-(<+).&+*#C*):(2&+-,+:(6).$(0@+\&+&4:C-%:)&*+).$*+(-)$-(+C6+%&!
,&%%$(0+)-+).&+&:%46+#*&*+-,+:%,,"/+:*+:+2-()%:*)+)-+C5/:<+).&%&C6+
/$*)$(0#$*.$(0+':)&%$:4+"#:4$)$&*+,%-'+"#:4$)$&*+%&4:)&/+)-+,-%'@+
;+'-%&+2-''-(+/$*)$(2)$-(+$*+).&+-(&+':/&+C&)X&&(+':)&%$:4+
RE
W.&(+$)+2-'&*+)-+%/,<+).&%&+.:>&+C&&(+':(6+$**#&*+X$).+$)*+':!
)&%$:4*+).%-#0.-#)+.$*)-%6@+W.&(+\&$/&00&%+X:*+/$*2#**$(0+).&+
5/$+$1)+-,+:+X-%?+-,+:%)+7\&$/&00&%<+GTHZ8<+.$*+0%&:)&*)+*)%#004&+
X:*+)-+4-2:)&+).&+:%,,"/+-,+X.$2.+:%)+2-#4/+C&+*:$/+)-+C&+2-'!
5-*&/@+ L&2:#*&+ X.$4&+ -%/$(:%6+ ).$(0*+ X&%&+ 2-'5%&.&(/:C4&+
:*+ *#C*):(*&*<+ :%)<+ -(+ ).&+ -).&%+ .:(/<+ X:*+ C&6-(/+ *#2.+ 24:*!
VL¿FDWLRQ$QGWKHSUREOHPWKDW:DOWHU%HQMDPLQUDLVHGDERXW
/"A/5#9($0$-$,@+ $(+ 48"& a5/>& 5C&7/,& $1& ,8"&7+"& 5C& !"(8%1$(%-&
`"A/5#9(,$51+7L&(_:'$(<+GTHQ8+X:*+:%0#:C46+:+5%-C4&'+-,+).&+
:%)X-%?`*+':)&%$:4+#($"#&(&**+C&2-''$(0+-C*-4&)&@+W.&(+:(+
DUWZRUNPD\EHLQ¿QLWHO\UHSURGXFHGLWORVHVLWV%9/%+C&2:#*&+
-,+$)*+4:2?+-,+':)&%$:4+#($"#&(&**@+B.$*+$**#&+.:*+C&&(+:(+$'!
5-%):()+5:%)+-,+(&X+'&/$:+).&-%6<+X.&%&+/$*)$(2)$-(*+'#*)+C&+
':/&+C&)X&&(+/$0$):4+:%)+:(/+/$0$)$Y&/+:%)+2-()&()@
N(+':(6+%&*5&2)*<+b$))4&%`*+(-)$-(+-,+5A,$(%-&:"#$%+':6+:4*-+C&+
$()&%5%&)&/+:*+:+,-2#*+-(+).&+':)&%$:4$)6+-,+'&/$:@+N(+:+%&>$&X+
-,+]A,$(%-&!"#$%+7EFGF8<+O$2-4:*+]:(&+:(/+\:((&*+\:(*&(!
J:0(#**-(+C-$4&/+b$))4&%`*+C--?+/-X(+)-+:+2&()%:4+"#&*)$-(<+
X.$2.+ X:*+ ).&+ )$)4&+ -,+ ).&$%+ :%)$24&h+ eJ:)&%$:4$)6+ $*+ ).&+ J&*!
*:0&sf+ 7EFFZ8@+ =(/-#C)&/46<+ ).$*+ %&,&%*+ )-+ J2U#.:(`*+ '-*)+
,:'-#*+"#-):)$-(<+C#)+:4*-+/&*2%$C&*+b$))4&%`*+>$&X+-(+'&/$:@+
N(+ ':(6+ X:6*<+ b$))4&%`*+ '&/$:+ ).&-%6+ /&>$:)&*+ ,%-'+ J2U#!
.:(`*@+;4).-#0.+ b$))4&%+ *.:%&*+ J2U#.:(`*+ >$&X+ ).:)+ ).&+ '&!
/$#'+$)*&4,+$*+'-%&+$'5-%):()+).:(+).&+'&**:0&<+b$))4&%+$*+'#2.+
'-%&+,-2#*&/+-(+).&+)&2.(-4-0$2:4+.:%/X:%&<+:(/+'#2.+4&**+-(+
J2U#.:(`*+*&(*-%6+&'5.:*$*@+;)+b$))4&%+X%$)&*h+ejkl+J2U#!
.:(<+X.-+X:*+-%$0$(:446+:+4$)&%:%6+2%$)$2<+#(/&%*)--/+'-%&+:C-#)+
5&%2&5)$-(+).:(+&4&2)%-($2*<+:(/+).&%&,-%&+.&+:))&'5)&/+)-+).$(?+
RH
J;BDMN;UNB[
J;BDMN;UNB[
:C-#)+)&2.(-4-06+$(+)&%'*+-,+C-/$&*+$(*)&:/+-,+).&+-).&%+X:6+
:%-#(/f+7b$))4&%<+EFGF<+5@+ET8@+N(+,:2)<+).&+4&2)#%&*+)%:(*2%$C&/+
$(+]A,$(%-&!"#$%+:%&+:+/$%&2)+%&*5-(*&+)-+J2U#.:(`*+.1#"/;
),%1#$1+& !"#$%<+ X.$2.<+ &>&(+ $(+ $)*+ )$)4&<+ 5%-5-*&*+ :(+ $'5-*!
*$C$4$)6<+:22-%/$(0+)-+b$))4&%@
B.&+4&2)#%&*+)%:(*2%$C&/+$(+]A,$(%-&!"#$%+5%&*&()+:+%&!&^:'$(:!
WLRQRIPHGLDKLVWRU\DVDVHULHVRIVSHFL¿FWHFKQLFDOSUREOHPV
:(/+*-4#)$-(*<+$(+2-()%:*)+)-+J2U#.:(`*+$/&:+-,+e&^)&(*$-(*f@+
W.&%&+ J2U#.:(+ *:X+ ).&+ &'&%0&(2&+ -,+ '&/$:+ :*+ &^5%&**$(0+
).&+.#':(+/&*$%&+)-+:#0'&()+).&+C-/6<+b$))4&%+*&&*+).&+5%-0%&*!
*$>&+/&>&4-5'&()+-,+'&/$:+:*+).&+:(*X&%+)-+).&+*.-%)2-'$(0*+
RISUHFHGLQJPHGLDWHFKQRORJLHV6SHFL¿FDOO\.LWWOHUIRFXVHV
-(+).&+5:%:'&)&%*+-,+,/%1):$))$51+:(/+),5/%+"<+/&/#2&/+,%-'+
&ODXGH6KDQQRQ¶V¿YHVWDJHFRPPXQLFDWLRQPRGHODVWKHVHW
-,+ 2&()%:4+ "#:4$)$&*+ :0:$(*)+ X.$2.+ &:2.+ .$*)-%$2:4+ '&/$#'+ $*+
_#/0&/@
B.&+5:%)$2#4:%+)65&+-,+'&/$:+).:)+b$))4&%+/&*2%$C&*+:*+5A,$(%-&
:"#$%+/&>$:)&*+,%-'+3$)9%-&:"#$%+$(+).&+':)&%$:4+*):)&+-,+).&+
)%:(*'$**$-(+:(/+*)-%:0&@+W.$4&+3$)$51+%&4$&*+-(+5&%2&5)$-(+:(/+
.#':(+ $()&%5%&):)$-(<+ 5A,$() LV D VXE¿HOG RI SK\VLFV .LWWOHU
EFGF<+ 5@+ H8@+;(/+ X.$4&+ :44+ >$*#:4+ '&/$:+ :%&+ e-5)$2:4f+ $(+ ).&+
*&(*&+).:)+).&$%+$':0&+$*+5&%2&5)$C4&+)-+).&+.#':(+&6&<+(-)+:44+
'&/$:<+.-X&>&%<+X$44+2-(*&%>&+).$*+-5)$2:4+"#:4$)6+).%-#0.+).&+
>:%$-#*+*):0&*+-,+)%:(*'$**$-(@+P%$0$(:4+$':0$(0+)&2.(-4-0$&*+
4$?&+ ).&+ (%:"/%& 50)(9/%+ :(/+ ).&+ -%1,"/1%& :%+$(%+ X&%&+ -5)$!
2:4+'&/$:<+:22-%/$(0+)-+b$))4&%`*+#(/&%*):(/$(0<+C&2:#*&+).&6+
X-%?&/+ C6+ )%:(*,-%'$(0+ $':0&*+ ).%-#0.+ 5A,$()+ 74&(*&*+ :(/+
'$%%-%*8+ ,%-'+ -(&+ '&/$#'+ )-+ :(-).&%@+ B.&+ $':0&+ )%:>&4*+ :*+
4$0.)+ ).%-#0.+ :+ 5$(.-4&+ )-+ 2%&:)&+ ).&+ $':0&+ 5%&*&()&/+ $(+ ).&+
(%:"/%&50)(9/%@+K:'&+4&>&4+-,+5A,$()+X:*+:554$&/+X.&(+5.-!
WRJUDSK\ZDVLQYHQWHGDQGODWHUDJDLQZLWKWKHPRYLQJ¿OP
5%-_&2)-%<+:4).-#0.+:+,&X+'-%&+*)&5*+X&%&+$(>-4>&/+$(+).&+5%-!
2&**@+ B.&+ )&4&>$*$-(<+ -(+ ).&+ -).&%+ .:(/<+ ':%?&/+ :+ /&5:%)#%&+
,%-'+).&+-5)$2:4+)%:(*'$**$-(+-,+$':0&*+$(+5%&>$-#*+'&/$:<+:2!
2-%/$(0+ )-+ b$))4&%@+ N)+ )%:(*4:)&/+ $':0&*+ $()-+ &4&2)%$2:4+ *$0(:4*+
).:)+:%&+$'5&%2&5)$C4&+C6+.#':(+>$*$-(<+:(/+).&%&C6+e(-+4-(0&%+
-5)$2*f+ 7b$))4&%<+ EFGF<+ 5@+ EEZ8@+B.$*+ &^54:$(*+ ).&+ :))&()$-(+ )-+
'&/$#'+':)&%$:4$)6+:554$&/+C6+b$))4&%+$(+.$*+#(/&%*):(/$(0+-,+
-5)$2:4+ '&/$:@+ B.&+ '&/$:+ )&2.(-4-0$&*+ 5%&2&/$(0+ 2-'5#)&%*+
:(/+)&4&>$*$-(+X&%&+'#2.+'-%&+,-2#*&/+-(+5.6*$2:4+$**#&*+-,+
)%:(*'$))$(0<+*)-%$(0<+:(/+5%&*&()$(0+$':0&*@
;*+ :4*-+ '&()$-(&/+ C6+ %&>$&X&%*+ O$2.-4:*+ ]:(&+ :(/+ \:((&*+
\:(*&(!J:0(#**-(<+$)+$*+#(24&:%+X.6+b$))4&%+&'5.:*$Y&*+).&+
-5)$2:4+ "#:4$)6+ -,+ -4/+ '&/$:+ )&2.(-4-0$&*<+ :(/+ X.:)+ %-4&+ ).&+
':)&%$:4$)6+-,+$':0&*+54:6*+$(+>:%$-#*+'&/$:+7]:(&+:(/+\:(!
*&(!J:0(#**-(<+EFFZ<+5@+HEG8@+N)+:55&:%*+).:)+b$))4&%+':?&*+:+
"#:4$):)$>&+/$*)$(2)$-(+C&)X&&(+-5)$2:4+:(/+(-(!-5)$2:4+'&/$:<+
X.$2.+$*+(-)+&^54:$(&/+$(+).&+4&2)#%&*<+C#)+5&%'&:)&*+).&+)&^)+
LPSOLFLWO\,QWKH¿QDOSDJHVRIWKHERRNKHFULWLFL]HVFRPSXW!
&%*+ ,-%+ %&/#2$(0+ :44+ '&/$:+ $(5#)+ )-+ ).&+ *:'&+ $::%,"/$%-$,@+ g+
).:)+-,+/$0$):4+C$)*+g+:(/<+$(+&,,&2)<+/&*)%-6$(0+).&+/$*)$(2)$-(*+
C&)X&&(+)65&*+-,+'&/$:+2-()&()@+B.#*<+/$0$):4+2-()&()+C&2-'&*+
:+0&(&%$2+':**+).:)+':6+C&+)%:(*'$))&/+:'-(0+:44+)65&*+-,+2-(!
)&()@+;0:$(<+b$))4&%`*+&>:4#:)$-(+$*+C:*&/+-(+).&+2-''#($2:)$-(+
'-/&4<+X.&%&+).&+*)-%:0&+:(/+)%:(*'$**$-(+-,+$(,-%':)$-(+:%&+
:**&**&/+ :*+ C&$(0+ :*+ $'5-%):()+ :*+ $)*+ 5%&*&():)$-(+ :(/+ %&2&5!
)$-(<+:(/+).&+':)&%$:4+)90),%1("+-,+).&+'&/$#'+C&2-'&*+:+?&6+
&4&'&()+$(+.$*+).$(?$(0@
RV
;+5-**$C4&+2-#()&%!:%0#'&()+)-+b$))4&%`*+$/&:+-,+-5)$2*+$*+5%&!
*&()&/+ C6+ ]&C.:%/+ K&(0'o44&%`*+ :%)X-%?+ 7& M%/%--"-& <:%+"+
7EFFT8<+X.$2.+$*+/&*2%$C&/+:*+:(+e&4&2)%-($2+2:'&%:+-C*2#%:f+
7K&(0'o44&%+:(/+Lo2.$(0&%<+EFFT8@+N)+$*+:(+&4:C-%:)&+:55:%:)#*+
FRQVLVWLQJRIDWUDQVPLWWHUSODWH¿WWHGZLWKOLJKWVHQVRUV
RQ
J;BDMN;UNB[
J;BDMN;UNB[
DQGDUHFHLYHUSODWH¿WWHGZLWKOLJKWEXOEV7KHXQLTXH
:*5&2)+-,+).$*+$(*):44:)$-(+$*+).:)+&:2.+4$0.)+*&(*-%+$*+2-((&2)&/+
/$%&2)46+)-+:+4$0.)+C#4C<+':?$(0+&:2.+5$^&4+$(/&5&(/&()+,%-'+
&>&%6+ -).&%@+ B.&+ %&*#4)$(0+ $':0&+ 5%&*&()&/+ -(+ ).&+ %&2&$>&%+
e*2%&&(f+$*+(-)+:+%&2-(*)%#2)$-(+-,+).&+$':0&+,%-'+:+*)%&:'+-,+
/$0$):4+C$)*<+C#)+$(*)&:/+:(+:(:4-0+:55%-:2.+)-+).&+/$*2%&)&+*:'!
54$(0+-,+$':0&*+C6+$(/$>$/#:4+5$^&4*@+7&M%/%--"-&<:%+"+2:((-)+
C&+2.:%:2)&%$Y&/+:*+:(+-5)$2:4+'&/$#'<+$(+b$))4&%`*+*&(*&<+C#)+$)+
/-&*+(-)+/$**-4>&+).&+$':0&+$()-+0&(&%$2+C$)*+4$?&+/$0$):4+)&2.!
(-4-06<+ &$).&%@+ N)+ *.-X*+ ).:)+ ).&+ >$*#:4+ /&2-(*)%#2)$-(+ -,+ ).&+
$':0&+$()-+5$^&4*+$*+(-)+:+5%$(2$54&+).:)+$*+&^24#*$>&+)-+/$0$):4+
'&/$:<+C#)+':6+:55&:%+$(+:(:4-0+'&/$:+:*+X&44@
J:))&%+:(/+-5)$2*+:%&+:4*-+://%&**&/+$(+).&+X-%?<+a55#"1&!$/;
/5/+7GTTT8<+C6+1:($&4+M-Y$(<+X.$2.+$*+:+'&2.:($2:4+'$%%-%+2%&!
:)&/+,%-'+:+,&X+.#(/%&/+5$&2&*+-,+X--/+).:)+/$*54:6+).&+'$%%-%+
$':0&+-,+).&+-C*&%>&%@+D:2.+X--/&(+)$4&+$*+)$4)&/+C6+:+*&%>-'-!
)-%<+X.$2.+)#%(*+$)+&$).&%+)-X:%/+).&+->&%.:(0$(0+4$0.)+*-#%2&<+
-%+:X:6+,%-'+$)@+B.&+X--/+)$4&*+:%&+'-#()&/+$(+:+':)%$^<+:(/+
$(+).&+'$//4&+*$)*+:+*':44+2:'&%:+2-((&2)&/+)-+:+/$0$):4+2-()%-4+
V\VWHP:KHQDSHUVRQHQWHUVWKHFDPHUD¶V¿HOGRIYLHZWKH
'-)-%*+*):%)+)#%($(0+).&+X--/+)$4&+)-+,-%'+:+'-*:$2+$':0&+-,+
KLVRUKHUUHÀHFWLRQ5R]LQGHVFULEHVWKDWWKHZRUN³H[SORUHV
).&+4$(&+C&)X&&(+/$0$):4+:(/+5.6*$2:4<+#*$(0+:+X:%'+:(/+(:)#%:4+
':)&%$:4+*#2.+:*+X--/+)-+5-%)%:6+).&+:C*)%:2)+(-)$-(+-,+/$0$):4+
5$^&4*@f+7M-Y$(<+EFFS8@+\&+).&%&C6+&'5.:*$Y&*+).&+/#:4+':))&%+
-,+).&+/$0$):4+>&%*#*+).&+5.6*$2:4<+X.$4&+:4*-+*#00&*)$(0+).:)+).&+
X-%?+'&/$:)&*+C&)X&&(+).&+)X-+/-':$(*@
$SDUWIURPWKHYLVXDOUHÀHFWLRQLQa55#"1&!$//5/<+L-4)&%+:(/+
]%-'-4:+ 7L-4)&%+ :(/+ ]%-':4:<+ EFFH8+ .:>&+ :%0#&/+ ).:)+ ).&+
ZRUNLQYLWHVWKHDXGLHQFHWRUHÀHFWRQWKHLURZQSUHVHQFHLQ
).&+:%)+0:44&%6<+:(/+).&$%+5:%)$2$5:)$-(+:*+:(+&4&'&()+-,+).&+:%)!
RZ
'$+9/"&lG&i"08%/#&N"1+:g--"/&D&7&M%/%--"-&<:%+"&IJKKlL
E59/,")@&5C&i"08%/#&N"1+:g--"/&m
'$+9/"&TG&i"08%/#&N"1+:g--"/&D&7&M%/%--"-&<:%+"&IJKKlL
E59/,")@&5C&i"08%/#&N"1+:g--"/&m
RR
J;BDMN;UNB[
X-%?@+N)+:4*-+*.-X*+).:)+e/$0$):4+:%)$,:2)*+/-+(-)+.:>&+)-+/$*!
:55&:%+ $()-+ ).&+ &).&%+ -,+ 26C&%*5:2&n+ ).&6+ /-+ (-)+ .:>&+ )-+ C&+
/$*&'C-/$&/+-%+$'':)&%$:4@f+75@+HH8@+L6+%&>&%*$(0+).&+X$(/-X+
'&):5.-%<+a55#"1&!$//5/+*.-X*+).:)+e:(+$()&%,:2&+2:(+C&+(-)+
RQO\DZLQGRZEXWDOVRPLUURUUHÀHFWLQJWKHXVHU´S7KLV
%&>&%*:4+:4*-+*#00&*)*+:+%&>&%*:4+-,+-55>$1+&,8/59+8+)-+-55>$1+&
%,+).&+$()&%,:2&+7NC$/@8@
;4).-#0.+a55#"1&!$//5/+5%&*&()*+$)*+$':0&+C6+'&:(*+-,+-5!
WLFV ± WKH UHÀHFWLRQ RI OLJKW RQ ZRRGHQ WLOHV ± LW ZRXOG QRW
"#:4$,6+:*+:(+-5)$2:4+'&/$#'+$(+b$))4&%`*+*&(*&@+b$))4&%`*+,-2#*+
-(+)%:(*'$**$-(+:2)#:446+:%0#&*+).:)+).&+'&/$#'+$*+'-%&+).:(+
).&+$()&%,:2&@+N)+$*+).&+&()$%&+5%-2&**+-,+)%:(*4:)$-(+,%-'+-(&+/-!
':$(+)-+:(-).&%<+,%-'+-(&+'&/$#'+)-+:(-).&%@+B.$*+$/&:+$*+(-)+
:+,:%+2%6+,%-'+J2U#.:(`*+$/&:+-,+e).&+2-()&()+-,+:(6+'&/$#'+
$*+:4X:6*+:(-).&%+'&/$#'f+7J2U#.:(<+GTZV<+5@+S8<+-%+).&+'-%&+
%&2&()+(-)$-(+-,+e%&!'&/$:)$-(f+5%&*&()&/+C6+d:6+1:>$/+L-4)&%+
:(/+M$2.:%/+]%#*$(+7L-4)&%+:(/+]%#*$(<+EFFE8@+B.&+/$,,&%&(2&+
$*+).:)+b$))4&%+C&4$&>&*+).:)+-5)$2:4+'&/$:+$(>-4>&+:+4&**&%+/&!
0%&&+-,+)%:(*4:)$-(<+C&2:#*&+).&6+:%&+':)&%$:446+C:*&/+-(+-5!
)$2*+ ).:)+ :%&+ 5&%2&5)$C4&+ ).%-#0.-#)+ ).&+ )%:(*'$**$-(+ 5%-2&**@+
b$))4&%`*+:))&()$-(+)-+-5)$2*+$*+:4*-+:+,-2#*+-(+).&+'&/$#'+:*+
:+A/5("))+-,+)%:(*,-%':)$-(+C&)X&&(+/$,,&%&()+/-':$(*+-,+:%,;
,"/<+).%-#0.+4&(*&*<+'$%%-%*<+*&(*-%*<+:(/+&4&2)%$2:4+X$%&*<+)-+).&+
¿QDOPDWHULDOH[SUHVVLRQRQWKHVFUHHQZKHUHLPDJHEHFRPH
5&%2&5)$C4&+$(+':))&%@
.LWWOHU¶VHPSKDVLVRQRSWLFVLVDFRQ¿UPDWLRQRIWKHGXDOLVP
-,+':)&%$:4+>&%*#*+$'':)&%$:4@+N)+&'5.:*$Y&*+).&+5%-2&**+-,+/&!
':)&%$:4$Y:)$-(+ :(/+ ':)&%$:4$Y:)$-(+ :*+ ?&6+ 5-$()*+ 2-(2&%($(0+
).&+'&/$#'<+X.&%&+$(,-%':)$-(+$*+5-)&()$:446+4-*)@+B.&+*2%&&(+
$*+ :)+ ).&+ &(/+ -,+ ).$*+ 2.:$(<+ X.&%&+ $':0&*+ :%&+ >$*#:4$Y&/+ :(/+
':)&%$:4$Y&/@
RS
J;BDMN;UNB[
'$+9/"&FKG&*%1$"-&`5e$1&D&a55#"1&!$//5/&IFTTTL
E59/,")@&5C&*%1$"-&`5e$1&m
RT
J;BDMN;UNB[
J;BDMN;UNB[
?</7
B.&+ $'5-%):(2&+ -,+ ':)&%$:4$)6+ .:*+ -,)&(+ C&&(+ %:$*&/+ $(+ )&^)*+
2-(2&%($(0+'&/$:+:%)+:(/+).&+%&4:)$-(*+C&)X&&(+:%)+:(/+)&2.(-4!
-06@+L#)+:22-%/$(0+)-+4$)&%:%6+2%$)$2+b:).&%$(&+\:64&*<+).&%&+$*+:+
(&&/+)-+/&>&4-5+).&+2-(2&5)+&>&(+,#%).&%@+N(+.&%+C--?<+a/$,$1+&
!%(8$1")+ 7EFFE8<+ *.&+ C&0$(*+ C6+ :*?$(0+ ).&+ 2&()%:4+ "#&*)$-(<+
eW.6+.:>&+X&+(-)+.&:%/+'-%&+:C-#)+':)&%$:4$)6sf+75@+GT8@+D*!
5&2$:446+X$).$(+).&+.#':($)$&*<+).&%&+.:*+)%:/$)$-(:446+C&&(+e:+
*.:%5+4$(&+C&)X&&(+%&5%&*&():)$-(+:(/+).&+)&2.(-4-0$&*+5%-/#2!
$(0+).&'f+7NC$/@8@+;22-%/$(0+)-+\:64&*<+2#4)#%:4+*)#/$&*+.:>&+
$(/&&/+C&&(+:4&%)+)-+).&+$'5-%):(2&+-,+':)&%$:4$)6+$(+2#4)#%:4+
5%-/#2)$-(*<+C#)+.:>&+':/&+4$))4&+5%-0%&**<+C&2:#*&+).&6+#*#!
:446+-(46+2-(*$/&%+).&+:%)$,:2)*+-#)*$/&+).&+'&/$#'+7,-%+\:64&*<+
).&+4$)&%:%6+)&^)8<+%:).&%+).:(+).&+'&/$#'+:(/+2-()&()+$)*&4,+:*+
:+ ':)&%$:4+ -C_&2)*+ 7NC$/@8@+ K$(2&+ \:64&*+ :(:46Y&*+ ).&+ 4$)&%:%6+
)&^)+:*+.&%+*#C_&2)+':))&%<+).$*+:%,"/$%-&50^"(,+$*+2-(*$/&%&/+)-+
C&+).&+5%$()&/+2.:%:2)&%*+-(+5:5&%<+-,)&(+*)%#2)#%&/+$(+).&+,-%'+
-,+:+C--?@+\&%+>$&X+-,+':)&%$:4$)6+$*+>&%6+'#2.+C:*&/+-(+).$*+
$($)$:4+:**#'5)$-(+-,+).&+'&/$#'+:%)$,:2)+:*+:+5.6*$2:4+-C_&2)@+
;22-%/$(0+)-+\:64&*<+).&+':)&%$:4$)6+-,+).&+'&/$#'+2-'5%$*&*+
).&+e5.6*$2:4+5%-5&%)$&*+:(/+.$*)-%$2:4+#*:0&*f+).:)+e*)%#2)#%&+
-#%+$()&%:2)$-(+jkl+$(+X:6*+-C>$-#*+:(/+*#C)4&f+75@+EE8@+B.$*+
:4*-+'&:(*+).:)+).&+C5/:+54:6*+:+':_-%+%-4&+$(+.-X+-#%+&^5&!
%$&(2&+ -,+ '&/$:+ $*+ *)%#2)#%&/<+ :(/+ 2.:(0$(0+ ).$*+ ,-%'+ -,+ ).&+
PHGLXPSURYLGHVDQRSSRUWXQLW\IRULQÀXHQFLQJWKHHIIHFWRI
).&+ 2-()&()@+ \:64&*+ :%0#&*<+ eB-+ 2.:(0&+ ).&+ ':)&%$:4+ :%)$,:2)+
$*+ )-+ )%:(*,-%'+ ).&+ 2-()&^)+ :(/+ 2$%2#'*):(2&*+ ,-%+ $()&%:2)$(0+
jklf+75@+EH8@+B.&+:%,"/$%-$,@+$*+$()&%5%&)&/+:*+).&+*)%#2)#%$(0+
&4&'&()*<+*#2.+:*+).&+C5/:<+X.$2.+,%:'&+).&+&^5&%$&(2&+-,+).&+
2-()&()+:(/+5-)&()$:446+2.:(0&+).&+$()&%5%&):)$-(@+P(&+X:6+-,+
/-$(0+).$*+$*+C6+:4)&%$(0+).&+&^)&%(:4+:55&:%:(2&+-,+).&+'&/$!
#'<+$(+-%/&%+)-+5%->$/&+:+:%,"/$%-&:",%A85/@+K.&+0$>&*+).&+&^!
DPSOHRIDFRPSXWHUWKDWLVPRGL¿HGWRORRNOLNHDGRJWKHUHE\
':?$(0+:**-2$:)$-(*+).:)+2.:(0&+).&+%&2&5)$-(+&^5&%$&(2&+g+$(+
).$*+2:*&<+C&2-'$(0+:+2.$4/%&(`*+)-6@+B.&+:%,"/$%-&:",%A85/)+
e)%:(*,-%'+).&+'&):5.-%$2+(&)X-%?+*)%#2)#%$(0+).&+%&4:)$-(+-,+
X-%/+ )-+ X-%4/f<+ -%+ %:).&%<+ ).&+ *&':()$2+ #(/&%5$(($(0+ -,+ ).&+
'&/$#'+75@+EH8@
SF
\:64&*+/&'-(*)%:)&*+).&+$/&:+-,+2.:(0$(0+).&+':)&%$:4+:%)$,:2)+
$(+).&+4:6-#)+:(/+5%$()$(0+-,+).&+*:'&+C--?<+a/$,$1+&!%(8$1")@+
K.&+2-44:C-%:)&/+X$).+0%:5.$2+/&*$0(&%+;((&+L#%/$2?+$(+2%&:)!
$(0+ :(+ &^5%&**$>&+ >$*#:4+ /&*$0(+ X$).+ 0%:5.$2:4+ &4&'&()*+ :(/+
2-'C$(:)$-(*+ -,+ )65&,:2&*+ :(/+ ,-()+ *$Y&*@+ L#%/$2?+ /&*2%$C&*+
).$*+ :*+ C&$(0+ /-(&+ )-+ e2%&:)&+ :+ C--?+ ).:)+ &'C-/$&*+ $)*+ -X(+
2%$)$2:4+2-(2&5)*f<+:(/+).&%&C6+C&2-'&*+e:+2%$)$2:4+$(>&*)$0:!
)$-(f+7\:64&*<+EFFE<+5@+GVF8@+B.&+)65&,:2&+#*&/+$(+'-*)+5:%)*+
-,+ ).&+ C--?+ $*+ :+ *6().&*$*+ -,+ )X-+ -).&%+ )65&,:2&*<+ X.$2.+ :%&+
'$+9/"&FFG&n%,8/$1"&X%@-")&D&a/$,$1+&!%(8$1")&IJKKJL
SG
J;BDMN;UNB[
J;BDMN;UNB[
#*&/+$(+2&%):$(+54:2&*+)-+*$0($,6+&$).&%+5&%*-(:4+-%+).&-%&)$2:4+
*):)&'&()*@+ B.$*+ &^5&%$'&():4+ #*&+ -,+ e2.:(0$(0+ ).&+ ':)&%$:4+
:%)$,:2)f+ /&'-(*)%:)&*+ .&%+ 5-$()+ :C-#)+ ).&+ ,-%':4+ 2-(/$)$-(*+
C&$(0+&**&()$:4+)-+).&+$()&%5%&):)$-(+-,+).&+'&/$#'@
YLVLRQ VHWV VWDFNHG WRJHWKHU DQG ¿WWHG ZLWK D FHOOR QHFN DQG
-(46+-(&+*)%$(0@+W.$4&+J--%':(+X:*+54:6$(0+).&+2&44-<+).%&&+
/$,,&%&()+>$/&-+4--5*+X-#4/+C&+*.-X(+-(+).&+*2%&&(*h+:+/$%&2)+
,&&/+-,+).&+4$>&+5&%,-%':(2&<+:+>$/&-+2-44:0&+-,+-).&%+2&44$*)*<+
:(/+:(+$()&%2&5)&/+C%-:/2:*)+)&4&>$*$-(+,&&/@+;4).-#0.+).&+:%)!
X-%?+ X:*+ C:*&/+ -(+ ).&+ '&/$#'+ -,+ )&4&>$*$-(<+ $)+ X:*+ (-)+ ).&+
2-()&()+-(+).&+*2%&&(*+).:)+0:$(&/+'-*)+:))&()$-(@+L6+#*$(0+).&+
)&4&>$*$-(*+ *&)*+ %)& :%,"/$%-<+ 3:$?+ 2%&:)&/+ :+ (&X+ :%)$,:2)+ ).:)+
*#C-%/$(:)&/+).&+$':0&+)-+).&+'&/$#'<+$(+:(+&^:00&%:)$-(+-,+
J2U#.:(`*+'-*)+,:'-#*+/$2)#'@
3:$?+ ':/&+ *&>&%:4+ :%)X-%?*+ #*$(0+ *$'$4:%+ *)%:)&0$&*+ -,+ 2%&:)!
$(0+*2#45)#%&*+-#)+-,+Ba+*&)*@+1#%$(0+).&+($(&)&&(!&$0.)$&*+:(/+
($(&)$&*<+.&+':/&+:+,&X+:().%-5-'-%5.$2+*2#45)#%&*+74--?$(0+
4$?&+.#':(*<+-%+%:).&%<+%-C-)*8<+-,+X.$2.+).&+*2%&&(+X:*+)%#46+
).&+/%6&:%,"/$%-+,-%+).&*&+:%)X-%?*@+B.&+*2#45)#%&*+X&%&+-,)&(+
.#'-%-#*46+:22&**-%$Y&/+X$).+:+.:)<+:(+#'C%&44:<+-%+).&+4$?&<+
).#*+ 2%&:)$(0+ :+ *:%2:*)$2+ 2-''&():%6+ -(+ ).&+ *&%$-#*(&**+ :(/+
/:(0&%*+-,+)&4&>$*$-(<+X.$2.+X:*+'#2.+/&C:)&/+$(+).&+5&%$-/@+
B.&*&+X-%?*+':6+C&+*:$/+)-+&'C-/6+).&+$/&:+-,+e':)&%$:4+'&)!
:5.-%*f<+:*+5%&*&()&/+C6+\:64&*<+://$(0+'&:($(0+)-+).&+&^$*)!
$(0+'&/$#'+C6+*#00&*)$(0+:(+:4)&%(:)$>&+%&:/$(0@
;4).-#0.+3:$?`*+-&#>%&+$*+>&%6+/$>&%*&+$(+)&%'*+-,+:55%-:2.&*+
:(/+'&:($(0*<+).&%&+$*+:+0&(&%:4+)&(/&(26+)-+2-(*$/&%+'&/$:+
/&>$2&*<+&*5&2$:446+)&4&>$*$-(+*&)*<+:*+':)&%$:4*+,-%+.$*+X-%?*<+
:(/+).%-#0.+).:)+*)%:)&06<+':?&+2%$)$2:4+2-''&()*+-(+).&+%-4&+
-,+'&/$:+$(+-#%+*-2$&)6@+\&+:4*-+$'54$2$)46+"#&*)$-(*+).&+':!
)&%$:4$)6+ -,+ '&/$:+ $(+ )&%'*+ -,+ ).&+ e%&:4f+ >&%*#*+ ).&+ '&/$:)&/+
2-()&()+-,+.$*+:%)X-%?*<+:*+$(+).&+:%)X-%?<+4S&=9##8%+7GTRV8<+
X.&%&+:+L#//.:+*):)#&+$*+X:)2.$(0+$)*&4,+-(+:+Ba<+X$).+:+2:'!
&%:+ 2-((&2)&/+ )-+ $)@+B-+ *-'&+ &^)&()<+ ).&+ *):)#&+ $*+ X:)2.$(0+ :+
'$%%-%+ $':0&+ -,+ $)*&4,<+ C#)+ %&5%&*&()&/+ ).%-#0.+ ).&+ %&:4!)$'&+
)&2.(-4-06+-,+2:'&%:+:(/+)&4&>$*$-(@+N(*)&:/+-,+)&4&!>$*$-(<+).&+
B.&+ :%)$*)$2+ *)%:)&06+ C&.$(/+ e':)&%$:4+ '&):5.-%*f+ $*+ ).&+ $/&:+
).:)+ ).&+ '&/$#'+ $)*&4,+ $*+ :+ ':)&%$:4+ ).:)+ ':6+ C&+ 2.:(0&/+ )-+
H[SUHVVVSHFL¿FPHDQLQJRULQFRQWUDVWFUHDWHDPELJXLW\WKDW
C4#%*+ ).&+ '&:($(0@+ N(+ ':(6+ X:6*<+ ).$*+ 5:%:44&4*+ *-'&+ -,+ ).&+
*)%:)&0$&*+).:)+b-%&:(+>$/&-+:%)+5$-(&&%+O:'+d#(&+3:$?+:554$&/+
$(+ *-'&+ -,+ .$*+ )&4&>$*$-(!*&)+ $(*):44:)$-(*<+ C:2?+ $(+ ).&+ '$/!
GTZF*@+P(&+-,+).&+C&*)!?(-X(+X-%?*+-,+.$*+&:%46+2:%&&%+X:*+
).&+4S&E"--5+7GTRG8<+X.$2.+X:*+:+5&%,-%':(2&+/#%$(0+X.$2.+
2&44$*)+I.:%4-))&+J--%':(+54:6&/+:+e2&44-f+':/&+-,+).%&&+)&4&!
'$+9/"&FJG&R%:&
H91"&M%$>&D&4S&
E"--5&IFTkFL
SE
SH
J;BDMN;UNB[
J;BDMN;UNB[
$':0&+%&5%&*&()*+:+(&:%!>$*$-(<+*.-X$(0+).&+L#//.:+*):)#&+$(+
)X-+/$,,&%&()+':)&%$:4$)$&*+:)+-(2&@
X$).+'&/$:+:%)<+P#%*4&%+$*+(-)+$()&%&*)&/+$(+&^54-%$(0+).&+'&/$!
#'+:*+:+)&2.(-4-0$2:4+-%+5.6*$2:4+-C_&2)<+C#)+$(*)&:/+$)+C&2-'&*+
).&+'&:(*+,-%+)&44$(0+:+*)-%6+).:)+.:*+'-%&+5-&)$2+/&5).+).:(+:+
*)$44+$':0&@+L#)+:)+).&+*:'&+)$'&<+).&+5%-_&2)$-(*+5%&*&()+:+/%:!
':)$2+&,,&2)+).:)+/%:':)$Y&*+).&+$(*):44:)$-(<+$(*)&:/+-,+5-$()$(0+
:)+ ).&+ '&/$#'@+;4).-#0.+ ).&+ >$/&-+ 5%-_&2)-%+ $*+ -,)&(+ >$*$C4&+
$(+,%-()+-,+.$*+X-%?*<+$)+$*+24&:%46+(-)+:+5:%)+-,+).&+*2#45)#%:4+
&^5%&**$-(<+ C#)+ :+ (&2&**:%6+ '&:(*+ ,-%+ :2.$&>$(0+ ).&+ /&*$%&/+
&,,&2)@+P#%*4&%+/-&*+(-)+:))&'5)+)-+.$/&+).&+)&2.(-4-06<+C#)+.&+
/-&*+(-)+/%:X+:))&()$-(+)-+$)<+&$).&%@+P(+).&+-(&+.:(/<+P#%*4&%`*+
X-%?*+:))&'5)+)-+2-(2&:4+).&+*2%&&(+C6+#*$(0+).&+)&2.(-4-06+$(+
#(2-(>&()$-(:4+X:6*n+-(+).&+-).&%+.:(/<+).&6+%&'$(/+#*+).:)+
).&*&+5%-_&2)$-(*+2:((-)+C&+/&*2%$C&/+'&%&46+:*+2-(>&()$-(:446+
XQGHUVWRRG³VFUHHQV´7KHWUDGLWLRQDOÀDWUHFWDQJXODUVXUIDFH
$*+0$>&(+:+(&X+':)&%$:4$)6+$(+).&+X-%?*<+(-)+-(46+$(+).&+,-%'<+
C#)+:4*-+$(+).&+':)&%$:4*<+*#2.+:*+5$44-X*<+C:44--(*<+:(/+54:*)$2+
*2#45)#%&*@
N(+).&+5%-_&2)+)$)4&/+7KH,QÀXHQFH0DFKLQH+7EFFF8<+P#%*4&%+2%&!
:)&/+:+*&%$&*+-,+:%)X-%?*+:%-#(/+J:/$*-(+K"#:%&+3:%?<+$(+O&X+
[-%?+I$)6@+D:2.+:%)X-%?+/&5$2)&/+&$).&%+,:2&*+-%+)&^)*<+X.$2.+
X&%&+5%-_&2)&/+-()-+)%&&*<+C#$4/$(0*<+:(/+:4*-+-()-+*'-?&+,%-'+
*'-?&!':2.$(&*<+X.$2.+X&%&+*&)+#5+:%-#(/+).&+5:%?<+&2.-$(0+
).&+ A8%1,%):%+5/$%+ 5&%,-%':(2&*+ -,+ ).&+ ($(&)&&().+ 2&()#%6@+
7KHIDFHVUHDGPRQRORJXHVZULWWHQE\2XUVOHUVSHFL¿FDOO\IRU
HDFKIDFHFUHDWLQJJKRVWOLNH¿JXUHVDURXQGWKHSDUN7KLVH[!
54-%:)$-(+-,+>:%$-#*+':)&%$:4*+:*+5%-_&2)$-(+*#%,:2&*+6$&4/&/+:+
>:%$&)6+ -,+ &^5%&**$-(*+ ).:)+ ':/&+ ).&$%+ :55&:%:(2&+ C4&(/+ $()-+
).&+&(>$%-('&()@+L6+#*$(0+*'-?&+:(/+&^$*)$(0+':)&%$:4*+$(+).&+
5:%?<+7KH,QÀXHQFH0DFKLQH+C&2:'&+:+4:6&%+-(+)-5+-,+).&+($0.)+
:)'-*5.&%&<+:55&:%$(0+:*+5.:()-'*+-#)+-,+).&+/:%?@
P#%*4&%`*+X-%?*+*.:%&+).&+2-''-(+,&:)#%&+-,+#*$(0+:$Y"#&:";
#$%<+$(2-%5-%:)$(0+*.:5&/+5%-_&2)$-(+*#%,:2&*+:(/+/-44*<+':(!
4%$D6<GH-'(H
W.$4&+3:$?`*+:%)$*)$2+5%:2)$2&*+.:>&+C&&(+':$(46+,-2#*&/+-(+).&+
)&4&>$*$-(+:*+'&/$#'<+-).&%+:%)$*)*+.:>&+:55%-:2.&/+).&+*2%&&(+
:*+:+':)&%$:4+$(+-).&%+X:6*@+;'&%$2:(+:%)$*)+B-(6+P#%*4&%+.:*+
X-%?&/+X$).+>$/&-+5%-_&2)$-(*+*$(2&+GTTE<+X.&(+.$*+X-%?<+48"&
a%,(8$1+<+5$-(&&%&/+.$*+:55%-:2.+-,+5%-_&2)$(0+,:2&*+-()-+(-(!
%&2):(0#4:%<+2#%>&/+*#%,:2&*@+\$*+':(6+X-%?*+$(24#/&+2-'54&^+
$(*):44:)$-(*+-,+4:%0&+:%)$,:2)*<+X.&%&+,:2&*+:%&+5%-_&2)&/+-()-+
&00!*.:5&/+-C_&2)*<+2%&:)$(0+/%:':)$2+:(/+/$*)#%C$(0+&,,&2)*@
N(+2-()%:*)+)-+O:'+d#(&+3:$?+:(/+':(6+-).&%+:%)$*)*+X-%?$(0+
'$+9/"&FQG&7RQ\2XUVOHU±7KH,QÀXHQFH0DFKLQH
E59/,")@&5C&451"@&]9/)-"/&m
SV
SQ
J;BDMN;UNB[
J;BDMN;UNB[
(&"#$(*<+:(/+>:%$-#*+-).&%+-C_&2)*+).:)+2-()%$C#)&+)-+:+5:%)$2#!
4:%+*):0&/+*2&(&@+;*+(-)&/+C6+9%&&/':(<+D224&*<+:(/+U$(0X--/+
7EFFE8<+P#%*4&%+.:*+e2-(*):()46+5#*.&/+).&+'&/$#'+-,+>$/&-+
C&6-(/+).&+2-(*)%:$()*+-,+).&+)&4&>$*$-(+*2%&&(+-%+*$'54&+X:44+
5%-_&2)$-(f<+ :(/+ X$).+ 7KH ,QÀXHQFH 0DFKLQH<+ ).$*+ #*&+ -,+ ).&+
*2%&&(+%&:2.&/+:+5-$()+X.&%&+$)+2-#4/+C&+*:$/+)-+e&^5:(/+$()-+
).&+ #%C:(+ &(>$%-('&()f+ 79%&&/':(+ &)+ :4@<+ EFFE<+ 5@+ QE8@+ B.&+
#($"#&+ :55%-:2.+ P#%*4&%+ :554$&*+ %&*#4)*+ $(+ :%)X-%?*+ ).:)+ :%&+
*$'#4):(&-#*46+':)&%$:4+:%)$,:2)*+%1#+5%-_&2)$-(+*2%&&(*<+C4#%!
%$(0+ ).&+ /$*)$(2)$-(+ C&)X&&(+ >$/&-+ :%)+ :(/+ *5:)$:4+ :%)+ ,-%'*<+
*#2.+:*+*2#45)#%&+:(/+$(*):44:)$-(+:%)@
$(24#/&/+:+EQE!5$^&4+5-%)%:$)+-,+;C%:.:'+U$(2-4(<+X.$2.+X:*+
24&:%46+%&2-0($Y:C4&+C&2:#*&+-,+.$*+2.:%:2)&%$*)$2+C&:%/@
d$'+ I:'5C&44+ .:*+ ':/&+ *&>&%:4+ -,+ ).&*&+ 4-X!%&*-4#)$-(+ :%)!
X-%?*+).:)+C:4:(2&+-(+).&+).%&*.-4/+-,+5&%2&5)$-(<+':?$(0+$)+
:4'-*)+ $'5-**$C4&+ )-+ /&2$5.&%+ ).&+ $':0&@+ B.&+ '-*)+ &^)%&'&+
2:*&+-,+).$*+:C*)%:2)$-(+$*+*&&(+$(+:+*&%$&*+-,+X-%?*+2:44&/+7:;
0$+959)&<(51)+7GTTT!EFFF8<+X.&%&+$':0&*+:%&+5%&*&()&/+#*$(0+
:*+,&X+:*+VE+5$^&4*@+N(+).&+X-%?+)$)4&/+7&'$/"B&%&'/""6%@&%1#&%&
a%-><+).&+$':0&+$*+C4-2?&/+-#)+C6+:+C4:2?+54:)&<+4&:>$(0+-(46+
4$0.)+%:/$:)$(0+,%-'+).&+&/0&+-,+).&+,%:'&@+K)$44<+$)+$*+5-**$C4&+)-+
':?&+:+4$))4&+*&(*&+-,+).&+$':0&<+?(-X$(0+).&+)$)4&+-,+).&+X-%?@
I:'5C&44`*+$()&%&*)+$*+(-)+%&*)%$2)&/+)-+).&+4$'$)*+-,+>$*#:4+5&%!
2&5)$-(@+K-'&+-,+.$*+-).&%+X-%?*+$(>&*)$0:)&+).&+':)&%$:4+5%-5!
&%)$&*+-,+4$0.)+:*+).&+C:*$*+-,+$':0&!2%&:)$-(@+B.&+X-%?+)$)4&/+
E89/(8&51&'$C,8&73"19"+7EFFG8+*.-X*+:+*2&(&+-,+5&/&*)%$:(*+
DQGWUDI¿FLQ1HZ<RUN&LW\7KHLPDJHLVFRPSRVHGRI
%&/+UD1*+$(+:+HEtEV+':)%$^@+N(+,%-()+-,+).&+4$0.)*+).&%&+$*+:+
5$&2&+-,+/$,,#*$(0+34&^$04:*+'-#()&/+:)+:(+:(04&<+X.&%&+).&+4&,)+
*$/&+$*+24-*&%+)-+).&+4$0.)*+).:(+).&+%$0.)+*$/&@+B.&+%&*#4)+$*+:(+
$':0&+).:)+2-(*$*)*+-,+/$*2%&)&+/-)*+-(+).&+4&,)+*$/&<+0%:/#:446+
'->$(0+)-X:%/+:+2-.&%&()+$':0&<+-(+).&+%$0.)@+N(+).$*+X:6<+).&+
:%)X-%?+ %&>&:4*+ ).&+ -5)$2+ &,,&2)+ ).:)+ 2-((&2)*+ ).&+ 5$^&4*<+ C#)+
:4*-+54:6*+X$).+'&):5.-%$2+)%:(*$)$-(+e,%-'+:+/$0$):4+%&5%&*&(!
):)$-(+)-+:(+:(:4-0+-(&f+7"#-)&/+,%-'+_$'2:'5C&44@)>8@+B.&+/$,!
,#*$(0+34&^$04:*+/$*24-*&*+).:)+).&+$':0&+$*+':/&+,%-'+*$(04&+
/-)*<+:(/+).&%&,-%&+C&2-'&*+:+%&'$(/&%+-,+.-X+>$*#:4+5&%2&5!
)$-(+X-%?*+C6+24-*$(0+).&+0:5*+C&)X&&(+).&+/$*2%&)&+&4&'&()*+
-,+:(+$':0&@+B.&%&+$*+:4*-+:(+-5&($(0+-(+).&+%$0.)+.:(/+*$/&<+
X.$2.+$(>$)&*+).&+:#/$&(2&+)-+.:>&+:+4--?+eC&.$(/+).&+*2&(&*f<+
/$*24-*$(0+).&+5.6*$2*+C&.$(/+).&+$':0&+2%&:)$-(@
I:'5C&44+.:*+&^54$2$)46+&^5%&**&/+.$*+:))&()$-(+)-+':)&%$:4+$*!
*#&*+$(+).&+)$)4&+-,+.$*+'-*)+%&2&()+)-#%$(0+&^.$C$)$-(+!%,"/$%-&
IC+6:J+KB(''
B.&+2-()&'5-%:%6+:%)$*)+d$'+I:'5C&44+.:*+:4*-+X-%?&/+X$).+
C5/:+$(>-4>$(0+&4&2)%-($2+*2%&&(*<+C#)+#(4$?&+O:'+d#(&+3:$?<+
I:'5C&44+ ':(#,:2)#%&*+ .$*+ -X(+ *2%&&(*<+ X.$2.+ :%&+ 2#*)-'!
':/&+,-%+).&+2-()&()+.&+/$*54:6*@+K$(2&+:%-#(/+EFFF<+.&+.:*+
5%-/#2&/+ :+ %:(0&+ -,+ 4-X!%&*-4#)$-(+ *2%&&(*+ ).:)<+ $(+ >:%$-#*+
X:6*<+2.:44&(0&+).&+>$&X&%+)-+/&2-/&+).&+:4'-*)+:C*)%:2)+2-(!
)&()+).&6+/$*54:6@+K-'&+-,+.$*+&:%4$&*)+X-%?*+$(24#/&+5-%)%:$)*+-,+
I4:#/&+K.:((-(+7EFFF8+:(/+\:%%6+O6"#$*)+7EFFF8<+&:2.+':/&+
#5+-,+GEtGZ+X.$)&+UD1+5$^&4*@+;4).-#0.+).&*&+5-%)%:$)*+2-(!
):$(+-(46+GTE+5$^&4*<+-%+5$&2&*+-,+$(,-%':)$-(<+).&6+:%&+%&2-0!
($Y:C4&+:*+,:2&*<+:(/+*-'&X.:)+C4#%%&/+>&%*$-(*+-,+).&+-%$0$(:4+
5.-)-*@+\$*+%&':%?:C4&+,:2#4)6+,-%+>$*#:4+5&%2&5)$-(+$*+24&:%46+
X.:)+ /%$>&*+ I:'5C&44`*+ :%)$*)$2+ 2#%$-*$)6+ $(+ ).&*&+ X-%?*@+ \&+
X:*+$(*5$%&/+C6+:+GTRH+:%)$24&+)$)4&/+eB.&+M&2-0($)$-(+-,+9:2!
&*f+7\:%'-(+:(/+d#4&*Y<+GTRH8+C6+U&-(+\:%'-(<+:(+&'54-6&&+
-,+ L&44+ U:C*<+ :C-#)+ ).&+ %&2-0($)$-(+ -,+ ,:2&*+ ,%-'+ 4-X+ 4&>&4*+
-,+$(,-%':)$-(@+B.&+:%)$24&+:%0#&/+).:)+.#':(+>$*#:4+5&%2&5!
)$-(+$*+&*5&2$:446+)#(&/+)-+/&2-/&+>$*#:4+$'5%&**$-(*+-,+.#':(+
,:2&*<+&>&(+,%-'+>&%6+,&X+5$^&4*@+B-+5%->&+.$*+5-$()<+\:%'-(+
SZ
SR
J;BDMN;UNB[
J;BDMN;UNB[
2$+8,7KLVWLWOHSUHFLVHO\LGHQWL¿HVWKHQRWLRQRIPDWHULDOL]LQJ
4$0.)+:(/+).&+5%&>$-#*46+'&()$-(&/+)%:(*$)$-(+,%-'+4$0.)+)-+$'!
:0&@+9-%+d$'+I:'5C&44<+':)&%$:4$)6+$*+(-)+_#*)+:+)-5$2+$(+.$*+:%!
)$*)$2+5%:2)$2&<+C#)+).&+:#/$&(2&+$*+$(>$)&/+)-+*.:%&+.$*+2#%$-*$)6@
L(%H*(-69(GHJ,
;%)+.$*)-%$:(+M$2.:%/+K.$,,+.:*+':/&+:+2-'5%&.&(*$>&+%&>$&X+
-,+ I:'5C&44`*+ 4-X!%&*-4#)$-(+ X-%?*<+ $(+ X.$2.+ .&+ 2-'5:%&*+
).&$%+&^5%&**$>&+2.:%:2)&%+)-+).&+X-%?*+-,+9%&(2.+$'5%&**$-($*)+
5:$()&%<+]&-%0&*+K&#%:)@+K&#%:)`*+5-$()$44$*)+5:$()$(0*+&^&%2$*&/+
:+*$'$4:%+%&/#2)$-(+-,+$':0&+&4&'&()*+:*+I:'5C&44`*+X-%?*<+%&!
*#4)$(0+$(+%&5%&*&():)$-(*+).:)+:%&+:)+).&+4$'$)*+-,+5&%2&5)#:4+:C!
*)%:2)$-(+7K.$,,<+EFGF<+5@+RV8@+W.&(+).&+%&*-4#)$-(+/%-5*+C&4-X+
).&+).%&*.-4/+-,+5&%2&5)$-(<+%&,&%&()$:4+"#:4$)$&*+:%&+-C*2#%&/<+
:(/+-(46+).&+e':)&%$:4+"#:4$)$&*+-,+).&+$':0&f+%&':$(+7NC$/@8@+
B.&+&^:00&%:)$-(+-,+C%#*.!*)%-?&*+/%:X*+:))&()$-(+)-+).&+':(!
#:4+4:C-%+:(/+).&+):2)$4&+*#%,:2&<+).#*+/$%&2)$(0+:))&()$-(+)-+).&+
A/5("))+-,+5:$()$(0<+'#2.+:*+I:'5C&44`*+X-%?*+&'5.:*$Y&+).&+
5%-2&**+-,+/$0$):4+$':0&!,-%':)$-(@
B.&+ *$'$4:%$)$&*+ C&)X&&(+ K&#%:)`*+ :(/+ I:'5C&44`*+ X-%?+ X:*+
:4*-+ .$()&/+ :)+ C6+ J:%*.:44+ J2U#.:(<+ '-%&+ ).:(+ ).$%)6+ 6&:%*+
EHIRUH &DPSEHOO¶V ¿UVW ORZUHVROXWLRQ ZRUNV ,Q GHVFULELQJ
K&#%:)`*+)&2.($"#&<+J2U#.:(+2-'5:%&/+).&+5-$()$44$*)+/-)*+)-+
:2)#:4+4$0.)+*-#%2&*+).:)+*$)*+X$).$(+).&+5:$()$(0+:(/+*.$(&+-#)+
:)+).&+>$&X&%+7J2U#.:(+:(/+3:%?&%<+GTZS<+5@+ZV8@+N(*)&:/+-,+
5:$()$(0+ e4$0.)+ -(f+ :*+ /$/+ ).&+ $'5%&**$-($*)*<+ K&#%:)+ 5:$()&/+
e4$0.)+).%-#0.f<+X.$2.<+$(+J2U#.:(`*+$()&%5%&):)$-(<+%&5%&*&()!
HGDUHYHUVDORISHUVSHFWLYHDQGDÀLSSLQJRIWKHYLHZHU³LQWR
).&+ >:($*.$(0+ 5-$()f+ 75@+ GSG8@+ 9#%).&%'-%&<+ ).&+ )&2.($"#&+ -,+
#$3$)$51$):<+X.&%&+K&#%:)+*&5:%:)&/+).&+$(/$>$/#:4+2-4-%+2-'!
5-(&()*+ -(+ *#%,:2&*<+ :2)#:446+ :()$2$5:)&/+ ).&+ 4:)&%+ /$*2->&%6+
SS
'$+9/"&FWG&i"5/+")&N"9/%,&D&2%&459/&O$CC"-&I(?&FllTL
ST
J;BDMN;UNB[
J;BDMN;UNB[
-,+ ,-#%!2-4-%+ $':0&+ %:*)&%$Y:)$-(<+ :(/+ 2-4-%+ Ba+ 7NC$/@8@+ B.$*+
(-)$-(+-,+e4$0.)+).%-#0.f<+%:).&%+).:(+e4$0.)+-(f<+X:*+:4%&:/6+
:))%$C#)&/+)-+).&+Ba+$':0&<+$(+.1#"/),%1#$1+&!"#$%+7GTZV<+5@+
GVF8@
P(+:+*$/&!(-)&<+J2U#.:(+#*&*+C-).+(5-#+:(/+(55-+$(+%&,&%&(2&+
)-+).&*&+)65&*+-,+'&/$:<+X$).-#)+&^54:$($(0+).&+/$,,&%&(2&<+C#)+
0&(&%:446<+.&+*&&'*+)-+/&*2%$C&+'&/$:+754#%:48+:*+e2-4/f+:(/+e:+
'&/$#'f+7*$(0#4:%8+:*+2--4@+B.$*+*#00&*)*+).:)+).&%&+$*+4$))4&<+$,+
:(6<+/$*)$(2)$-(+C&)X&&(+).&+)X-+)&%'*+$(+J2U#.:(`*+).$(?$(0@
J2U#.:(`*+ &^:'54&*+ -,+ 2--4+ '&/$:+ :%&+ ).&+ )&4&5.-(&<+ 2:%!
)--(*<+ )&4&>$*$-(<+ :(/+ ':(6+ -).&%*@+ ;22-%/$(0+ )-+ J2U#.:(<+
).&*&+ '&/$:+ :%&+ 2.:%:2)&%$Y&/+ C6+ *':44+ :'-#()*+ -,+ $(,-%':!
)$-(<+:(/+).&%&,-%&+(&&/+.$0.+4&>&4*+-,+2-'54&)$-(+:(/+5:%)$2$!
5:)$-(@+9-%+$(*):(2&<+:+2:%)--(+5%->$/&*+e>&%6+4$))4&+>$*#:4+$(!
,-%':)$-(f+7J2U#.:(<+GTZV<+5@+EV8<+X.$2.+%&"#$%&*+).&+>$&X&%+
)-+$()&%5%&)+$)*+$':0&%6+)-+2%&:)&+'&:($(0@+K$'$4:%+*):)&'&()*+
2-#4/+ C&+ ':/&+ :C-#)+ ).&+ )&4&5.-(&<+ X.$2.+ 0$>&*+ e:+ '&:0&%+
:'-#()+-,+$(,-%':)$-(f+7NC$/@8<+:(/+%&"#$%&*+).&+4$*)&(&%+)-+5:%!
)$2$5:)&+$(+).&+2-(>&%*:)$-(@+B-+#(/&%*):(/+X.6+)&4&>$*$-(+$*+:+
2--4+'&/$#'+%&"#$%&*+:+C$)+'-%&+$(>&*)$0:)$-(+$()-+J2U#.:(`*+
).$(?$(0@
;4).-#0.+ ]&-%0&*+ K&#%:)+ :(/+ d$'+ I:'5C&44+ #*&+ >&%6+ /$,,&%!
&()+'&/$:+$(+).&$%+5%-/#2)$-(+-,+:%)<+).&+:55%-:2.+-,+%&/#2$(0+
$(,-%':)$-(+$*+4:%0&46+).&+*:'&<+:%0#&*+K.$,,@+B.&+4-X+$':0&+
%&*-4#)$-(<+-(+).&+&/0&+-,+:C*)%:2)$-(<+/&2%&:*&*+).&+e%&,&%&(!
)$:4+"#:4$)$&*f<+$(2%&:*$(0+e).&+':)&%$:4+"#:4$)6+-,+).&+$(,-%':!
)$-(f+7K.$,,<+EFGF<+5@+RV8@+;*+:+2-(*&"#&(2&<+).&+2%#/&+$':0&+
e*5:%?*+ :+ /&*$%&+ ,-%+ $()&%5%&):)$-(f<+ )#%($(0+ 5&%2&5)$-(+ ,%-'+
).&+e:(-/6(&+(:%%:)$>&+-,+).&+.-'&+'->$&+)-+).&+5-&)$2+%&*&%!
>-$%+-,+).&+'&/$#'f+75@+RH8@+B.$*+*#00&*)*+:+)%:(*,-%':)$-(+-,+
C-).+).&+5&%2&5)#:4+"#:4$)$&*+:(/+).&+$()&%5%&):)$-(:4+&,,&2)*+-,+
).&+%&/#2&/+$':0&@
5<46!;36:<13
B.&+ $/&:<+ $'54$2$)+ $(+ I:'5C&44`*+ X-%?*<+ ).:)+ 5%&*&()$(0+ 4$'!
$)&/+:'-#()*+-,+$(,-%':)$-(+&,,&2)$>&46+:2)$>:)&*+e:+/&*$%&+,-%+
$()&%5%&):)$-(f+7NC$/@8+%&*-(:)&*+X$).+J2U#.:(`*+$/&:*+:**-2$!
:)&/+X$).+(55-+'&/$:<+$(+.1#"/),%1#$1+&!"#$%@+\&+:%0#&*+).:)+
DFRROPHGLXPLV³RQHRIORZGH¿QLWLRQ´EHFDXVHLWSURYLGHV
e:+'&:0&%+:'-#()+-,+$(,-%':)$-(f+7J2U#.:(<+GTZV<+5@+EV8<+$(+
2-()%:*)+)-+:+85,+-(&@+B.&%&,-%&<+e2--4+'&/$:+:%&+.$0.+$(+5:%!
)$2$5:)$-(+-%+2-'54&)$-(+C6+).&+:#/$&(2&f+7NC$/@8@+J2U#.:(`*+
(-)$-(+-,+(5:A-",$51LGHQWL¿HVDQDFWLYHSURFHVVRISHUFHSWLRQ
24-*$(0+ ).&+ 0:5*+ C&)X&&(+ ).&+ *5:%*&+ 5$&2&*+ -,+ $(,-%':)$-(@+
;22-%/$(0+)-+J2U#.:(<+).$*+:2)$>&+'-/&+-,+5:%)$2$5:)$-(+$*+:+
(:)#%:4+%&*5-(*&+)-+:+2--4+'&/$#'<+*$'$4:%+)-+K.$,,`*+(-)$-(+%&!
0:%/$(0+:+e/&*$%&+,-%+$()&%5%&):)$-(f+$(+%&*5-(*&+)-+I:'5C&44`*+
X-%?*+7K.$,,<+EFGF<+5@+RH8@
TF
4M(6,('(NC-C%$6-"H(($
0F/XKDQ ¿UVW DGGUHVVHV WKH YLVXDO FKDUDFWHU RI WHOHYLVLRQ DV
-(&+-,+ORZGH¿QLWLRQ@+I-'5:%&/+)-+-).&%+>$*#:4+'&/$:<+*#2.+:*+
¿OPDQGWKHSKRWRJUDSKWKHWHOHYLVLRQVFUHHQRIWKHVL[WLHVZDV
5&%2&$>&/+:*+:+e'-*:$2+'&*.+-,+4$0.)+:(/+/:%?+*5-)*f<+%&"#$%$(0+
WKHYLHZHUWR¿OOLQDQGFRPSOHWHWKHLPDJH0F/XKDQ
5@+HVE8@+B.&+)&4&>$*$-(*+-,+).:)+&%:+.:/+4-X&%+>$*#:4+%&*-4#)$-(+
7QEQ+.-%$Y-():4+4$(&*8+).:(+4:)&%+*):(/:%/*<+:(/+2-4-%+Ba+X:*+
*)$44+#(2-''-(@+B.$*+4&/+J2U#.:(+)-+_#/0&+).&+Ba+$':0&+:*+
YLVXDOO\LQIHULRUWRWKDWRI¿OPDQGSKRWRJUDSK\
B.&+*&2-(/+:*5&2)+).:)+':/&+J2U#.:(+$/&()$,6+)&4&>$*$-(+:*+:+
2--4+'&/$#'+X:*+.$*+&^54:(:)$-(+-,+).&+.$0.+4&>&4*+-,+&(0:0&!
'&()+).:)+)&4&>$*$-(+$(/#2&/+$(+).&+>$&X&%h
TG
J;BDMN;UNB[
J;BDMN;UNB[
R5,&91-$>"&,8"&(8%/%(,"/&5C&,8"&655#(9,&%1#&,8"&(%/,551&$)&,8"&
4S&$:%+"B&6$,8&$,)&3"/@&-56&#"+/""&5C&#%,%&%059,&50^"(,)B&%1#&
,8"&/")9-,$1+&8$+8&#"+/""&5C&A%/,$($A%,$51&0@&,8"&3$"6"/&$1&5/;
#"/&,5&(5:A-","&68%,&$)&51-@&8$1,"#&%,&$1&,8"&:5)%$(&:")8&5C&
#5,)?+7J2U#.:(<+GTZV<+5@+GRV8
;(-).&%+5%-C4&':)$2+$**#&+X$).+J2U#.:(`*+2:)&0-%$Y:)$-(+-,+
KRWDQGFROGPHGLDLVWKDWKHGH¿QLWLYHO\GHVFULEHVWKHVHSURS!
&%)$&*+ :*+ $(.&%&()+ )-+ ).&+ '&/$:<+ #(%&4:)&/+ )-+ ).&+ 2-()&()@+ 9-%+
LQVWDQFH¿OPLVKRW±UHJDUGOHVVRIFRQWHQW0F/XKDQWKHUHE\
*&&'$(046+ /$*%&0:%/*+ ).&+ 5-**$C$4$)6+ ).:)+ /$,,&%&()+ )65&*+ -,+
2-()&()+ ':6+ C&+ 2-'5%$*&/+ :+ (#'C&%+ &4&'&()*<+ &:2.+ .:>$(0+
GLIIHUHQWOHYHOVRIGH¿QLWLRQDOOZLWKLQWKHVDPHPHGLXP)RU
$(*):(2&<+:+85,+5.-)-0%:5.+':6+/&5$2)+).&+$':0&+-,+:+(55-+2:%!
WRRQZKLFKZRXOGDUJXDEO\PDNHLWORZGH¿QLWLRQ
;0:$(<+$)+$*+5-**$C4&+).:)+J2U#.:(`*+).$(?$(0+%&/#2&*+).&+&,!
,&2)*+-,+'&/$:+)-+:+4$'$)&/+(#'C&%+-,+2.:%:2)&%$*)$2*<+,-%+).&+
*:?&+-,+).&+:%0#'&()@+\$*+:$'+$*+:4X:6*+)-+/&*2%$C&+*-'&+e0&(!
&%:4+:*5&2)*+-,+).&+'&/$:f+7J2U#.:(<+GTZV<+5@+Z8<+X.&%&+$)+$*+
(&2&**:%6+)-+e)#%(+,%-'+).&+2-()&()+-,+'&**:0&*+)-+*)#/6+)-):4+
&,,&2)@f+75@+ES8@+N)+$*+24&:%+).:)+J2U#.:(`*+).&-%6+-,+'&/$:+:/!
/%&**&*+).&+'#2.+C%-:/&%+5&%*5&2)$>&+-,+'&/$:+$1&+"1"/%-<+C#)+
LWLV FRQWUDGLFWHGE\ KLV IUHTXHQWXVH RI VSHFL¿FH[DPSOHVWR
EDFNXSKLVFODLPV+LVPDQ\VSHFL¿FH[DPSOHVVXJJHVWWKDW
.$*+).&-%6+:C-#)+'&/$:+$(+0&(&%:4+':6+C&+%&>&%*&/<+$(+-%/&%+)-+
DSSO\WRVSHFL¿FLQVWDQFHVRIPHGLD,ZLOOUHWXUQWRWKLVVXJ!
0&*)&/+:/:5):)$-(+4:)&%+-(@
7KLVFOHDUO\VKRZV0F/XKDQ¶VUHJDUGIRUWKHORZGH¿QLWLRQRI
).&+Ba+$':0&+-,+).&+&:%46+*$^)$&*<+C#)+$)+:4*-+C&2-'&*+:(+:%0#!
'&()+,-%+&^54:$($(0+X.6+)&4&>$*$-(+X:*+*#2.+:+5-X&%,#4+:(/+
&(0:0$(0+'&/$#'@+d#/0$(0+)&4&>$*$-(+:*+:+2--4+'&/$#'+-(+).&+
C:*$*+-,+$)*+>$*#:4+2.:%:2)&%$*)$2*+$*+-C>$-#*46+.$0.46+5%-C4&'!
:)$2<+0$>&(+).&+*#C*&"#&()+/&>&4-5'&()+$(+)&4&>$*$-(+)&2.(-4!
-06@+ L#)+ &>&(+ ).$*+ *$)#:)$-(+ *&&'*+ )-+ .:>&+ C&&(+ ,-%&*&&(+ C6+
J2U#.:(h
<C&%1@05#@&6"/"&,5&%)>&68",8"/&%--&,8$)&659-#&(8%1+"&$C&,"(8;
15-5+@&),"AA"#&9A&,8"&(8%/%(,"/&5C&,8"&4S&$:%+"&,5&:53$"&#%,%&
-"3"-B&51"&(59-#&51-@&(591,"/&0@&"1b9$/$1+&IA?&QWJL&[E59-#&6"&
%-,"/&%&(%/,551&0@&%##$1+&#",%$-)&5C&A"/)A"(,$3"&%1#&-$+8,&%1#&
)8%#"Z\&48"&%1)6"/&$)&[o")B\&51-@&$,&659-#&,8"1&15&-51+"/&0"&
%& (%/,551?& R5/& 659-#& [$:A/53"#\& 4S& 0"& ,"-"3$)$51?+ 7J2U#!
.:(<+GTZV<+55@+HVG!HVE8
B.$*+"#$)&+C-4/46+*#00&*)*+).:)+-#%+2#%%&()+*):)&+-,+e$'5%->&/f+
)&4&>$*$-(+$*+(-)+)&4&>$*$-(+:)+:44@+J2U#.:(+X:%/*+-,,+).&+4#%?!
$(0+"#&*)$-(*<+C#)+*)$44+,:$4*+)-+/&*2%$C&+X.:)+).&+2-(*&"#&(2&*+
-,+ *#2.+ $'5%->&'&()*+ X-#4/+ C&@+ N,+ )-/:6`*+ $'5%->&/+ Ba+ $*+
(-)+X.:)+Ba+X:*+$(+).&+*$^)$&*<+X.:)+$*+$)<+).&(s+N*+$)+5-**$C46+
24-*&%+)-+'->$&*s+;(/+/-&*+).:)+':?&+$)+:(6+4&**+(55-+:+'&!
/$#'s+B.&*&+"#&*)$-(*+:%&+5%&2:%$-#*46+4&,)+-5&(+)-+2%$)$2$*'+
:(/+,#%).&%+/&C:)&@
TE
5%,6+()CJ
+RWPHGLDH[WHQG³RQHVLQJOHVHQVHLQµKLJKGH¿QLWLRQ¶´DQG
³GRQRWOHDYHVRPXFKWREH¿OOHGLQRUFRPSOHWHGE\WKHDX!
/$&(2&f+755@+EV!EQ8@+D^:'54&*+-,+.-)+'&/$:+:%&+5.-)-0%:5.*<+
%:/$-<+ :(/+ '->$&*@+ B.&*&+ '&/$:+ .:>&+ :+ .$0.&%+ GH¿QLWLRQ<+ $(+
J2U#.:(`*+X-%/*<+'&:($(0+).:)+'-%&+$(,-%':)$-(+$*+5%->$/&/+
).:(+C6+2--4+'&/$:@+B.&+5.-)-0%:5.+2-():$(*+'-%&+>$*#:4+$(!
,-%':)$-(+).:(+).&+2:%)--(<+:(/+).&+%:/$-+)%:(*'$)*+'-%&+:2)#:4+
$(,-%':)$-(+7(&X*<+,:2)*<+&)2@8+).:(+).&+)&4&5.-(&@+;0:$(<+).$*+
'#*)+C&+#(/&%*)--/+$(+0&(&%:4+)&%'*<+:(/+(-)+:*+2.:%:2)&%$*)$2+
TH
J;BDMN;UNB[
J;BDMN;UNB[
RIDVSHFL¿FPHGLXPZLWKDVSHFL¿FFRQWHQW7KHUHIRUH0F/X!
.:(+:%0#&*+).:)+).&*&+)65&*+-,+.-)+'&/$:+4&:>&+).&+:#/$&(2&+$(+
'-%&+5:**$>&+*):)&+-,+5&%2&5)$-(<+C&2:#*&+).&%&+$*+4&**+(&&/+,-%+
$()&%5%&):)$-(+-%+e2-'54&)$-(f<+:*+.&+2:44*+$)@+e;(6+.-)+'&/$#'+
:44-X*+-,+4&**+5:%)$2$5:)$-(+).:(+:+2--4+-(&f+75@+EQ8@
;*+5%&>$-#*46+:%0#&/<+J2U#.:(`*+>$&X*+-(+.-)+'&/$:+':6+C&+
%&0:%/&/+ :*+ :+ 2%$)$"#&+ -,+ ).&+ &^)&(*$-(+ -,+ *&(*&*<+ &*5&2$:446+
>$*$-(<+X.$2.+4&:/*+)-+/$*2-((&2)$-(*+,%-'+).&+%&*)+-,+).&+*&(*!
$(0+ C-/6+ 7*&&+ e1$*&'C-/$'&()f+ -(+ 5:0&+ VR+ -(X:%/*8@+ \-)+
PHGLDSURYLGHH[SUHVVLRQVWKDWDUHVRZHOOGH¿QHGWKDWWKH\H[!
2&&/+-#%+$''&/$:)&+2-'5%&.&(*$-(<+4&:>$(0+$)*+:#/$&(2&+$(2:!
5:C4&+-,+$()&%5%&):)$-(@+;*+5%-24:$'&/+$(+E591,"/0-%),+7GTRF8<+
e9:2&/+X$).+$(,-%':)$-(+->&%4-:/<+X&+.:>&+(-+:4)&%(:)$>&+C#)+
5:))&%(!%&2-0($)$-(f+ 75@+ GHE8<+ %&,&%%$(0+ )-+ ).&+ :#)-':)$Y&/<+
$(*)%#'&():4+ '-/&+ -,+ 5&%2&5)$-(+ X$).-#)+ $()&%5%&):)$-(@+B.$*+
%&,&%*+ )-+ .$*+ $/&:+ ).:)+ ).&+ .-)+ '&/$#'+ &^)&(/*+ :+ 0$>&(+ *&(*&+
)-+ *#2.+ :+ /&0%&&+ ).:)+ 5&%2&5)$-(+ $*+ *:)#%:)&/+ :(/+ &,,&2)$>&46+
/$*2-((&2)&/+,%-'+2-(*2$-#*+/&2$*$-(!':?$(0@
4&**+ >$*#:4+ $(,-%':)$-(+ ).%-#0.+ $)*+ $':0&+ ).:(+ /-&*+ :+ 5.-)-!
0%:5.<+5%-C:C46+-X$(0+)-+$)*+:C*)%:2)&/+'-/&+-,+%&5%&*&():)$-(@+
7KXVLWLVDFRROPHGLXPEHFDXVHRILWVORZGH¿QLWLRQZKLFK
%&"#$%&*+:+4:%0&+:'-#()+-,+2-'54&)$-(+:(/+5:%)$2$5:)$-(+-(+).&+
5:%)+-,+).&+:#/$&(2&@
0F/XKDQ¶VFRPSDULVRQRI¿OPDQGWHOHYLVLRQVXJJHVWVDVLPL!
4:%+/$*)$(2)$-(+:'-(0+,-%':4+"#:4$)$&*+).:)+:%&+/&)&%'$(&/+C6+
WKHLUGH¿QLWLRQDVDWHFKQRORJLFDOSURSHUW\
'H¿QLWLRQ
W.$4&+85,+ :(/+(5-#+ ':6+C&+ #*&/+ )-+ /&*2%$C&+).&+$(,-%':)$-(+
4-:/+-(+5&%2&5)$-(<+J2U#.:(+:4*-+':?&*+).&+2-((&2)$-(+)-+).&+
,-%':4+ 2.:%:2)&%$*)$2*+ -,+ ).&+ '&/$#'@+ B.&+ *):)&+ -,+ '&/$:+ :*+
.$0.+-%+ 4-X+ GH¿QLWLRQ+ $*+ 24&:%46+4$(?&/+)-+).&+&^5%&**$>&+:(/+
,-%':4+5%-5&%)$&*+-,+).&+5:%)$2#4:%+'&/$#'+:(/+$)*+2-()&()@+;*+
GHVFULEHG³$SKRWRJUDSKLVYLVXDOO\µKLJKGH¿QLWLRQ¶$FDU!
WRRQLVµORZGH¿QLWLRQ¶VLPSO\EHFDXVHYHU\OLWWOHYLVXDOLQIRU!
':)$-(+$*+5%->$/&/@f+7J2U#.:(<+GTZV<+5@+EV8+B.$*+*#00&*)*+).:)+
GH¿QLWLRQ QRW RQO\ GHQRWHV WKH ³UHVROXWLRQ´ DV TXDQWL¿HG LQ
/$0$):4+$':0$(0+:*+1-)*!3&%!N(2.8<+C#)+:4*-+%&,&%*+)-+-).&%+,-%!
':4+5%-5&%)$&*+-,+).&+'&/$#'<+*#2.+:*+).&+4&>&4+-,+:C*)%:2)$-(+
$(+$)*+&^5%&**$-(@+;22-%/$(0+)-+J2U#.:(<+).&+2:%)--(+5%->$/&*+
TV
J2U#.:(`*+ 2%$)$"#&+ -,+ )&4&>$*$-(+ /&*2%$C&*+ $)*+ $':0&+ :*+ :+
e2&:*&4&**46+,-%'$(0+2-()-#%+-,+).$(0*+4$'(&/+C6+).&+*2:(($(0!
¿QJHU´ZKHUH³7KHUHVXOWLQJSODVWLFFRQWRXUDSSHDUVE\OLJKW
).%-#0.<+(-)+4$0.)+-(<+:(/+).&+$':0&+*-+,-%'&/+.:*+).&+"#:4$)6+
-,+*2#45)#%&+:(/+$2-(<+%:).&%+).:(+-,+5$2)#%&@f+7J2U#.:(<+GTZV<+
5@+HVG8@+B.$*+*#00&*)*+).:)+).&+&^5%&**$-(+-,+).&+4-X!%&*-4#)$-(+
$':0&+ /%:X*+ $(2%&:*&/+ :))&()$-(+ )-+ ).&+ *#%,:2&+ :(/+ ,-%'+ -,+
).&+*2%&&(<+%:).&%+).:(+/$*%&0:%/$(0+$)<+-%+/&':)&%$:4$Y$(0+$)<+:*+
/-&*+:+.-)+'&/$:+$':0&@+J2U#.:(+&>&(+/&*2%$C&*+).&+/-))&/+
':)%$^+-,+).&+Ba+$':0&+:*+e)&2.($2:4+2-()%-4+-,+).&+$':0&f+).:)+
³XQFRQVFLRXVO\UHFRQ¿JXUHVWKHGRWVLQWRDQDEVWUDFWZRUNRI
:%)+-(+).&+5:))&%(+-,+:+K&#%:)+-%+M-#:#4)@f+7NC$/@8<+>&%6+*$'$4:%46+
)-+.-X+K.$,,+$()&%5%&)*+I:'5C&44`*+X-%?*@+B.&+4-X!%&*-4#)$-(+
*2%&&(+2%&:)&*+:+':)&%$:4+&^5%&**$-(+).:)+/%:X*+:))&()$-(+)-+).&+
$':0&+*#%,:2&<+:(/+%&"#$%&*+).&+>$&X&%+)-+2-'54&)&+).&+$':0&@+
&DPSEHOO¶VZRUNH[HPSOL¿HVWKLVHORTXHQWO\DVKLV7:0$+9;
59)&<(51)+:%&+:4'-*)+5#%&+:C*)%:2)$-(<+:(/+4&:>&+_#*)+&(-#0.+
$(,-%':)$-(+,-%+).&+>$&X&%+)-+$':0$(&+X.:)+0-&*+-(+C&.$(/+).&+
C4:2?+*"#:%&@
/(OC$,(HKH(,C$*6M%,6J$)6"%')P6!6H('J,CN(6+(J-GH(
9-%+J2U#.:(<+).&+):^-(-'6+-,+85,+:(/+(5-#+'&/$:+$*+%&5&:)!
&/46+5%&*&()&/+:*+:+2-'5:%$*-(+-,+/$,,&%&()+)65&*+-,+'&/$:+$(+
TQ
J;BDMN;UNB[
J;BDMN;UNB[
)&%'*+-,+).&$%+&^5%&**$>&+2:5:C$4$)$&*@+M:/$-+$*+:+.-)+'&/$#'<+
X.$4&+ ).&+ )&4&5.-(&+ $*+ 2--4@+;+ 5.-)-0%:5.+ $*+ :+ .-)+ '&/$#'<+
X.$4&+:+2:%)--(+$*+2--4@+;(/+'->$&*+:%&+.-)<+X.$4&+)&4&>$*$-(+$*+
2--4+7*&&+9$0#%&+GQ+-(+5:0&+TZ8@+B.&*&+/$*)$(2)$-(*+X&%&+/&!
VFULEHGDWDSRLQWLQKLVWRU\ZKYHQWKHVHPHGLDZHUHDWVSHFL¿F
4&>&4*+-,+GH¿QLWLRQ<+0$>&(+).&$%+)&2.($2:4+/&>&4-5'&()@+B-/:6<+
WKHVH VDPH PHGLD KDYH GHYHORSHG LQWR PRUH KLJKO\ GH¿QHG
&^5%&**$-(*@+9-%+$(*):(2&<+).&+/&*2%$5)$-(+-,+).&+Ba+$':0&+:*+
:+ e'-*:$2+ '&*.+ -,+ 4$0.)+ :(/+ /:%)+ *5-)*f+ .:%/46+ ':)2.&*+ ).:)+
-,+ \1+ )&4&>$*$-(*<+X.$2.+ :%&+).&+2#%%&()+*):(/:%/@+N)+ $*+ "#$)&+
5-**$C4&+).:)+).&+2:)&0-%$Y:)$-(+-,+)-/:6`*+'&/$:+X-#4/+C&+/$,!
,&%&()+).:(+).:)+-,+).&$%+&"#$>:4&()*+$(+).&+*$^)$&*<+:*+J2U#.:(+
/&*2%$C&/+).&'@
9#%).&%'-%&<+).&+2-'5:%$*-(+).:)+J2U#.:(+':?&*+C&)X&&(+:+
.-)+:(/+:+2--4+'&/$#'+$*+:4X:6*+X$).$(+).&+*:'&+*&(*-%6+'-!
/:4$)6@+N)+*#00&*)*+).:)+*&(*-%6+&^)&(*$-(*+2:((-)+C&+2-'5:%&/+
:2%-**+ ).&+ *&(*&*@+ 9-%+ $(*):(2&<+ $)+ %&*#4)*+ $(+ ).&+ 5:%:/-^$2:4+
_#^):5-*$)$-(+ -,+ .-)+ %:/$-+ :(/+ 2--4+ Ba<+ X.$2.+ *&&'*+ .$0.46+
5%-C4&':)$2@
5<4
M:/$J->$&
3.-)-0%:5.
3.-(&)$2+:45.:C&)
3:5&%
U&2)#%&
L--?
B.&+e2$)6+*4$2?&%f
J&2.:($2:4+)$'&
W:4)Y
:<<1
B&4&5.-(&
Ba
I:%)--(
\$&%-0465.$2+2.:%:2)&%*
K)-(&
K&'$(:%
1$:4-0#&
B.&+%#*)$2
Ba+:0&
BX$*)
'$+9/"&FVG&!(298%1f)&85,&%1#&(55-&:"#$%
TZ
N(+ -%/&%+ )-+ ':?&+ ).&+ )&%'*+ 7.-)+ :(/+ 2-4/8+ $()-+ 5%-/#2)$>&+
'&:(*+-,+/&*2%$C$(0+).&+':)&%$:4+*2%&&(<+.-)!(&**+':6+$(*)&:/+
C&+%&0:%/&/+:*+:+/"-%,$3"&:"%)9/"+-,+$(,-%':)$-(<+:*+$)+X:*+:4*-+
#*&/+C6+J2U#.:(+)-+2-'5:%&+)65&*+-,+'&/$:<+X.&%&+-(&+.:/+
:+.$0.&%+4&>&4+-,+$(,-%':)$-(+).:(+).&+-).&%@+N(+J2U#.:(`*+#(!
/&%*):(/$(0<+$)+:2)#:446+/&*2%$C&*+C-).+).&+:'-#()+-,+$(,-%':!
)$-(+5%->$/&/+C6+).&+'&/$#'<+C#)+:4*-<+$'54$2$)46<+.-X+4$)&%:446+
-%+&^54$2$)46+$)+$'$):)&*+$)*+*-#%2&<+:*+$(+).&+&:%4$&%+&^:'54&*@+
I:'5C&44`*+E89/(8&51&'$C,8&73"19"+':6+&'54-6+:+>&%6+2--4+
'&/$#'<+C#)+.$*+7:0$+959)&<(51)+:%&+&>&(+2-4/&%@+B.#*<+(55-+
:(/+ (5-# PD\ GHQRWH GLIIHUHQW OHYHOV RI GH¿QLWLRQ XQOLNH
J2U#.:(`*+$()&%2.:(0&:C4&+#*&+-,+).&'@
N(+-%/&%+)-+:5546+)&%'*+4$?&+85,+:(/+(5-#WRVSHFL¿FPHGLDVXFK
:*+':)&%$:4+*2%&&(*<+$)+':6+C&+(&2&**:%6+)-+&^)&(/+).&$%+:554$!
2:)$-(+)-+://%&**+).&+*&5:%:)&+&,,&2)*+-,+).&+'&/$#'@+N(*)&:/+
RILPSRVLQJD¿[HGFDWHJRUL]DWLRQRQWKHVFUHHQDV0F/XKDQ
/$/+X$).+)&4&>$*$-(+:(/+'->$&*<+$)+$*+'-%&+5%-/#2)$>&+)-+:**$0(+
85,+-%+(5-#ZKHQGHVFULELQJERWKPHGLXPDQGLWVVSHFL¿FFRQ!
)&()@+N(+).&+2:*&+-,+I:'5C&44`*+7:0$+959)&<(51)<+).&+'&/$#'+
$*+>&%6+2-4/<+*.-X$(0+-(46+).&+&/0&*+-,+).&+$':0&*<+C#)+).&$%+
2-()&()+$*+%&4:)$>&46+.-)<+':?$(0+$)+5-**$C4&+)-+,:$()46+5&%2&$>&+
).&$%+&^5%&**$-(@
&RROQHVVXQGHUVWRRGDVORZGH¿QLWLRQRUODFNRILQIRUPDWLRQ
':6+:4*-+C&+*&&(+:*+:+'&:*#%&+-,+:C*)%:2)$-(+,%-'+).&+4$)&%:4+
,-%'<+ X.&%&+ /&):$4*+ :%&+ -C*2#%&/<+ )%:(*,-%'&/<+ -%+ /$*)-%)&/@+
J2U#.:(+:%0#&*+).:)+).&+:'C$0#$)6+).:)+$*+$()%-/#2&/+C6+:C!
*)%:2)$-(+).&%&C6+2:):46Y&*+$(2%&:*&/+$()&%5%&):)$-(<+$(2%&:*$(0+
TR
J;BDMN;UNB[
J;BDMN;UNB[
).&+4&>&4+-,+>$&X&%+5:%)$2$5:)$-(@
B-+ ,#%).&%+ #*&+ -,+ ).&+ )&%'*+ 85,+ :(/+ (5-#+ X.&(+ /&*2%$C$(0+
VSHFL¿FPHGLDLWVHHPVUHDVRQDEOHWRLQWURGXFHDGLVWLQFWLRQ
X.&%&C6+(5-#+$*+2-4/&%+).:(+(55-<+'&:($(0+).:)+:+2-4/+'&/$#'+
5%->$/&*+&>&(+4&**+$(,-%':)$-(+).:(+:+2--4+-(&@
:%,"/$%-$,@<+C#$4/$(0+-(+$()&%5%&):)$-(*+-,+e':)&%$:4f+:*+:%,,"/<+
A/%(,$(%-& $1),%1,$%,$51<+ :(/+ :*+ VLJQL¿FDQFH+ 7U&-(:%/$<+ EFGF8@+
\&+:%0#&*+).:)+':)&%$:4$)6+':6+%&,&%+)-+:%,,"/+:*+).&+5.6*$2:4!
$)6+-,+:(+:%)$,:2)<+,-%+$(*):(2&<+$)*+':)&%$:4+*#C*):(2&+:(/+).&$%+
5%-5&%)$&*@+K&2-(/46<+':)&%$:4$)6+e&'5.:*$Y&*+).&+5%:2)$2:4+$(!
*):()$:)$-(+-,+:+).&-%&)$2:4+$/&:f<+:*+X.&(+e5%$(2$54&*<+C&4$&,*<+
-%+>:4#&*+:%&+':/&+':($,&*)+$(+*-'&+X:6<+).&6+C&2-'&+':)&!
%$:4f+7NC$/@8@+;(/+).$%/46<+U&-(:%/$+:%0#&*+).:)+':)&%$:4$)6+':6+
&'5.:*$Y&+VLJQL¿FDQFH<+$(+).&+*&(*&+).:)+e*-'&).$(0+$*+i':)&!
%$:4`+$,+$)+':?&*+:+/$,,&%&(2&+$(+).&+2#%%&()+*$)#:)$-(@f+7NC$/@8@
B.&+$/&:+-,+&^)&(/$(0+).&+'&:($(0+:(/+4:(0#:0&+-,+:%,"/$%-+
:(/+ :%,"/$%-$,@+ 2%&:)&*+ 5-**$C$4$)$&*+ ,-%+ (&X+ #(/&%*):(/$(0*+
:(/+#*&*+-,+).&*&+)&%'*@+;*+:%0#&/+C6+L$44+L%-X(h+e':)&%$:4$)6+
2:(+%&,&%+)-+/$,,&%&()+/$'&(*$-(*+-,+&^5&%$&(2&<+-%+/$'&(*$-(*+
C&6-(/+7-%+C&4-X8+X.:)+X&+0&(&%:446+2-(*$/&%+&^5&%$&(2&+)-+
C&@f+7L%-X(<+EFGF<+5@+VT8@
L6+://$(0+:(+$()&%5%&):)$-(+-,+X.:)+$*+e':)&%$:4f<+C&6-(/+).&+
$/&:+-,+:%,,"/+:(/+C5/:<+X&+':6+&^)&(/+-#%+#(/&%*):(/$(0+-,+
':)&%$:4$)6+)-+&(2-'5:**+(-)+-(46+).&+5.6*$2:4+:(/+5&%2&5)$C4&<+
C#)+:4*-+).&+-()-4-0$2:4<+2-(2&5)#:4<+:(/+2-(>&()$-(:446+$'':!
)&%$:4@+L#)+X.&(+X&+*):%)+)-+/$*2#**+).&+':)&%$:4$)6+-,+5.&(-'!
&(:+).:)+:%&+)%:/$)$-(:446+%&0:%/&/+:*+$'':)&%$:4<+).$*+2:44*+,-%+:+
/$*2#**$-(+-,+).&+$'54$2$)+'&:($(0*+-,+).$*+)%:(*5-*&/+'&:($(0+
-,+).&+2-(2&5)@
J2U#.:(`*+ /$*)$(2)$-(+ C&)X&&(+ .-)+ :(/+ 2-4/+ '&/$:+ ':6+ C&+
#*&/+)-+/&*2%$C&+).&+%:(0&+-,+/$,,&%&()+/&0%&&*+-,+$(,-%':)$-(+
$1,"1)$,@+5%->$/&/+C6+>:%$-#*+'&/$:@+B.&+:2?(-X4&/0'&()+-,+
/$,,&%&()+4&>&4*+-,+'&/$:+:4*-+5%->$/&*+:+/&*2%$5)$>&+'-/&4+-,+
.-X+:"#$%+':6+(-)+C&+:+*):)$2+2-(2&5)<+C#)+$(*)&:/+/&*2%$C&+
2-()$(#-#*46+>:%6$(0+:'-#()*+-,+&^5%&**$-(<+$'5%&**$-(<+:(/+
$()&%5%&):)$-(@+ J2U#.:(+ /&*2%$C&*+ '&/$:+ :*+ &^)&(*$-(*+ -,+
':(<+:*+:%&+:44+':(!':/&+2-(*)%#2)*<+:4).-#0.+&:2.+.:*+>:%6!
LQJGHJUHHVRIGH¿QLWLRQRUFRPPXQLFDWLYHFDSDFLWLHVHYLGHQW
,%-'+).&$%+&^)&%(:4+,-%'*@
<;4<1<LF
L&*$/&*+).&+-C>$-#*+'&:($(0+-,+:%,"/$%-$,@GH¿QHGRQWKHED!
*$*+-,+:%,,"/<+:(-).&%+:C*)%:2)$-(+-,+$)*+'&:($(0+':6+C&+,-#(/<+
:(-).&%+5/#"/+7L%-X(<+EFGFn+9%$&/C&%0<+EFFZ8<+X.$2.+/&*2%$C&*+
:*5&2)*+).:)+:%&+4&**+5&%2&5)$C4&+)-+).&+*&(*&*<+C#)+:%&+$(*)&:/+
GH¿QHGE\H[WHQGLQJDQGWUDQVSRVLQJWKHPHDQLQJRI:%,"/$%-@+
L%-X(+:%0#&*+).:)+&>&(+e).&+5%-2&**+-,+).$(?$(0+.:*+:+':)&%$:4!
$)6+-,+$)*+-X(f<+-(46+-(+:+e(&#%-5.6*$-4-0$2:4f+4&>&4+7L%-X(<+
EFGF<+5@+VT8@+I-(2&5)*+).:)+.:>&+)%:/$)$-(:446+C&&(+%&0:%/&/+:*+
$::%,"/$%-+.:>&+$(2%&:*$(046+C&&(+/$*2#**&/+$(+)&%'*+-,+).&$%+
:%,"/$%-$,@@+;((&+9%$&/C&%0+.:*+5%&*&()&/+).&+$/&:+-,+4$0.)+:*+
:+C#$4/$(0+':)&%$:4<+-X$(0+)-+$)*+2:5:2$)6+)-+*&5:%:)&+/:%?(&**+
,%-'+4$0.)<+:(/+).&%&C6+e/%:X+$(+*5:2&f+79%$&/C&%0<+EFFZ<+55@+
GQG!GQE8@+I-''#($2:)$-(*+*2.-4:%+3:#4+U&-(:%/$+.:*+:%0#&/+
).:)+*-,)X:%&+':6+:4*-+C&+/&*2%$C&/+$(+)&%'*+-,+:%,"/$%-+:(/+
TS
W.&(+$)+2-'&*+)-+,8"&)(/""1<+).&%&+.:>&+C&&(+':(6+:))&'5)*+)-+
/&*2%$C&+$)*+$':0&+:*+*-'&).$(0+>$%)#:4<+$'':)&%$:4<+:(/+:4'-*)+
(-(!&^$*)&()@+L#)+;((&+9%$&/C&%0+:%0#&*+).:)+).&+>$%)#:4+$':0&+
':6+.:>&+:+e4$'$(:4+':)&%$:4$)6+jkl+-,+:+/$,,&%&()+-()-4-0$2:4+
-%/&%f+79%$&/C&%0<+EFFZ<+5@+T8@+B.$*+*#00&*)*+).:)+$)+$*+5-**$C4&+
)-+ #(/&%*):(/+ ':)&%$:4$)6+ $(+ :+ 4&**+ 2-(>&()$-(:4+ *&(*&<+ )%:(*!
5-*&/+$()-+:(-).&%+-()-4-0$2:4+-%/&%@+9%$&/C&%0+,#%).&%+:%0#&*h+
TT
J;BDMN;UNB[
J;BDMN;UNB[
ea$%)#:4+$':0&*+.:>&+:+':)&%$:4$)6+:(/+:+%&:4$)6+C#)+-,+:+/$,!
,&%&()+?$(/<+:+*&2-(/!-%/&%+':)&%$:4$)6<+4$'$(:446+$'':)&%$:4@f+
79%$&/C&%0<+EFFZ<+5@+GG8@+B.$*+,#%).&%+*#00&*)*+).:)+':)&%$:4$)6+
':6+C&+%&$()&%5%&)&/+:(/+&^)&(/&/+$()-+:+*&2-(/+-%/&%<+X.&%&+
$)+ /&*2%$C&*+ $'':)&%$:4+ &()$)$&*<+ *#2.+ :*+ $':0&*@+ L%-X(+ *#5!
5-%)*+).$*<+5%-5-*$(0+).&+(-)$-(+-,+e'#4)$54&+-%/&%*+-,+':)&%$:4!
$)6f+).:)+':6+:22-#()+,-%+/$,,&%&()+:*5&2)*+-,+'&/$:<+*#2.+:*+
).&+5.&(-'&(-4-06<+:%2.&-4-06<+:(/+*-2$-4-06+-,+).&+'&/$#'+
7L%-X(<+EFGF<+55@+QT!ZF8@
&/<+&*5&2$:446+X$).$(+).&+>$*#:4+:%)*@+B.$*+:4)&%(:)&+#(/&%*):(/!
$(0+-,+':)&%$:4$)6+0-&*+C&6-(/+5.6*$2:4+5%-5&%)$&*<+:(/+$*+C&$(0+
#*&/+)-+/&*2%$C&+*)%#2)#%:4+%&4:)$-(*.$5*+:(/+&^5&%$'&():4+:5!
5%-:2.&*+)-+'&/$:@+;*+:%0#&/+C6+b:).&%$(&+\:64&*<+':)&%$:4$)6+
e&'&%0&*+,%-'+$()&%:2)$-(*+C&)X&&(+5.6*$2:4+5%-5&%)$&*+:(/+:+
X-%?`*+:%)$*)$2+*)%:)&0$&*f+7\:64&*<+EFFE<+5@+HE8@+B.$*+*#00&*)*+
).:)+).&+*)%:)&0$&*+-,+ ).&+:%)$*)<+X.&(+ :554$&/+)-+).&+'&/$#'<+
':6+%&>&:4+://$)$-(:4+':)&%$:4+5%-5&%)$&*+:5:%)+,%-'+).&+5.6*$!
2:4+ -(&*@+ D*5&2$:446+ ).&+ :%)+ -,+ 5:$)$(0+ .:*+ $(+ /$,,&%&()+ &5-2*+
://%&**&/+)-5$2*+).:)+X&%&+4-2:)&/+-#)*$/&+).&+'&/$#'+$)*&4,@
;*+&:%46+:*+GTTV<+\:(*+]#'C%&2.)+:(/+U#/X$0+3,&$,,&%+&/$)&/+
:+ C--?+ )$)4&/+ !%,"/$%-$,$")& 5C& E5::91$(%,$51<+ /&*2%$C$(0+ :(+
&5$*)&'-4-0$2:4+ )#%(+ $(+W&*)&%(+ ).-#0.)<+ '->$(0+ :X:6+ ,%-'+
LGHQWL¿FDWLRQ RI PHDQLQJ LQWHUSUHWDWLRQ RI FRQWHQW DQG WR!
X:%/+e5%-C4&'*+2-(2&%($(0+).&+2-(/$)$-(*+:(/+,-%'*+-,+'&:(!
$(0!2-(*)%#2)$-(f+7]#'C%&2.)+:(/+3,&$,,&%<+GTTV<+C:2?+2->&%8@+
W.$4&+:%,,"/+.:/+C&&(+:)):2?&/+C6+:+L:#/%$44:%/!&*"#&+2%$)$!
2$*'+-,+':)&%$:4$*'<+3,&$,,&%+:%0#&/+).:)+:+(&X+*&(*$)$>$)6+)-+
2-''#($2:)$-(+X:*+(&&/&/<+$(+$)*+'#4)$54$2$)6+-,+':)&%$:4$)$&*@+
B.&+ ':$(+ ):%0&)+ -,+ ).&$%+ &()&%5%$*&+ X:*+ 2-(2&%(&/+ X$).+ e5-!
)&()$:4*+ :(/+ 5%&**#%&*+ -,+ *)64$Y:)$-(+ %&*$/$(0+ $(+ )&2.($"#&*<+
)&2.(-4-0$&*<+ ':)&%$:4*<+ 5%-2&/#%&*<+ :(/+ i'&/$:@`f+ 73,&$,,&%<+
GTTV<+ 5@+ Z8@+ N(*)&:/+ -,+ %&*-%)$(0+ )-+ ).&+ #*#:4+ .&%'&(&#)$2*<+
3,&$,,&%+:%0#&/+,-%+:(+:55%-:2.+).:)+X:*+e4--?$(0+,-%+#(/&%46!
$(0+2-(*)%:$()*+X.-*&+)&2.(-4-0$2:4<+':)&%$:4<+5%-2&/#%:4<+:(/+
5&%,-%':)$>&+5-)&()$:4*+.:>&+C&&(+:44+)--+&:*$46+*X:44-X&/+#5+
C6+$()&%5%&):)$-(:4+.:C$)*@f+75@+GE8@+B.$*+*#00&*)*+:(+$(2%&:*&/+
,-2#*+ -(+ ).&+ &^)&%$-%+ :*5&2)*+ ,%:'$(0+ 2-''#($2:)$-(<+ %:).&%+
).:(+2-(>&()$-(:446+://%&**$(0+).&+$()&%(:4+2-()&()@
L#)+).&+$/&:+-,+:+':)&%$:4$)6+).:)+/&:4*+X$).+'&/$:+-(+:(+-()-!
4-0$2:4+4&>&4+$*+(-)+(&X@+P(46<+$)+.:*+(-)+C&&(+X$/&46+:%)$2#4:)!
GFF
4M(6KGH(6+()CG+
;22-%/$(0+ )-+ :%)+ 2%$)$2+ I4&'&()+ ]%&&(C&%0<+ ).&+ ':)&%$:4!
-()-4-0$2:4+ )#%(+ $(+ :%)$*)$2+ 5%:2)$2&+ X:*+ :+ 2&()%:4+ 5:%)+ -,+ ).&+
'-/&%(+ '->&'&()+ ).:)+ C&0:(+ $(+ ).&+ 4:)&+ ($(&)&&().+ 2&()#%6<+
C#)+%&:2.&/+$)*+,#44+5-)&()$:4+$(+).&+C&0$(($(0+-,+).&+)X&()$&).+
2&()#%6@+N(+).&+:%)$24&+eB-X:%/*+:+O&X&%+U:-2--(f+7GTVF8+.&+
:%0#&/+).:)+:C*)%:2)+5:$()$(0+:)+).&+C&0$(($(0+-,+).&+)X&()$&).+
FHQWXU\ H[SUHVVHG WKH QHHG WR ¿QG WKH ³SXUH´ LGHQWLW\ RI WKH
'&/$#'@+W.$4&+ 5%&>$-#*+ &5-2.*+ -,+ 5:$()$(0+ .:/+ '$^&/+ X$).+
(:%%:)$>&*+ -,+ 4$)&%:)#%&+ $(+ -%/&%+ )-+ 5%-/#2&+ $--9)$51<+ ).&+ (&X<+
:C*)%:2)+:%)+/&5:%)&/+,%-'+*#2.+:))&'5)*+C6+&^54-%$(0+).&+5#%&+
"#:4$)$&*+-,+5:$()$(0+$)*&4,@+=(2-(*)%:$(&/+C6+:2.$&>$(0+$44#*$-(+
:(/+:))&'5)*+)-+:/-5)+-).&%+'&/$:+-,+&^5%&**$-(<+).&+:C*)%:2)+
5:$()&%*+X&%&+:C4&+)-+2-(,%-()+).&+':)&%$:4+C:*$*+-,+5:$()$(0@+
B.$*+'&:()+e:+(&X+:(/+0%&:)&%+&'5.:*$*+#5-(+,-%'f+:(/+:%)*+
).:)+X&%&+e:#)-(-'-#*f+:(/+,#(2)$-(&/+e(-)+'&%&46+:*+>&**&4*+
-,+2-''#($2:)$-(f+7]%&&(C&%0<+GTVF<+5@+QZV8@
]%&&(C&%0`*+>$&X+-(+4:)&+'-/&%(+:%)+X:*+&4:C-%:)&/+,#%).&%+$(+
:(-).&%+ :%)$24&+ )$)4&/+ eJ-/&%($*)+ 3:$()$(0f+ 7GTZF8<+ X.&%&+ .&+
:%0#&/+).:)+:>:()!0:%/&+5:$()$(0+*-#0.)+)-+e/$>&*)+$)*&4,+-,+&>!
&%6).$(0+ $)+ '$0.)+ *.:%&+ X$).+ *2#45)#%&f+ 7]%&&(C&%0<+ GTZF<+ 5@+
GFG
J;BDMN;UNB[
J;BDMN;UNB[
RRZ8@+;22-%/$(0+)-+]%&&(C&%0<+X.:)+2.:%:2)&%$Y&/+'-/&%($*'+
X:*+).&+*&4,!2%$)$2$*'+).:)+:4*-+2:'&+)-+2.:%:2)&%$Y&+5:$()$(0@+
B.$*+'&:()+).:)+$(*)&:/+-,+2%&:)$(0+).&+$44#*$-(+-,+).%&&!/$'&(!
*$-(:4+*5:2&<+:*+.:/+5%&>$-#*46+C&&(+).&+$/&:4<+'-/&%($*)+5:$()!
HUVZRUNHGWRZDUGDQLQFUHDVHG³ÀDWQHVV´RIH[SUHVVLRQ7KLV
ZDVDZD\RIHPSKDVL]LQJWKHOLPLWDWLRQVRIWKHÀDWSDLQWHG
2:(>:*<+).&%&C6+5%-C4&':)$Y$(0+).&$%+5%&>$-#*+:))&'5)*+)-+2%&!
:)&+$44#*$-(+-,+/&5).@+N)+:4*-+*.$,)&/+).&+,-2#*+-()-+).&+*#%,:2&<+
).&+)&^)#%&+-,+).&+5$0'&()*<+:(/+).&+C%#*.+*)%-?&*@
]%&&(C&%0`*+$/&:+-,+*&4,!2%$)$2$*'+$(+:%)+':6+:4*-+C&+).-#0.)+
-,+:*+:+PHGLXPVSHFL¿F+:55%-:2.<+X.&%&+).&+:%)$*)+&^54-%&*+).&+
VSHFL¿FV RU OLPLWDWLRQV RI D SDUWLFXODU PHGLXP :H PD\ VD\
).:)+ ).&*&+ 2-(/$)$-(*+ ,-%'&/+ :+ 5-$()+ -,+ /&5:%)#%&+ ,-%+ ).&+ &^!
54-%:)$-(+-,+-()-4-0$2:4+"#&*)$-(*+-,+).&+':)&%$:4+(:)#%&+-,+).&+
'&/$#'@+N(+]%&&(C&%0`*+>$&X<+).&+/&4$C&%:)&+,-%&0%-#(/$(0+-,+
).&+0%-#(/$(0+2-(/$)$-(*+X:*+:+*&:%2.+,-%+5#%$)6+:(/+).&+&**&(!
WLDOFRUHRISDLQWLQJZLWKRXWWKHLQÀXHQFHRIRWKHUPHGLD7KH
%-4&+-,+).&+:%)$*)+C&2:'&+).&+/$*24-*$(0+-,+).&+$((&%+X-%?$(0*+
-,+).&+'&/$#'<+$(*)&:/+-,+2-(2&:4$(0+).&'+C6+$44#*$-($*)+)&2.!
($"#&*@+;*+(-)&/+C6+'&/$:+).&-%$*)+W-4,0:(0+D%(*)<+).$*+2.:%!
:2)&%$*)$2+-,+'-/&%($*)+:%)+).:)+]%&&(C&%0+/&*2%$C&*+%&5%&*&()*+
:(+ :55%-:2.+ )-+ ).&+ '&/$#'+ ).:)+ &'5.:*$Y&*+ ).&+ e0%-#(/$(0+
':)&%$:4$)6+-,+).&+%&2):(0#4:%+2:(>:*+:*+).&+5%$(2$5:4+'&**:0&f+
7D%(*)<+EFGG8@
B.&+$/&:+-,+*&&?$(0+5#%$)6+$(+:%)+X:*+.$0.46+2%$)$2$Y&/+C6+J$!
2.:&4+9%$&/<+$(+).&+&**:6+e;%)+:(/+PC_&2).--/f+7GTZR8<+X.&%&+
.&+ 2.:%:2)&%$Y&*+ '-/&%($*)$2+ '$($':4$*'+ :*+ e).&:)%$2:4f+ :(/+
X$).-#)+%&,&%&(2&+)-+:(6).$(0+-#)*$/&+).&+:%)X-%?*+).&'*&4>&*@+
;22-%/$(0+)-+9%$&/<+).&*&+X-%?*+'&%&46+,-%&0%-#(/&/+).&$%+*):!
)#*+:*+-C_&2)*+:(/+).&$%+2-(/$)$-(+-,+50^"(,855#@+\&+:%0#&*+).:)+
-C_&2).--/+$*+:+2-(/$)$-(+C6+X.$2.+:%)X-%?*+/&):2.+).&'*&4>&*+
,%-'+C-).+%&4:)$-(:4+2-((&2)$-(*+)-+:%)<+:(/+,%-'+).&+5$2)-%$:4+
$44#*$-(+-,+).&+$':0&@+B.&+%&*#4)$(0+-C_&2)*+C&2-'&+:+)65&+-,+
151;%/,+ ).:)+ &^$*)*+ -(46+ $(+ $)*+ -X(+ /$*)$(2)+ /-':$(@+ B.&+ %&:4+
$**#&+).:)+9%$&/+%:$*&/+$*+).:)+).&*&+'$($':4+-C_&2)*+-(46+,-2#*+
-(+).&$%+-X(+':)&%$:4$)6<+).&$%+)8%A"<+X$).-#)+&()&%$(0+$()-+:+
/$:4-0+X$).+).&+&(>$%-('&()+-,+:%)@
GFE
4M(6"G',GHJ'6+()CG+
;4).-#0.+).&+$/&:+-,+e'&/$#'+5#%$)6f+X:*+:554$&/+$(+'-/&%(!
$*)+5:$()$(0<+$)+(&>&%+)%:(*4:)&/+*#22&**,#446+)-+-).&%+)65&*+-,+
'&/$:@+ N)+ ':6+ C&+ ).:)+ ).&+ :%)+ -,+ 5:$()$(0+ .:/+ -(46+ C&&(+ :C4&+
)-+/&):2.+$)*&4,+,%-'+-).&%+:%)+,-%'*+C&2:#*&+$)*+'&/$#'<+).&+
5:$()&/+ 2:(>:*<+ 2-(>&()$-(:446+ :**-2$:)&/+ -(46+ X$).+ :%)<+ $(+
2-()%:*)+)-+-).&%+'&/$:@+J#*$2<+*2#45)#%&<+:(/+).&+5&%,-%'$(0+
:%)*+ .:/+ :44+ &(0:0&/+ X$).+ 5-5#4:%+ 2#4)#%&<+ X.$2.+ .:/+ 2-/&/+
).&$%+'&/$:+X$).+2#4)#%:4+2-(>&()$-(*+:(/+'&:($(0*@+L#)+X.$4&+
'-/&%($*)+5:$()$(0+':6+.:>&+*&:%2.&/+,-%+e5#%$)6f+$(+).&+'&!
/$#'<+4:)&%+'->&'&()*+$(+:%)+2:'&+)-+%&:4$Y&+).:)+).&+'&/$#'+
X:*+(-)+5#%&+:)+:44@+W$).+).&+$()%-/#2)$-(+-,+2#4)#%:4+:%)$,:2)*+
:(/+ '&/$:+ $()-+ :%)<+ $)+ C&2:'&+ $(2%&:*$(046+ &>$/&()+ ).:)+ (&X+
':)&%$:4*+&(,-%2&/+:+2-''#($2:)$>&+0$%)+$(+).&+:%)X-%?*<+*$'$!
4:%+ )-+ ).&+ X:6+ $(+ X.$2.+ \:%-4/+ N(($*+ /&*2%$C&/+ '&/$:+ :*+ 0$;
%)"#+$(+).&$%+':)&%$:4+,-#(/:)$-(*+7N(($*+:(/+]-/,%&6<+GTQF8@+
L#)+X.$4&+N(($*+/&*2%$C&/+'&/$:+$(+)&%'*+-,+).&$%+2:5:2$)6+)-+
:2.$&>&+:(/+*#*):$(+&^&2#)$>&+5-X&%<+:%)$*)*+X&%&+$(2%&:*$(046+
:X:%&+-,+).&+2-(*#'&%!2#4)#%&+'&:($(0*+&'C&//&/+$(+'&/$:@
B.&+/"%#@;:%#")+$()%-/#2&/+C6+).&+1:/:$*)*+&^54-%&/+).&+2-(!
(-):)$-(*+5%->$/&/+C6+/$,,&%&()+':)&%$:4*+:(/+).&$%+2#4)#%:4+2-(!
>&()$-(*@+;+5%-'$(&()+&^:'54&+$*+J:%2&4+1#2.:'5`*+'591,%$1+
7GTGR8<+X.$2.+X:*+':/&+,%-'+:+5-%2&4:$(+#%$(:4@+9%-'+$)*+-%$!
0$(*+:*+:+2#4)#%:4+-C_&2)<+$)+:))%:2)&/+:+4-)+-,+'&:($(0+X.&(+$)+
X:*+*#//&(46+5%-'-)&/+)-+:(+:%)+-C_&2)@+B.&+2-()%->&%*6+(-)+
-(46+*#%%-#(/&/+$)*+5%&,:C%$2:)&/+-%$0$(*<+C#)+:4*-+).&+2-((-!
GFH
J;BDMN;UNB[
J;BDMN;UNB[
):)$-(*+:))%$C#)&/+)-+:+5#C4$2+4:)%$(&+C&$(0+2-()%:*)&/+X$).+).&+
*5:2&+-,+).&+:%)+0:44&%6@
=*$(0+,-#(/+-C_&2)*+)-+/&(-)&+-%+2-((-)&+'&:($(0+C&2:'&+:+
4:%0&+ 5:%)+ -,+ 4:)&%+ :%)+ '->&'&()*<+ $(24#/$(0+ 5-5!:%)<+ 94#^#*<+
(&-!/:/:$*'<+:**&'C4:0&<+$(*):44:)$-(+:%)<+:(/+4:)&%<+'&/$:+:%)@+
B.&*&+ '->&'&()*+ :44+ :/-5)&/+ ).&+ *)%:)&06+ -,+ %AA/5A/$%,$51<+
X.&%&+/$,,&%&()+'&/$:+:(/+':)&%$:4*+:/-5)&/+$()-+:%)X-%?*@+N(!
*)&:/+-,+C&$(0+2-''&()*+-(+:%)+$)*&4,<+).&+:%)X-%?+2%$)$2$Y&/<+
$%-($Y&/<+ -%+ 2-''&()&/+ -(+ 2#4)#%&+ ).%-#0.+ ).&+ :%,"/$%-& (9-;
,9/"+-,+2-()&'5-%:%6+*-2$&)6@+B.$*+X:*+:4*-+).&+2:*&+X$).+&:%46+
'&/$:+:%)+:%)$*)*<+4$?&+O:'+d#(&+3:$?<+W-4,+a-*)&44<+d-.(+W.$)!
(&6<+K.$%4&6+I4:%?&<+1:%:+L$%(C:#'<+:(/+':(6+-).&%*@+3-5!:%)+
:4*-+&^)&(*$>&46+&^5:(/&/+).&+2#4)#%:4+'&:($(0*+-,+-C_&2)*+$(+
5#C4$2+ 2#4)#%&@+ B.&+ $2-(*+ ).:)+ .:/+ C&&(+ 5-5#4:%$Y&/+ ).%-#0.+
':**+'&/$:+X&%&+&*5&2$:446+2-''&()&/+-(<+:*+4:2?$(0+':)&!
%$:4+0%-#(/$(0+-%+/&&5&%+'&:($(0@
'$+9/"&FUG&=/9("&R%9:%11&D&48"&4/9"&7/,$),&X"-A)&,8"&a5/-#&
0@&`"3"%-$1+&!@),$(&4/9,8)
GFV
L#)+$,+).&+e0%-#(/$(0+':)&%$:4$)6f+$*+%&0:%/&/+:*+).&+5%$(2$5:4+
'&**:0&+-,+).&+:%)X-%?<+$)*+'&/$#'+2:%%$&*+).&+'&:($(0*+).:)+
:%&+ :))%$C#)&/+ )-+ $)*+ $()&%5%&):)$-(@+ N(+ -).&%+ X-%/*<+ ).&+ 5%-5!
HUWLHV WKDW DUH DWWULEXWHG WR D VSHFL¿F PHGLXP DUH FXOWXUDOO\
2-(*)%#2)&/+).%-#0.+*-2$&):4+2-(>&()$-(*@+B-+5:%:5.%:*&+M:6!
'-(/+W$44$:'*<+).&+'&/$#'+$*+(-)+-(46+:+)&2.(-4-06<+$)+$*+:4*-+
e2#4)#%:4+ ,-%'f+ 7W$44$:'*<+ GTRV8@+ J#2.+ :*+ O:'+ d#(&+ 3:$?`*+
X-%?*+X&%&+$()&%5%&)&/+:*+2-''&()*+-(+&()&%):$('&()+2#4)#%&+
:(/+':**+'&/$:<+-).&%+:%)$*)*+.:>&+:/-5)&/+)65&*+-,+'&/$:+).:)+
X&%&+ '&):5.-%$2:446+ :**-2$:)&/+ X$).+ &*):C4$*.&/+ 2-(>&()$-(*+
$(+2-()&'5-%:%6+2#4)#%&@
K$(2&+).&+4:)&+*$^)$&*<+;'&%$2:(+:%)$*)+L%#2&+O:#':(+.:*+':/&+
:+ 4:%0&+ (#'C&%+ -,+ :%)X-%?*+ ).:)+ :%&+ 2-(*)%#2)&/+ X$).+ (&-(+
)#C&*+:*+).&$%+5%$':%6+':)&%$:4@+B.&*&+)#C&*+:%&+C&()+)-+*5&44+
-#)+X-%/*+-%+*&()&(2&*<+-%+/&5$2)+0%:5.$2+/%:X$(0*<+-,)&(+X$).+
:+*&^#:4+#(/&%)-(&@+P(&+-,+.$*+'-*)+X&44!?(-X+X-%?*+$*+48"&
4/9"&7/,$),&X"-A)&,8"&a5/-#&0@&`"3"%-$1+&!@),$(&4/9,8)+7GTZR8<+
X.$2.+$*+*5&44&/+-#)+$(+(&-(+4&))&%*@+B.&+(&-(+*$0(+X:*+/&4$C!
&%:)&46+ *&4&2)&/+ C6+ O:#':(+ ,-%+ $)*+ 2-''&%2$:4+ $2-(-0%:5.6<+
X.$2.+24:*.&/+X$).+).&+2-()&^)+-,+).&+:%)+0:44&%6+7b&)(&%<+EFFZ<+
5@+EQ8@+L#)+:4).-#0.+).&+2-()&()+-,+.$*+*$0(*+$*+,:%+,%-'+2-(>&(!
)$-(:4+:(/+$(+$)*&4,+5%->-2:)$>&<+).&+2.-$2&+-,+'&/$#'+,-%+.$*+
:%)X-%?*+2-()%$C#)&*+)-+:+%&:/$(0+).:)+$'54$2$)46+2-''&()*+-(+
).&+(:)#%&+-,+2-''&%2$:4+*$0(:0&@+B.&+(&-(+)#C&+.:*+C&2-'&+
:**-2$:)&/+ X$).+ :/>&%)$*$(0<+ *.-5*<+ .-)&4*<+ C:%*<+ :(/+ '#2.+
GFQ
J;BDMN;UNB[
J;BDMN;UNB[
'-%&<+C#)+/&*5$)&+':?$(0+,-%+>&%6+>$*$C4&+*$0(:0&<+).&+'&/$#'+
-,)&(+ *4$/&*+ $()-+ ).&+ :'C$&(2&+ -,+ 2$)6+ 4$0.)*@+ W.&(+ O:#':(+
$()%-/#2&/+).&+(&-(+*$0(+)-+).&+:%)+X-%4/<+$)+X:*+:+%:/$2:4+'->&+
).:)+5%&*&()&/+).&+'&/$#'+$(+:(+&()$%&46+(&X+2-()&^)@+\$*+:%)!
ZRUNVZHUHQRWRQO\DERXWWKH¿JXUDWLYHPHVVDJHRIWKHOHWWHUV
DQGVKDSHVLQQHRQEXWWKH\ZHUHVSHFL¿FDOO\DERXWWKHLPSOLF!
$)+'&:($(0+-,+).&+':)&%$:4<+:(/+).&+$()&%5%&):)$-(:4+$()&%:2)$-(+
C&)X&&(+2-()&()+:(/+'&/$#'@
:+ 2%$)$2$*'+ -,+ '&/$:+ :(/+ ).&+ :#).-%$)$&*@+ K):)&'&()*+ *#2.+ :*+
e:C#*&+-,+5-X&%+2-'&*+:*+(-+*#%5%$*&f+:(/+e5%$>:)&+5%-5&%)6+
2%&:)&/+ 2%$'&f+ X&%&+ *):)&/+ :*+ #("#&*)$-(&/+ ,:2)*+ 7)%#$*'*8<+
'#2.+4$?&+:/>&%)$*$(0+:(/+5-4$)$2:4+2:)2.5.%:*&*@+N(+GTSE<+*.&+
&^)&(/&/+).&+5%-_&2)+C6+%&()$(0+)$'&+*4-)*+-(+).&+4:%0&+K5&2!
):2-4-%+*2%&&(+-(+B$'&*+K"#:%&+,-%+:+%#(+-,+.&%+)%#$*'+*):)&!
'&()*@+ L-).+ ).&+ $($)$:4+ 5-*)&%*+ :(/+ ).&+ 4:)&%+ #*&+ -,+ ).&+ 4:%0&<+
&4&2)%-($2+*2%&&(+X&%&+#(2-(>&()$-(:4+'&/$:+,-%+:%)X-%?*<+C#)+
.$0.46+2-(>&()$-(:4+,-%+5#C4$2+:/>&%)$*$(0+$(+:(+#%C:(+2-()&^)@+
B.&%&,-%&<+).&+'&**:0&+-,+).&+:%)X-%?+X:*+(-)+-(46+).&+2-(!
)&()<+C#)+:4*-+).&+,-%'+:(/+).&+,%:'$(0+2-()&^)@
;+ 4:%0&+ 5:%)+ -,+ \-4Y&%`*+ 4:)&%+ X-%?+ :4*-+ &'54-6*+ &4&2)%-($2+
*$0(*<+&*5&2$:446+*2%-44$(0+':%"#&&+UD1+/$*54:6*<+X.$2.+*.&+
RIWHQ SODFHG LQ XQFRQYHQWLRQDO VSDWLDO FRQ¿JXUDWLRQV RU SXW
RQ FHLOLQJV DQG ÀRRUV ,Q PDQ\ FDVHV WKH PHGLXP EHFRPHV
:(+-C*):24&+)-+%&:/$(0+).&+)&^)*+).:)+\-4Y&%+.:*+:#).-%&/<+:(/+
).&+'&/$#'+$)*&4,+):?&*+-(+:+*2#45)#%:4+,-%'@+;5:%)+,%-'+#*$(0+
UD1+*$0(*+%)&:%,"/$%-+,-%+.&%+:%)X-%?*<+*.&+:4*-+&^54-$)*+).&+
5%-5&%)$&*+ :(/+ '&:($(0*+ ).:)+ :%&+ &'C&//&/+ $(+ ).$*+ :%,"/$%-<+
).&%&C6+,&&/$(0+-(+).&+'&/$#'@+\-4Y&%`*+X-%?*+/-+(-)+2.:4!
4&(0&+).&+'&/$#'+C6+*&&?$(0+$)*+4$'$):)$-(*n+$(*)&:/<+).&6+*$'!
546+:22&5)+).&+2-(>&()$-(:4+&^5%&**$-(+-,+).&+*2%-44$(0+/$*54:6+
:(/+:22&5)+$)*+2-((-):)$-(*@
;+ *$'$4:%+ #*&+ -,+ :+ 2-''&%2$:4+ '&/$#'+ .:*+ C&&(+ :554$&/+ C6+
;'&%$2:(+:%)$*)+d&((6+\-4Y&%<+$(+.&%+':(6+X-%?*+#*$(0+&4&2!
WURQLFVLJQERDUGVDQGVFUROOLQJGLVSOD\V+HU¿UVWDUWZRUNWKDW
#*&/+&4&2)%-($2+'&/$:+X:*+:+5:%)+-,+.&%+4/9$):)+5%-_&2)+7GTRR!
RT8<+ X.$2.+ 2-'5%$*&/+ :+ 4:%0&+ (#'C&%+ -,+ -(&!4$(&+ *):)&'&()*+
).:)+*.&+.:/+5%$()&/+-(+5-*)&%*+:(/+5#)+#5+:)+4-2:)$-(*+:44+->&%+
J:(.:)):(@+B.&+'&**:0&*+X&%&+:*+'#2.+5-4$)$2:4+:*+).&6+X&%&+
'$+9/"&FkG&H"11@&X5-e"/&D&4/9$):)&IFTlJL
GFZ
7"1GMJ$6J$)6,M(6/%'(6%Q6,M(6!H,C-,
B.&+-()-4-0$2:4+"#&*)$-(*+).:)+:%&+5%-5-*&/+C6+\-4Y&%`*+4/9;
$):)+:(/+O:#':(`*+(&-(+:%)X-%?*+:%&+(-)+%&4:)&/+)-+).&+4$'$):!
)$-(*+-,+).&+'&/$#'<+4$?&+'-/&%($*)+5:$()$(0<+C#)+%:).&%+).&6+%&!
4:)&+)-+).&+2-((-):)$-(*<+2-(>&()$-(*<+-%+*$'546<+).&+(51#$,$51)+
-,+).&+'&/$#'@+B.&*&+2-(/$)$-(*+:%&+$(.&%&()+)-+).&+'&/$#'<+
:(/+(-%':446+(-)+:+5:%)+-,+.-X+$)+$*+2-(*2$-#*46+5&%2&$>&/@+B.$*+
$*+ *$'$4:%+ )-+ ).&+ :%0#'&()+ :%-#(/+ X.$2.+ J:%*.:44+ J2U#.:(+
GFR
J;BDMN;UNB[
J;BDMN;UNB[
C#$4/*+'#2.+-,+.$*+).&-%6h+'&/$:+.:>&+C&2-'&+*#2.+$()&0%:4+
:*5&2)*+-,+-#%+&(>$%-('&()+7:(/+&>&(+).&+.#':(+C-/68+).:)+X&+
:%&+(-+4-(0&%+2-(2$-#*46+:X:%&+-,+).&+2-(/$)$-(*+).&6+$'546@
B&4&>$*$-(<+,-%+$(*):(2&<+.:*+(-)+-(46+&^)&(/&/+>$*$-(+C&6-(/+
-#%+$''&/$:)&+*$)#:)$-(<+$)+.:*+2.:(0&/+-#%+>$*#:4+5&%2&5)$-(+
:4)-0&).&%@
B.&+-(46+)65&+-,+5&%*-(+X.-+$*+:C4&+)-+&(2-#()&%+)&2.(-4-06+
X$).+ $:A9/$,@+ $*+ ).&+e*&%$-#*+ :%)$*)f+C&2:#*&+e.&+$*+ :(+ &^5&%)+
:X:%&+-,+).&+2.:(0&*+$(+*&(*&+5&%2&5)$-(f+7NC$/@8@+B.&%&,-%&<+
).&+%-4&+-,+).&+:%)$*)+$*<+$(+).&+X-%/*+-,+J2U#.:(<+)-+e2%&:)&+:(+
;()$!&(>$%-('&()+ :*+ :+ '&:(*+ -,+ 5&%2&5)$-(+ :(/+ :/_#*)'&()f+
7J2U#.:(+:(/+I:%*-(<+EFFH<+55@+HF!HG8@+B.$*+'&:(*+).:)+).&+
:%)$*)+ .:*+ ).&+ 5-X&%+ )-+ /$*2&%(+ ).&+ 2#%%&()+ &(>$%-('&()+ 2%&!
:)&/+C6+).&+4:)&*)+)&2.(-4-06+7J2U#.:(+:(/+3:%?&%<+GTZS<+5@+
^^$$$8<+:(/+2:(+5-)&()$:446+2-%%&2)+:(/+%&:/_#*)+).&+#(2-(*2$-#*+
0$%)+ -,+ 5&%2&5)$-(<+ C6+ /$*24-*$(0+ $)+ 75@+ EVG8@+;%)$*)*+ 2:(+ 2%&!
:)&+:()$!&(>$%-('&()*+C6+5%->$/$(0+:(+:4)&%(:)$>&+&(>$%-('&()+
-%+&'5.:*$Y$(0+2%$)$2:4+5:%)*+-,+).&+2#%%&()+&(>$%-('&()@+B.&$%+
5%:2)$2&<+$(+).$*+5&%*5&2)$>&<+':6+:4*-+C&+/&*2%$C&/+:*+:+*.$,)+$(+
0$%)WKDWUHFRQ¿JXUHVWUDGLWLRQDOXQGHUVWDQGLQJV
J2U#.:(+:4*-+(-)&/+).&+5%:2)$2&+-,+%AA/5A/$%,$51+$(+5-5+:%)+:*+
).&+5%:2)$2&+-,+2%&:)$(0+:()$!&(>$%-('&()*h
45#%@&6"&-$3"&$13"),"#&6$,8&%1&"-"(,/51$(&:"#$%&"13$/51:"1,&
WKDWLVTXLWHDVLPSHUFHSWLEOHWRXVDVZDWHULVWRD¿VK+7J2U#!
.:(<+GTRF<+5@+Q8
;22-%/$(0+)-+J2U#.:(<+'&/$:+:(/+)&2.(-4-06+.:>&+).&'*&4>&*+
2%&:)&/+e&(>$%-('&()*f+:*+:(+&,,&2)+-,+:/-5)$(0+).&'+$()-+-#%+
/:$46+ 4$>&*@+B.&+ %&*#4)+ -,+ *#2.+ :/-5)$-(+ $*+ (:)#%:4$Y:)$-(+ :(/+
.:C$)#:4+ C&.:>$-%+ )-X:%/+ ).&*&+ '&/$:@+ \&+ :%0#&*h+ e;(6+ (&X+
WHFKQRORJ\DQ\H[WHQVLRQRUDPSOL¿FDWLRQRIKXPDQIDFXOWLHV
X.&(+0$>&(+':)&%$:4+&'C-/$'&()<+)&(/*+)-+2%&:)&+:+(&X+&(>$!
%-('&()@f+7J2U#.:(+:(/+3:%?&%<+GTZS<+5@+EVG8@+B.$*+(-)$-(+-,+
)&2.(-4-06+ :*+ "13$/51:"1,+ *#00&*)*+ ).:)+ >:%$-#*+ '&/$:+ .:>&+
C&&(+:/-5)&/+$()-+-#%+&>&%6/:6+4$>&*<+:(/+).:)+X&+:%&+0&(&%!
:446+(-)+:X:%&+-,+).&'@+J2U#.:(+:%0#&*+).:)+eP%/$(:%6+.#':(+
$(*)$(2)+2:#*&*+5&-54&+)-+%&2-$4+,%-'+).&*&+(&X+&(>$%-('&()*+
:(/+)-+%&46+-(+).&+%&:%!>$&X+'$%%-%+:*+:+?$(/+-,+%&5&:)+-%+%$2-%*-+
-,+).&+5%&2&/$(0+&(>$%-('&()f+7J2U#.:(+:(/+3:%?&%<+GTZS<+5@+
^^$$$8@+B.&+$/&:+$*+*$'$4:%+)-+.$*+2-(2&5)+-,+e(#'C(&**f<+X.$2.+
$*+ $(/#2&/+ C6+ )&2.(-4-0$2:4+ &^)&(*$-(*+ -,+ ).&+ .#':(+ *&(*&*<+
.$/$(0+ ).&+ &,,&2)*+ :(/+ 0%-#(/*+ ).:)+ .:>&+ C&2-'&+ :'C$&()+ )-+
-#%+5&%2&5)$-(+7J2U#.:(<+GTZV<+5@+Z8@+O#'C(&**+$*+).&+*&4,!
$'5-*&/+ -#)2-'&+ -,+ :/-5)$(0+ )&2.(-4-06+ $()-+ -#%+ &(>$%-(!
'&()<+:(/+).&%&C6+4-*$(0+).&+:C$4$)6+)-+':?&+2%$)$2:4+_#/0'&()*+
:C-#)+$)*+(:)#%&@+W.&(+).$*+-22#%*+-(+:+*-2$&):4+*2:4&<+$)+2%&!
:)&*+:+2#4)#%:4+:(/+5&%2&5)#:4+0$%)+$(+-#%+'&/$:!:,,&2)&/+&(>$!
%-('&()+7J2U#.:(+:(/+3:%?&%<+GTZS<+5@+EVG8@+B.&+&,,&2)*+-,+
)&2.(-4-06+).&%&C6+e:4)&%+*&(*&+%:)$-*+-%+5:))&%(*+-,+5&%2&5)$-(+
*)&:/$46+:(/+X$).-#)+:(6+%&*$*):(2&f+7J2U#.:(<+GTZV<+5@+GT8@+
GFS
45#%@&68%,&$)&(%--"#&[M5A&7/,\&$)&,8"&9)"&5C&)5:"&50^"(,&C/5:&
59/&#%$-@&"13$/51:"1,&%)&$C&$,&6"/"&%1,$"13$/51:"1,%-?&M5A&7/,&
)"/3")&,5&/":$1#&9)B&856"3"/B&,8%,&6"&8%3"&C%)8$51"#&C5/&59/;
)"-3")& %& 65/-#& 5C& %/,$C%(,)& %1#& $:%+")& ,8%,& %/"& $1,"1#"#& 15,&
,5& ,/%$1& A"/("A,$51& 5/& %6%/"1"))& 09,& ,5& $1)$),& ,8%,& 6"& :"/+"&
6$,8&,8":&%)&,8"&A/$:$,$3"&:%1&:"/+")&6$,8&8$)&"13$/51:"1,?+
7J2U#.:(+:(/+3:%?&%<+GTZS<+5@+EVH8
B.$*+ *#00&*)*+ ).:)+ ).&+ 5%:2)$2&+ -,+ :55%-5%$:)$(0+ 2#4)#%:4+ :%!
)$,:2)*+:*+ ':)&%$:4+,-%+ :%)+ 5%-/#2)$-(+.:*+ ).&+ :C$4$)6+)-+ %&>&:4+
).&+&(>$%-('&():4+2.:%:2)&%+-,+).&+:%)$,:2)*@+]&(&+[-#(0C4--/+
:4*-+(-)&/+:+*$'$4:%+(-)$-(+$(+.$*+2-(2&5)+-,+"YA%1#"#&($1":%<+
GFT
J;BDMN;UNB[
J;BDMN;UNB[
/&*2%$C$(0+.-X+).&+e;&*).&)$2+:554$2:)$-(+-,+)&2.(-4-06+$*+).&+
-(46+'&:(*+-,+:2.$&>$(0+(&X+2-(*2$-#*(&**+)-+':)2.+-#%+&(>$!
%-('&()@f+7[-#(0C4--/<+GTRF<+5@+GST8@+B.$*+$*+"#$)&+5-**$C46+:+
/$%&2)+%&,&%&(2&+)-+J2U#.:(@
;%)+*&&'*+)-+C&+:(+&^2&5)$-(:4+2:*&+-,+'&/$:+,-%+J2U#.:(<+:*+
.&+%&0:%/*+X-%?*+-,+:%)+(-)+:*+*$'54&+&^)&(*$-(*+-,+':(<+C#)+
%:).&%<+).&+'&:(*+,-%+%&>&:4$(0+).&+$((&%+X-%?$(0*+-,+'&/$:+:(/+
).&$%+&(>$%-('&()*@+W.&%&+'&/$:+5%-/#2&+&(>$%-('&()*<+:%)!
X-%?*+5%-/#2&+).&+%&2$5%-2:4<+).&+:()$!(#'C(&**<+C&$(0+&,,&2!
)$>&46+:()$!'&/$:<+,-44-X$(0+J2U#.:(`*+).$(?$(0@+B.$*+2-(2&5)+
-,+e:()$!'&/$:+:%)f+X:*+:2)#:446+-(&+).:)+X:*+:**-2$:)&/+X$).+
&:%46+'&/$:+:%)+$(+).&+GTZF*+71:($&4*<+EFFV<+5@+ET8@
;%)X-%?*+*#2.+:*+).-*&+5%-/#2&/+C6+L%#2&+O:#':(+:(/+d&((6+
\-4Y&%+ ':6+ C&+ %&0:%/&/+ X$).+ J2U#.:(`*+ ).$(?$(0<+ :*+ X-%?*+
).:)+5%&*&()+(&-(+:(/+UD1+*$0(*+e:*+$,+).&6+X&%&+:()$&(>$%-(!
'&():4f@+L-).+)65&*+-,+'&/$#'+.:>&<+->&%+)$'&<+C4&(/&/+$()-+
).&+#%C:(+&(>$%-('&()+)-+:+/&0%&&+).:)+).&6+.:>&+C&2-'&+:'!
C$&()+:(/+':%0$(:4+)-+5&%2&5)$-(@+9-44-X$(0+J2U#.:(`*+4$(&+-,+
).-#0.)<+O:#':(+:(/+\-4Y&%+X&%&+:C4&+)-+$/&()$,6+).&*&+'&/$:+
:(/+:55%-:2.+).&'+:*+':)&%$:4*+,-%+5%-/#2$(0+:X:%&(&**+:(/+:+
%&/$*2->&%6+-,+).&$%+2-(/$)$-(*@
J2U#.:(*`*+>$&X+-(+).&+%-4&+-,+).&+:%)$*)+%&*&'C4&*+).&+2.:%:2!
)&%$Y:)$-(+).:)+M-*:4$(/+b%:#**+':/&+-,+).&+5-*)'-/&%(+*2#45!
WXUHLQWKHH[SDQGHG¿HOG
;22-%/$(0+)-+b%:#**<+).&+*5:2&+-,+5-*)'-/&%(+5%:2)$2&+/&5:%)*+
,%-'+).&+'-/&%($*)+&^54-%:)$-(+-,+).&+5#%&+':)&%$:4+0%-#(/*+-,+
).&+'&/$#'+:(/+$)*+5&%2&5)#:4+"#:4$)$&*@+N(*)&:/<+$)+&^54-%&*+).&+
*5:2&+ ).:)+ $*+ $(+ -55-*$)$-(+ 7).&+ :()$!&(>$%-('&()8+ )-+ ).&+ 2#4!
WXUDOVLWXDWLRQWKHHQYLURQPHQW$FFRUGLQJWRWKLVGH¿QLWLRQ
&*5&2$:446+ 5-*)'-/&%(+ :%)X-%?*+ )-+ *&&?+ -#)+ -55-*$)$-(*<+ :(/+
)-+,-%'+).&+:()$).&*$*+-,+2#4)#%:4+(-%'*<+*$'$4:%+)-+J2U#.:(`*+
/&*2%$5)$-(*+-,+:%)+:(/+).&+:%)$*)`*+%-4&@+B.$*+#(/&%*):(/$(0+-,+
:%)$*)$2+5%:2)$2&+$*+-(&+).:)+&'5.:*$Y&*+).&+2%$)$2:4+5-)&()$:4+$(+
:%)+).:)+://%&**&*+).&+&(>$%-('&()+2%&:)&/+C6+'&/$:@
chdB&$,&$)&503$59)&,8%,&,8"&-5+$(&5C&,8"&)A%("&5C&A5),:5#"/1;
LVWSUDFWLFHLVQRORQJHURUJDQL]HGDURXQGWKHGH¿QLWLRQRID
+$3"1&:"#$9:&51&,8"&+/591#)&5C&:%,"/$%-B&5/B&C5/&,8%,&:%,,"/B&
,8"&A"/("A,$51&5C&:%,"/$%-?&<,&$)&5/+%1$e"#&$1),"%#&,8/59+8&,8"&
91$3"/)"&5C&,"/:)&,8%,&%/"&C"-,&,5&0"&$1&5AA5)$,$51&6$,8$1&%&(9-;
,9/%-&)$,9%,$51?+7b%:#**<+GTRT<+5@+VH8
GGF
?8L2/06!;36L/<2;3
B.&+$/&:+).:)+2&%):$(+:*5&2)*+-,+'&/$:+:%&+*#C4$'$(:4<+'&:($(0+
C&4-X+-#%+5&%2&5)#:4+).%&*.-4/<+$*+:+%&2#%%$(0+).&'&+$(+J2U#!
.:(`*+ X%$)$(0*@+ N(+ .1#"/),%1#$1+& !"#$%+ 7GTZV8<+ .&+ 5%-5-*&*+
).:)+ '&/$:<+ :*+ "Y,"1)$51)+ -,+ .#':(+ *&(*&*<+ 2:#*&+ 19:01"))+
:(/+ &>&(+ %:A9,%,$51+ -,+ ).&+ $(>-4>&/+ *&(*&*<+ #(/&%*)--/+ :*+
).&+ 4--*+ -,+ ).&+ 5&%2&5)#:4+ :X:%&(&**+ -,+ *&(*$(0@+ N(+ 48/59+8&
,8"&S%1$)8$1+&M5$1,+7GTZS8<+J2U#.:(+$()%-/#2&*+).&+(-)$-(+-,+
'&/$:+:*+"13$/51:"1,<+:(/+:4*-+).&+$/&:+).:)+).&+:%)*+:(/+*2$!
&(2&*+ $(>-4>&+ 5%:2)$2&*+ ).:)+ 2%&:)&+ %1,$;"13$/51:"1,)<+ X.$2.+
.&$0.)&(+ ).&+ :X:%&(&**+ -,+ ).&+ '&/$:+ &(>$%-('&()*+ :(/+ ).&$%+
2-(/$)$-(*@+K$'$4:%+$/&:*+X&%&+,#(/:'&():4+)-+E$,@&%)&E-%));
/55: ZKHUH KH ¿UVW SUHVHQWV WKH LGHDV RI ¿JXUH+ :(/+
+/591#+:*+:+X:6+-,+/&*2%$C$(0+).&+:))&()$>&+5&%2&5)$-(+:*+*.$,)!
$(0+:'-(0+>:%$-#*+&4&'&()*@
>«@WKHFRQVFLRXVO\QRWHGHOHPHQWVDUH¿JXUHDQGHYHU\WKLQJ
"-)"&$)&+/591#?+7J2U#.:(<+GTRR<+5@+T8@
B.&*&+$/&:*+X&%&+/&>&4-5&/+,#%).&%+$(+J2U#.:(`*+4:*)+C--?<+
2%6)&5C&!"#$%ZKLFKZDVFRZULWWHQDQG¿QLVKHGE\
GGG
J;BDMN;UNB[
.$*+*-(+D%$2<+:(/+5#C4$*.&/+:,)&%+J:%*.:44+J2U#.:(`*+/&:).+$(+
GTSF@+B.&+X%$)$(0+-,+).$*+C--?+X:*+5%-'5)&/+C6+).&+/&*$%&+)-+
%&X%$)&+.1#"/),%1#$1+&!"#$%+$(+:+'-%&+$()&44$0$C4&+X:6<+X.$2.+
ZDV PRUH ³VFLHQWL¿F´ DQG PHWKRGLFDO 7KH ERRN LV PRVWO\
?(-X(+ ,-%+ $)*+ e)&)%:/*f<+ 54:2$(0+ >:%$-#*+ ':(!':/&+ 2-(*)%#2!
)$-(*+ 7-%+ '&/$:8+ $()-+ :(+ :(:46)$2:4+ '-/&4@+ L#)+ ).&+ C--?+ :4*-+
&4:C-%:)&*+-(+).&+5%&>$-#*46+/&*2%$C&/+2-(2&5)*+-,+¿JXUH+:(/+
+/591#@+J2U#.:(+&^54:$(*+).&'+:*+,-44-X*h
['$+9/"\&%1#&[+/591#\&"1,"/"#&i"),%-,&A)@(85-5+@&C/5:&,8"&
65/>&5C&O#+%/&`90$1B&685&%059,&FTFV&9)"#&,85)"&,"/:)&,5&#$);
(9))&%)A"(,)&5C&3$)9%-&A"/("A,$51?&48"@&8%3"&0""1&0/5%#"1"#&,5&
":0/%("&,8"&685-"&),/9(,9/"&5C&A"/("A,$51&%1#&(51)($59)1"))?&
$OOVLWXDWLRQVFRPSULVHDQDUHDRIDWWHQWLRQ¿JXUHDQGDYHU\
:9(8&-%/+"/&%/"%&5C&$1%,,"1,$51&I+/591#L?&48"&,65&(51,$19%--@&
(5"/("&%1#&A-%@&6$,8&"%(8&5,8"/&%(/5))&%&(5::51&59,-$1"&5/&
ERXQGDU\RULQWHUYDOWKDWVHUYHVWRGH¿QHERWKVLPXOWDQHRXVO\+
7J2U#.:(+:(/+J2U#.:(<+GTSS<+5@+Q8
;*+$(+J2U#.:(`*+5%&>$-#*+X-%?*<+).&+C:*$2+5%&'$*&+$*+).:)+'&!
/$:<+:(/+)&2.(-4-06+$(+0&(&%:4<+':6+C&+*&5:%:)&/+$()-+&4&'&()*+
).:)+:%&+5&%2&$>:C4&+:(/+:22&**$C4&+)-+-#%+2-(*2$-#*(&**<+:(/+
:+4:%0&%+5:%)+).:)+$*+$:A"/("A,$0-"+-%<+:)+4&:*)<+C&4-X+).&+).%&*.!
ROGRIRXUDWWHQWLRQ7KHVHWZRDVSHFWVDUHZKDWKHLGHQWL¿HV
DV ¿JXUH DQG JURXQG )LJXUH LV WKH DUHD RI DWWHQWLRQ WKDW RXU
5&%2&5)$-(+ .:*+ C&&(+ )%:$(&/+ )-+ $/&()$,6+ -#)+ -,+ :+ '#4)$)#/&+ -,+
$'5%&**$-(*@+ B.&+ 0%-#(/+ $*+ ).&+ '#2.+ 4:%0&%+ :%&:+ -,+ $(:))&(!
)$-(<+*$'$4:%+)-+).&+(-)$-(+-,+"13$/51:"1,<+X.$2.+5%->$/&*+).&+
*)%#2)#%&+-,+:X:%&(&**<+e:+X:6+-,+*&&$(0+jkl+-%+).&+i)&%'*+-(+
ZKLFK¶D¿JXUHLVSHUFHLYHG´0F/XKDQDQG0F/XKDQ
5@+Q8@+B.&*&+,"/:)+-,+5&%2&5)$-(<+:(/+.-X+).&6+/$*:55&:%+:(/+
%&!&'&%0&<+:%&+X.:)+$()&%&*)+J2U#.:(+'-*)<+:(/+X&%&+:4*-+).&+
GGE
J;BDMN;UNB[
,-2#*+-,+.1#"/),%1#$1+&!"#$%@+
(VVHQWLDOWR0F/XKDQ¶VXQGHUVWDQGLQJRI¿JXUHDQGJURXQGLV
.$*+&^)&(*$-(+-,+).&$%+-%$0$(:4+'&:($(0*+$(+]&*):4)+5*62.-4-06@+
:KHUH ¿JXUH DQG JURXQG RULJLQDOO\ GHQRWHG WKH IRUHJURXQG
DQGEDFNJURXQGWKDWDUHLGHQWL¿HGWKURXJKYLVXDORUDXGLWRU\
5&%2&5)$-(<+J2U#.:(+C%-:/&(*+).&$%+'&:($(0+)-+:4*-+$(>-4>&+
).&+eX.-4&+*)%#2)#%&+-,+5&%2&5)$-(+:(/+2-(*2$-#*(&**f+7NC$/@8@+
J2U#.:(+).&%&C6+*#00&*)*+).:)+5&%2&5)$-(+2:((-)+C&+*&5:%:)&/+
IURP DFWLYH FRQVFLRXVQHVV ZKHUH ¿JXUHV DUH VWUXFWXUHG E\
).&+ 0%-#(/+ -#)*$/&+ -#%+ :))&()$-(@+ 9$0#%&+ :(/+ 0%-#(/+ :%&+ (-)+
¿[HGHQWLWLHVEXWFRQVWDQWO\VKLIWDV¿JXUHVHPHUJHIURPWKH
0%-#(/@
'$+9/")&/$)"&59,&5CB&%1#&/"("#"&0%(>&$1,5B&+/591#B&68$(8&$)&(51;
¿JXUDWLRQDODQGFRPSULVHVDOORWKHUDYDLODEOH¿JXUHVDWRQFH
'5/&"Y%:A-"B&%,&%&-"(,9/"B&%,,"1,$51&6$--&)8$C,&C/5:&,8"&)A"%>;
"/f)&65/#)&,5&8$)&+"),9/")B&,5&,8"&89:&5C&,8"&-$+8,)&5/&,5&),/"",&
)591#)B&,5&,8"&C""-&5C&,8"&(8%$/&5/&,5&:":5/@&5/&%))5($%,$51&5/&
VPHOO(DFKQHZ¿JXUHLQWXUQGLVSODFHVWKHRWKHUVLQWRJURXQG+
7J2U#.:(+:(/+J2U#.:(<+GTSS<+5@+Q8
J2U#.:(+ %&0:%/*+ A"/("A,$51+ :*+ :+ 5%-2&**+ ).:)+ $(>-4>&*+ C-).+
WKH LGHQWL¿FDWLRQ RI ¿JXUHV DQG WKH LQWHUSUHWDWLRQ RI WKHLU
'&:($(0+ $(+ %&4:)$-(+ )-+ ).&+ 0%-#(/@+ 3&%2&5)$-(+ $*+ (-)+ _#*)+ ).&+
SDVVLYH UHFHSWLRQ RI ¿JXUHV EXW LQYROYHV YDU\LQJ GHJUHHV RI
$()&%5%&):)$-(+ :(/+ *&(*&!':?$(0<+ X.$2.+ :%&+ *)%#2)#%&/+ C6+ :(+
#(2-(*2$-#*+0%-#(/@
J2U#.:(+:%0#&*+).:)+:+5%$':%6+,#(2)$-(+-,+.#':(+5&%2&5)$-(+
LVWKHFDSDFLW\WRLVRODWHD¿JXUHIURPLWVJURXQG7KLVIXQFWLRQ
$*+&*5&2$:446+X&44!/&>&4-5&/+$(+).&+*&(*&+-,+>$*$-(h+e(-+-).&%+
GGH
J;BDMN;UNB[
J;BDMN;UNB[
VHQVHLQKLJKGH¿QLWLRQWKDWLVSUHVVHGWRLQWHQVLW\RIRSHUD!
WLRQFDQVXSSUHVVJURXQGE\LVRODWLQJDQGGHWDFKLQJ¿JXUHV´
75@+GQ8@+N)+$*+$(+-#%+.#':(+(:)#%&+)-+/$*)$(0#$*.+C&)X&&(+:+*&!
4&2)&/+ :%&:+ -,+ :))&()$-(+ :(/+ :+ 4:%0&%+ :%&:+ -,+ $(:))&()$-(@+B.$*+
:%0#'&()+$*+*$'$4:%+)-+X.:)+d-(:).:(+I%:%6+5%&*&()*+:*+e*#*!
5&(*$-(*+-,+5&%2&5)$-(f<+/&*2%$C$(0+'-/&%($)6`*+$(2%&:*&/+/&!
':(/*+,-%+$(/$>$/#:4*+)-+C&+:C4&+)-+,-2#*+-(+e:+%&/#2&/+(#'C&%+
RIVWLPXOL´UHVXOWLQJLQ³GLVHQJDJHPHQWIURPDEURDGHU¿HOGRI
DWWHQWLRQ´&UDU\S&UDU\WKHUHE\LGHQWL¿HVDSURS!
&%)6+-,+5&%2&5)$-(+).:)+$*+&"#$>:4&()+)-+J2U#.:(`*+2-(2&5)+-,+
LVRODWLQJDQGGHWDFKLQJ¿JXUHVIURPWKHJURXQG
+/591#±WKH³DUHDRILQDWWHQWLRQ´ZKLFKLVORZLQGH¿QLWLRQ
'&:($(0+ ).:)+ ).&6+ /-+ (-)+ 5%->$/&+ '#2.+ $(,-%':)$-(+ -(+ ).&$%+
-X(<+ C#)+ .:>&+ )-+ C&+ $()&%5%&)&/+ )-+ #(,-4/+ ).&+ ,#44+ *&)+ -,+ #(!
/&%*):(/$(0*+:))$%$C#)&/+)-+).&'@+]%-#(/+$*+&>&%6).$(0+).:)+$*+
QRW¿JXUH±WKHXQGLVFRYHUHGSRWHQWLDOWKDWHPHUJHVDV¿JXUH
).%-#0.+5%-2&**&*+-,+5&%2&5)$-(@
B.&+ $/&:+ ).:)+ ¿JXUH+ $*+ ).&+ 2-()&()+ ).:)+ /&':(/*+ :))&()$-(<+
:(/++/591#+$*+).&+2-()&^)+).:)+%&2&$>&*+4&**+:))&()$-(<+.:*+4&/+
B&%%&(2&+]-%/-(+)-+*#00&*)+).:)+85,PHGLDZLWKKLJKGH¿QL!
)$-(8+:%&+5%&/-'$(:()46+¿JXUH<+:(/+(5-#+'&/$:+:%&+&,,&2)$>&46+
+/591#+7]-%/-(<+EFGF<+5@+GHE8@+P%+%:).&%<+.-)+'&/$:+:%&+2.:%!
DFWHUL]HGE\DKLJKHUDPRXQWRI¿JXUHVZKHUHDVFRROPHGLD
ZLWKORZGH¿QLWLRQDUHPRUHGHSHQGHQWRQJURXQGDQGDUH
4$?&46+ )-+ &'5.:*$Y&+ ).&+ 0%-#(/+ $(+ ).&+ 5%-2&**+ -,+ 5&%2&5)$-(@+
B.$*+ X-#4/+ *#00&*)+ ).:)+ :+ 2--4+ '&/$#'<+ 4$?&+ *$^)$&*`+ )&4&>$!
*$-(<+C%$(0*+:))&()$-(+)-+).&+0%-#(/+-,+).&+'&/$#'+)-+:+0%&:)&%+
/&0%&&+).:(+'->$&*+/-@+B.$*+24:$'+2:((-)+C&+>:4$/:)&/<+C#)+$)+
.$()*+:)+:(+&^54:(:)$-(+-,+).&+.$0.+/&0%&&+-,+:))&()$-(+$(>-4>&/+
$(+X:)2.$(0+'->$&*<+2-'5:%&/+)-+).&+'-%&+/$*)%:2)&/+5&%2&5!
)$-(+-,+)&4&>$*$-(@
6LQFH¿JXUHLVGHVFULEHGDV³DQDUHDRIDWWHQWLRQ´LWLVSRVVLEOH
)-+ %&0:%/+ $)+ :*+ ).&+ ,-2:4+ 5-$()+ -,+ 5&%2&5)$-(<+ X.&%&+ :))&()$-(+
$*+ /$%&2)&/<+ :*+ $*+ ).&+ 2:*&+ X$).+ '-*)+ '&/$:+ 2-()&()@+B.&+ 5&%!
2&5)$-(+-,+(51,"1,<+5%&>$-#*46+/&*2%$C&/+$(+)&%'*+-,+.$0.!+-%+
ORZGH¿QLWLRQ VHQVRU\ LQIRUPDWLRQLV RSHUDWLQJDV WKH ¿JXUH+
-,+'&/$:@+B.&+'&/$#'+:(/+$)*+&(>$%-('&()+:%&+).&%&,-%&+).&+
GGV
J&/$:+ g+ #(/&%*)--/+ :*+ ).&+ &^)&(*$-(*+ -,+ ':(<+ $(24#/$(0+ .$*+
*&(*-%6+ 5&%2&5)$-(+ g+ :'54$,6+ :))&()$-(+ -(+ :+ *$(04&+ *-#%2&+ -,+
$(5#)@+;22-%/$(0+ )-+ J2U#.:(<+ %&2&5)$-(+ -,+ '&/$:+ 2%&:)&*+ :(+
DUWL¿FLDOHPSKDVLVRQDVHOHFWHG¿JXUH<+:(/+:#)-':)$2:446+&^!
24#/&*+).&+'#2.+4:%0&%+:%&:+-,+).&++/591#@+J&/$:<+:*+).&+.$0.46+
/&>&4-5&/+&^)&(*$-(*+-,+5&%2&5)$-(<+2&()&%+).&+:))&()$-(+X$).+
VXFKVSHFL¿FLW\WKDWWKHLUHIIHFWVEHFRPH³PDLQO\VXEOLPLQDO´
7J2U#.:(+:(/+J2U#.:(<+GTSS<+5@+TS8@+B.$*+':?&*+).&'+$(:2!
2&**$C4&+)-+/$%&2)+&^:'$(:)$-(@
0HGLD DUH HVSHFLDOO\ OLDEOH WR SURGXFH GLVFRQQHFWHG ¿JXUHV
X.$4&+8$#$1++).&+0%-#(/+,%-'+X.$2.+).&6+:%&+*&5:%:)&/@+B&4&!
>$*$-(+%&5%&*&()*+:(+&^:'54&+-,+*#2.+:+/$*2-((&2)$-(<+X.&%&+
$':0&*+:%&+*&5:%:)&/+,%-'+).&$%+-%$0$(:4+*2&(&<+:(/+:%&+C%-#0.)+
LQWRWKH¿HOGRIYLHZZLWKRXWYLVXDOUHIHUHQFHVWRWKHLUJURXQG
3GJ'C,D
7KHFRQFHSWVRI¿JXUHDQGJURXQGZRUNRQDWOHDVWWZRGLV!
)$(2)+4&>&4*+$'54$&/+C6+J2U#.:(`*+:%0#'&():)$-(@+9$%*)<+).&6+
/&*2%$C&+).&+>$*#:4+,-%&0%-#(/+:(/+C:2?0%-#(/+-,+5&%2&5)$-(<+
/&%$>&/+ ,%-'+ ]&*):4)+ 5*62.-4-06<+ X.&%&+ *-'&+ 5%$':%6+ &4&!
'&()*+:%&+C%-#0.)+$()-+2-(*2$-#*+,-2#*@+L#)+*&2-(/<+).&+)&%'*+
:%&+ :4*-+ #*&/+ )-+ /&*2%$C&+ ).&+ 5&%2&5)$-(+ -,+ '&/$:+ $(+ 0&(&%:4+
WHUPVZKHUH¿JXUHUHIHUVWRWKHSHUFHLYHG(51,"1,<+:(/+0%-#(/+
/&(-)&*+).&+#(2-(*2$-#*+(51#$,$51)<+*#2.+:*+).&+'&/$#'<+).&+
)&2.(-4-06<+ :(/+ $)*+ 2-(>&()$-(*@+W.$4&+ #*$(0+ ).&+ )X-+ #(/&%!
GGQ
J;BDMN;UNB[
J;BDMN;UNB[
*):(/$(0*+ $()&%2.:(0&:C46+ ':6+ *&&'+ 5%-C4&':)$2<+ J2U#.:(+
#(/&%4$(&*+:+5:%)$2#4:%+2-(2&5)$-(+-,+'&/$:+X.&%&+5&%2&5)$-(+
:(/+ 2-(*2$-#*(&**+ :%&+ $1,"/#"A"1#"1,<+ ).&%&C6+ :4*-+ *#00&*)!
$(0+ ).:)+ 2-()&()+ :(/+ '&/$#'+ '#*)+ C&+ %&0:%/&/+ 2-44&2)$>&46@+
9$0#%&+$*+(-)+*$'546+).&+,-%&0%-#(/+&4&'&()*+-,+:(+$':0&<+C#)+
/&(-)&*+ &>&%6).$(0+ ).:)+ .-4/*+ ).&+ :))&()$-(+ 7>$*#:4<+ :#/$)-%6<+
'&'-%6<+&)2@8@+O-%+$*+0%-#(/+_#*)+).&+C:2?0%-#(/<+C#)+$)+$(*)&:/+
/&*2%$C&*+ &>&%6).$(0+ ).:)+ $*+ -#)*$/&+ ).&+ :))&()$-(<+ X.$4&+ *)$44+
.:>$(0+:+':_-%+$'5:2)+-(+).&+5&%2&5)$-(+-,+'&/$:@+;+0%-#(/+
':6+ C-).+ C&+ 5&%2&5)$C4&+ :(/+ &5$*)&'-4-0$2:4<+ C#)+ :*+ *--(+ :*+
:(+&4&'&()+-,+:+0%-#(/+2-'&*+)-+-(&`*+:))&()$-(<+$)+2-(*2$-#*46+
C&2-'&*+¿JXUH³(DFKQHZ¿JXUHLQWXUQGLVSODFHVWKHRWKHUV
$()-+0%-#(/f+7J2U#.:(+:(/+J2U#.:(<+GTSS<+5@+Q8@
9$0#%&+ :(/+ 0%-#(/+ /&*2%$C&+ ).&+ /#:4$)$&*+ -,+ C-).+ ,-%':4+ :(/+
-()-4-0$2:4+:%,"/$%-$,@@+B.&6+ .$0.4$0.)+ ).&+ /$*2-((&2)$-(+ C&!
WZHHQ DQ LPDJH DQG ZKDW LW UHSUHVHQWV WKH VLJQL¿HU DQG WKH
VLJQL¿HGWKHLPPDWHULDODQGWKHPDWHULDO:KLOH¿JXUHUHIHUV
)-+).&+&^5%&**$>&+,-%'+7C&$(0+.-)+-%+2-4/8<+0%-#(/+':6+C&+#(!
/&%*)--/+:*+).&+2-/&*+).:)+2%&:)&+).&+2-((&2)$-(*+C&)X&&(+&^!
5%&**$-(+:(/+'&:($(0@+K)$44<+J2U#.:(+:%0#&*+).:)+).&*&+2-/&*+
:%&+0&(&%:446+(-)+:22&**$C4&+)-+-#%+$''&/$:)&+:X:%&(&**<+C#)+
2-(*)$)#)&+:(+#(/&%46$(0+4:6&%+-,+2-(/$)$-(*+).:)+*4$/&+$(2%&:*!
$(046+-#)+-,+%&:2.+:*+).&+.#':(+C-/6+$*+5%-0%&**$>&46+&^)&(/&/+
C6+'&/$:@
>$2&*+).:)+C%$(0*+$)+$()-+54:6@f+7J2U#.:(+:(/+J2U#.:(<+GTSS<+
5@+Q8@+B.&%&,-%&<+0%-#(/+/&*2%$C&*+:+2-'C$(:)$-(+-,+5%-5&%)$&*+
-,+ ).&+ $''&/$:)&+ *$)#:)$-(<+ :*+ X&44+ :*+ :+ C%-:/&%+ #(/&%*):(/!
$(0+-,+).&+'&/$#'+:(/+$)*+&(>$%-('&():4+2.:%:2)&%@+;0:$(<+).$*+
*#00&*)*+:+/#:4+2.:%:2)&%+)-+0%-#(/<+:*+C-).+5%&*&()+:(/+:C*&()+
2-(/$)$-(*@+]%-#(/+':6+:4*-+C&+#(/&%*)--/+:*+).&+/8",5/$(+).:)+
IUDPHV WKH SHUFHSWLRQ RI ¿JXUH RU DV IRUPXODWHG E\ VFKRODU
]%:.:'+\:%':(+X.$4&+%&,&%%$(0+)-+J2U#.:(h+eM.&)-%$2+$*+).&+
:%)+-,+).&+C:2?0%-#(/<+:(/+$,+5.$4-*-5.6+$*+(-)+).&+*2$&(2&+-,+
).&+C:2?0%-#(/<+).&(+N+/-+(-)+?(-X+X.:)+$)+$*@f+7\:%':(<+EFGE<+
5@+GS8@
B.&+5%-C4&'+-,++/591#+$*+).:)+$)+$*+>$%)#:446+$'5-**$C4&+)-+*)#/6+
$)+-(+$)*+-X(+)&%'*<+C&2:#*&+:)+:(6+'-'&()+$)+$*+&(>$%-('&():4+
:(/+ *#C4$'$(:4@+ B.$*+ ':?&*+ '&/$:+ $(:22&**$C4&+ )-+ /$%&2)+ &^!
:'$(:)$-(<+*$(2&+).&+0%&:)&%+5:%)+-,+).&$%+&,,&2)*+:%&+(-)+/$%&2)46+
:>:$4:C4&+)-+5&%2&5)$-(+7J2U#.:(+:(/+J2U#.:(<+GTSS<+5@+TS8@
;*+-,)&(+(-)&/+C6+J2U#.:(<+>$*$-(+$*+*5&2$:446+5%$>$4&0&/+->&%+
-).&%+ *&(*&*<+ X.$2.+ '&:(*+ ).:)+ >$*#:4+ 5&%2&5)$-(+ $*+ 4$:C4&+ )-+
VXSSRUWWKHGLVUHJDUGIRUWKHJURXQGLQRUGHUWRORFDWHWKH¿J!
#%&@+J2U#.:(+:%0#&*+).:)+$)+$*+e:+5%$':%6+,#(2)$-(+-,+-#%+*&(*&+
RIYLVLRQLVWRLVRODWHD¿JXUHRQLWVJURXQG>«@&XOWXUDOHYL!
/&(2&+*#00&*)*+).:)+$)+$*+).&+*#5%&'&+5%-5&%)6+-,+>$*$-(+:4-(&h+
QRRWKHUVHQVHLQKLJKGH¿QLWLRQWKDWLVSUHVVHGWRLQWHQVLW\
-,+-5&%:)$-(<+2:(+*#55%&**+0%-#(/+C6+$*-4:)$(0+:(/+/&):2.$(0+
¿JXUHV´S+HDOVRDUJXHVWKDW³YLVXDOVSDFHLVVSDFHFUH!
:)&/+ :(/+ 5&%2&$>&/+ C6+ ).&+ &6&*<+ X.&(+ >$*$-(+ $*+ :C*)%:2)&/+ -%+
*&5:%:)&+,%-'+).&+:2)$>$)6+$,+).&+-).&%+*&(*&*f+75@+EE8@+B.&+$:;
%+"BDVWKHUHSUHVHQWDWLRQRIYLVXDOVSDFHLVWKHH[HPSOL¿FD!
WLRQ RI ¿JXUHSHUFHSWLRQ ZKLFK SXVKHV WKH RWKHU VHQVHV LQWR
).&++/591#%\GH¿QLWLRQYLVLRQLVDVHQVRU\PRGHZLWKVXFK
KLJKGH¿QLWLRQWKDWLWVHHPVWRFDSWXUHWKHHQWLUHVSHFWUXPRI
).&+ &(>$%-('&()<+ X.$4&+ $(+ ,:2)+ $)+ 4&:/*+ )-+ ,#%).&%+ /&5%$>:)$-(+
$OWKRXJK 0F/XKDQ LGHQWL¿HV ERWK ¿JXUH DQG JURXQG ZLWK
&"#:4+2:%&<+$)+$*+24&:%+).:)+X.:)+$()&%&*)*+.$'+'-*)+$*+).&+->&%!
4--?&/+(:)#%&+-,+).&++/591#@+B.$*+$*+X.:)+&*2:5&*+-#%+:))&()$-(<+
X.$4&+:)+ ).&+*:'&+)$'&+*.:5$(0+ '&/$:+:(/+ )&2.(-4-06+$(+).&+
'-*)+,#(/:'&():4+X:6*@+\&+&^54:$(*+).$*+:*h+eB.&+0%-#(/+-,+
:(6+)&2.(-4-06+-%+:%)$,:2)+$*+C-).+).&+*$)#:)$-(+).:)+0$>&*+%$*&+)-+
$)+:(/+).&+X.-4&+&(>$%-('&()+7'&/$#'8+-,+*&%>$2&*+:(/+/$**&%!
GGZ
GGR
J;BDMN;UNB[
J;BDMN;UNB[
-,+ :X:%&(&**<+ *$'$4:%+ )-+ ).&+ $/&:+ -,+ 19:01"))+ $()%-/#2&/+ $(+
.1#"/),%1#$1+&!"#$%@
%&,&%&(2&+)-+J2U#.:(`*+$/&:*<+).&(+:)+4&:*)+*.:%&/+:+2-''-(+
>$&X+-(+).&+:%)$*)`*+%-4&+$(+%&>&:4$(0+).&+e)%#).f<+$(+).$*+X-%?+
*5&44&/+-#)+$(+2-''&%2$:446+C$:*&/+(&-(@
J2U#.:(+ :4*-+ %&,&%*+ )-+ \&$/&00&%`*+ $/&:+ -,+ e]&*)&44f+ 7O1;
C/%:$1+8<+:*+:+*5&2$:4+)&2.($"#&+-,+5&%2&5)$-(+).:)+%&>&:4*+).&+
0%-#(/+7J2U#.:(+:(/+J2U#.:(<+GTSS<+5@+ZH8@+\&$/&00&%+.$'!
*&4,+/&*2%$C&*+).&+2-(2&5)+-,+"1C/%:$1++:*h+eD(,%:'$(0+'&:(*+
).:)+X:6+-,+%&>&:4$(0+X.$2.+.-4/*+*X:6+$(+).&+&**&(2&+-,+'-/!
&%(+ )&2.(-4-06+ :(/+ X.$2.+ $*+ $)*&4,+ (-).$(0+ )&2.(-4-0$2:4@f+
7\&$/&00&%<+GTRR<+5@+EF8@+\&+/$*)$(0#$*.&*+C&)X&&(+)&2.(-4-06+
$,)"-C<+).&+).$(0+).:)+X&+*&&<+:(/+)&2.(-4-0$2:4+%(,$3$,@<+X.$2.+
2.:44&(0&*+ &(,%:'$(0<+ C#)+ (&>&%+ C%$(0*+ $)+ :C-#)+ 7\&$/&00&%<+
GTRR<+5@+EG8@+J2U#.:(+$()&%5%&)*+&(,%:'$(0+:*+:+)&2.($"#&+,-%+
%&>&:4$(0+).&+0%-#(/+7-%+).&+:2)#:4+%&:48+).:)+%&"#$%&*+*5&2$:4+
)%:$($(0<+X.$2.+&^$*)*+$(+).&+:%)*+:*+).&+)%:$($(0+-,+5&%2&5)$-(<+
:(/+ $(+ W&*)&%(+ 4$)&%:%6+ 2%$)$2$*'+ 7J2U#.:(+ :(/+ J2U#.:(<+
GTSS<+5@+ZV8@+B.$*+)&2.($"#&+$*+*$'$4:%+$(+*)%:)&06+)-+X.:)+.&+
.:/+/&*2%$C&/+:*+).&+%-4&+-,+).&+:%)$*)+$(+2%&:)$(0+:(+:()$!&(>$!
%-('&()<+&'5.:*$Y$(0+).&+&(>$%-('&()<+-%+%:).&%+).&+0%-#(/@
/(N(J'C$*6,M(6*H%G$)
W.$4&+ '&/$:+ :(/+ )&2.(-4-06+ :%&+ .$0.46+ &>-4>&/+ .#':(+ 2%&!
:)$-(*<+ ).&6+ :%&+ :4*-+ X$/&46+ /&5&(/&()+ -(+ $'54$2$)+ -%+ .$//&(+
5%-5&%)$&*+:(/+'&:($(0*+).:)+:%&+-#)*$/&+-#%+:))&()$-(<+.&(2&+
$(+ ).&+ #(2-(*2$-#*+ 0%-#(/@+;22-%/$(0+ )-+ J2U#.:(<+ ).&+ -(46+
X:6+)-+%&>&:4+).&*&+0%-#(/+5%-5&%)$&*+$*+)-+4&:%(+,%-'+).&+5%:2!
)$2&+-,+%/,$),)<+X.-*&+X.-4&+C#*$(&**+.:*+C&&(+e).&+%&)%:$($(0+
:(/+#5/:)$(0+-,+*&(*$C$4$)6@f+7J2U#.:(+:(/+J2U#.:(<+GTSS<+
5@+Q8@+B.&6+2:(+C%$/0&+).&+0:5+C&)X&&(+-#%+.#':(+(:)#%&<+-%+
eC$-4-0$2:4+$(.&%$):(2&f<+:*+J2U#.:(+2:44*+$)<+:(/+).&+&(>$%-(!
'&()*+2%&:)&/+C6+)&2.(-4-0$2:4+$((->:)$-(+75@+TS8@+N)+$*+).&+):*?+
-,+).&+:%)$*)+)-+#(2->&%+).&+&(>$%-('&():4+0%-#(/+-,+'&/$:<+:(/+
2-''#($2:)&+.$*+-%+.&%+$(*$0.)*+)-+*-2$&)6+7D%(*)<+EFGG<+5@+E8@
48"& 09)$1"))& 5C& ,8"& %/,$),& 8%)& 0""1& ,5& /"A5/,& 51& ,8"& (9//"1,&
),%,9)& 5C& +/591#& 0@& "YA-5/$1+& ,85)"& 1"6& C5/:)& 5C& )"1)$0$-$,@&
:%#"&%3%$-%0-"&0@&"%(8&1"6&:5#"&5C&(9-,9/"&-51+&0"C5/"&,8"&
%3"/%+"&:%1&)9)A"(,)&,8%,&%1@,8$1+&8%)&(8%1+"#?+7J2U#.:(+
:(/+J2U#.:(<+GTSS<+5@+Q8
J2U#.:(+:%0#&*+).:)+:%)$*)*+':6+%&>&:4+).&+0%-#(/+-,+'&/$:<+
DQGHIIHFWLYHO\WXUQWKHPLQWR¿JXUH³7KHDUWLVWRIRXUFXOWXUH
i).&+:()&((:&+-,+-#%+%:2&<`+.:/+)#(&/+$(+)-+).&+(&X+0%-#(/+:(/+
C&0#(+&^54-%$(0+-,+/$*2-()$(#$)6+:(/+*$'#4):(&$)6@f+7J2U#.:(+
:(/+J2U#.:(<+GTSS<+5@+VR8@+B.$*+>$&X+%&':%?:C46+2-$(2$/&*+
X$).+).&+*):)&'&()+5%&*&()&/+C6+O:#':(`*+X-%?+48"&4/9"&7/,;
$),&X"-A)&,8"&a5/-#&0@&`"3"%-$1+&!@),$(&4/9,8)+7GTZR8<+2-'!
54&)&/+$(+).&+6&:%*+-,+J2U#.:(`*+'-*)+$'5-%):()+5#C4$2:)$-(*@+
B.$*+*-'&X.:)+*#00&*)*+).:)+O:#':((<+$,+(-)+':?$(0+/$%&2)46+
GGS
N(+':(6+%&*5&2)*<+J2U#.:(`*+(-)$-(+-,+).&++/591#+-,+'&/$:+
$*+ *$'$4:%+ )-+ ).&+ 5%&>$-#*46+ /&*2%$C&/+ (-)$-(+ -,+ :%,"/$%-$,@@+
=(/&%*):(/$(0+':)&%$:4$)6+:*+).&+e#(/&%46$(0+2-(*)%:$()*f<+:*+
*#00&*)&/+C6+3,&$,,&%+7GTTV<+5@+GE8<+-%+e$()&%:2)$-(*+C&)X&&(+
5.6*$2:4+5%-5&%)$&*+:(/+:+X-%?`*+:%)$*)$2+*)%:)&0$&*f<+:%)$2#4:)!
&/+C6+\:64&*+7EFFE<+5@+HE8<+$(>-4>&*+*$'$4:%+$/&:*+-,+X-%?$(0+
:0:$(*)+:+*&)+-,+*)%#2)#%$(0+&4&'&()*+-,+X.$2.+X&+:%&+(-%':446+
(-)+:X:%&<+C#)+).:)+%&2&$>&*+$(2%&:*&/+:))&()$-(+).%-#0.+2%$)$!
2$*'+:(/+&^5&%$'&():4+5%:2)$2&*@
J:)&%$:4$)6+ :*+ :"#$9:& 51,5-5+@+ ':6+ C&+ #(/&%*)--/+ :*+ ).&+
0%-#(/+-,+'&/$:<+'&:($(0+).&+2-(*)$)#)$(0+:*5&2)*+).:)+,%:'&+
-#%+#(/&%*):(/$(0+-,+:+5:%)$2#4:%+'&/$#'@+B.&+:%)$*)$2+5%:2)$2&+
GGT
J;BDMN;UNB[
J;BDMN;UNB[
).:)+J2U#.:(+/&*2%$C&*+':6+C&+*&&(+:*+:+5%:2)$2&+-,+'&/$#'+
':)&%$:4$)6<+X.&%&+).&+2$%2#'*):(2&*+-%+2-(/$)$-(*+:%&+&'5.:!
*$Y&/+->&%+).&+2-()&()@+B.&%&,-%&<+).&+%-4&+-,+).&+:%)$*)+C&2-'&*+
WKDWRIUHFRQ¿JXULQJWKH¿JXUHJURXQGUHODWLRQVKLSWRHPSKD!
*$Y&+$'54$2$)+'&:($(0*@
L-).+\-4Y&%`*+4/9$):)+:(/+L%#2&+O:#':(`*+(&-(+*$0(*+:%&+&^!
:'54&*+-,+:(+&'5.:*$*+-(++/591#@+B.&$%+X-%?+C#$4/*+-(+).&+%&!
2-()&^)#:4$Y:)$-(+-,+).&+2#4)#%:4+'&/$:+0%-#(/+:*+:+,%:'$(0+-,+
).&+2-()&()@+B.&+0%-#(/+-,+2-''&%2$:4+:/>&%)$*$(0+'&/$:+:5!
5&:%*<+:*+).&6+%&54:2&+).&+2-()&()+X$).+:(+#(&^5&2)&/+'&**:0&@+
,QWKLVVHQVHWKHJURXQGEHFRPHVD¿JXUHLQWKHVHDUWZRUNV
EXWQRWD¿JXUHWKDWUHSODFHVWKHH[LVWLQJ¿JXUHVEXWLQVWHDG
DGGVQHZPHDQLQJWRWKHSULPDU\¿JXUH
;4)&%(:)$>&46<+d$'+I:'5C&44`*+X-%?*+':6+C&+/&*2%$C&/+:*+:+/$,!
,&%&()+)&2.($"#&+-,+&'5.:*$Y$(0+0%-#(/+).-#0.+'&/$#'+':)&!
%$:4$)6@+\$*+4-X!%&*-4#)$-(+*2%&&(+':6+C&+*&&(+:*+:+*)%:)&06+-,+
/&!&'5.:*$Y$(0+¿JXUH+C6+%&/#2$(0+).&+:'-#()+-,+$(,-%':)$-(+
).:)+$*+5%->$/&/+$(+).&+$':0&@+B.&+C4#%%$(0+-,+¿JXUH+,-%2&*+:+
*.$,)+ $(+ 5&%2&5)$-(+ )-X:%/+ ).&+ +/591#+ -,+ ).&+ $':0&+ g+ $(+ ).$*+
2:*&<+).&+5%-2&**+C6+X.$2.+4$0.)+C&2-'&*+$':0&+:)+:+>&%6+':)&!
%$:4+4&>&4@+B.&+>$&X&%+C&2-'&*+:X:%&+-,+C-).+).&+,-%':4+2.:%!
:2)&%$*)$2*+-,+).&+*2%&&(+/&>$2&<+C#)+:4*-+).&+2-(/$)$-(*+#(/&%+
X.$2.+X&+$()&%5%&)+).&+$':0&+:(/+/&/#2&+$)*+'&:($(0@+I:'5!
C&44+ ).&%&C6+ %&>&:4*+ ).&+ 0%-#(/+ -,+ .$*+ *2%&&(*<+ C#)+ ).%-#0.+ :+
/$,,&%&()+*)%:)&06+).:(+).-*&+-,+\-4Y&%+:(/+O:#':(@
;+/$,,&%&()+:55%-:2.+)-+%&>&:4$(0+0%-#(/<+':6+C&+,-#(/+$(+:+
X-%?+ C6+ ]&%':(+ :%)$*)+;%:'+ L:%).-44<+ )$)4&/+ `%1#5:& N(/""1+
7EFFQ8@+N)+2-(*$*)*+-,+:+,%:'&+).:)+$*+/$>$/&/+$()-+EQ+*"#:%&*<+
&:2.+C&$(0+$44#'$(:)&/+,%-'+C&.$(/+:+).$(+X.$)&+*#%,:2&@+D:2.+
RIWKHVH³SL[HOV´VHHPVWRÀLFNHUDWUDQGRPLQWHUYDOVFUHDWLQJ
DQDEVWUDFWLPDJHWKDWFRQVWDQWO\FKDQJHV$W¿UVWWKHREMHFW
GEF
'$+9/"&FlG&7/%:&=%/,85--&D&`%1#5:&N(/""1&IJKKVLB&C/51,
M85,5&0@&7/%:&=%/,585--
'$+9/"&FTG&7/%:&=%/,85--&D&`%1#5:&N(/""1&IJKKVLB&0%(>
M85,5&0@&7/%:&=%/,85--
GEG
J;BDMN;UNB[
J;BDMN;UNB[
4--?*+ 4$?&+ :+ >&%6+ 4-X!%&*-4#)$-(+ /$0$):4+ *2%&&(+ ).:)+ /$*54:6*+
:'C$0#-#*+ 5#4*:)$(0+ 5:))&%(*@+ L#)+ X.&(+ ).&+ :#/$&(2&+ X:4?*+
:%-#(/+).&+-C_&2)<+).&6+/$*2->&%+).:)+&:2.+e5$^&4f+$*+$44#'$(:)!
&/<+(-)+C6+:+/$0$):446+2-()%-44&/+4$0.)+*-#%2&<+C#)+C6+:(+-%/$(:%6+
WHDOLJKWFDQGOH7KHFDQGOHLV¿WWHGZLWKDURWDWLQJGHYLFHWKDW
*5$(*+,%-'+).&+.&:)+-,+).&+2:(/4&<+X.$4&+,:/$(0+).&+4$0.)+$(+:(/+
-#)@+W.:)+*&&'*+4$?&+:+5$&2&+-,+/$0$):4+)&2.(-4-06+$*+%&>&:4&/+
)-+:2)#:446+C&+:(:4-0+:(/+'&2.:($2:4+$(+&>&%6+X:6@
B.&+X:6+`%1#5:&N(/""1+%&>&:4*+)&2.(-4-06+$*+)X-,-4/@+9$%*)<+
$)+/$*24-*&*+).&+$':0&!':?$(0+5%-2&**<+'#2.+4$?&+d$'+I:'5!
C&44`*+E89/(8&51&'$C,8&73"19"<+C6+$(>$)$(0+).&+:#/$&(2&+)-+4--?+
C&.$(/+).&+*2%&&(+:(/+*&&+).&+:2)#:4+4:'5*+).:)+5%-_&2)+).&+$'!
:0&@+ K&2-(/<+ `%1#5:& N(/""1+ %&>&:4*+ ).&+ &^5&2):)$-(*+ -,+ ).&+
>$&X&%h+ ).&+ $2-($2+ 4$(?+ C&)X&&(+ ).&+ 5$^&4!*2%&&(+ :(/+ /$0$):4+
)&2.(-4-06+).:)+2-(>&()$-(:446+-#)5#)*+-%+2-()%-4*+).&+5$^&4*@+
7KHH[SUHVVLRQRIÀLFNHULQJSL[HOVKDVEHHQ¿UPO\HVWDEOLVKHG
$(+-#%+'$(/*+:*+*$0($,6$(0+:+/$0$):4+$':0&@+N(+).$*+*$'54&+C#)+
&,,&2)$>&+X:6<+L:%).-44+%&'$(/*+#*+.-X+).&+*2%&&(+.:*+$)*+-X(+
$2-(-0%:5.6<+:(/+).:)+X&+.:>&+4&:%(&/+)-+%&2-0($Y&+).&*&+5:!
UDPHWHUVZLWKVXFKFRQ¿GHQFHWKDWZHDUHHDVLO\IRROHG3L[HOV
.:>&+ C&2-'&+ ).&+ #(2-(*2$-#*+ +/591#+ -,+ :44+ '-/&%(+ *2%&&(*<+
ZKHUHZHQRUPDOO\RQO\VHHZKDWWKHVFUHHQGHSLFWVWKH¿JXUH
)-+5%-_&2)+:(+$':0&+-,+K->$&)+:(/+;'&%$2:(+'$**$4&*+5:/4-2?&/+
)-0&).&%+ X$).+ 2.:$(*@+ B.$*+ $':0&+ ://&/+ :+ *6'C-4$2+ '&**:0&+
:C-#)+).&+I-4/+W:%+:%'*+%:2&<+$'54$2$)46+*):)$(0+).:)+).&+K->$&)+
:(/+ =K+ '$**$4&*+ X&%&+ 4-2?&/+ )-0&).&%+ $(+ '#)#:4+ $()&%/&5&(!
/&(2&+7W-/$2Y?-<+GTTT<+5@+GVR8@+L#)+:5:%)+,%-'+).&+5%-_&2)&/+
$':0&<+).&+:%)X-%?+:4*-+%&2&$>&/+'&:($(0+,%-'+).&+>&%6+*6'!
C-4$2+'&'-%$:4+:%2<+X.$2.+.:/+C&&(+&%&2)&/+)-+2-''&'-%:)&+
,:44&(+*-4/$&%*+:(/+*:$4-%*+/#%$(0+).&+2$>$4+X:%@+B.#*<+).&+:%)!
X-%?+X:*+(-)+-(46+:C-#)+).&+I-4/+W:%<+C#)+:4*-+2-''&()&/+-(+
WKHHDUOLHU$PHULFDQ&LYLO:DUZLWKRXWDVVLJQLQJDQ\VSHFL¿F
%&:/$(0+%&0:%/$(0+).&+2-((&2)$-(@+B.&+:%)X-%?+C&2:'&+:+)65&+
-,+:$Y"#;:"#$%+$(*):44:)$-(+).:)+/&%$>&/+$)*+:'C$0#-#*+'&:(!
$(0+,%-'+'#4)$54&+*-#%2&*@
4M(6-"H(($6J-6J--(+B'J*(
B.&+5-4$*.+:%)$*)+b%Y6*Y)-,+W-/$2Y?-+7C-%(+GTVH8+$*+%&(-X(&/+
,-%+ .$*+ 4:%0&!*2:4&+ *4$/&!5%-_&2)$-(*<+ X.$2.+ .&+ C&0:(+ /&>&4!
-5$(0+ $(+ ).&+ &:%46+ GTSF*@+B.&*&+ $(*):44:)$-(*+ $(>-4>&/+ 5#C4$2+
'-(#'&()*+ -%+ C#$4/$(0*<+ X.$2.+ .&+ #*&/+ :*+ 2:(>:*&*<+ -()-+
X.$2.+.&+5%-_&2)&/+*6'C-4$2+$':0&*@+P(&+-,+.$*+&:%4$&*)+X-%?*+
X:*+5%-_&2)&/+-(+).&+N5-#$"/)&%1#&N%$-5/)&E$3$-&a%/&!":5/$%-&
7/(8<+:)+]%:(/+;%'6+34:Y:+$(+L%--?46(<+O&X+[-%?<+$(+GTSH!
SV@+W-/$2Y?-+#*&/+:+*4$/&+5%-_&2)-%+:$'&/+:)+).&+'&'-%$:4+:%2.+
K4$/&!5%-_&2)$-(+)&2.(-4-06+$*+(-%':446+#*&/+-(+:+X.$)&+2:(!
>:*<+X.$2.+$*+7'-%&+-%+4&**8+(&#)%:4+$(+$)*+&^5%&**$-(<+2%&:)$(0+:+
'$+9/"&JKG&n/e@)e,5C&a5#$(e>5&D&N5-#$"/)&%1#&N%$-5/)&!":5;
/$%-&7/(8&M/5^"(,$51&IFTlQplWL
m&n/e@)e,5C&a5#$(e>5?&E59/,")@&i%-"/$"&2"-51+B&R"6&o5/>
GEE
GEH
J;BDMN;UNB[
J;BDMN;UNB[
e(&#)%:4f+*2%&&(!*#%,:2&+$44#'$(:)&/+C6+).&+2-()&()!$':0&@+L#)+
$(+).&+2:*&+-,+W-/$2Y?-`*+5%-_&2)$-(<+).&+(&#)%:4+C:2?0%-#(/+$*+
*#C*)$)#)&/+X$).+:+.$0.46+*6'C-4$2+C:2?0%-#(/<+).&%&C6+2.:(0!
$(0+).&+'&:($(0+-,+C-).+'&/$#'+:(/+2-()&()@+N(+:+>&%6+4$)&%:4+
*&(*&<+).&+0%-#(/+-,+).&+'&/$#'+$*+)90),$,9,"#+,-%+:+(&X+C:2?!
JURXQG ± D ¿JXUDWLYH HOHPHQW ZLWK HPEHGGHG PHDQLQJ 7KH
:%)X-%?+C&2-'&*+:(+:**&'C4:0&<+:*+/&*2%$C&/+C6+W$44$:'+I@+
K&$)Y<+:+e_#^):5-*$)$-(h+i*&))$(0+-(&+).$(0+C&*$/&+).&+-).&%+X$).!
-#)+2-((&2)$>&`f+7K&$)Y<+GTZG<+5@+EQ8<+-%+:*+/&*2%$C&/+C6+d-.(+
;@+ W:4?&%<+ :*+ e'$^&/!'&/$:+ X-%?*+ -%+ 2-'5-*$)&*+ :(/+ ).#*+
).&6+)%:(*0%&**&/+).&+5#%$)6+-,+'&/$#'+:&*).&)$2+:(/+C4#%%&/+
).&+/$,,&%&(2&+C&)X&&(+5:$()$(0+:(/+*2#45)#%&f+7W:4?&%<+GTTE8@
$)6+':6+C&+%&0:%/&/+:*+.:>$(0+$(2%&:*&/+:X:%&(&**+-,+"Y,"/$5/+
SURSHUWLHV LQGLFDWLQJ D KLJKHU OHYHO RI FULWLFDO UHÀHFWLRQ DQG
)"-C;/"C"/"1("+7]#'C%&2.)<+GTTV<+5@+HTV8@+W.&(+$(2%&:*$(046+
&^5-*&/+)-+%&5%&*&():)$-(*+$(+>:%$-#*+,-%'*<+$)+C&2-'&*+$'5-%!
):()+)-+%:$*&+:X:%&(&**+-,+).&+*)%#2)#%&+:(/+,-%'+).%-#0.+X.$2.+
).&*&+%&5%&*&():)$-(*+:%&+5%&*&()&/@
J2U#.:(`*+#(/&%*):(/$(0+-,+0%-#(/+:*+).&+(51#$,$51)+-%+,%:'!
$(0+-,+).&+'&/$#'+*.&/*+:(-).&%+4$0.)+-(+).&+W-/$2Y?-`*+*4$/&!
5%-_&2)-%+e*2%&&(f@+L6+#*$(0+).&+:%2.$)&2)#%&+-,+).&+'&'-%$:4+
:%2.+:*+e2:(>:*f<+).&+2-(/$)$-(*+-,+).&+*2%&&(+:%&+2.:(0&/+C6+
*#C*)$)#)$(0+).&+X.$)&<+(&#)%:4+2:(>:*+X$).+:+':)&%$:446+):2)$4&+
:(/+.$0.46+*6'C-4$2++/591#@
9%-'+ ).$*+ 5&%*5&2)$>&+ -,+ #(/&%*):(/$(0+ ':)&%$:4$)6+ :*+ e5%-C!
4&'*+ 2-(2&%($(0+ ).&+ 2-(/$)$-(*+ :(/+ ,-%'*+ -,+ '&:($(0!2-(!
*)%#2)$-(f+7]#'C%&2.)+:(/+3,&$,,&%<+GTTV<+5@+C:2?+2->&%8<+W-/!
$2Y?-`*+5%-_&2)$-(+$(*):44:)$-(+://%&**&*+).$*+$(+*)%$?$(0+X:6*@
.2448;L67!40/8!184F64<6@</R
1&*2%$C$(0+ '&/$:+ :%)+ $(+ )&%'*+ -,+ :%,"/$%-$,@+ 5%->$/&*+ :(+ $(!
2%&:*&/+ *&(*$)$>$)6+ )-+ ).&+ %&4:)$-(*.$5+ C&)X&&(+ ).&+ ':)&%$:4+
:(/+$'':)&%$:4<+:(/+.-X+C-).+(-)$-(*+*.:%&+*$'$4:%+5%-5&%)$&*@+
B.&+:'C$>:4&(2&+-,+':)&%$:4$)6+':6+&>&(+,#(2)$-(+:*+e'$//4&+
0%-#(/f+C&)X&&(+).&+':)&%$:4+:(/+).&+$'':)&%$:4<+/&*2%$C$(0+
':)&%$:4+5%-5&%)$&*<+$(*)&:/+-,+':)&%$:4+*#C*):(2&@
;*+ :%0#&/+ C6+ \:(*+ =4%$?+ ]#'C%&2.)<+ :55%-:2.$(0+ ':)&%$:4!
GEV
P(&+ 5-**$C4&+ X:6+ -,+ 2-(2&5)#:4$Y$(0+ ).&+ ':)&%$:4$)6+ -,+ ).&+
*2%&&(+':6+C&+).:)+/&*2%$C&/+C6+d:6+L-4)&%+:(/+M$2.:%/+]%#*$(+
:*+).&+e/#:4$)6+-,+4--?$(0+:)+:(/+4--?$(0+).%-#0.f+7L-4)&%+:(/+
]%#*$(<+EFFE<+5@+GQQ8@+;(:46Y$(0+).&+/&*2%$5)$-(*+-,+&:%46+2$(!
&':+&^5&%$&(2&*<+).&6+:%0#&+).:)+:#/$&(2&*+X&%&+:X&*)%#2?+C6+
).&+':%>&4+-,+%&:4$*)$2<+'->$(0+$':0&*<+C#)+X&%&+(-)+*-+(:$>&+
DVWRWKLQNLWZDVDFWXDOO\UHDO±DVLQWKHFDVHRID¿OPVKRZLQJ
:+)%:$(+/%$>$(0+*)%:$0.)+)-X:%/+).&+*2%&&(@+N(*)&:/<+).&+:#/$&(2&+
eC&2:'&+2-(*2$-#*+-,+).&+0:5+C&)X&&(+X.:)+$)+?(&X+:(/+X.:)+
$)+*:Xf+7NC$/@8@+B.$*+$(/#2&/+:+%&2&5)$-(+X.&%&$(+e).&+'&'C&%*+
-,+).&+:#/$&(2&+-*2$44:)&/+C&)X&&(+:+*&(*&+-,+$''&/$:26+:(/+
:(+:X:%&(&**+-,+).:)+*&(*&f<+$(+-).&%+X-%/*<+e).&6+&^5&%$&(2&/+
).&+ *:'&+ /#:4$)6+ -,+ 4--?$(0+ :)+ :(/+ 4--?$(0+ ).%-#0.+ ).:)+ $*+ :+
,&:)#%&+ -,+ 2-44:0&<+ 5.-)-'-():0&<+ :(/+ e&4$)&f+ '-/&%(+ :%)+ $(+
0&(&%:4@f+7NC$/@8@
\&%&<+4--?$(0+,8/59+8+%&,&%*+)-+).&+5&%2&5)$-(+-,+).&+72$(&':8+
*2%&&(+:*+:+X$(/-X<+X.&%&+).&+>$&X&%+4--?*+C&6-(/+).&+*#%!
,:2&+-,+).&+*2%&&(+:(/+$()-+:+>$%)#:4+*5:2&@+U--?$(0+%,<+-(+).&+
-).&%+.:(/<+$'54$&*+).:)+).&+>$&X&%+$*+2-(*2$-#*+-,+).&+'&/$#'+
:(/+$)*+&,,&2)*@+B.$*+:4*-+&():$4*+*&&$(0+).&+$':0&+:*+-5:"#&<+
*$)#:)$(0+$)+$(+).&+*:'&+*5:2&+:*+).&+>$&X&%@+J:)&%$:4+*2%&&(*+
':6+5%->$/&+).&+*:'&+:X:%&(&**+-,+e4--?$(0+:)f<+$(+X.$2.+).&+
>$&X&%+C&2-'&*+2-(*2$-#*+-,+).&+':)&%$:4$)6+-,+).&+*2%&&(<+:(/+
-*2$44:)&*+C&)X&&(+:X:%&(&**+-,+).&+2-()&()<+:(/+:X:%&(&**+-,+
).&+'&/$#'@
GEQ
J;BDMN;UNB[
B.&+:X:%&(&**+-,+).&+'&/$#'+':6+C&+/&*2%$C&/+:*+:))&()$-(+)-+
WKHVSHFL¿FTXDOLWLHVRIWKHPHGLXP2QHRI*UHHQEHUJ¶VDQG
+D\OHV¶FRPPRQWKHPHVLVWKDWRI³PHGLXPVSHFL¿F´DUWZRUNV
X.&%&+).&+2-()&()+75:$()$(0<+)&^)<+&)2@8+%&4:)&*+)-+).&+'&/$#'+
).%-#0.+X.$2.+$)+$*+5%&*&()&/@+9-%+]%&&(C&%0<+PHGLXPVSHFL¿F;
$,@+'&:(*+).:)+:%)X-%?*+C&2-'&+2%$)$2:4+-,+).&$%+-X(+(:)#%&<+:*+
X&%&+).&+'-/&%($*)+5:$()&%*+$(+).&+'$/!)X&()$&).+2&()#%6@+K#2.+
:+5%:2)$2&+$(>-4>&*+:+2%$)$2:4+:**&**'&()+-,+).&+'&/$#'+:(/+$)*+
4$'$):)$-(*<+X.$4&+5%&*&()$(0+:(+&^5%&**$-(+).:)+%&>&:4*+).&*&+
4$'$):)$-(*@+P(+).&+-).&%+.:(/<+\:64&*+5%&*&()*+'&/$#'+*5&2$!
¿FLW\DVDZD\RIXWLOL]LQJWKHXQH[SORUHGSRWHQWLDORIDPHGL!
#'`*+,-%'+)-+%##+'&:($(0+-%+&^5%&**$-(+)-+).&+%&2&5)$-(@+K.&+
DOVRSUHVHQWVWKHFRQFHSWRI³PHGLDVSHFL¿FDQDO\VLV´ZKLFK
$*+e:+?$(/+-,+2%$)$2$*'+).:)+5:6*+:))&()$-(+)-+).&+':)&%$:4+:55:!
%:)#*f+7\:64&*<+EFFE<+5@+ET8<+$(*)&:/+-,+-(46+4--?$(0+:)+2-()&()@
B.&+ (-)$-(+ -,+ 2-(*$/&%$(0+ ).&+ '&/$#'+ :*+ ':))&%<+ X.&).&%+ $)+
'&:(*+ %AA/5A/$%,$51+ -,+ &^$*)$(0+ '&/$:<+ :*+ O:'+ d#(&+ 3:$?+
/-&*<+ -%+ C#$4/$(0+ *5&2$:4$Y&/+ '&/$:+ ,%-'+ $)*+ 2-'5-(&()+ &4&!
'&()*<+:*+d$'+I:'5C&44+/-&*<+5#)*+:+,-2#*+-(+).&+':)&%$:4+:*!
5&2)*+-,+'&/$:+:%)@+N)+5-*&*+"#&*)$-(*+*#2.+:*h+W.:)+2-(*)$)#)&*+
).&+'&/$#'s+\-X+,:%+2:(+).&+'&/$#'+C&+/&2-(*)%#2)&/+:(/+
*)$44+C&+:+'&/$#'s+W.&%&+$*+).&+C-#(/:%6+C&)X&&(+:+4-X!%&*-!
4#)$-(+*2%&&(+:(/+:(+:C*)%:2)+:%%:6+-,+4$0.)*s+B.&+:%)$*)$2+5%:2!
)$2&*+).:)+*&&+).&+*2%&&(+:*+:+':)&%$:4+-,)&(+5#*.+).&+'&/$#'+
)-+:(+&^)%&'&<+X.&%&+).&+5:%:/$0':)$2+(-)$-(+-,+e).&+*2%&&(f+
(-+4-(0&%+:554$&*@+O:'+d#(&+3:$?`*+:%)X-%?*+:%&+(-)+_#*)+>$/&-+
:%)<+C#)+(&$).&%+:%&+).&6+*2#45)#%&<+:(/+d$'+I:'5C&44`*+*2%&&(*+
:%&<+ )-+ *-'&+ &^)&()<+ >$/&-+ :%)<+ C#)+ ).&6+ :%&+ '#2.+ '-%&+ ).:(+
).:)@+B.&+2%-**$(0+-,+0&(%&*+:(/+'&/$:+/$,,#*&*+).&+X&44!?(-X(+
0&(%&*+-,+:%)<+:(/+*#00&*)*+:+%&!&>:4#:)$-(<+-%+&^)&(*$-(+-,+-#%+
GEZ
J;BDMN;UNB[
2#%%&()+ #(/&%*):(/$(0+ -,+ *2%&&(+ :%)<+ X.&%&+ ':)&%$:4+ 5%:2)$2&*+
2.:44&(0&+-#%+&^$*)$(0+2-(2&5)$-(*@
W.&(+/&*2%$C$(0+).&+>:%$-#*+:*5&2)*+-,+'&/$:<+$)+':6+(-)+C&+
VXI¿FLHQWWRVSHDNRIRQO\RQHPDWHULDOLW\EXWPXOWLSOH:%,";
/$%-$,$")PD\EHLGHQWL¿HG:KHQORRNLQJDWWKHZRUNVRI1DP
d#(&+3:$?<+$)+C&2-'&*+&>$/&()+).:)+.$*+5%:2)$2&+$(>-4>&*+C-).+
:%,,"/+g+).&+':)&%$:4+':($5#4:)$-(*+-,+).&+'&/$#'+$)*&4,+g+:(/+
:(+51,5-5+@+g+).&+:55%-5%$:)$-(+-,+:(+&^$*)$(0+'&/$#'+).:)+$'!
54$2$)46+2-''&()*+-(+$)*+2#4)#%:4+2-(>&()$-(*@+;4*-<+(&X+'&/$:+
:%)+0&(%&*<+*#2.+:*+;KINN+:%)<+2-/&+:%)<+:(/+04$)2.+:%)<+$(>-4>&+
:55%-:2.&*+).:)+$'54&'&()+C-).+,-%':4+:(/+-()-4-0$2:4+)%:(*!
,-%':)$-(*+-,+':)&%$:4$)6@+B.$*+*#00&*)*+).:)+':)&%$:4$)6+$*+(-)+:+
WHUPRIVLQJOHPHDQLQJEXWPD\EHLGHQWL¿HGRQYDULRXVOHYHOV
-,+$()&%5%&):)$-(@
B.&*&+4&>&4*<+-%+5/#"/)+-,+$()&%5%&):)$-(+%&4:)&+)-+).&+&5$*)&'-!
ORJLFDOOHYHOVRIPHWDUHSUHVHQWDWLRQZKLFKLVH[HPSOL¿HGE\
d-*&5.+b-*#).`*+]1"&%1#&48/""&E8%$/)+7GTZQ8@+B.$*+2-(*$*)&/+
RIDUHDOFKDLUDSKRWRRIDFKDLUDQGDWH[WXDOGH¿QLWLRQRID
2.:$%+,%-'+:+/$2)$-(:%6@+B.&+:%)X-%?+).&%&C6+/$*54:6&/+:+2.:$%+
$(+).%&&+%&5%&*&():)$-(*<+C#)+:4*-+).%&&+*&'$-)$2+$()&%5%&):)$-(*h+
).&+)@:05-$(UHSUHVHQWDWLRQRIFKDLUGH¿QHGLQZRUGVWKH$(51;
$(+%&5%&*&():)$-(+$(+).&+5.-)-<+:(/+).&+).$(0+e$)*&4,f@+b-*#).`*+
:%)X-%?+ &^.$C$)*+ ).%&&+ %&5%&*&():)$-(:4+ *):0&*+ -,+ :+ 2.:$%<+ C#)+
:4*-+).%&&+':)&%$:4+$(*):()$:)$-(*+-,+:+2.:$%<+&:2.+$(+).&$%+-X(+
'&/$#'@+W&+':6+2-(2&$>&+).&*&+$(*):()$:)$-(*+:*+://%&**$(0+
/$,,&%&()+-%/&%*+-,+':)&%$:4$)6<+).&+:2)#:4+2.:$%+://%&**$(0+:%,;
,"/<+).&+5.-)-+://%&**$(0+C5/:<+:(/+).&+/$2)$-(:%6+%&,&%&(2$(0+
).&+51,5-5+@+-,+).&+2.:$%@
B.&*&+':)&%$:4$)$&*<+X.&).&%+://%&**$(0+':))&%<+,-%'<+-%+-()-4!
GER
J;BDMN;UNB[
J;BDMN;UNB[
-06<+0&(&%:446+%&,&%+)-+).&+-#)&%+*)%#2)#%&*+:(/+2$%2#'*):(2&*+
,-%+$()&%5%&):)$-(+7\:64&*<+EFFE<+5@+EH8@+3&%.:5*+]#'C%&2.)`*+
(-)$-(+ -,+ ':)&%$:4$)6+ :*+ e&^)&%$-%$)6f+ $*+ ).&+ '-*)+ *)%$?$(0+ /&!
*2%$5)$-(+-,+).$*+2-'54&^+*#C_&2)<+%&,&%%$(0+)-+:*5&2)*+).:)+2$%!
2#'*2%$C&+).&+*#C_&2)@+\$*+$/&:+-,+':)&%$:4$)6+$*+:(+:))&'5)+)-+
->&%2-'&+).&+2-(2&5)#:4+/#:4$*'+-,+e*5$%$)+:(/+':))&%<+'$(/+
:(/+C-/6<+':)&%$:4$)6+:(/+'&:($(0f+7]#'C%&2.)<+GTTV<+5@+VFE8@+
$¿VWVWHSLQWKLVGLUHFWLRQLVUHWKHPDWL]LQJDZLGHKRUL]RQRI
5.&(-'&(:+#(/&%+).&+(-)$-(*+-,+':))&%<+C-/6<+:(/+e&^)&%$-%$)6r
PDWHULDOLW\RIWKHVLJQL¿HU´,ELG7KLVH[WHULRULW\LVDOUHDG\
DFFHSWHGLQRWKHU¿HOGVRIDUW±IRUH[DPSOHWKHQRWLRQRIA-%("+
$*+,#(/:'&():4+)-+#(/&%*):(/$(0+).&+&^)&%$-%+*)%#2)#%&+-,+*$)&!
VSHFL¿FDUW6LPLODULGHDVFRXOGEHFRPSDUHGWR:%,"/$%-$,@+:*+
DQXQGHUVWDQGLQJRIPHGLXPVSHFL¿FDUW
.:>&+&^54-%&/+:+>:%$&)6+-,+#(/&%*):(/$(0*<+$(+-%/&%+)-+':?&+$)+
$(*)%#'&():4+$(+/&*2%$C$(0+*2%&&(!C:*&/+'&/$:+:%)@
8QGHUVWDQGLQJ PDWHULDOLW\ GRHV QRW PHDQ ¿QGLQJ D QDUURZ
GH¿QLWLRQ RI LWV PHDQLQJ EXW UDWKHU JHWWLQJ D GHHSHU XQGHU!
*):(/$(0+-,+).&+>:%$-#*+X:6*+$)+':6+C&+:554$&/@+B.&+:X:%&(&**+
-,+).&+(#:(2&*+:(/+%&4:)&/+)&%'*+.&45+)-+&^5:(/+).&+>-2:C#4:%6+
,-%+C-).+/&*2%$5)$-(*+:(/+&5$*)&'-4-06@
B.$*+ 2.:5)&%+ 5%&*&()*+ :+ *&4&2)$-(+ -,+ 5&%*5&2)$>&*+ -(+ .-X+ ).&+
*2%&&(+':6+C&+#(/&%*)--/+:*+:+':)&%$:4+:%)$,:2)<+:(/+.-X+$)+$*+
5-**$C4&+)-+/&*2%$C&+$)+$(+)&%'*+-,+:%,"/$%-$,@@
N(>&*)$0:)$(0+).&+(-)$-(+-,+':)&%$:4$)6+,#%).&%+%&>&:4*+).:)+).&+
:'C$0#$)6+ *#%%-#(/$(0+ $)*+ '&:($(0*+ %&2#%*+ $(+ *&>&%:4+ )&^)*+
7L%-X(<+EFGFn+9%$&/C&%0<+EFFZn+]#'C%&2.)+:(/+3,&$,,&%<+GTTVn+
\:64&*<+EFFEn+U&-(:%/$<+EFGFn+J-(/4-2.<+EFGF8@+;)+)$'&*+).&+
:'C$0#$)6+ *&&'*+ )-+ 2-(2&:4+ -%+ C4#%+ ).&+ #(/&%46$(0+ '&:($(0<+
X.$4&+:)+-).&%+'-'&()*+$)+/&*2%$C&*+:+2-'54&^$)6+).:)+':6+-).!
&%X$*&+(-)+C&+>&%C:4$Y&/@+3#))$(0+:%,"/$%-$,@+)-+X-%?+$(>-4>&*+
?(-X4&/0&+-,+).&+5%$(2$54&*+:(/+>-2:C#4:%6+).:)+%&4:)&+)-+).&+
*#C_&2)@+B.$*+2.:5)&%+.:*+://%&**&/+(#'C&%+-,+)&%'*+).:)+%&4:)&+
)-+ :%,"/$%-$,@ DQG H[HPSOL¿HG KRZ WKH\ PD\ EH DSSOLHG WR
:(:46*&*+-,+>:%$-#*+:%)X-%?*@
9277!/F
;*+'&()$-(&/+$(+).&+$()%-/#2)$-(+)-+).$*+2.:5)&%<+).&+(-)$-(+-,+
:%,"/$%-$,@+$*+:**-2$:)&/+X$).+:+(#'C&%+-,+/$,,&%&()<+C#)+%&4:)!
&/<+$()&%5%&):)$-(*+$(+>:%$-#*+5.$4-*-5.$2:4+)%:/$)$-(*<+':?$(0+
).&+#*&+-,+).$*+)&%'+*-'&X.:)+2-'54&^@+B.&+5%&2&/$(0+5:0&*+
GES
N+ .:>&+ /&*2%$C&/+ .-X+ %&2&()+ 4$)&%:)#%&+ 2-(2&%($(0+ '&/$:+ .:*+
$(2%&:*&/+ $)*+ ,-2#*+ -(+ ':)&%$:4+ "#:4$)$&*<+ :4*-+ /&*2%$C&/+ :*+ :+
e':)&%$:4+)#%(f+$(+'&/$:+).-#0.)@+D>&(+:%)$,:2)*+).:)+:%&+)%:/$!
)$-(:446+ %&0:%/&/+ :*+ $'':)&%$:4<+ *#2.+ :*+ *-,)X:%&<+ .:>&+ C&&(+
/&*2%$C&/+:*+':)&%$:4@+B.$*+.:*+4&/+)-+:(+&^5:(/&/+#(/&%*):(/!
$(0+-,+':)&%$:4$)6+).:)+2-(2&%(*+C-).+).&+:%,,"/+-,+$(,-%':)$-(+
$(+>:%$-#*+*):)&*<+:(/+).&+C5/:+-,+C-).+'&/$#'+:(/+'&**:0&<+
C#)+':)&%$:4$)6+':6+:4*-+C&+2-(2&5)#:4$Y&/+-(+:+*&2-(/:%6+-(!
)-4-0$2:4+4&>&4<+X.&%&+2-(2&5)*+:%&+>$&X&/+e:*+':)&%$:4f<+).&%&!
C6+%&,&%%$(0+)-+).&+),/9(,9/"+-%+(51#$,$51)+-,+'&/$:@
N(+#(/&%*):(/$(0+':)&%$:4$)6<+N+.:>&+&'5.:*$Y&/+:+,&X+-,+J:%!
*.:44+J2U#.:(`*+?&6+2-(2&5)*<+:(/+&^)&(/&/+).&'+)-+/&*2%$C&+
*-'&+?&6+:*5&2)*+-,+).&+':)&%$:4$)6+-,+*2%&&(*@+B.&*&+':6+5%-!
>$/&+:+'-/&4+,-%+2-(2&5)#:4$Y$(0+:*5&2)*+:(/+,#(2)$-(*+-,+':!
WHULDOLW\DGGLQJWHUPVWRGHVFULEHVSHFL¿FSURSHUWLHVUHJDUGLQJ
WKHSHUFHSWLRQRIPHGLD7KH¿UVWFRQFHSWLVWKHGHVWLQDWLRQRI
85,+:(/+(5-#+'&/$:<+X.$2.+':6+C&+#*&/+)-+/&*2%$C&+"#:4$)$&*+-,+
'&/$:+':)&%$:4$)6+X$).+%&0:%/+)-+C5/:@+B.$*+/$2.-)-'6+-,+.-)+
:(/+2-4/+':6+C&+%&0:%/&/+:+%&4:)$>&+'&:*#%&+-,+.-X+'#2.+$(!
,-%':)$-(+$*+5%->$/&/+C6+:+'&/$#'+:(/<+:*+:+%&*#4)<+.-X+'#2.+
GET
J;BDMN;UNB[
$()&%5%&):)$-(+ $*+ %&"#$%&/+ -,+ ).&+ :#/$&(2&@+ B.$*+ ':6+ :4*-+ C&+
#*&/+)-+/&*2%$C&+).&+'&/$#'+:*+8$+8+-%+-56GH¿QLWLRQFRPSD!
%:C4&+)-+:%)$*)$2+*)%:)&0$&*+-,+*&&?$(0+e(:)#%:4$*)$2f+-%+e:C*)%:2)f+
&^5%&**$-(@+J:)&%$:4+*2%&&(*+':6+C&+/&*2%$C&/+$(+)&%'*+-,+).&$%+
GH¿QLWLRQDEVWUDFWLRQDQGYLVXDOUHVROXWLRQEXWDOVRWKHPHD!
*#%&+-,+).&+$()&%5%&):)$-(+%&"#$%&/+-,+).&+>$&X&%@
B.&+*&2-(/+-,+2-(2&5)+,%-'+J2U#.:(`*+2-%5#*+$*+).&+/$*)$(2!
)$-(+ C&)X&&(+ ¿JXUH+ :(/+ +/591#<+ /&*2%$C$(0+ '&/$:+ :*+ 2.:%:2!
)&%$Y&/+C6+:+/$>$*$-(+C&)X&&(+X.:)+X&+2-(*2$-#*46+5&%2&$>&<+
:(/+).&+'#2.+4:%0&%+&(>$%-('&()<+X.$2.+%&2&/&*+$()-+).&+C:2?!
0%-#(/<+6&)+,-%'*+).&+2-(/$)$-(*+-,+-#%+2-(*2$-#*+5&%2&5)$-(@+
B.$*+2-(2&5)+2:(+.&45+)-+,-2#*+'-%&+:))&()$-(+-(+).&+:*5&2)*+
:(/+"#:4$)$&*+).:)+*)%#2)#%&+-#%+&^5&%$&(2&+:(/+#*&+-,+'&/$:@+
L6+/&*2%$C$(0+':)&%$:4+*2%&&(*+$(+)&%'*+-,+¿JXUH+:(/++/591#<+
X&+':6+:2"#$%&+:+/&&5&%+#(/&%*):(/$(0+-,+*2%&&(*<+&*5&2$:446+
&'5.:*$Y$(0+).&+*$)#:)$-(+:(/+).&+2#4)#%:4+'&:($(0*+&'C&//&/+
$(+).$*+'&/$#'@+B.$*+':6+:4*-+.&45+)-+/&*2%$C&+).&+5%:2)$2&*+
X.&%&+*2%&&(*+:%&+2-'C$(&/+X$).+-).&%+':)&%$:4*<+).&%&C6+$(!
*&%)$(0+:+(&X+*&)+-,+2-(/$)$-(*+,-%+$()&%5%&)$(0+).&+*2%&&(@
9$(:446<+N+/$*2#**&/+).&+$'54$2:)$-(*+-,+':)&%$:4$)6+:(/+).&+>:%$!
-#*+ X:6*+ -,+ ).&-%$Y$(0+ :C-#)+ ':)&%$:4$)6+ $(+ %&0:%/+ )-+ '&/$:+
:(/+ :%)@+;*+ '&()$-(&/+ $(+ ).&+ $()%-/#2)$-(<+ ).&+ $(>&*)$0:)$-(*+
$()-+':)&%$:4$)6+*#00&*)+).:)+X&+'->&+C&6-(/+).&+/$2.-)-'6+-,+
':)&%$:4+>&%*#*+$'':)&%$:4<+:(/+$(*)&:/+*5&:?+-,+).&+2.:%:2)&%+
-,+':)&%$:4$)6<+:(/+$/&()$,6+$)*+&,,&2)*@+B.$*+6$&4/*+:(+$(2%&:*&/+
,-2#*+-(+5&%2&5)$-(+:(/+).&+2-(*)%#2)$-(+-,+'&:($(0+C:*&/+-(+
':)&%$:4+2-''#($2:)$-(:4+*)%#2)#%&*@
GHF
5,&60)/!",/))
MEDIA ARCHITECTURE
JD1N;+;MI\NBDIB=MD
W$).$(+ ).&+ 4:*)+ /&2:/&<+ X&+ .:>&+ X$)(&**&/+ :(+ &'&%0&(2&+ -,+
(&X+ &^5&%$'&():4+ 5%:2)$2&*+ *#%%-#(/$(0+ &4&2)%-($2+ '&/$:<+
ZKLFKFURVVRYHUWRWKH¿HOGRIDUFKLWHFWXUH7KHVHLQFOXGHXU!
C:(+:%)+$(*):44:)$-(*+:(/+C#$4/$(0+,:2:/&*+C&$(0+#*&/+:*+0$:()+
*2%&&(*@+B.&*&+/&>&4-5'&()*+.:>&+4:%0&46+C&&(+*#55-%)&/+C6+
)&2.(-4-0$2:4+$'5%->&'&()*<+*#2.+:*+).&+:/>:(2&*+$(+4$0.)$(0+
)&2.(-4-0$&*+:(/+>$/&-+5%-_&2)-%*@+L#)+$)+$*+:4*-+*6'5)-':)$2+
-,+:+(&X+X:6+-,+).$(?$(0+:C-#)+#%C:(+*5:2&*+:(/+:%2.$)&2)#%&<+
X.$2.+%&0:%/*+).&+#%C:(+*5:2&+:*+:+*):0&<+:(/+).&+:%2.$)&2)#%&+
:*+).&+*2&(&%6@+L#$4/$(0*+:%&+(-+4-(0&%+(&2&**:%$46+%&0:%/&/+:*+
*):)$2+*)%#2)#%&*<+C#)+%:).&%<+X&+C&0$(+)-+).$(?+-,+:%2.$)&2)#%&+
:*+ :+ 2:(>:*<+ :+ *2%&&(<+ -%+ :+ '&/$#'+ ,-%+ (&X+ '-/&*+ -,+ 2-'!
'#($2:)$-(@+B.$*+'&:(*+).:)+-4/+2-(2&5)$-(*+-,+'&/$:+C&2-'&+
-C*-4&)&<+:(/+X&+:%&+,-%2&/+)-+%&).$(?+$/&:*+-,+'&/$:+)&2.(-4-!
0$&*@+1$0$):4+'&/$:+:%&+(-+4-(0&%+_#*)+/&*?)-5+2-'5#)&%*+X$).+
)&4&>$*$-(!4$?&+'-($)-%*@+N(*)&:/<+).&+>$*#:4+2:5:C$4$)$&*+-,+2-(!
)&'5-%:%6+)&2.(-4-06+:(/+$)*+#*&*+$(+'&/$:+:%)+0-+C&6-(/+).&+
ÀDWUHFWDQJXODUVXUIDFHRIWKHVFUHHQDQGGHPDQGQHZGHVFULS!
WLRQVWRH[SODLQWKH³H[SDQGHG¿HOG´EHWZHHQVFUHHQEDVHGDUW
:(/+:%2.$)&2)#%&@+P(&+*#2.+/&*2%$5)$-(+':6+C&+$(.&%&()+$(+).&+
)&%'<+:"#$%&%/(8$,"(,9/"@
:LWKLQWKHODUJHU¿HOGRIGHVLJQDQGDUFKLWHFWXUHPHGLDDUFKL!
)&2)#%&+/&(-)&*+).&+$'54&'&():)$-(+-,+*2%&&(+)&2.(-4-06+:(/+
5$^&4*+:*+$()&0%:)&/+5:%)*+-,+:%2.$)&2)#%:4+*)%#2)#%&*+g+$(2%&:*!
$(046+*&&(+$(+).&+,:2:/&*+-,+4:(/':%?+C#$4/$(0*+:(/+2-%5-%:)&+
.&:/"#:%)&%*@+9:2:/&*+X$).+$()&0%:)&/+*2%&&(*<+:4*-+?(-X(+:*+
:"#$%&C%(%#")<+':6+C&+*&&(+-(+*#2.+(-):C4&+C#$4/$(0*+:*+).&+
nMR&456"/+$(+M-))&%/:'<+n91),8%9e&i/%e+$(+;#*)%$:<+*"Y$%&
456"/+ $(+ L%#**&4*<+ 45//"&7+0%/+ $(+ L:%2&4-(:<+ :(/+ ).&+ .1$b%&
456"/+$(+a$&((:<+)-+(:'&+_#*)+:+,&X@+B.&*&+C#$4/$(0*+.:>&+C&&(+
/&*$0(&/+ X$).+ 4-X!%&*-4#)$-(+ *2%&&(*+ $(+ ).&$%+ ,:2:/&*<+ X%:5!
GHH
JD1N;+;MI\NBDIB=MD
JD1N;+;MI\NBDIB=MD
5$(0+).&+).%&&!/$'&(*$-(:4+>-4#'&+-,+).&+C#$4/$(0@+B.&+#($"#&+
/&*$0(+-,+).&*&+,:2:/&*+2.:44&(0&*+).&+':)&%$:4$)6+-,+).&+*2%&&(+
C6+ $'5-*$(0+ :(+ &^5&%$'&():4+ /&*$0(+ *2.&'&+ -(+ ).&+ C#$4/$(0+
:*+ :(+ &4&2)%-($2+ '&/$#'@+B.$*+ ':)&%$:4+ :(/+ &^5&%$'&():4+ :*!
5&2)+%&*#4)*+$(+:+)65&+-,+'&/$#'<+X.$2.+C:4:(2&*+C&)X&&(+:C!
VWUDFW OLJKWLQJ LQVWDOODWLRQV DQG ¿JXUDWLYH HOHFWURQLF VFUHHQV
XQGHUOLQLQJWKHQHHGIRUDGHVFULSWLYHWHUPWRGHQRWHWKH¿HOG
-,+ 5%:2)$2&@+ J&/$:+ :%2.$)&2)#%&<+ :*+ N+ X$44+ &4:C-%:)&+ 4:)&%<+ .:*+
).%-#0.+).&+4:*)+/&2:/&+C&&(+$(2%&:*$(046+:22&5)&/+:*+:+2-44&2!
)$>&+)&%'+)-+/&*2%$C&+).$*+)65&+-,+$(*):44:)$-(*@
;4).-#0.+ ).&+ :C->&!'&()$-(&/+ &^:'54&*+ :44+ $(24#/&+ C#$4/!
LQJIDFDGHVDQGOLJKWLQJWKH¿HOGRIPHGLDDUFKLWHFWXUHLVQRW
%&*)%$2)&/+)-+).&*&+2-'5-(&()*@+B.&%&+.:>&+:4*-+C&&(+*&>&%:4+
&^:'54&*+-,+*5:)$:4+:(/+*2#45)#%:4+$(*):44:)$-(*+g+&>&(+'&2.:(!
$2:4+ :(/+ ?$(&)$2+ :%2.$)&2)#%&+ g+ ).:)+ .:>&+ C&&(+ 4:C&4&/+ :"#$%&
%/(8$,"(,9/"@+B.$*+*#00&*)*+).:)+).&%&+':6+&^$*)+:(+&()$%&+:%2.$!
)&2)#%:4+5%:2)$2&+).:)+/&:4*+X$).+'&/$:+)&2.(-4-0$&*+:(/+).&$%+
*5:)$:4+/&*$0(@+J&/$:+:%2.$)&2)#%&+':6+,-%'+).&+5%-,&**$-(:4+
¿HOG RI SUDFWLFH DURXQG WKH LQWHUVHFWLRQ RI YLVXDO PHGLD DQG
:%2.$)&2)#%&@
B.$*+2.:5)&%+&4:C-%:)&*+-(+2#%%&()+#*&*+-,+:"#$%&%/(8$,"(,9/"<+
C#)+:4*-+)%:2&*+$)*+.&%$):0&+:*+:+.$*)-%6+-,+$()&%*&2)$-(*+C&)X&&(+
:%2.$)&2)#%&+:(/+>$*#:4+'&/$:+)&2.(-4-0$&*@+N)+X$44+&'5.:*$Y&+
).&+'#4)$)#/&+-,+$'54$2:)$-(*<+).&-%&)$2:4+:(/+5%:2)$2:4<+X.$2.+
.:>&+4&,)+).&$%+':%?+$(+:%)<+'&/$:+)&2.(-4-06<+:(/+&^5&%$'&(!
):4+ :%2.$)&2)#%&@+ N)+ :4*-+ *.-X*+ :+ /&>&4-5'&()+ ).:)+ $*+ ':%?&/+
C6+,#)#%$*)$2+>$*$-(*<+:%)$*)$2+&^5&%$'&():)$-(<+:(/+2-''&%2$:4+
C%:(/$(0<+5-*$(0+$'5-%):()+"#&*)$-(*+%&0:%/$(0+).&+*)%:)&0$&*+
-,+2-()&'5-%:%6+'&/$:+:%2.$)&2)#%&@+J-*)+$'5-%):()46+$(+).$*+
2-()&^)<+ '&/$:+ :%2.$)&2)#%&+ $*+ 5%&*&()&/+ :*+ &^&'54:%6+ -,+ ).&+
5%:2)$2&*+ /&*2%$C&/+ $(+ ).&+ &:%4$&%+ 2.:5)&%*<+ :55%-:2.$(0+ ).&+
GHV
'$+9/"&JFG&nMR&456"/&IJKKFL&C%(%#"&0@&N,9#$5&*9:0%/
M85,5&0@&N@05-,&S5","1
GHQ
JD1N;+;MI\NBDIB=MD
JD1N;+;MI\NBDIB=MD
*2%&&(+:*+:+:%,"/$%-&)(/""1<+:(/+X.&%&+"#&*)$-(*+-,+':)&%$:4$)6+
5%->$/&+ ).&+ 2-(2&5)#:4+ ,-#(/:)$-(+ ,-%+ ).$*+ (&X+ &^5&%$'&():4+
5%:2)$2&@
7038!6?!:!309
P(&+-,+).&+'-*)+$2-($2+'&/$:+,:2:/&*+$*+).&+=<P+$(*):44:)$-(+-(+
b#(*).:#*+]%:Y<+$(+;#*)%$:@+B.&+5%-_&2)+*):%)&/+$(+EFFG<+:(/+$*+
SRVVLEO\WKH¿UVWH[DPSOHRIH[WHQVLYHLQWHJUDWLRQRIDUFKLWHF!
)#%&+:(/+*2%&&(@+I-'54&)&/+$(+EFFH<+).&+(&X+&^)&(*$-(+)-+).&+
-4/+b#(*).:#*+X:*+/&*$0(&/+:*+:+2#%>&/+':**<+2->&%&/+$(+/:%?<+
)$()&/+04:**@+B.&+:%)$*)*<+%&:4$)$&*h#($)&/<+/&*$0(&/+:+'&/$:+,:!
FDGH WKDW FRQVLVWHG RI FLUFXODU ÀXRUHVFHQW WXEHV WKDW DUH
'-#()&/+C&(&:).+).&+04:**+*?$(@+1#%$(0+).&+/:6<+).&+4$0.)*+:%&+
)#%(&/+-,,+:(/+).&+4:'5*+:%&+.$//&(+C&.$(/+).&+)$()&/+04:**@+L#)+
:)+($0.)<+).&+,:2:/&+4$0.)*+#5<+:(/+/$*54:6*+>:%$-#*+0%:5.$2+:($!
':)$-(*+).:)+%&,&%&(2&+).&+2#%%&()+:(/+#52-'$(0+&^.$C$)$-(*+:)+
).&+b#(*).:#*@
'$+9/"&JJG&=<P&IJKKQL&0@&/"%-$,$")G91$,"#
E59/,")@&5C&/"%-$,$")G91$,"#
B.&+ =<P+ $(*):44:)$-(+ $*+ &^&'54:%6+ ,-%+ *&>&%:4+ %&:*-(*@+ 9$%*)<+
EHFDXVHLWFRQ¿UPVWKDWDVFUHHQLVQRWQHFHVVDULO\DÀDWVTXDUH
*#%,:2&<+C#)+':6+C&+2#%>&/<+*5:)$:4<+:(/+C$-'-%5.$2@+K&2-(/<+
$)+*.-X*+.-X+&4&2)%-($2+'&/$:+':6+C&+:(+$()&0%:4+5:%)+-,+:%!
2.$)&2)#%&+ ).:)<+ $(*)&:/+ -,+ /-'$(:)$(0+ ).&+ &^)&%$-%<+ :2)#:446+
&(.:(2&*+ ).&+ C#$4/$(0+ :(/+ &^)&(/*+ $)*+ 2-''#($2:)$>&+ 5-)&(!
)$:4@+ B.&+ 4$'$)&/+ %&*-4#)$-(+ :(/+ (-(!%&2):(0#4:%+ *2%&&(+ X&%&+
/&4$C&%:)&46+2.-*&(++C6+).&+:%)$*)*<+$(+-%/&%+)-+:2.$&>&+*'--).&%+
$()&0%:)$-(+X$).+).&+C#$4/$(0<+:(/+:4*-+)-+4$'$)+).&+&^5%&**$>&+
2:5:2$)6+-,+).&+2-()&()@+B.&+/&*$0(&%<+d:(+D/4&%+&^54:$(*h
a"&8%#&),%/,"#&,5&-55>&%,&,8"&)90^"(,&5C&:"#$%&C%(%#")&$1&+"1;
"/%-&%1#&)551&C591#&59,&,8%,&,8"&C"6&:"#$%&C%(%#")&,8%,&"Y$),&
%/"&:%$1-@&9)"#&C5/&(5::"/($%-&A9/A5)")&%1#&,8%,&,8"&(51("A,)&
GHZ
'$+9/"&JQG&=<P&IJKKQL&0@&/"%-$,$")G91$,"#
E59/,")@&5C&/"%-$,$")G91$,"#
GHR
JD1N;+;MI\NBDIB=MD
JD1N;+;MI\NBDIB=MD
0"8$1#&,85)"&)(/""1)&%/"&15,&%#"b9%,"&,5&0"&9)"#&C5/&%&:9)";
9:?&48%,&$)&68@&6"&8%3"&(85)"1&%1&[%)@::",/$(%-&%AA/5%(8\&
#9/$1+& ,8"& C5--56$1+& ),%+")& 5C& ,8"& #")$+1?& 7)@::",/$(%-& %A;
A/5%(8&:"%1)&,8%,&6"&8%3"&+$3"1&9A&("/,%$1&%)A"(,)&-$>"&8$+8&
#$)A-%@& /")5-9,$51& 5/& (5-5/& %1#& 8%3"& +%$1"#& )5:",8$1+& "-)"G&
%&3"/@&),/51+&"YA/"))$3"&:"#$9:?+j)$(l+7%&:4$)$&*h#($)&/<+EFFV8
2#%:)&/+ 2-()&()+ 5%->$/&/+ C6+ 5%-'$(&()+ :%)$*)*+ *#2.+ :*+ d$'+
I:'5C&44<+M:,:&4+U-Y:(-!\&''&%<+B&%%6+]$44$:'<+:(/+I:%*)&(+
O$2-4:$@
B.$*+2-(*2$-#*+&4$'$(:)$-(+-,+/&):$4+$(+).&+/&*$0(+$(/$2:)&*+:+
%&:2)$-(+)-+2#%%&()+/&>&4-5'&()*+$(+).&+)%:/$)$-(:4+*2%&&(+$(!
/#*)%6<+X.&%&+%&*-4#)$-(+$*+$(2%&:*$(0<+:(/+2-4-%*+:%&+C&2-'!
$(0+$(2%&:*$(046+*:)#%:)&/@+N)+:4*-+.$()*+:)+:+2%$)$2:4+:55%-:2.+
)-+ /&*$0($(0+ ).&+ *2%&&(<+ X.&%&+ )%:(*,-%':)$-(*+ )-+ ).&+ *2%&&(+
:)+:+':)&%$:4+4&>&4+5%->$/&+:(+:4)&%(:)$>&+&^5%&**$-(<+C#)+:4*-+:+
':)&%$:4+0$%)+)-+).&+5&%2&5)$-(+-,+).&+*2%&&(@+M&:4$)$&*h#($)&/+
/$/+(-)+X:()+)-+2%&:)&+:+)%:/$)$-(:4+*2%&&(+).:)+2-#4/+C&+#*&/+,-%+
:(6+5#%5-*&@+N(*)&:/<+).&6+$'5-*&/+:+(#'C&%+-,+4$'$):)$-(*+-(+
).&+*2%&&(<+).&%&C6+:55%-:2.$(0+).&+'&/$#'+:)+:(+-()-4-0$2:4+
4&>&4<+X.&%&+).&+2-(/$)$-(*+-,+).&+'&/$#'+X&%&+)%:(*,-%'&/@+
M&:4$)$&*h#($)&/+ /&4$C&%:)&46+ 2%&:)&/+ :+ (55-+ '&/$#'+ $(+ ).&+
':)&%$:4+ C5/:<+ X.$2.+ 5%->$/&/+ :+ 4$'$)&/+ :'-#()+ -,+ /6(:'$2+
$(,-%':)$-(@+ B.&+ %:).&%+ 4:%0&<+ >$*$C4&+ 5$^&4*+ &'5.:*$Y&+ ).&$%+
5%&*&(2&+:*+.:%/<+':)&%$:4+:%,,"/<+X.$2.+%&*&'C4&*+).&+*)%#2!
)#%:4+&4&'&()*+-,+).&+,:2:/&@+I-(*&"#&()46<+).&+5&%2&5)$-(+-,+
).&+*2%&&(+.:55&(*+).%-#0.+).&+5&%2&5)$-(+-,+).&+C#$4/$(0+,:!
2:/&<+ C%$(0$(0+ ).&$%+ )X-+ ':)&%$:4$)$&*+ 24-*&%+ )-0&).&%@+ =<P+ $*+
:(+&^:'54&+-,+.-X+).&+/&*$0(+-,+).&+*2%&&(+$*+*#C-%/$(:)&/+)-+
).&+/&*$0(+-,+).&+C#$4/$(0<+2%&:)$(0+:+24-*&%+$()&0%:)$-(+-,+).&+
'&/$#'+:(/+$)*+2-()&^)@
K$(2&+).&+=<P+$(*):44:)$-(+X:*+2-'54&)&/+$(+EFFH<+).&+:%)$*)*+
$(+ %&:4$)$&*h#($)&/+ .:>&+ ':/&+ ':(6+ -).&%+ $(*):44:)$-(*+ #*$(0+
).&+*:'&+5.$4-*-5.6<+$(24#/$(0+).&+)&'5-%:%6+NM]4N+$(*):44:!
)$-(+7EFFQ!FR8+:)+3-)Y/:''&%+34:)Y+$(+L&%4$(<+X.$2.+,&:)#%&/+
GHS
B.&+(#'C&%+-,+5&%':(&()+'&/$:+,:2:/&*+.:*+C&&(+2-(*):()46+
$(2%&:*$(0<+:(/+*5:(*+:+/$>&%*&+%:(0&+-,+:554$2:)$-(*+:(/+#*&*@+
K-'&+-,+).&+'-%&+,%&"#&()46+#*&/+)65&*+-,+C#$4/$(0*+:%&+C:(?*+
7.1$b9%&456"/+a$&((:<+*"Y$%&456"/+L%#**&4*8<+*.-55$(0+2&(!
)&%*+7<-9:%&E/@),%-&!")8+K$(0:5-%&<+i%--"/$%&a"),+K&-#48<+:(/+
2#4)#%:4+$(*)$)#)$-(*+77/)&O-"(,/51$(%&E"1,"/+U$(Y<+=<P+b#(*)!
.:#Y+]%:Y8@+B.&*&+$2-($2+:(/+.$0.46+>$*$C4&+C#$4/$(0*+:%&+-,)&(+
4-2:)&/+$(+#%C:(+:%&:*<+X.&%&+).&6+:))%:2)+:+4-)+-,+:))&()$-(+,%-'+
4-2:4+%&*$/&()*+:(/+)-#%$*)*@
M&0:%/$(0+'&/$:+,:2:/&*+:*+*2%&&(*<+).&6+':6+C&+/&*2%$C&/+$(+
)&%'*+-,+>:%$-#*+0%:/&*+-,+C5/:%-+"#:4$)$&*+$(+%&,&%&(2&+)-+).&+
&^)&(/&/+#(/&%*):(/$(0+-,+J2U#.:(`*+)&%'*+5%&*&()&/+&:%4$&%@+
J:(6+'&/$:+,:2:/&*+:%&+>$*#:446+(5-#<+X.$4&+-).&%*+:%&+*4$0.)46+
e.-))&%f<+$(+)&%'*+-,+C-).+).&+'&/$#'`*+)&2.($2:4+%&*-4#)$-(<+:*+
ZHOODVWKHVSHFL¿FFRQWHQWDSSOLHG7KHPDWHULDOIRUPRISL[HO
HOHPHQWVDQGWKHLULQWHJUDWLRQLQWRWKHDUFKLWHFWXUHKDVDVLJL¿!
2:()+$'5:2)+-(+).&+5&%2&5)#:4+:*5&2)*+-,+).&+*2%&&(@+W.$4&+).&+
=<P+,:2:/&+$*+:+>$*#:446+2-4/+'&/$#'+).:)+2%&:)&*+:+5&%2&5)#:4+
%&4:)$-(+C&)X&&(+'&/$#'+:(/+:%2.$)&2)#%&<+':(6+-).&%+'&/$:+
,:2:/&*+:/-5)+:(+:55%-:2.+).:)+5#)*+'-%&+&'5.:*$*+-(+).&+/$*!
54:6+-,+2-()&()<+,-%+$(*):(2&+).&+4;!50$-"&X"%#b9%/,"/)+7EFFH8+
$(+L-((<+X.$2.+.:*+:+%&4:)$>&46+.$0.!%&*-4#)$-(+'&/$:+,:2:/&+
,-%+2-''&%2$:4+:/>&%)$*$(0<+:(/+$*+:%0#:C46+:+85,,"/+&^5%&**$-(+
-,+C-).+'&/$#'+:(/+2-()&()@
9.!48!169:/00;9
;(+&'&%0$(0+5.&(-'&(-(+).:)+$*+(-)+(&2&**:%$46+4$(?&/+)-+).&+
/&>&4-5'&()*+$(+'&/$:+,:2:/&*+$*+).:)+$(+%&2&()+6&:%*<+:(+$(!
GHT
JD1N;+;MI\NBDIB=MD
2%&:*$(0+ (#'C&%+ -,+ '&/$:+ :%)$*)*+ .:>&+ *):%)&/+ )-+ &^5&%$'&()+
X$).+).%&&!/$'&(*$-(:4+*2%&&(+$(*):44:)$-(*<+X.$2.+&^54-%&+&(!
)$%&46+(&X+2-(2&5)*+-,+$':0&+,-%':)$-(@
P(&+-,+).&+'-*)+5%-/#2)$>&+&^5-(&()*+-,+).$*+)&(/&(26+$*+=($)!
&/+a$*#:4+;%)$*)*+7=a;8@+K$(2&+EFFH<+).&6+.:>&+2%&:)&/+:+4:%0&+
(#'C&%+ -,+ >$*#:4+ $(*):44:)$-(*+ ).:)+ :%&+ -,)&(+ $()&%:2)$>&<+ :(/+
$()&(/&/+,-%+-#)/--%+5#C4$2+*5:2&*@+E51),"--%,$51+7EFFS8+X:*+
:(+$(*):44:)$-(+':/&+,-%+I->&()+]:%/&(+$(+U-(/-(<+X.$2.+X:*+
':/&+-,+ZFF+X$/&46+*5:2&/+UD1+)#C&*+.:(0$(0+,%-'+).&+2&$4!
$(0+X$).@+D:2.+)#C&+2-():$(&/+:+*$(04&+%-X+-,+5$^&4*<+-%+35Y;
"-)+7>-4#'&)%$2+5$^&4*8@+B.$*+':/&+).&+$(*):44:)$-(+$()-+:+4:%0&<+
/6(:'$2+ 2:(-56+ ).:)+ )%:(*,-%'&/+ ).&+ -4/+ ':%?&)+ .:44+ $()-+ :+
/6(:'$2<+ '->$(0+ *5:2&@+;#/$&(2&+ 2-#4/+ '-/$,6+ ).&+ &^5%&*!
*$-(+C6+'->$(0+).&$%+.:(/*+->&%+:+'&):4+54:)&+).:)+X:*+54:2&/+
:)+ -(&+ &(/+ -,+ ).&+ .:44@+;5:%)+ ,%-'+ ).$*+ $()&%:2)$>&+ '-/&<+ ).&+
$(*):44:)$-(+X:*+:4*-+#*&/+:*+:+>$*#:4+C:2?/%-5+,-%+:+24:**$2:4+
'#*$2+2-(2&%)+$(+).&+.:44@
E51),"--%,$51+ :(/+ -).&%+ >-4#'&)%$2+ '&/$:+ $(*):44:)$-(*+ *.-X+
WKDWYLVXDOUHSUHVHQWDWLRQGRHVQRWKDYHWREHSUHVHQWHGRQÀDW
-%+2#%>&/+*#%,:2&*<+C#)+':6+C&2-'&+,:%+'-%&+*5:)$:446+&^5:(/!
&/@+B.&+4$(&*+C&)X&&(+ )(/""1+ :(/+ )(9-A,9/"+ :%&+C4#%%$(0<+:(/+
-#%+>$*#:4+5&%2&5)$-(+:(/+%&5%&*&():)$-(+'-/&*+:%&+2.:44&(0&/+
WR¿QGQHZZD\VWRGHVFULEHDQGUHÀHFWRQWKHVHH[SHULHQFHV
P).&%+&^:'54&*+-,+*5:)$:4+*2%&&(*+':6+C&+*&&(+$(+48"&a5/-#f)&
2%/+"),& 4$:";M$"("+ 7EFFH8+ $(+ u#%$2.<+ !9-,$3"/)"+ 7EFFS8+ C6+
U&-+ a$44:%&:4<+ N8%$1+8%$& E5/A5/%,"& M%3$-$51+ 7EFGF8<+ R]S7+
7EFFS8+:)+).&+I&()%:4+K):)$-(+$(+u#%$2.<+M$Y"-&E-59#+7EFFR8+C6+
d:*-(+L%#0&*<+:(/+':(6+'-%&@
7KH¿HOGRISUDFWLFHWKDWLVRXWOLQHGE\WKHIRUHJRLQJH[DPSOHV
VKRZVWKDWLWLVEHFRPLQJLQFUHDVLQJO\GLI¿FXOWWRGUDZDFOHDU
OLQH EHWZHHQ WUDGLWLRQDO ÀDW VFUHHQV DQG VSDWLDO LQVWDOODWLRQV
GVF
JD1N;+;MI\NBDIB=MD
'$+9/"&JWG&E51)"--%,$51&IJKKlL&0@&.1$,"#&S$)9%-&7/,$),)
'$+9/"&JVG&E51)"--%,$51&IJKKlL&0@&.1$,"#&S$)9%-&7/,$),)
GVG
JD1N;+;MI\NBDIB=MD
JD1N;+;MI\NBDIB=MD
4$?&+ =<P+ -%+ E51),"--%,$51@+B.&6+ :%&+ :44+ 5:%)*+ -,+ :+ 2-()$(##'+
-,+/$,,&%&()+*5:)$:4+$(*):()$:)$-(*+g+>:%6$(0+$(+*2:4&<+%&*-4#)$-(<+
IRUPDQGH[SUHVVLRQ7KLVUDLVHVTXHVWLRQVDERXWZKDWGH¿QHV
:+)(/""1<+:(/+X.&(+/-&*+:+4:'5+C&2-'&*+:+5$^&4<+$(*)&:/+-,+C&!
$(0+_#*)+:+4$0.)+*-#%2&s+N)+:4*-+5-*&*+"#&*)$-(*+:C-#)+.-X+).$*+
¿HOGUHODWHVWRRWKHU¿HOGVVXFKDVDUFKLWHFWXUHDQGRXUYLVXDO
2#4)#%&+$(+0&(&%:4@
B.&+5.&(-'&(-(+-,+*5:)$:4+*2%&&(+$(*):44:)$-(*+*#00&*)*+:(+:5!
5%-:2.+ )-+ >$*#:4+ '&/$:+ ).:)+ /&:4*+ X$).+ ).&+ :%,"/$%-$,@+ -,+ ).&+
*2%&&(+ :)+ *&>&%:4+ 4&>&4*@+ U$?&+ '&/$:+ ,:2:/&*<+ *5:)$:4+ *2%&&(*+
/&:4+X$).+).&+':)&%$:4+&^5%&**$-(+-,+).&+>$*#:4+$':0&+:(/+$)*+
C5/:@+ B.&6+ :4*-+ 2.:44&(0&+ -#%+ )%:/$)$-(:4+ 2-(2&5)$-(+ -,+ ).&+
VFUHHQDVDÀDWUHFWDQJXODUVXUIDFHDVLWLVGHVFULEHGE\0D!
(->$2.+7EFFG<+5@+TQ8@+N(+).:)+*&(*&<+).&6+2%$)$"#&+).&+51,5-5+@+
-,+*2%&&(*<+:(/+.-X+).&6+:%&+2-(>&()$-(:446+#(/&%*)--/@+9#%!
).&%'-%&<+).&+2%$)$2:4+2-(2&5)*+%&0:%/$(0+).&+*2%&&(<+'&()$-(&/+
LQ WKH ¿UVW FKDSWHU ZLQGRZ DFFHVV LPDJH GLVHPERGLPHQW
:(/+/&':)&%$:4$Y:)$-(8<+'#*)+C&+%&!&>:4#:)&/+#(/&%+).&*&+(&X+
2$%2#'*):(2&*<+$(+X.$2.+).&+'&/$#'+.:*+C&2-'&+).%&&!/$'&(!
*$-(:4@
K5:)$:4+*2%&&(*+:4*-+2%&:)&+:+).&':)$2+4$(?+)-+).&+&^5&%$'&():4+
5.&(-'&(-(+ -,+ /6(:'$2+ :%2.$)&2)#%&@+ =-9/& =9$-#$1++ 7EFFE8<+
E\'LOOHU6FR¿GLRZDVHVVHQWLDOO\DEXLOGLQJRIPLVWZKHUH
X:)&%+ X:*+ *5%:6&/+ ,%-'+ :(+ $()&%(:4+ *?&4&)-(@+ B.$*+ C#$4/$(0+
H[HPSOL¿HV WKH LGHD RI VSDFH ZKLFK LV GH¿QHG QRW E\ VWDWLF
X:44*<+C#)+C6+&5.&'&%:4+':))&%*@+W.&%&+:%2.$)&2)#%&+X:*+-(2&+
C:*&/+-(+2%&:)$(0+*):)$2+*5:2&*+,%-'+X:44*<+'&/$:+:%2.$)&2)#%&+
':6+2-(2&%(+$)*&4,+X$).+2%&:)$(0+/6(:'$2+*5:2&*+,%-'+'->$(0+
$':0&*@
:+)&%'+$(+/&*$0(+:(/+:%2.$)&2)#%&+':6+C&+:))%$C#)&/+)-+).&+)$)4&+
-,+:+2-(,&%&(2&+.&4/+$(+U-(/-(+$(+EFFR@+B.&+2-(,&%&(2&+X:*+
:+%&*5-(*&+)-+).&+0%-X$(0+$()&%&*)+$(+).&+&'&%0&(2&+-,+'&/$:+
*2%&&(*+:(/+:%2.$)&2)#%&+g+%:(0$(0+,%-'+2-''&%2$:4+:/>&%)$*!
$(0+ *2%&&(*<+ :*+ *&&(+ $(+ B$'&*+ K"#:%&+ :(/+ 3$22:/$446+ I$%2#*<+
)-+).&+'-%&+$()&0%:)&/+#*&*+-,+/$*54:6+)&2.(-4-06+X$).+:%2.$!
)&2)#%&+ 7*&&+ '&/$::%2.$)&2)#%&@2-'8@+B.&+ %&4:)&/+ )&%'<+ :"#$%&
C%(%#"<+.:/+:4%&:/6+C&&(+#*&/+:+,&X+6&:%*+&:%4$&%<+C#)+$)+X:*+
&>$/&()+ $(+ :+ *5&&2.+ 0$>&(+ C6+ -(&+ -,+ ).&+ -%0:($Y&%*<+ ]&%(-)+
B*2.&%)&#<+).:)+).&+2.-$2&+-,+e'&/$:+:%2.$)&2)#%&f+X:*+>&%6+$(!
)&()$-(:446+/&*$0(&/+)-+&'5.:*$Y&+:%2.$)&2)#%:4+5%:2)$2&+:*+:(+
$'5-%):()+5:%)+-,+$)*+:554$2:)$-(@
070/L0;:0
B.&+':$(+2:#*&+-,+).&+5%&>:4&(2&+-,+e'&/$:+:%2.$)&2)#%&f+:*+
GVE
=9$-#$1+)&%1#&)A%,$%-&),/9(,9/")&)859-#&51-@&0"&(51)$#"/"#&!";
#$%&7/(8$,"(,9/"&$C&,8"/"f)&%1&$1,"1#"#&%1#&+"1"/%--@&/"(5+1$e;
%0-"&(5//")A51#"1("&0",6""1&,8"&#$)A-%@B&$,)&(51,"1,&%1#&,8"&
),/9(,9/"&5C&,8"&09$-#$1+?&=5,8&:"#$%&%1#&%/(8$,"(,9/"&)859-#&
15,&/"A/")"1,&,65&)"A%/%,"&-"3"-)&5C&:"%1$1+B&09,&,8"@&)859-#&
C5/:& %& (5::51& )@),":& 5C& /"C"/"1("& %1#& /"C"/& ,5& "%(8& 5,8"/?&
7B*2.&%)&#<+EFFR<+5@+FThFH8
B.$*+ *):)&'&()+ 24&:%46+ /&*2%$C&*+ :+ (-)$-(+ -,+ '&/$:+ :%2.$)&2!
)#%&+ X.&%&$(+ e'&/$:f+ $'54$2$)46+ %&,&%*+ )-+ e).&+ /$*54:6f@+ 9#%!
).&%'-%&<+ $)+ .$0.4$0.)*+ ).&+ $()&()$-(+ )-+ '->&+ ).&+ /&*$0(+ -,+
/$*54:6+)&2.(-4-06+:(/+2-()&()+$()-+:(+:%2.$)&2)#%:4+5%:2)$2&<+
X.&%&+ ).&+ :%2.$)&2)#%&+ 5%&/-'$(:)&*@+B.$*+ %&':%?:C4&+ (-)$-(+
*#00&*)*+).&+$/&:+-,+%&0:%/$(0+).&+*2%&&(+:*+&"#:4+)-+).&+*)&&4<+
*)-(&<+:(/+04:**+-,+X.$2.+C#$4/$(0*+:%&+':/&n+$(+-).&%+X-%/*<+
).$(?$(0+-,+).&+*2%&&(+:*+:+':)&%$:4+:(/+(-)+_#*)+:*+:+e*?$(f@
;(-).&%+$()&%5%&):)$-(+-,+'&/$:+:%2.$)&2)#%&+X:*+5%->$/&/+$(+
:+%&2&()+C--?<+!"#$%&'%(%#")+7EFFT8<+C6+J@+\:(?+\:&#*4&%h+
³>«@ ZKLOH PHGLD IDFDGH FDQ EH GH¿QHG DV WKH HPEHGGLQJ
GVH
JD1N;+;MI\NBDIB=MD
JD1N;+;MI\NBDIB=MD
-,+ 2-''#($2:)$-(+ $()-+ :+ ,:2:/&<+ ':$(46+ $(+ ).&+ ,-%'+ -,+ /$0$!
):4+ '&/$:<+ '&/$:+ :%2.$)&2)#%&+ /&*2%$C&*+ ).&+ 2#4)#%:4<+ *-2$:4+
:(/+ &2-(-'$2+ $'54$2:)$-(*+ -,+ ).&*&+ ,:2:/&*+ ,-%+ ).&+ $''&/$!
:)&+&(>$%-('&()@f+7\:&#*4&%<+EFFT<+5@+GV8@+B.$*+*#00&*)*+).:)+
'&/$:+ %/(8$,"(,9/"+ /&:4*+ X$).+ ).&+ 2-()&^)+ -,+ '&/$:+ C%(%#")<+
/&*2%$C$(0+(-)+_#*)+).&+'&/$#'<+C#)+:4*-+$)*+2#4)#%:4+2-(/$)$-(*@+
:KLOH+DHXVOHU¶VVWDWHPHQWVHHPVWRFRQÀLFWZLWK7VFKHUWHX¶V
/&*2%$5)$-(<+$)+:4*-+.$0.4$0.)*+).&+'#4)$54$2$)6+-,+$()&%5%&):)$-(*+
).:)+':6+C&+/&%$>&/+,%-'+).&+)&%'<+:(/+).:)+).&+:'C$>:4&(2&+
PD\EHEHQH¿FLDOLQDYRLGLQJWKHIRUHFORVLQJRILWVSRWHQWLDO
:%&:*+-,+:554$2:)$-(@
d&:(+O-#>&4+:(/+2#4)#%:4+).&-%$*)+3:#4+a$%$4$-<+X.-+$*+?(-X(+
,-%+.$*+2%$)$2$*'+-,+':**+'&/$:+:(/+$)*+&,,&2)*+-(+*-2$&)6@+B.&+
/$*2#**$-(+%&>-4>&/+:%-#(/+).&+(&X+$/&:*+$(+:%2.$)&2)#%&+).:)+
X&%&+&'&%0$(0+:)+).:)+)$'&<+:(/+).&+*$'$4:%$)$&*+C&)X&&(+C#$4/!
$(0+,:2:/&*+:(/+'&/$:+*2%&&(*@
0JH'C(H6G-(D>&(+).-#0.+'&/$:+,:2:/&*+:(/+'&/$:+:%2.$)&2)#%&+.:>&+-(46+
%&2&()46+0:$(&/+X$/&+:))&()$-(<+).&6+X&%&+/$*2#**&/+':(6+6&:%*+
:0-+g+-(46<+:*+:+*-'&X.:)+#)-5$:(+>$*$-(+-,+,#)#%&+:%2.$)&2)#%&@+
B.&+5-)&()$:4+-,+2-'C$($(0+:%2.$)&2)#%&+:(/+>$*#:4+&4&2)%-($2+
'&/$:+X:*+/$*2#**&/+:*+&:%46+:*+GTTG+$(+).&+]&%':(+_-#%(:4<+
7`EXq+7b#.(&%)+&)+:4@<+GTTG8@+B.&+;#0#*)+$**#&+,&:)#%&/+*&>!
&%:4+:%)$24&*+).:)+5%&*&()&/+(&X+).-#0.)+-(+).&+,#)#%&+-,+2-'!
'#($2:)$-(+ :%2.$)&2)#%&<+ #(/&%+ ).&+ .&:/$(0+ '%))%#"1+ 7D(0@h+
e,:2:/&*f8@+B.&+ 2->&%+ $':0&+ ,&:)#%&/+ ).&+ 0$:()+ #%C:(+ *2%&&(+
,%-'+ M$/4&6+ K2-))`*+ =-%#"& `911"/+ 7GTSE8<+ X.$2.+ 5%->$/&/+ :+
VFL¿ YLVLRQ RI ZKHUH DUFKLWHFWXUH PLJKW EH KHDGHG 7KH LQ!
)%-/#2)-%6+:%)$24&+C6+O$?-4:#*+b#.(&%)+:(/+3.$4$55+P*X:4/+$*+
&()$)4&/+eJ&/$&(,:**:/&(f+7D(0@h+e'&/$:+,:2:/&*f8n+"#$)&+%&!
':%?:C4&<+*$(2&+).&+)&%'+X:*+(-)+6&)+2-''-(46+#*&/<+:(/+(-+
:2)#:4+ '&/$:+ ,:2:/&*+ .:/+ C&&(+ 2-(*)%#2)&/+ :)+ ).:)+ )$'&@+ B.&+
:%)$24&+/$*2#**&*+*#C_&2)*+*#2.+:*+4:%0&<+$44#'$(:)&/+:/>&%)$*&!
'&()*<+ :554$2:)$-(*+ -,+ $':0&*+ -(+ ,:2:/&*<+ :(/+ (&X+ :%2.$)&2!
)#%:4+*)%:)&0$&*+,-%+$()&0%:)$(0+>$/&-+5%-_&2)$-(*+$()-+C#$4/$(0*@+
B.&+$**#&+:4*-+,&:)#%&/+:+4-(0+2-(>&%*:)$-(+C&)X&&(+:%2.$)&2)+
GVV
&chd&,8"/"&$)&),$--&,8"&b9"),$51&5C&,8"&/"-%,$51)8$A&0",6""1&:%;
,"/$%-&%1#&$:%+"?&<)&,8"&$:%+"&:%,"/$%-Z&<&)%@&@")?&<&659-#&%1;
)6"/&,8%,&51"&(%1&15&-51+"/&)A"%>&5C&:%,"/$%-B&5C&%/(8$,"(,9/%-&
:%,"/$%-B&%1#&C5/+",&,8"&$:%+"?&48"&$:%+"&$)&%-/"%#@&,8"&:%,";
/$%-&5C&(51,":A5/%/@&%/(8$,"(,9/%-&#")$+1B&,5:5//56&$,&6$--&0"&
,8"&:%,"/$%-&5C&,8"&%/(8$,"(,9/"&$,)"-C?&7a$%$4$-+&)+:4@<+GTTG<+5@+
RT8
B.&+:%0#'&()+5%&*&()&/+C6+a$%$4$-+&2.-&*+X.:)+.&+.:/+:4%&:/6+
5#C4$*.&/+$(+48"&25),&*$:"1)$51+7GTSV8<+':(6+6&:%*+&:%4$&%@+N)+
$*+C:*&/+-(+:+2%$)$2$*'+-,+'&/$:+:(/+$)*+$'5:2)+-(+:%2.$)&2)#%&<+
&^)%:5-4:)$(0+).&+$(/$2:)$-(*+:(/+2-(*&"#&(2&*+:)+:+2-(2&5)#:4+
OHYHO+HLGHQWL¿HVWKHGHFOLQHRISXEOLFVSDFHVDQGWKHLUIXQF!
)$-(*+ -X$(0+ )-+ (&X+ '&/$:+ )&2.(-4-0$&*<+ '#2.+ :*+ \:C&%':*+
.:/+ /&*2%$C&/+ ).&+ /&'$*&+ -,+ ).&+ 5#C4$2+ *5.&%&<+ -X$(0+ )-+ ).&+
e*)%#2)#%:4+)%:(*,-%':)$-(f+-,+*-2$&)6<+).:(?*+)-+2-(*#'&%+2#4!
)#%&+:(/+':**+'&/$:@+a$%$4$-+:%0#&*+).:)+5#C4$2+,#(2)$-(*+).:)+
X&%&+5.6*$2:446+*$)#:)&/+$(+#%C:(+*5:2&*+.:>&+C&&(+%&/#2&/+)-+
&4&2)%-($2+ $()&%,:2&*@+ B.&+ ->&%:44+ :%0#'&()+ $*+ ).:)+ '&/$:+ :%&+
.:>$(0+ *#2.+ :(+ $'5:2)+ ).:)+ $)+ $*+ :2)#:446+ :,,&2)$(0+ -#%+ :%2.$!
)&2)#%&@+L$44C-:%/*+:(/+*$0(:0&+:%&+*#5&%$'5-*$(0+$':0&*+-(+
C#$4/$(0*<+>$*#:446+e%&54:2$(0f+).&+#(/&%46$(0+:%2.$)&2)#%&+:(/+
,#(2)$-(:446+ %&(/&%$(0+ ).&+ ,:2:/&*+ e-C*-4&)&f<+ :22-%/$(0+ )-+
a$%$4$-@
O-#>&4+2-'54&'&()*+).&+/$*2#**$-(+C6+/&*2%$C$0+.-X+.$*+:%!
2.$)&2)#%:4+5%:2)$2&+.:*+%&>-4>&/+:%-#(/+).&+#*&+-,+$':0&*+:*+
GVQ
JD1N;+;MI\NBDIB=MD
2-()%$C#)$-(*+)-+>$*#:4+&^5%&**$-(h
7/(8$,"(,9/"B&$1&,8"&)"1)"&5C&(/"%,$1+&$:%+")B&(%115,&/":53"&$,;
)"-C&C/5:&,8"&(591,-"))&C%09-59)&$:%+")&68$(8&8%3"&0""1&(/"%,;
"#&,8/59+8&,8"&("1,9/$")?&<&659-#&%-)5&%))"/,&;&%1#&,8$)&%-6%@)
0/$1+)& ),/51+& /"%(,$51)& ;& ,8%,& ,8"/"& $)& %& ,"1#"1(@& ,5& ,65& #$;
:"1)$51%-$,@&$1&%/(8$,"(,9/"?&48$)&A-%@&6$,8&A"/:"%0$-$,@B&6$,8&
)(/""1)B&6$,8&$1,"+/%,$1+&C%(%#"&A%/,)&%,&,8"&<!7&jN(*)$)#)+/#+
J-(/&+;%:C&l& #5")& 15,& (5:"& 59,& 5C& ,8"& 0-9"?& <,& (5:")& C/5:&
%/"%)& 68$(8& %/"& /"-%,"#& ,5& %/(8$,"(,9/"?+ 7a$%$4$-+ &)+ :4@<+ GTTG<+
5@+RT8
;(-).&%+ /$*2#**$-(+ -,+ '&/$:+ :%2.$)&2)#%&+ 2:(+ C&+ ,-#(/+ $(+
:+ *&%$&*+ -,+ :%)$24&*+ 5#C4$*.&/+ C&)X&&(+ GTTV+ :(/+ GTTZ+ )$)4&/+
eJ&/$:%2.$)&2)#%&f<+C6+I.%$*)$:(+W@+B.-'*&(<+,&:)#%&/+$(+).&+
d:5:(&*&+_-#%(:4<+7q.+7;%2.$)&2)#%&+:(/+=%C:($*'8@+B.&*&+:%!
)$24&*+:))&'5)&/+)-+.$0.4$0.)+).&+&'&%0$(0+%&4:)$-(*.$5+C&)X&&(+
:%2.$)&2)#%&<+ >$*#:4+ '&/$:<+ :(/+ 2-''#($2:)$-(+ )&2.(-4-0$&*<+
X.$2.+ X&%&+ :4%&:/6+ %:5$/46+ 0%-X$(0+ /-':$(*@+ ;22-%/$(0+ )-+
B.-'*&(<+ 2#4)#%&+ X:*+ )%:(*,-%'$(0+ $()-+ e'&/$:+ 2#4)#%&f<+
X.&%&+$':0&*+/-'$(:)&/<+:(/+':)&%$:4+:&*).&)$2*+X&%&+2.:(0!
LQJLQWRLPPDWHULDORQHV7KRPVHQS7KHLQÀXHQFH
-,+/$0$):4+)&2.(-4-06+X:*+0%-X$(0+%:5$/46<+:(/<+:%0#&/+B.-'!
*&(<+).$*+X-#4/+:4*-+:,,&2)+).&+*):)&+-,+:%2.$)&2)#%&@
7KH¿UVWRI7KRPVHQ¶VDUWLFOHVZHUHHVVD\VLQZKLFKKHLPDJ!
$(&/+ :+ (&X+ )65&+ -,+ :%2.$)&2)#%&<+ e'&/$:%2.$)&2)#%&f<+ X.&%&+
C#$4/$(0*+ :%&+ e/&2-%:)&/+ X$).+ &4&2)%-($2+ $':0&*f+ :(/+ e'$^!
)#%&*+-,+)&^)!$':0&!/&2-%:)$-(+-(+).&+C#$4/$(0`*+*?$(f+75@+SG8@+
J&/$:%2.$)&2)#%&+*5&44*+-#)+:+(&X+)65&+-,+*5:2&+).:)+$*+(-+4-(!
JHUGH¿QHGE\WUDGLWLRQDOHOHPHQWVEXWE\PHGLDDQGWKHLULP!
:0&*@+B.-'*&(+,#%).&%+/&*2%$C&/+.-X+).&+e,#44+*):0&+-,+'&/$!
:%2.$)&2)#%&f+$*+X.&(+'&/$:+%&:2.+).&+,:2:/&<+:(/+).&6+C&2-'&+
GVZ
JD1N;+;MI\NBDIB=MD
:"#$%& C%(%#")h+ e]&(#$(&+ '&/$:+ ,:2:/&*+ :%&+ '-%&+ ).:(+ '&%&+
*2%&&(*+X$).+5$&2&*+-,+&4&2)%-($2+:/>&%)$*&'&()*@+B.&6+)&(/+)-+
C&2-'&+$()&%:2)$>&+?$(&)$2+*2#45)#%&*f+75@+SE8@
W.:)+$*+%&':%?:C4&+:C-#)+).&+:C->&!'&()$-(&/+:%)$24&+$*+).:)+
7KRPVHQLGHQWL¿HVWKHWUHQGRIPHGLDDUFKLWHFWXUHDQGPHGLD
,:2:/&*+ :)+ :+ >&%6+ &:%46+ *):0&+ -,+ $)*+ /&>&4-5'&()<+ C&,-%&+ :(6+
5-)&()+&^:'54&*+.:/+C&&(+,#446+%&:4$Y&/@+B.&+,&X+:%2.$)&2)#%:4+
5%-_&2)*+ )-+ X.$2.+ .&+ %&,&%*+ X&%&+ &^5&%$'&():4+ 5%-5-*:4*+ ).:)+
X&%&+ (&>&%+ %&:4$Y&/<+ :(/+ :%)+ $(*):44:)$-(*+ ).:)+ X&%&+ '-%&+ :C!
VWUDFWH[SUHVVLRQVWKDQHOHFWURQLFLPDJHV7KHUHIRUHWKH¿HOG
.&+/&*2%$C&*+:*+e'&/$:%2.$)&2)#%&f+X:*+':%0$(:4<+:(/+'-*)46+
:(+$/&:+-,+X.&%&+:%2.$)&2)#%&+'$0.)+C&+.&:/&/@
B.-'*&(+ :4*-+ ://%&**&*+ ).&+ 2%$)$2$*'+ -,+ '&/$:+ :(/+ :%2.$)&2!
)#%&+).:)+.:/+C&&(+>-$2&/+).%-#0.-#)+).&+&$0.)$&*+C6+).&-%$*)*+
*#2.+:*+3:#4+a$%$4$-+:(/+d&:(+L:#/%$44:%/<+X.-+/&*2%$C&/+).&+
$'5:2)+-,+'&/$:+:*+e:4$&(:)$-(<+4-**+-,+$/&()$)6<+*:)&44$*:)$-(+-,+
).&+.#':(+*&4,<+jkl<+/$*&'C-/$&/+).%-#0.+).&+'&:(*+-,+(&X+
&4&2)%-($2<+/$0$):4+'&/$:f+7NC$/@8@+\&+:%0#&*+:0:$(*)+).&*&+2%$)$!
2$*'*<+/%:X$(0+-(+a$4v'+94#**&%`*+'-%&+-5)$'$*)$2+>$*$-(+-,+
).&+,#)#%&<+X.&(+)&2.(-4-0$&*+X$44+.:>&+).&+5-)&()$:4+)-+e->&%!
2-'&+/$*):(2&+:(/+)-+2%&:)&+)%#46+.#':(&+$(/$>$/#:4+2-''#($!
)$&*f+7NC$/@8@
I-(24#/$(0+ ).&+ :%)$24&<+ I.%$*)$:(+ B.-'*&(+ (-)&*+ ).:)+ ).&%&+
:%&+ e/:(0&%*f+ -,+ '&/$:%2.$)&2)#%&+ C&2-'$(0+ e*.-XC$YY!:%!
2.$)&2)#%&f<+-%+(&X+,-%'*+-,+e).&:)%$2:4$Y:)$-(f@+P(+).&+-).&%+
.:(/<+ .&+ X%$)&*<+ ).&%&+ $*+ 0%&:)+ 5-)&()$:4+ ,-%+ '&/$:%2.$)&2)#%&+
)-+ C&2-'&+ e'#4)$'&/$:+ :(/+ '#4)$/$'&(*$-(:4f<+ :(/+ /&>&4-5+
$)*+ -X(+ e2-4-%,#4+ 5-&)%6+ -,+ 4$0.)f<+ X.&%&+ '&/$:+ :%)+ 54:6*+ :(+
&'$(&()+5:%)n+):?$(0+->&%+,#(2)$-(*+-,+-4/&%+:%)+,-%'*<+2%&:)$(0+
(&X+.6C%$/+:%)*<+:(/+2-()$(#&+-4/+)%:/$)$-(*+$()-+:+7(&X8+/$0$!
):4$Y&/+:&*).&)$2*+7NC$/@8@
GVR
JD1N;+;MI\NBDIB=MD
JD1N;+;MI\NBDIB=MD
B.&+ ).&'&+-,+ '&/$:+ :%2.$)&2)#%&+$*+ ).&%C6+ (-)+ :+ (&X+ *#C_&2)+
$(+ 4$)&%:)#%&<+ :4).-#0.+ $)+ .:*+ (-)+ 6&)+ 0:$(&/+ '#2.+ :))&()$-(@+
7KHYHU\HDUO\FRQWULEXWLRQVWRWKH¿HOGFRPSULVHGKHWHURJH!
QHRXVFROOHFWLRQVRIH[DPSOHVUDQJLQJIURPVFL¿PRYLHVWR
#(%&:4$Y&/+C#$4/$(0*+:(/+:%)+$(*):44:)$-(*@+J&/$:%2.$)&2)#%&+:(/+
'&/$:+,:2:/&*+$(+).&+&:%46+GTTF*+X&%&+'-%&+:(+$(/$2:)$-(+-,+
:+ 5-**$C4&+ ,#)#%&<+ ).:(+ ).&+ :2)#:4+ /&':%2:)$-(+ -,+ :(+ &^$*)$(0+
5%:2)$2&@+B.&+,-44-X$(0+2.:5)&%+X$44+).&%&,-%&+&4:C-%:)&+-(+).&+
'-%&+2-(2%&)&+&^:'54&*+-,+'&/$:+:%2.$)&2)#%&+).:)+X&%&+5%-!
/#2&/+C&,-%&+).&+)&%'+X:*+:))%$C#)&/+)-+*#2.+5%:2)$2&*@
).:)+*.-X+.-X<+&:%46+-(<+).&+2-((&2)$-(+C&)X&&(+:%2.$)&2)#%&+
:(/+'&/$:+)&2.(-4-06+X:*+&*):C4$*.&/@+B.$*+$*+(-)+:+2:(-($2:4+
4$*)<+C#)+:+%:(0&+-,+5%-'$(&()+&^:'54&*+-,+X.:)+2-#4/+C&+/&!
*2%$C&/+:*+e'&/$:+:%2.$)&2)#%&f+7%3%1,&-%&-",,/"8<+:(/+':)&%$:4+
:55%-:2.&*+)-+>$*#:4+)&2.(-4-0$&*@
!6./0O5894</F
7KHWHUP³PHGLDDUFKLWHFWXUH´LVUHODWLYHO\QHZZLWKLQWKH¿HOG
-,+:%2.$)&2)#%&+:(/+/&*$0(<+:(/+.:*+(-)+0:$(&/+'#2.+.$*)-%$2:4+
0%-#(/$(0+C&6-(/+).&+4:*)+/&2:/&@+P(+).&+-).&%+.:(/<+$)+':6+C&+
:%0#&/+).:)+).&+,#(/:'&():4+$/&:*+:(/+5%:2)$2&*+C&.$(/+'&/$:+
:%2.$)&2)#%&+ :%&+ (-+ (->&4)6+ :)+ :44@+ D^54-%$(0+ ).&+ ':(6+ X:6*+
).:)+'&/$:+)&2.(-4-06+.:*+C&&(+:554$&/+)-+:%2.$)&2)#%&+$(+).&+
4:*)+2&()#%6+%&>&:4*+).:)+).&%&+:%&+':(6+$(*):(2&*+-,+:%)<+5&%,-%!
':(2&*<+:(/+2-''&%2$:4+*$0(:0&+).:)+%&*&'C4&+).&+(-)$-(*+-,+
'&/$:+,:2:/&*+:(/+'&/$:+:%2.$)&2)#%&@
B.&+,-44-X$(0+5:0&*+)%:2&+:+5%&!.$*)-%6+-,+'&/$:+:%2.$)&2)#%&<+
)-+ 24:%$,6+ ).&+ .$*)-%$2:4+ 2-((&2)$-(+ C&)X&&(+ :%2.$)&2)#%&+ :(/+
>:%$-#*+ '&/$:+ )&2.(-4-0$&*@+ B.$*+ &'5.:*$Y&*+ .-X+ 2#%%&()+
5%:2)$2&*+:%&+/&&546+%--)&/+$(+.$*)-%6<+:(/+:%&+(-)+_#*)+5%-/#2)*+
VSHFL¿FWRFHUWDLQWHFKQRORJLFDOLQYHQWLRQV7KHPDWHULDOLW\DQG
*2:4&+ -,+ :%2.$)&2)#%&+ .:>&+ 4-(0+ *$(2&+ 5%->$/&/+ :+ C:2?0%-#(/+
,-%+4:6&%$(0+$(,-%':)$-(<+:(/+5%-/#2$(0+2-'54&^+:55&:%:(2&*@
N+ )%:2&+ ).&+ .$*)-%6+ -,+ '&/$:+ :%)+ :(/+ :%2.$)&2)#%&+ $(+ %&>&%*&+
2.%-(-4-0$2:4+-%/&%<+:(/+).&%&C6+5-$()+-#)+*-'&+-,+).&+/&>&4!
-5'&()*+).:)+.:>&+5%&2&/&/+).&+2#%%&()+*):)&+-,+'&/$:+:%2.$!
)&2)#%&@+B.&+,-44-X$(0+&^:'54&*+%&5%&*&()+:+*&4&2)$-(+-,+X-%?*+
GVS
3&%.:5*+).&+'-*)+$2-($2+X-%?+)-+C&+4:C&4&/+'&/$:+:%2.$)&2)#%&+
).:)+$*+,%&"#&()46+%&,&%&(2&/+)-/:6+$*+).&+=-$1>"1-$+8,)+$(*):4!
4:)$-(+-,+EFFG@+N)+X:*+':/&+C6+:+.:2?&%+0%-#5<+I.:-*+I-'!
5#)&%+I4#C<+X.$2.+)--?+->&%+:(+&'5)6+C#$4/$(0+:)+;4&^:(/&%+
3ODW]LQ&HQWUDO%HUOLQ7KH\LQVWDOOHGÀRRGOLJKWVEHKLQGHYHU\
X$(/-X+$(+).&+C#$4/$(0<+:(/+2-((&2)&/+).&'+)-+:+2&()%:4+2-'!
5#)&%<+X.$2.+X:*+).&(+:C4&+)-+#)$4$Y&+).&+GStS+X$(/-X+:%%:6+
:*+:+4:%0&<+4-X!%&*-4#)$-(+*2%&&(@+B.&+5#C4$2+X:*+).&(+:44-X&/+
)-+ $()&%:2)+ X$).+ ).&+ *2%&&(+ C6+ &!':$4$(0+ :($':)$-(*<+ -%<+ /#%!
$(0+2&%):$(+)$'&+*4-)*<+54:6$(0+).&+24:**$2+0:'&+-,+M51++-(+).&+
,:2:/&@+B.&+&^)%&'&46+4-X+%&*-4#)$-(+':/&+).&+&^5%&**$>&+2:!
SDELOLWLHV OLPLWHG YHU\ VLPSOL¿HG JUDSKLFV 7KLV DVSHFW DORQH
2%&:)&/+:+>$*#:4+%&*&'C4:(2&+)-+&:%46+2-'5#)&%+0:'&*+-,+).&+
GTRF*+:(/+SF*@+N)+X:*+:+.$0.46+>$*$C4&+$(*):44:)$-(+).:)+:))%:2)&/+
:+4:%0&+:#/$&(2&+).%-#0.-#)+$)*+EH!X&&?+%#(@+B.&+=-$1>"1-$+8,)+
$(*):44:)$-(+ C&2:'&+ :(+ &^:'54&+ -,+ :55%-5%$:)$(0+ &^$*)$(0+ :%!
2.$)&2)#%&+,-%+:(+$()&%:2)$>&+:%)+$(*):44:)$-(<+#)$4$Y$(0+).&+*2:4&<+
>$*$C$4$)6<+ :(/+':)&%$:4+*)%#2)#%&+ -,+).&+C#$4/$(0+:*+ :+,:'$4$:%+
C:2?0%-#(/+,-%+:(+#(#*#:4+#*&@+L6+e.:2?$(0f+).&+C#$4/$(0<+).&+
:%)$*)*`+0%-#5+#*&/+).&+:%2.$)&2)#%&+:*+:+'&/$#'+,-%+0$>$(0+(&X+
'&:($(0+)-+:(+&^$*)$(0+5:%)+-,+).&+2$)6*2:5&@+B.&+,:2)+).:)+).:)+
C#$4/$(0+X:*+:55%-5%$:)&/+X$).-#)+:4)&%:)$-(*+':/&+).&+:#/$!
&(2&+ 2-(*):()46+ :X:%&+ ).:)+ ).&+ *2%&&(+ X:*+ $(+ ,:2)+ :+ ':)&%$:4+
C#$4/$(0<+(-)+:+/&':)&%$:4$Y&/<+$''&%*$>&+/$*54:6@
B.&+$/&:+-,+5#))$(0+5$^&4*+-(+:+,:2:/&+X:*+%&:4$Y&/+$(+:+5&%':!
GVT
JD1N;+;MI\NBDIB=MD
JD1N;+;MI\NBDIB=MD
(&()+$(*):44:)$-(+-(+).&+nMR&456"/+$(+M-))&%/:'<+2-'54&)&/+
$(+ EFFF+ 7*&&+ 9$0#%&+ EG+ -(+ 5:0&+ GHQ8@+ B.&+ C#$4/$(0+ X:*+ /&!
*$0(&/+C6+:%2.$)&2)+M&(Y-+3$:(-+,-%+1#)2.+)&4&2-'+2-'5:(6+
.315HÀHFWLQJWKHLQQRYDWLYHVSLULWRIWKH.31EUDQG3LDQR
2.-*&+).&+*#C_&2)+-,+e)&2.(-4-06f+:*+).&+*):%)$(0+5-$()+,-%+.$*+
/&*$0(@+ 3$:(-+ :(/+ K)#/$-+ 1#'C:%+ 2-44:C-%:)$>&46+ /&*$0(&/+ :+
IDFDGHZLWKOXPLQRXVJUHHQVTXDUHVSODFHGDW¿[HGLQWHU!
>:4*+C&)X&&(+).&+C#$4/$(0`*+X$(/-X*@+B.&+0%&&(+5$^&4*+:%&+(-)+
$()&0%:)&/+$()-+).&+,:2:/&<+C#)+$(*)&:/+C&2-'&+:(+-%(:'&():4+
,&:)#%&<+X.$2.+':6+:4*-+C&+-C*&%>&/+$(+/:64$0.)@+B.&+%&*#4)$(0+
e*2%&&(f+$*+*)$44+$(+-5&%:)$-(+)-/:6<+:(/+,:2&*+:+4:%0&+X:)&%,%-()+
:%&:+X.&%&+$)+':6+C&+-C*&%>&/+,%-'+0%&:)+/$*):(2&*@+P>&%+$)*+
4$,&)$'&<+$)+.:*+C&&(+2#%:)&/+)-+/$*54:6+:($':)$-(*+C6+>:%$-#*+
DUWLVWVVXFKDV7LP2WWR5RWKDQG*UDI¿WL5HVHDUFK/DE
'&%2$:4+*.-55$(0+2&()&%@+;(/+:4).-#0.+).&+UD1+*2%&&(+2-#4/+
.:>&+C&&(+#*&/+,-%+:/>&%)$*$(0<+).&+:%)$*)+:(/+:%2.$)&2)+/&2$/&/+
)-+#*&+$)+-(46+,-%+).&+:C*)%:2)+%&5%&*&():)$-(+-,+*)%&&)+(-$*&@+=(!
,-%)#(:)&46<+ ).&+ $(*):44:)$-(+ *4-X46+ /&2:6&/<+ :(/+ X:*+ /&2-'!
'$**$-(&/+:,)&%+:+,&X+6&:%*@+N)+.:*+%&2&()46+C&&(+%&54:2&/+X$).+
:+(&X<+2-()&'5-%:%6+'&/$:+,:2:/&@+B.&+-%$0$(:4+:%)$*)<+I.%$*!
)$:(+Jw44&%<+.:*+5%-/#2&/+*&>&%:4+'&/$:+:%)+$(*):44:)$-(*+*$(2&+
).&+-(&+-(+).&+u&$40:4&%$&@+N(+:+%&)%-*5&2)$>&+C--?+5#4$*.&/+$(+
EFFV<+I.%$*)$:(+Jw44&%`*+-&#>%&+$*+%&':%?:C46+5%&*&()&/+#(/&%+
).&+4:C&4+-,+eJ&/$:+;%2.$)&2)#%&f+7Jw44&%<+EFFV8+g+).%&&+6&:%*+
C&,-%&+).&+)&%'+C&2:'&+2-''-(46+?(-X(+).%-#0.+).&+)$)4&+-,+
¿UVW!"#$%&7/(8$,"(,9/"+2-(,&%&(2&@
P(&+-,+).&+&:%4$&*)+,:2:/&*+)-+$(>-4>&+&4&2)%-($2+'&/$:+X:*+%&!
:4$Y&/+$(+GTTE+:*+:+5&%':(&()+:%)+$(*):44:)$-(+-(+).&+,:2:/&+-,+
).&+*.-55$(0+2&()&%<+r"$-+%-"/$"<+$(+9%:(?,#%)<+]&%':(6@+;%)$*)+
I.%$*)$:(+Jw44&%+:(/+:%2.$)&2)+Mo/$0&%+b%:''+2%&:)&/+%&:2)$>&+
,:2:/&+4$0.)$(0+:(/+:(+UD1+*2%&&(+).:)+>$*#:4$Y&/+&(>$%-('&(!
WDOGDWDIRUWKHVXUURXQGLQJFLW\$WRWDORIÀRRGOLJKWVZHUH
$(*):44&/+C&.$(/+:+*2%&&(+-,+5&%,-%:)&/+:4#'$(#'@+;44+).&+4$0.)*+
ZHUH¿WWHGZLWKDURERWLFFRORUZKHHOHQDEOLQJWKHGLVSOD\RI
&$).&%+C4#&+-%+6&44-X+4$0.)@+=*$(0+:+X&:).&%+*):)$-(+-(+)-5+-,+
).&+C#$4/$(0<+).&+(#'C&%+-,+C4#&+-%+6&44-X+4$0.)*+2.:(0&/+X$).+
).&+)&'5&%:)#%&<+).&%&C6+2%&:)$(0+2-'54&^+5:))&%(*+-(+).&+,:!
2:/&@+ W$(/+ :(/+ %:$(+ X&%&+ :4*-+ '&:*#%&/<+ :(/+ 2-()%-44&/+ ).&+
*.:5&+ :(/+ '->&'&()+ -,+ ).&+ 6&44-X+ 5:))&%(*@+ ;+ VtEF+ '&)&%+
UD1+*2%&&(+X:*+:4*-+$(*):44&/+:)+).&+)-5+-,+).&+,:2:/&<+>$*#:4!
$Y$(0+*-#(/+4&>&4*+-(+).&+*)%&&)+$(+%&:4!)$'&<+:*+:+X:>&!,-%'@+
N(+ ':(6+ %&*5&2)*<+ ).&+ ,:2:/&+ $(*):44:)$-(+ :)+ u&$40:44&%$&+ X:*+
#($"#&<+ *$(2&+ $)+ X:*+ :(+ :C*)%:2)+ :%)X-%?+ $(*):44&/+ -(+ :+ 2-'!
GQF
;4).-#0.+ ).&+ ,:2:/&+ :)+ u&$40:4&%$&+ ':6+ .:>&+ C&&(+ ).&+ &:%4$!
HVWIDFDGHWRLQFRUSRUDWHPHGLDWHFKQRORJ\LWZDVQRWWKH¿UVW
5$&2&+-,+:%2.$)&2)#%&+)-+C&+#*&/+$(+2-(_#(2)$-(+X$).+&4&2)%-($2+
'&/$:@+;(+&:%4$&%+&^:'54&+$*+).&+456"/&5C&a$1#)<+C6+B-6-+N)-<+
,%-'+GTSZ@+B.&+5%-_&2)+X:*+:+)%:(*,-%':)$-(+-,+:(+-4/+X:)&%+
%&*&%>-$%+ $(+[-?-.:':<+ d:5:(<+ X.$2.+ X:*+ )-+ C&+ ':/&+ $()-+ :+
4:(/':%?+ ,-%+ ).&+ 4-2:4+ :%&:@+ B-6-+ N)-+ /&*$0(&/+ %&:2)$>&+ $44#!
'$(:)$-(+ ,-%+ ).&+ EG!'&)&%+ )-X&%<+ X.&%&+ ).&+ 5:))&%(*+ -,+ 4$0.)+
X&%&+C:*&/+-(+X$(/+*5&&/<+X&:).&%+2-(/$)$-(*<+:(/+(-$*&+4&>!
&4*+g+'#2.+4$?&+I.%$*)$:(+Jw44&%`*+$(*):44:)$-(+,-%+r"$-+%-"/$"@+
L6+ #*$(0+ ).&*&+ &(>$%-('&():4+ 5:%:'&)&%*<+ ).&+ )-X&%+ X-#4/+
2-(*):()46+2.:(0&+&^5%&**$-(+:(/+:/:5)+)-+).&+&^)&%(:4+2-(/$!
)$-(*@+B.&+)-X&%+$*+:4'-*)+)%:(*5:%&()+C&2:#*&+-,+$)*+*)&&4+,%:'&+
FRQVWUXFWLRQEXWEHFDPHYLVXDOO\GH¿QHGE\WKHOLJKWUHÀHFW!
$(0+-,,+).&+'&):4+5:%)*@+B.#*<+).&+4$0.)+2:#*&/+).&+*)%#2)#%&+)-+
>$*#:446+':)&%$:4$Y&<+:(/+-#)4$(&/+).&+C-#(/:%$&*+-,+).&+)-X&%@+
;4).-#0.+).&+456"/&5C&a$1#)+X:*+(-)+:+*2%&&(<+C#)+5%->$/&/+
:(+:C*)%:2)+&^5%&**$-(+-,+/:):<+$)+X:*+:(+&^2&5)$-(:4+(&X+X:6+
-,+ ':?$(0+ :%2.$)&2)#%&+ $()-+ :(+ &4&2)%-($2+ '&/$#'@+ 456"/& 5C&
GQG
JD1N;+;MI\NBDIB=MD
JD1N;+;MI\NBDIB=MD
a$1#)+ %&,&%*+ )-+ :(+ :(2$&()+ ]%&&?+ C#$4/$(0+ $(+ ;).&(*+ -,+ ).&+
*:'&+(:'&<+X.$2.+,&:)#%&/+:+X$(/+>:(&+-(+).&+%--,<+).&%&C6+
2-''#($2:)$(0+ ).&+ X$(/+ /$%&2)$-(+ )-+ ).&+ *#%%-#(/$(0+ :%&:@+
B-6-+N)-`*+$(*):44:)$-(+':6+C&+*&&(+:*+:(+&4&2)%-($2+>&%*$-(+-,+
).$*+:(2$&()+2-(*)%#2)$-(@
J&/$:+:%2.$)&2)#%&+:(/+).&+$/&:+-,+&4&2)%-($2+'&/$:+:*+5:%)+-,+
#%C:(+:%2.$)&2)#%&+.:*+C&&(+:+,#)#%$*)$2+>$*$-(+,-%+':(6+6&:%*@+
B.&+$/&:+-,+5#))$(0+4:%0&<+&4&2)%-($2+*2%&&(*+-(+C#$4/$(0*+X:*+
DOVRSUHVHQWHGLQWKHVFL¿PRYLH=-%#"&`911"/<+X.&%&+
0$0:()$2+*2%&&(*+:%&+*&&(+$(+).&+/:%?+:(/+%:$(6+2$)6*2:5&@+;)+).&+
)$'&+ -,+ =-%#"& `911"/`*+ 5%-/#2)$-(<+ 4:%0&+ *2%&&(*+ X&%&+ 4-X!
%&*-4#)$-(+:(/+(-)+:C4&+)-+/$*54:6+)&4&>$*$-(!4$?&+2-''&%2$:4*+
:*+$*+*.-X(+$(+).&+'->$&@+=-%#"&`911"/+5%&*&()&/+:+/6*)-5$:(+
,#)#%&+$(+X.$2.+).&+2$)6+.:/+C&&(+*:)#%:)&/+X$).+4#'$(-#*+:/!
>&%)$*$(0<+ $(+ (&-(+ :(/+ 0$:()+ *2%&&(*@+ B.&+ %&':%?:C4&+ *&))$(0+
*.-X&/+ )&2.(-4-06+ ).:)+ X:*+ ,:%+ ,%-'+ ).&+ %&:4$)6+ -,+ ).&+ /:6<+
X.&(+).&+-(46+*2%&&(+$(+B$'&*+K"#:%&+$(+O&X+[-%?+I$)6+X:*+
2%#/&+:(/+>&%6+4-X+%&*-4#)$-(+7/&*2%$C&/+4:)&%8@
B.&+/6(:'$2+2.:(0$(0+-,+).&+&^5%&**$-(+-,+:+,:2:/&+.:*+C&&(+
$'54&'&()&/+-(+':(6+C#$4/$(0*+).%-#0.-#)+.$*)-%6<+C#)+$(+).&+
2:*&+-,+<1),$,9,"&#9&!51#"&7/%0"+$(+3:%$*<+$)+X:*+:2.$&>&/+$(+
:+#($"#&+X:6@+1&*$0(&/+$(+GTSG+C6+:%2.$)&2)+d&:(+O-#>&4<+).&+
,:2:/&+,&:)#%&/+EVF+*"#:%&+5:(&4*<+&:2.+.:>$(0+:+*&%$&*+-,+'&!
2.:($2:4+ e$%$*&*f+ ).:)+ 2-()%-4*+ ).&+ :'-#()+ -,+ /:64$0.)+ ).:)+ $*+
4&)+ $()-+ ).&+ C#$4/$(0@+ D:2.+ 5:(&4+ .:*+ :+ 4$0.)+ *&(*-%+ ).:)+ 2:(+
'&:*#%&+).&+-#)/--%+4$0.)+$()&(*$)6+:(/+:/_#*)+).&+$%$*+:22-%/!
$(046@+ B.&+ %&*#4)+ X:*+ *#55-*&/+ )-+ C&+ :+ *&4,!:/_#*)$(0+ ,:2:/&+
WKDWZRXOGFRQVWDQWO\FKDQJHLWVH[SUHVVLRQWRUHÀHFWWKHGD\V
:(/+*&:*-(*@+=(,-%)#(:)&46<+).&+*6*)&'+(&>&%+X-%?&/+5%-5&%46<+
:(/+.:*+C&&(+/$*:C4&/+*$(2&+$)*+2-'54&)$-(+$(+GTSR@
GQE
'$+9/"&JUG&456"/&5C&a$1#)&IFTlUL&0@&45@5&<,5
GQH
JD1N;+;MI\NBDIB=MD
7KH ¿UVW ODUJHVFDOH XUEDQ VFUHHQ ZDV WKH NA"(,%(5-5/+ C$44!
C-:%/+$(*):44&/+:)+P(&+B$'&*+K"#:%&<+$(+GTRZ@+N)+X:*+/&*$0(&/+
:(/+ 2%&:)&/+ C6+ ]&-%0&+ K)-(C4&6<+ X.-+ X&()+ -(+ )-+ 2%&:)&+ ).&+
K5&2):2-4-%+ -#)/--%+ :/>&%)$*$(0+ 2-'5:(6@+ B.&+ VFtEF+ ,--)+
5:(&4+2-(*$*)&/+-,+SFFF+$(2:(/&*2&()+4$0.)+C#4C*+2-()%-44&/+C6+
:+2-'5#)&%<+/$*54:6$(0+)&^)<+0%:5.$2*<+:($':)$-(**<+:(/+>$/&-+
$':0&%6+ :)+ S@Q+ ,%:'&*+ 5&%+ *&2-(/n+ :)+ ).&+ )$'&+ $)+ %&5%&*&()&/+
*):)&!-,!).&!:%)+&4&2)%-($2+*$0(:0&+7L%$44<+EFFH8@+K)-(C4&6+2:'&+
#5+ X$).+ ).&+ $/&:+ -,+ *&44$(0+ :/>&%)$*$(0+ *5:2&<+ X.&%&+ 5%$2$(0+
X:*+ C:*&/+ -(+ ,$:"+ $(*)&:/+ -,+ )A%("<+ :*+ .:/+ C&&(+ 2#*)-':%6+
X$).+5%$()&/+'&/$:@+B.$*+'&:()+).:)+:(6-(&+2-#4/+%&()+:+)$'&!
*4-)+ ,-%+ ':**!2-''#($2:)$(0+ '&**:0&*+ )-+ ).&+ 5#C4$2+ :%-#(/+
B$'&*+K"#:%&@+L&*$/&*+&>&%6/:6+:/>&%)$*$(0<+).&+%&():4+*2.&'&+
'&:()+ ).:)+ ).&+ *2%&&(+ X:*+ -22:*$-(:446+ %&()&/+ -#)+ ,-%+ 5#C4$2+
:((-#(2&'&()*<+:(/+$(+GTRS+$)+X:*+&>&(+#*&/+C6+:+6-#(0+':(+
)-+5%-5-*&+)-+.$*+0$%4,%$&(/@+B.$*+*:'&+K5&2):2-4-%+*2%&&(+X:*+
:4*-+#*&/+C6+d&((6+\-4Y&%+,-%+.&%+GTSG+>&%*$-(+-,+4/9$):)@
;+ 4$))4&+ ?(-X(+ ,:2)+ $*+ ).:)+ ).&+ (-X+ ,:'-#*+ E"1,/"& i"5/+"&
M5:A$#59+$(+3:%$*+X:*+-%$0$(:446+/&*$0(&/+)-+.:>&+:(+e$()&%:2!
)$>&+$(,-%':)$-(+,:2:/&f+7M-0&%*<+EFFS8<+C:*&/+-(+5%-_&2)$-(+
*2%&&(*+-(+).&+,:2:/&+-,+).&+C#$4/$(0@+B.&+-%$0$(:4+/%:X$(0*<+
':/&+C6+:%2.$)&2)*+M&(Y-+3$:(-+:(/+M$2.:%/+M-0&%*+$(+GTRG<+
24&:%46+ *.-X+ :+ *&%$&*+ -,+ C:((&%*+ :(/+ $':0&*+ C&$(0+ 5%-_&2)&/+
-()-+).&+,:2:/&+C6+4:%0&+5%-_&2)-%*@+M-0&%*+.:*+/&*2%$C&/+).&+
5#%5-*&+ -,+ ).&*&+ 5%-_&2)$-(*+ :*+ e:(+ $(,-%':)$-(+ X:44+ ,-%+ #*&+
C6+).&+3-'5$/-#+:*+X&44+:*+-).&%+&^)&%(:4+$(*)$)#)$-(*f+7NC$/@8@+
B.&+$(,-%':)$-(+X:44+X:*+/%-55&/+$(+4:)&%+%&>$*$-(*+-,+).&+/&!
VLJQDQGWKHIDFDGHZDVLQVWHDG¿WWHGZLWKDORQJWUDYHUVLQJ
&*2:4:)-%<+*#5&%$'5-*&/+-(+).&+C#$4/$(0+*)%#2)#%&@+;4).-#0.+).&+
¿QDOEXLOGLQJFRPSOHWHGLQGLGQRWLPSOHPHQWWKHHOHF!
GQV
JD1N;+;MI\NBDIB=MD
'$+9/"&JkG&E"1,/"&M5:A$#59B&(/5))&)"(,$51
E59/,")@&5C&`5+"/)&N,$/>&X%/059/&q&M%/,1"/)&m
'$+9/"&JlG&E"1,/"&M5:A$#59B&C%(%#"&"-"3%,$51
E59/,")@&5C&`5+"/)&N,$/>&X%/059/&q&M%/,1"/)&m
GQQ
JD1N;+;MI\NBDIB=MD
JD1N;+;MI\NBDIB=MD
)%-($2+$(,-%':)$-(+X:44<+$)*+&^)&%$-%+$*+.$0.46+2-''#($2:)$>&@+
B.&+C#$4/$(0<+24&:%46+$(*5$%&/+C6+).&+;%2.$0%:'+0%-#5+-,+).&+
*$^)$&*<+$*+:4'-*)+$(*$/&+-#)<+&^5-*$(0+X:)&%+5$5&*<+>&()$4:)$-(+
/#2)*<+&4&2)%$2:4+$(*):44:)$-(*<+:(/+-).&%+,#(2)$-(:4+2-'5-(&()*@+
D:2.+)65&+-,+$(*):44:)$-(+$*+2-4-%!2-/&/+$(+5%$':%6+2-4-%*<+':?!
LQJWKHLQQHUIXQFWLRQVRIWKHEXLOGLQJFOHDUO\LGHQWL¿DEOHRQ
).&+ -#)*$/&@+ N(+ :+ *&(*&<+ ).&+ E"1,/"& M5:A$#59+ $*+ &^5-*$(0+ $)*+
e>$):4+ -%0:(*f+ )-+ ).&+ *#%%-#(/$(0*@+ B.&+ C#$4/$(0+ ).&%&C6+ C&!
2-'&*+:+2-''#($2:)$>&+'&/$#'<+C#)+#(4$?&+).&+*6'C-4$2+/&2!
-%:)$-(*+).:)+X&%&+)%:/$)$-(:4+$(+&:%4$&%+:%2.$)&2)#%:4+*)64&*<+).&+
2-''#($2:)$-(+X:*+:C-#)+).&+C#$4/$(0+:(/+).&+'&/$#'+$)*&4,@+
N(+C-).+2-(*)%#2)$-(+:(/+,:2$4$)$&*<+).&+E"1,/"&i"5/+"&M5:A$;
#59ZDVRQHRIWKH¿UVWH[DPSOHVRIDUFKLWHFWXUHH[SRVLQJLWV
-X(+':)&%$:4+2-'5-(&()*+$(+*#2.+:(+&^54$2$)+':((&%@
¿OPSURMHFWRUVRQEXLOGLQJVXUIDFHVFUHDWLQJLPPHUVLYHPXOWL!
'&/$:+*.-X*+:(/+?:4&$/-*2-5$2+&,,&2)*@+B.&+D^5-+iZR+$(24#/&/+
M-':(+b%-$)-%`*+'#4)$!*2%&&(+5%-_&2)$-(<+<1&,8"&2%0@/$1,8<+).&+
*$%A5-@"(/%1+$(*):44:)$-(+:)+).&+IY&2.+3:>$4$-(<+,&:)#%$(0+EV+
*4$/&+5%-_&2)-%*+:(/+:+X:44+-,+%-):)$(0+2#C&*<+:(/+).&+4"-"A851"&
M%3$-$51<+X$).+$)*+2624-%:':+5%-_&2)$-(+:%-#(/+).&+HZF!/&0%&&+
X:44*+-,+).&+C#$4/$(0@+;)+).&+O&X+[-%?+W-%4/`*+9:$%+-,+GTZV<+
).&+ <=!& M%3$-$51+ X:*+ /&*$0(&/+ C6+ M:6+ :(/+ I.:%4&*+ D:'&*<+
:(/+ ,&:)#%&/+ :+ EG!*2%&&(<+ '#4)$'&/$:+ *.-X@+ B.&+ D:'&*+ .:/+
:4*-+ 5%&>$-#*46+ ':/&+ :+ *.-X+ #*$(0+ '#4)$!*2%&&(+ 5%-_&2)$-(*+
,-%+).&+GTQT+;'&%$2:(+D^.$C$)$-(+$(+J-*2-X<+*$)#:)&/+$(*$/&+:+
0&-/&*$2+/-'&+).&:)&%+C6+L#2?'$(*)&%+9#44&%@+;(/+:)+).&+D^5-+
iQS+$(+L%#**&4*<+).&%&+X:*+:+5:>$4$-(+C6+3.$44$5*+/&*$0(&/+C6+
U&+I-%C#*$&%<+X.$2.+.:/+:+'#4)$'&/$:+$(*):44:)$-(+C6+:%)$*)+D/!
0:%/+ a:%m*&<+ #*$(0+ 2-4-%&/+ 4$0.)*<+ ).%&&+ *4$/&+ 5%-_&2)-%*<+ :(/+
.#(/%&/*+-,+*5&:?&%*@
B.&*&+'#4)$!*2%&&(+5%-_&2)$-(*+.:>&+4:)&%+C&&(+/&*2%$C&/+:(/+
4:C&4&/+:*+:+5%:2)$2&+-,+e&^5:(/&/+2$(&':f+C6+:#).-%*+*#2.+:*+
]&(&+[-#(0C4--/+7GTRF8<+:(/+$(+).&+'-%&+%&2&()+B:)&+5#C4$2:!
)$-(+C6+).&+*:'&+)$)4&+7M&&*+&)+:4@<+EFGG8@
J&/$:+:%2.$)&2)#%&<+$(+)&%'*+-,+#*$(0+:%2.$)&2)#%&+:*+:+/6(:'$2<+
&4&2)%-($2+'&/$#'<+':6+:4*-+C&+#*&/+)-+/&*2%$C&+).&+/6(:'$2+
4$0.)$(0+-,+).&+O:A$/"&N,%,"&=9$-#$1++$(+O&X+[-%?+I$)6<+X.$2.+
ZDVLQVWDOOHGLQ7KHXSSHUÀRRUVDUHLOOXPLQDWHGZLWK
FRORUHGÀRRGOLJKWVWKDWFKDQJHFRORUWRVXSSRUWSXEOLFHYHQWV
-%+*&:*-(:4+.-4$/:6*<+4$?&+K)@+3:)%$2?`*+1:6+-%+I.%$*)':*@+;(/+
:,)&%+ ).&+ /&*)%#2)$-(+ -,+ ).&+W-%4/+B%:/&+ I&()&%<+ ).&+ C#$4/$(0+
X:*+$44#'$(:)&/+$(+%&/<+X.$)&<+:(/+C4#&+,-%+*&>&%:4+'-().*@+B.&+
D'5$%&+K):)&+L#$4/$(0<+2#%%&()46+).&+*&2-(/+):44&*)+C#$4/$(0+$(+
O&X+[-%?+I$)6<+$*+>$*$C4&+,%-'+4:%0&+5:%)*+-,+).&+2$)6<+:(/+$)*+$4!
4#'$(:)$-(+5%->$/&*+':**+2-''#($2:)$-(+:(/+*$0(:4+>:4#&+(-)+
#(4$?&+-).&%+5#C4$2+&4&2)%-($2+'&/$:@
B.&%&+:%&+':(6+.$*-%$2:4+&^:'54&*+-,+&^5&%$'&():4+#*&*+-,+'&!
/$:+$(+2-(_#(2)$-(+X$).+:%2.$)&2)#%&<+&*5&2$:446+$(+).&+2-()&^)+
-,+a5/-#&OYA5)$,$51)@+N(+).&+GTZF*<+:(+:C#(/:(2&+-,+:%)+$(*):4!
4:)$-(*+#)$4$Y&/+).&+$/&:+-,+'#4)$54&+5%-_&2)$-(*+,%-'+*4$/&+:(/+
GQZ
B.&+*-#(/+:(/+4$0.)+*.-X<+)51&",&-9:$s/"<+X:*+$()%-/#2&/+$(+
GTQE+C6+2#%:)-%+3:#4+M-C&%)!\-#/$(+:)+).&+I.x)&:#+/&+I.:'!
C-%/<+ $(+ 9%:(2&@+ N)+ X:*+ :+ ($0.))$'&+ *.-X+ ).:)+ ,&:)#%&/+ 4$0.)<+
*-#(/<+ *'-?&<+ :(/+ -).&%+ &,,&2)*<+ )-+ 2%&:)&+ :+ *5&2):24&+ :)+ ).&+
-4/+2:*)4&@+;+(:%%:)-%`*+>-$2&+X-#4/+C&+.&:%/+).%-#0.+*5&:?&%*<+
:(/+>:%$-#*+&,,&2)*+*#55-%)&/+).&+(:%%:)$-(+C6+$44#'$(:)$(0+).&+
,:2:/&+ X$).+ 2-4-%&/+ 4$0.)*@+ B.&%&+ .:>&+ *$(2&+ C&&(+ :+ (#'C&%+
-,+ )51& ",& -9:$s/"+ 5&%,-%':(2&*+ :%-#(/+ ).&+ X-%4/<+ &*5&2$:446+
).%-#0.-#)+ ).&+ GTZF*@+ K$'$4:%+ 5&%,-%':(2&*+ .:>&+ :4*-+ ):?&(+
54:2&+'-%&+%&2&()46<+X.&%&+C#$4/$(0*+.:>&+C&&(+&(.:(2&/+#*!
$(0+>$/&-+5%-_&2)-%*<+2%&:)$(0+$44#*$-($*)+&,,&2)*+C6+':55$(0+).&+
GQR
JD1N;+;MI\NBDIB=MD
JD1N;+;MI\NBDIB=MD
,:2:/&<+:4*-+?(-X(+:*+e5%-_&2)$-(+':55$(0f+7*&&++#%C:(*2%&&(@
2-'8@
D4&2)%$2:4+ *$0(*+ .:>&+ C&&(+ #*&/+ *$(2&+ ).&+ C&0$(($(0+ -,+ ).&+
)X&()$&).+2&()#%6@+P(&+-,+).&+4-(0&*)+4:*)$(0+*$0(*+$*+).&+*2%-44!
$(0+(&X*+)$2?&%+*$0(+-(+P(&+B$'&*+K"#:%&<+:4*-+?(-X(+:*+[48"&
r$AA"/<\+$(*):44&/+$(+GTES+:(/+*)$44+X-%?$(0+)-/:6+g+X$).+:+,&X+
#5/:)&*+)-+UD1+)&2.(-4-06@+N)+-%$0$(:446+2-(*$*)&/+-,+GV<SFF+
$(2:(/&*2&()+4$0.)+C#4C*<+:(/+X%:5*+:%-#(/+).%&&+*$/&*+-,+).&+
EXLOGLQJPDNLQJLWRQHRIWKH¿UVWVFUHHQVWRDEDQGRQWKHWUD!
GLWLRQDOÀDWQHVVRIVFUHHQV
3-**$C46+ -(&+ -,+ ).&+ 4:%0&*)+ 2-'C$(:)$-(*+ -,+ :%2.$)&2)#%&+ :(/+
&4&2)%-($2+*$0(:0&+X:*+).&+E$,/5t1&)$+1<+X.$2.+X:*+'-#()&/+
-(+).&+D$,,&4+B-X&%+$(+GTEQ<+:(/+X:*+:+5&%':(&()+$(*):44:)$-(+
#()$4+GTHV@+N)+$(2-%5-%:)&/+EQF<FFF+4$0.)+C#4C*<+:(/+ZFF+?$4-!
'&)&%*+ -,+ X$%&+ X&%&+ #*&/@+ D:2.+ -,+ ).&+ *&>&(+ 4&))&%*+ X:*+ HF+
'&)&%*+.$0.<+:(/+):5&%&/+)-+,-44-X+).&+*.:5&+-,+).&+)-X&%@
B%:2$(0+).&+.$*)-%6+-,+'&/$:+:%2.$)&2)#%&+$*+C6+(-+'&:(*+:(+&^!
:2)+*2$&(2&<+:(/+).&%&,-%&+).&+*&4&2)$-(+5%&*&()&/+:C->&+$*+-(46+
:+*:'54$(0+-,+*-'&+%&':%?:C4&+X-%?*@+O-(&).&4&**<+).&+&^:'!
54&*+*.-X+).:)+:"#$%&%/(8$,"(,9/"+/$/+(-)+:55&:%+->&%($0.)<+C#)+
$(*)&:/+.:*+C&&(+*4-X46+&'&%0$(0+:4-(0*$/&+).&+/&>&4-5'&()+
-,+&4&2)%-($2+'&/$:@+B.&+&^:'54&*+*5:(+*&>&%:4+0&(%&*+-,+#*&<+
*#2.+:*+5#C4$2+$(,-%':)$-(<+&()&%):$('&()<+:(/+:%)<+&'5.:*$Y!
LQJWKHZLGH¿HOGRIDSSOLFDWLRQLQPDQ\FRQWH[WV$UFKLWHFWXUH
.:*+ (-)+ -(46+ *&%>&/+ :*+ :+ C:2?0%-#(/+ ,-%+ '&/$:<+ C#)+ $(+ *&>!
&%:4+2:*&*+$)+.:*+C&&(+).&+5%&'$*&+-,+':**+2-''#($2:)$-(+:(/+
VSDWLDOFRQ¿JXUDWLRQ7KHVFDOHRIDUFKLWHFWXUHVHHPVWRKDYH
*&%>&/+ *&>&%:4+ 5#%5-*&*+ ).%-#0.-#)+ ).$*+ .$*)-%6<+ C-).+ :'54$!
,6$(0+).&+&,,&2)*+-,+'&/$:<+:(/+,%:'$(0+).&+%&2&5)$-(+:(/+).&+
GQS
'$+9/"&JTG&E$,/5t1&)$+1&51&,8"&O$CC"-&,56"/&IFTJV;QWL
GQT
JD1N;+;MI\NBDIB=MD
JD1N;+;MI\NBDIB=MD
*$)#:)&/+&^5&%$&(2&@
I%$)$2:4+ "#&*)$-(*+ .:>&+ C&&(+ %:$*&/+ %&0:%/$(0+ :%2.$)&2)#%&`*+
%-4&+:*+)A"(,%(-"+:(/+5-**$C4&+FRPPRGL¿FDWLRQ-,+5#C4$2+*5:2&+
7K:#(/&%*<+EFFQ8<+:(/+$)+.:*+C&&(+:%0#&/+).:)+).&+)%&(/+)-X:%/+
).&+*5&2):2#4:%+$(+:%2.$)&2)#%&+)&(/*+)-+&'5.:*$Y&+$''&/$:)&+
*&(*#:4+54&:*#%&<+:(/+/$*2-#%:0&+$(/&5&(/&()+).-#0.)+7K:#(!
/&%*<+ EFFQ<+ 5@+ >$$$8@+ B.$*+ 2%$)$2:4+ "#&*)$-($(0+ $*+ :(+ $'5-%):()+
*#C_&2)+ %&0:%/$(0+ ).&+ ,#)#%&+ %-4&+ -,+ :"#$%& %/(8$,"(,9/"<+ $(+
)&%'*+-,+://%&**$(0+).&+$'5:2)+-,+$)*+C%-:/+:554$2:)$-(+$(+5#C!
4$2+*5:2&*@+;*+%&4&>:()+:*+).$*+*#C_&2)+$*<+:(+$(!/&5).+&^54-%:!
)$-(+$*+#(,-%)#(:)&46+:4*-+C&6-(/+).&+*2-5&+-,+).$*+)&^)@+N(*)&:/<+
).&+,-44-X$(0+*&2)$-(+/$*2#**&*+).&+'&:($(0+-,+:"#$%&%/(8$,"(;
,9/"+:*+:+)&%'<+:(/+.-X+$)+%&4:)&*+)-+2#%%&()+#(/&%*):(/$(0*+-,+
*2%&&(*+:(/+).&+C#$4)+&(>$%-('&()@
GH¿QLWLRQVPHGLDDUFKLWHFWXUHLVFOHDUO\GHULYHGIURPWKHHOHF!
WURQLF GLVSOD\ WKHUHE\ VSHFL¿FDOO\ LQYROYLQJ YLVXDO PHGLD
K-<+X.6+(-)+*&))4&+,-%+:+4&**+:'C$0#-#*+)&%'<+4$?&+e/$*54:6+:%!
2.$)&2)#%&f+-%+e*2%&&(+,:2:/&*fs+;4).-#0.+).&%&+':6+(-)+C&+:+
*$(04&+-%+*$'54&+:(*X&%+)-+).$*<+).&+':(6+&^:'54&*+-,+'&/$:+
:%2.$)&2)#%&+*&&'+)-+*#00&*)+).:)+)&%'*+4$?&+#$)A-%@+:(/+)(/""1+
GR QRW DGHTXDWHO\ ¿W WKHVH GHVFULSWRUV ([DPSOHV LQFOXGH DUW
$(*):44:)$-(*+).:)<+:4).-#0.+).&6+#)$4$Y&+/$*54:6+)&2.(-4-06<+&^!
.$C$)+ (&X+ )65&*+ -,+ &^5%&**$-(+ :(/+ '-/&*+ -,+ 2-''#($2:)$-(+
).:)+0-+C&6-(/+).&+)%:/$)$-(:4+#(/&%*):(/$(0+-,+).&+*2%&&(@
8;40/./04!48<;9
;*+ '&()$-(&/+ &:%4$&%<+ :"#$%& %/(8$,"(,9/"+ $*+ %&4:)$>&46+ (&X+
ZLWKLQ WKH ¿HOG RI DUFKLWHFWXUH DQG GHVLJQ ,W KDV EHHQ XVHG
:*+ :+ 4:C&4+ ,-%+ >:%$-#*+ ?$(/*+ -,+ 5%:2)$2&+ ).:)+ $(>-4>&*+ >$*#:4+
'&/$:+)&2.(-4-0$&*+:(/+:%2.$)&2)#%:4+*)%#2)#%&*@+L#)+:4).-#0.+
'&/$:+:%2.$)&2)#%&+$*+"#$)&+(&X<+$)+$*+:4%&:/6+X$/&46+:554$&/+$(+
WKH¿HOGVRIDUFKLWHFWXUHDQGDUFKLWHFWXUDOOLJKWLQJ+DHXVOHU
EFFT8@+;(/+/&*5$)&+:+0%-X$(0+$()&%&*)+:'-(0+%&*&:%2.&%*+:(/+
5%:2)$)$-(&%*+).%-#0.-#)+).&+4:*)+/&2:/&<+e'&/$:+:%2.$)&2)#%&f+
LV VWLOO D WHUP WKDW LV GH¿QHG PRVWO\ E\ H[DPSOHV DQG QRW D
FOHDUFXW GH¿QLWLRQ PDNLQJ LWV DSSOLFDWLRQ XQFRQVWUDLQHG E\
-()-4-06@
7KH¿HOGRIPHGLDDUFKLWHFWXUHLVPDUNHGE\WKHDPELJXLW\LP!
54$2$)+$(+).&+)&%'+$)*&4,@+L-).+:"#$%+:(/+%/(8$,"(,9/"+:%&+)&%'*+
X$).+*&>&%:4+'&:($(0*<+:(/+X.&(+#*&/+$(+_#^):5-*$)$-(<+,-%'+
:+.6C%$/+)&%'+).:)+.-4/*+&>&()+0%&:)&%+:'C$0#$)6@+W.:)+*&&'*+
&>&(+'-%&+2-(,#*$(0+$*+).:)<+:22-%/$(0+)-+).&+C&,-%&!'&()$-(&/+
GZF
B.&+_#^):5-*$)$-(+-,+:"#$%+:(/+%/(8$,"(,9/"+5%-/#2&*+:(+:'!
C$0#-#*+ 2-(*)&44:)$-(+ -,+ X-%/*+ ).:)+ 4&:>&*+ ).&+ %&*#4)$(0+ )&%'+
-5&(+ )-+ '#4)$54&+ $()&%5%&):)$-(*@+ N+ .:>&+ 5%&>$-#*46+ :%0#&/+
7DC*&(<+EFGF8+).:)+'&/$:+:%2.$)&2)#%&+':6+C&+*&&(+:*+:+2-(!
>&%0&(2&+ 7X$).-#)+ '&%0$(08+ -,+ &^5&%$'&():4+ *2%&&(+ 5%:2)$2&*+
:(/+ 2-''#($2:)$>&+ :%2.$)&2)#%&@+ B.$*+ $*+ :4*-+ &'5.:*$Y&/+ C6+
).&+.$*)-%$2:4+/&>&4-5'&()*+$(+'&/$:<+:%)+:(/+:%2.$)&2)#%&<+:*+
'&()$-(&/+ &:%4$&%+ $(+ ).$*+ 2.:5)&%@+ N()&%5%&)$(0+ ).&+ )&%'+ 4$)&%!
:446+ *#00&*)*+ &$).&%+ :(+ #(/&%*):(/$(0+ -,+ '&/$:+ e:*+ :%2.$)&2!
)#%&f<+.$()$(0+:)+:+':)&%$:4+>$&X+-,+'&/$:<+-%+$)+2-#4/+$(/$2:)&+
:(+$/&:+-,+:%2.$)&2)#%&+e:*+'&/$:f<+,#%).&%+*#00&*)$(0+:+(-)$-(+
-,+C#$4/$(0*+:*+'&:(*+-,+2-''#($2:)$-(@+N+:))&'5)+)-+&4:C-%:)&+
C-).+(-)$-(*+.&%&@
N,+e'&/$:f+$*+).&+5%$':%6+,-2#*+:(/+-C_&2)+-,+5%:2)$2&<+).&(+:";
#$%&%/(8$,"(,9/"+*#00&*)*+).:)+:(6+'&/$#'+':6+C&+:55%-:2.&/+
:*+ :%2.$)&2)#%&+ -%+ X$).+ :%2.$)&2)#%:4+ '&).-/*@+ ;*+ '&()$-(&/+
5%&>$-#*46<+a$%$4$-+.:*+:%0#&/+).:)+).&+*2%&&(+'#*)+$(2%&:*$(046+
C&+%&0:%/&/+:*+:+5:%)+-,+:%2.$)&2)#%&<+/&*2%$C$(0+$)*+%-4&+:*+e).&+
).$%/+X$(/-Xf@+L#)+:55%-:2.$(0+).&+5.6*$2:4+/&*$0(+-,+*2%&&(*+
:*+:(+:%2.$)&2)#%:4+5%:2)$2&+$(>-4>&*+:+X.-4&+*&)+-,+2-(*$/&%!
GZG
JD1N;+;MI\NBDIB=MD
JD1N;+;MI\NBDIB=MD
:)$-(*+ $'54$2$)+ $(+ ).&+ )%:/&@+B.$*+ X-#4/+ $'546+ /&*$0($(0+ :(/+
UHFRQ¿JXULQJWKHEDVLFHOHPHQWVRIPHGLXPDVZHOODVXQGHU!
*):(/$(0+ ':)&%$:4*+ :(/+ :22-''-/:)$(0+ ,#(2)$-(:4+ (&&/*<+ &^!
5%&**$(0+2-()&'5-%:%6+*)64&+:(/+:&*).&)$2*<+:(/+*-+-(@+J&/$:+
:%2.$)&2)#%&+*#00&*)*+:+5%:2)$2&+-,+:55%-:2.$(0+'&/$:<+-%+).&+
*2%&&(<+:*+:%,,"/+:(/+C5/:@+B%:(*,-%':)$-(*+-,+).&+*2%&&(+':6+
C&+*&&(+:*+$(>-4>$(0+:))&()$-(+)-+).&+':)&%$:4$)6+-,+).&+*2%&&(<+
:(/+).$(?$(0+:C-#)+$':0&+&4&'&()*<+*#2.+:*+5$^&4*<+:*+C#$4/$(0+
EORFNVLQWKLVSURFHVV7KLV¿WVZHOOZLWKWKHH[DPSOHVRIPH!
/$:+:%2.$)&2)#%&+5%&*&()&/+&:%4$&%@
*2:,,-4/$(0@+N(+*-'&+4-2:)$-(*<+).$*+*2:,,-4/$(0+*&%>&*+:*+:+%&!
54:2&'&()+ ,-%+ %&:4+ :%2.$)&2)#%&<+ ':?$(0+ ).&+ 2-(*)%#2)$-(+ $()-+
:+ e/&2-%:)&/+ >-$/f<+ -%+ 5&%.:5*+ :+ '&/$:+ ,:2:/&<+ $(+ ).&+ *&(*&+
).:)+'&/$:+,#(2)$-(+C6+'&:(*+-,+%&5%&*&():)$-(*@+B.$*+X-#4/+
$(/&&/+C&+).&+'-*)+&^)%&'&+&^:'54&+-,+e*#%,:2&+->&%+,-%'f<+
X.&%&+).&+C#$4/$(0+$*+%&/#2&/+)-+%&5%&*&():)$-(<+:(/+$*+/&):2.&/+
,%-'+:(6+*5:)$:4+,#(2)$-(+-).&%+).:(+).:)+-,+).&+*#%,:2&+7M#C6+
:(/+M#C6<+EFFQ8@
N,+'&/$:+:%2.$)&2)#%&+%&5%&*&()*+:+'->&+)-X:%/+>$%)#:4$Y:)$-(+
-,+*5:2&+:*+*#00&*)&/+:C->&<+$)+:4*-+%&*&'C4&*+X.:)+a$%$4$-+/&!
*2%$C&*+:*+:+/&':)&%$:4$Y:)$-(+-,+:%2.$)&2)#%&@+]-$(0+,%-'+%&:4+
)-+>$%)#:4+$'54$&*+0-$(0+,%-'+':)&%$:4+)-+$'':)&%$:4@+W.&(+/6!
(:'$2+$':0&*+%&54:2&+*):)$2+*)%#2)#%&*<+*5:2&+C&2-'&*+:+5%-5!
HUW\ RI LQIRUPDWLRQ ± ÀXFWXDWLQJ DQG LPPDWHULDO $FFRUGLQJ
)-+a$%$4$-<+).$*+5%-2&**+X:*+$($)$:)&/+&>&(+C&,-%&+).&+/6(:'$2+
*2%&&(+&()&%&/+).&+5#C4$2+*5:2&@
J&/$:+:%2.$)&2)#%&+':6+:4)&%(:)$>&46+C&+>$&X&/+:*+%/(8$,"(,9/"+
).:)+2-''#($2:)&*@+='C&%)-+D2-+.:*+:%0#&/+).:)+:%2.$)&2)#%&+
$(+0&(&%:4+'#*)+C&+#(/&%*)--/+:*+2-''#($2:)$>&+*6*)&'*+).:)+
5%-/#2&+>$*$C4&+:(/+):2)$4&+*$0(*+7D2-+:(/+U&:2.<+GTSZ8@+9-4!
4-X$(0+ ).$*+ ).$(?$(0<+ $)+ $*+ 5-**$C4&+ %&0:%/+ :44+ :%2.$)&2)#%&+ :*+
'&/$:+:%2.$)&2)#%&<+$(+).&+*&(*&+).:)+$)+2-''#($2:)&*<+:4).-#0.+
:)+/$,,&%&()+4&>&4*@+D2-`*+).&-%6+/&*2%$C&*+)X-+/$,,&%&()+'-/&*+
-,+ 2-''#($2:)$(0+ ).:)+ ://%&**+ ).&+ 5%$':%6+ :(/+ *&2-(/:%6+
,#(2)$-(*+-,+:%2.$)&2)#%&<+).&*&+C&$(0+).&+C91(,$51%-+:(/+)@:;
05-$(+*$0(*+).:)+:%&+5%-/#2&/@+U--?$(0+:)+&^:'54&*+-,+'&/$:+
,:2:/&*<+$)+C&2-'&*+24&:%+).:)+).&*&+$(*):44:)$-(*+:%&+'-*)+,%&!
"#&()46+/&>$2&*+-,+*&2-(/:%6+,#(2)$-(<+://$(0+*6'C-4$2+*$0(*+
)-+).&+:%2.$)&2)#%&@
W.&(+:%2.$)&2)#%&+:/-5)*+*6'C-4$2+&^5%&**$-(*<+$)+://*+"#:4$!
)$&*+ ).:)+ :%&+ (-)+ )$&/+ )-+ )%:/$)$-(:4+ :%2.$)&2)#%:4+ ,#(2)$-(<+ C#)+
':6+$(*)&:/+C&+/&*2%$C&/+:*+$'':)&%$:4+"#:4$)$&*@+N4?:+:(/+;(!
/%&:*+M#C6+.:>&+*#00&*)&/+).:)+'&/$:+:%2.$)&2)#%&+':6+&>&(+
C&+/&*2%$C&/+:*+).&+$44#*$-(+-,+:+e>$%)#:4+:%2.$)&2)#%&f+$(+5#C!
4$2+ *5:2&@+ D^:'54&*+ X-#4/+ $(24#/&+ ).&+ ':(6+ e,:?&+ ,:2:/&*f+
$(+ L&%4$(<+ X.$2.+ :%&+ '&%&46+ 4:%0&<+ 5%$()&/+ 5-*)&%*+ :554$&/+ )-+
GZE
<1&)5:"&6%@B&@59&(%1&/"%#&,8"&$:A5/,%1("&+$3"1&,5#%@&,5&+-%))&
%1#&,/%1)A%/"1(@&%)&%&:",%A85/&5C&,8"&#$)%AA"%/%1("&5C&:%,;
,"/?&<,&%1,$($A%,"#&,8"&:"#$%&09$-#$1+)&$1&)5:"&7)$%1&($,$")&6$,8&
C%(%#")&"1,$/"-@&:%#"&5C&)(/""1)?&<1&%&("/,%$1&)"1)"B&,8"&)(/""1&
0"(%:"&,8"&-%),&6%--?&R5&6%--&59,&5C&),51"B&09,&5C&)(/""1)&)856;
$1+&$:%+")?&48"&%(,9%-&0591#%/@&$)&,8"&)(/""1?+7a$%$4$-+&)+:4@<+
GTTH<+5@+GSG8
W.&(+).&+*2%&&(+C&2-'&*+:+X:44<+:*+*#00&*)&/+C6+a$%$4$-<+).&+
ERXQGDULHV RI VSDFH DUH QR ORQJHU GH¿QHG E\ PDWWHU EXW E\
$(,-%':)$-(@+L#)+).$*+)&(/&(26+$*+(-+(->&4)6@+P#%+2#%%&()+*-2$!
&)6+$*+:4%&:/6+->&%4:$/+X$).+4:6&%*+-,+$(,-%':)$-(+).:)+2-(*)$!
)#)&+>$%)#:4+*5:2&*<+:(/+).:)+2%&:)&+C-#(/:%$&*+).:)+':6+*.$,)@+
;*+ I:*)&44*+ 7EFFV8+ .:*+ 5-$()&/+ -#)<+ $(,-%':)$-(+ *5:2&+ $*+ ).&+
XELTXLWRXV³VSDFHRIÀRZV´ZKLFKFRQVWDQWO\LQWHUVHFWVZLWK
GZH
JD1N;+;MI\NBDIB=MD
JD1N;+;MI\NBDIB=MD
WKH VLWXDWHG ³VSDFH RI SODFHV´ EXW LQ YDULRXV FRQ¿JXUDWLRQV
B.&%&,-%&<+I:*)&44*+:%0#&*<+e:%2.$)&2)#%&+-,+:44+?$(/*f+'#*)+C&+
e2:44&/+)-+).&+%&*2#&+$(+-%/&%+)-+%&2%&:)&+*6'C-4$2+'&:($(0+$(+
WKHPHWURSROLWDQUHJLRQPDNLQJSODFHVLQWKHVSDFHRIÀRZV´
7I:*)&44*+ :(/+ K:(6:4<+ EFFV<+ 5@+ QT8@+ N)+ $*+ 5-**$C4&+ ).:)+ '&/$:+
:%2.$)&2)#%&+':6+C&+-(&+-,+).&+?$(/*+-,+:%2.$)&2)#%&+).:)+2:(+
'&%0&+$(,-%':)$-(+*5:2&+$()-+:2)#:4+54:2&*<+:(/+).&%&C6+2%&:)&+
'&:($(0,#4+&^5&%$&(2&*@
J:(->$2.+ :%0#&*+ ).:)+ e:#0'&()&/+ *5:2&*f<+ 4$?&+ ).&+ H"6$)8&
!9)"9:<+%&5%&*&()+:(+$'5-%):()+2.:44&(0&+).:)+':$(46+2:44*+-(+
).&+5%-,&**$-(:4+5%:2)$2&+-,+:%2.$)&2)#%&@+;*+&4&2)%-($2+'&/$:+
:%&+ $(2%&:*$(046+ &'C%:2&/+ C6+ :%2.$)&2)*+ :(/+ /&*$0(&%*<+ ).&%&+
$*+:+/:(0&%+-,+2-(2&5)#:4$Y$(0+).&*&+(&X+'&/$:+$(+e:+4$'$)&/+
X:6h+:*+:+*2%&&(f+7NC$/@8@+D^)&(/$(0+).$*+).$(?$(0+$()-+:%2.$)&2!
)#%&+$(>-4>&*+:+%$*?+-,+).&+&4&2)%-($2+*2%&&(+C&2-'$(0+e*$'546+
:+'->$(0+C$44C-:%/+-%+:+'->$(0+-%(:'&()f+7NC$/@8@+J:(->$2.+
).&%&,-%&+#%0&*+:%2.$)&2)*+)-+$(*)&:/+0-+C&6-(/+).&+5:%:/$0'+-,+
e*#%,:2&+:*+&4&2)%-($2+*2%&&(f<+:(/+).$(?+-,+).&+':)&%$:4+:%2.$!
WHFWXUH WKDW XVXDOO\ SUHRFFXSLHV WKHP 0DQRYLFK ¿QDOO\ VXJ!
0&*)*+).:)h
U&>+J:(->$2.+.:*+$()&%5%&)&/+'&/$:+,:2:/&*+:*+&()$)$&*+-,+%9+;
:"1,$1++:%2.$)&2)#%&+X$).+e4:6&%*+-,+/:):f+7J:(->$2.<+EFFZ8@+
B.&+2.:44&(0&+,-%+:%2.$)&2)#%&+C&2-'&*+e.-X+)-+2-'C$(&+/$,!
,&%&()+*5:2&*f+:(/+e.-X+)-+->&%4:6+5.6*$2:4+*5:2&+X$).+4:6&%*+
-,+/:):f+7NC$/@8@+;*+:(+&^:'54&<+.&+'&()$-(*+).&+:%2.$)&2)#%&+
-,+ 48"& H"6$)8& !9)"9:& ="/-$1+ 7EFFG8<+ C6+ 1:($&4+ U$C&*?$(/<+
X.&%&+ :+ *)64$*)$2+ ':5+ -,+ L&%4$(+ $*+ *#5&%$'5-*&/+ -()-+ ).&+ ,:!
2:/&@+B.&+':5+.:*+':%?&/+-#)+:+(#'C&%+-,+54:2&*+X.&%&+d&X*+
4$>&/+C&,-%&+WWNN@+B.&*&+54:2&*+-(+).&+,:2:/&+X&%&+':/&+$()-+
X$(/-X*+-(+).&+C#$4/$(0<+2%&:)$(0+:(+:C*)%:2)+'&*.+-,+-5&($(0*+
).:)+2#)*+).%-#0.+).&+X:44*+:(/+).&+2&$4$(0*+:)+/$,,&%&()+:(04&*@+
;22-%/$(0+ )-+ J:(->$2.<+ ).&*&+ X$(/-X*+ &>-?&+ ':(6+ >$*#:4+
%&,&%&(2&*h+e).&+(:%%-X+&6&5$&2&+-,+:+):(?n+).&+X$(/-X*+-,+:+
'&/$&>:4+2:).&/%:4n+).&+&^54-/&/+,-%'*+-,+).&+2#C$*)r:C*)%:2)r
*#5%&':2$*)+5:$()$(0*+-,+).&+GTGF*!GTEF*@f+7NC$/@8@+B.$*+$*+:(+
&^:'54&+-,+).&+>$%)#:4+*5:2&+-,+).&+':5+C&2-'$(0+:+5-X&%,#4+
,-%2&+).:)+%&*.:5&*+5.6*$2:4+*5:2&@+N)+$*+(-)+_#*)+:(+e$'':)&%$:4+
4:6&%+->&%+).&+%&:4+*5:2&f<+%:).&%<+).&+e/:):*5:2&+$*+':)&%$:4$*&/+
)-+C&2-'&+:+*-%)+-,+'-(#'&():4+*2#45)#%&f+7NC$/@8@+;4).-#0.+$)+
.:*+:+,:$%46+:C*)%:2)+&^5%&**$-(<+).&+,:2:/&+-,+).&+H"6$)8&!9)";
9:+':6+:%0#:C46+C&+/&*2%$C&/+:*+:+5$&2&+-,+'&/$:+:%2.$)&2)#%&+
).:)+2-'C$(&*+).&+2-''#($2:)$-(+-,+*6'C-4$2+*$0(*+X$).+).&+
5.6*$2:4+*)%#2)#%&*+-,+).&+C#$4/$(0@
GZV
&chd&,8"&#")$+1&5C&"-"(,/51$(%--@&%9+:"1,"#&)A%("&(%1&0"&%A;
A/5%(8"#&%)&%1&%/(8$,"(,9/%-&A/50-":?&<1&5,8"/&65/#)B&%/(8$;
,"(,)&%-51+&6$,8&%/,$),)&(%1&,%>"&,8"&1"Y,&-5+$(%-&),"A&,5&(51)$#"/&
WKH³LQYLVLEOH´VSDFHRIHOHFWURQLFGDWDÀRZVDV³VXEVWDQFH´
/%,8"/&,8%1&^9),&%)&35$#&D&)5:",8$1+&,8%,&1""#)&%&),/9(,9/"B&%&
A5-$,$()B&%1#&%&A5",$()?+7J:(->$2.<+EFFZ8
7KLVLGHDRIFRQVLGHULQJGDWDÀRZV³DVVXEVWDQFH´RUPDWWHULV
>&%6+*$'$4:%+)-+).&+$/&:*+5%&*&()&/+&:%4$&%+$(+).$*+/$**&%):)$-(@+
;#0'&()$(0+ %:).&%+ ).:(+ /$*54:2$(0+ :%2.$)&2)#%&<+ :*+ /&*2%$C&/+
C6+ J:(->$2.<+ ':6+ .:>&+ ).&+ 5-)&()$:4+ )-+ ,-%'+ :(+ :4)&%(:)$>&+
5&%*5&2)$>&+-(+'&/$:<+X.&%&+5&%2&5)$-(+*.$,)*+C&)X&&(+/$,,&%!
&()+':)&%$:4$)$&*@+N)+:4*-+&*):C4$*.&/+).&+5-**$C$4$)6+,-%+).&+-5!
5-*$)&+2-(2&5)#:4+$/&:+-,+:#0'&()$(0+'&/$:+X$).+:%2.$)&2)#%&<+
X.&%&+).&+*2%&&(+.:*+5%$':26<+:(/+$*+&^)&(/&/+C&6-(/+$)*+)%:!
/$)$-(:4+C-#(/:%$&*@
L6+$()&%)X$($(0+).&+2-(2&5)*+-,+$'':)&%$:4+:(/+':)&%$:4<+$)+$*+
5-**$C4&+)-+).$(?+-,+).&+4:6&%$(0+-,+$(,-%':)$-(+:*+).&+&^54-%:!
)$-(+-,+2-'54&^+':)&%$:4$)$&*@+B.$*+':6+.:>&+).&+5-)&()$:4+)-+
GZQ
JD1N;+;MI\NBDIB=MD
5%->$/&+:+5-&)$2+,-#(/:)$-(+,-%+'&/$:+:%2.$)&2)#%&<+X.$2.+%&!
).$(?*+$)*+'&:($(0@+N(*)&:/+-,+%&0:%/$(0+).&+$'':)&%$:4+2-()&()+
:*+#",%(8"#+,%-'+).&+':)&%$:4+'&/$#'<+$)+C&2-'&*+5-**$C4&+)-+
2-(2&5)#:4$Y&+).&'+:*+$1,"/#"A"1#"1,+&4&'&()*@
9277!/F
B.$*+2.:5)&%+/&*2%$C&*+'&/$:+:%2.$)&2)#%&+:*+:+(&X+:(/+&'&%0!
LQJ¿HOGWKDWFRYHUVDZLGHUDQJHRISUDFWLFHVDWWKHLQWHUVHF!
)$-(+-,+:%)<+'&/$:<+:(/+:%2.$)&2)#%&@+B.$*+$*+&>$/&()+$(+).&+':(6+
(&X+ '&/$:+ ,:2:/&*+ ).:)+ .:>&+ :55&:%&/+ ).%-#0.-#)+ ).&+ 4:*)+
/&2:/&<+ C#)+ :4*-+ $(+ '-%&+ &^5&%$'&():4+ &^:'54&*+ -,+ :%2.$)&2!
)#%&+:(/+$(*):44:)$-(+:%)+:/-5)$(0+&^5%&**$-(*+:(/+)&2.(-4-0$&*+
,%-'+&4&2)%-($2+'&/$:@
N+.:>&+:%0#&/+).:)+'&/$:+:%2.$)&2)#%&+':6+C&+#(/&%*)--/+(-)+
-(46+:*+).&+'-*)+%&2&()+&^:'54&+-,+).&+:"#$%&C%(%#"<+C#)+:4*-+
-,+:+4-(0+.$*)-%6+-,+&^2.:(0&*+:'-(0+'&/$:+:%)<+(&X+)&2.(-4-!
JLHVDQGFRQVWUXFWHGVSDFH7KLVSHUVSHFWLYHKDVEHHQFODUL¿HG
).%-#0.+:+4-(0+4$*)+-,+&^:'54&*+).:)+)%:2&*+).$*+.$*)-%6+).%-#0.+
).&+ )X&()$&).+ 2&()#%6+ $(+ *#2.+ /$>&%*&+ :554$2:)$-(*+ :*+ :%)+ :(/+
2-''&%2$:4+:/>&%)$*$(0@+B.$*+&'5.:*$Y&*+).&+C%-:/+*5&2)%#'+
RI¿HOGVDIIHFWHGE\WKHVHGHYHORSPHQWV,KDYHIXUWKHUDUJXHG
).:)+ '&/$:+ :%2.$)&2)#%&+ ':6+ C&+ $()&%5%&)&/+ $(+ >:%$-#*+ %&4:)&/+
X:6*<+).&%&C6+2%&:)$(0+(&X+#(/&%*):(/$(0*+-,+C-).+'&/$:+:(/+
:%2.$)&2)#%&@+B.&*&+#(/&%*):(/$(0*+':6+,#%).&%+&^)&(/+).&+(-!
)$-(+-,+).&+':)&%$:4+*2%&&(<+:(/+C#$4/+-(+).&+0&(&%:4+2-(2&5)*+
-,+'&/$:+':)&%$:4$)6@
GZZ
5,&60)/!9#:/
CASES
I;KDK
B.$*+2.:5)&%+5%&*&()*+:+*&4&2)$-(+-,+2:*&*+).:)+/$%&2)46+%&4:)&+)-+
).&+$/&:*+:(/+).&-%&)$2:4+X-%?+$(+).$*+/$**&%):)$-(@+B.&+%&*&:%2.+
5%&*&()&/+$(+C-).+).&+5%&>$-#*+:(/+).&+,-44-X$(0+5:0&*+$*+5:%)46+
$(,-%'&/+C6+).&+&^5&%$&(2&*+0:$(&/+).%-#0.+).&*&+2:*&*@+W-%?!
$(0+:*+:+>$*#:4+:%)$*)+:(/+/&*$0(&%+5%->$/&/+$(*$0.)*+$()-+C-).+
5%:2)$2:4+:(/+).&-%&)$2:4+:*5&2)*+-,+).&+5%-2&**&*+4&:/$(0+#5+)-+
WKHFRPSOHWLRQRIWKH¿QDOZRUNV
5HÀHFWLQJRQWKHZRUNLQWHUPVRIERWKSURFHVVDQG¿QLVKHG
X-%?<+ 4&/+ )-+ ).&+ %&:4$Y:)$-(+ ).:)+ (-)$-(*+ -,+ :%,"/$%-$,@+ X&%&+
$'54$2$)46+ %&-22#%%$(0+ ).&'&*+ $(+ ).&+ ).$(?$(0+ :'-(0+ /&*$0(!
&%*<+ C#)+ :4*-<+ ).&+ )&%'+ &^54$2$)46+ &()&%&/+ 2-(>&%*:)$-(*<+ :(/+
X.&(+/&*2%$C$(0+).&+5%-_&2)*+)-+-).&%*@+B&%'*+*#2.+:*+e':)&!
%$:4+"#:4$)$&*f<+e':)&%$:4+%&*$*):(2&f<+e4$0.)+:*+':)&%$:4f<+X&%&+
,%&"#&()46+ #*&/+ $(+ /$*2#**$-(*+ :'-(0+ )&:'+ '&'C&%*@+ B.&%&+
X:*+0&(&%:446+:+,-2#*+-(+$(>&*)$0:)$(0+).&+>:%$-#*+5%-5&%)$&*+
-,+).&+'&/$:+:(/+)&2.(-4-0$&*+#*&/+$(+).&+5%-_&2)*@+=(2->&%$(0+
).&*&+5%-5&%)$&*+:(/+&^54-%$(0+).&$%+5-)&()$:4+:(/+4$'$):)$-(*<+
X&%&+*-'&+-,+).&+'-*)+5%-,-#(/+*$'$4:%$)$&*+:'-(0+).&+2:*&*@+
B.&+/$*2->&%&/+5%-5&%)$&*+C&2:'&+).&+,-#(/$(0+:(/+*)%#2)#%!
$(0+&4&'&()*+$(+).&+/&>&4-5'&()+-,+2%&:)$>&+$/&:*+:(/+2-(2&5)*+
,-%+).&+X-%?*@
B.&+24-*&+:))&()$-(+)-+).&+C:*$2+5%-5&%)$&*+-,+)&2.(-4-06+g+).&+
>$*#:4<+5.6*$2:4<+*5:)$:4<+2-(2&5)#:4+"#:4$)$&*+g+4&/+)-+).&+*#C!
*&"#&()+,-2#*+-(+:%,"/$%-$,@+:*+:+,#(/:'&():4+5&%*5&2)$>&+-(+
).&*&+2:*&*@+N+:%0#&+).:)+).&+&^5&%$'&():4+:55%-:2.+':6+C&+/&!
*2%$C&/+:*+#(/&%*):(/$(0+:+'&/$#'+).%-#0.+$)*+5-)&()$:4<+2-(!
*)%:$()*<+4$'$):)$-(*<+:(/+2#4)#%:4+'&:($(0*+g+*$'$4:%+)-+*-'&+-,+
).&+(-)$-(*+-,+:%,"/$%-$,@+5%&*&()&/+$(+).&+5%&>$-#*+2.:5)&%*@+
K2%&&(+)&2.(-4-0$&*+.:>&+C&&(+:55%-:2.&/+X$).+%&0:%/+)-+).&$%+
':)&%$:4+(:)#%&<+:(/+).&$%+2.:%:2)&%$*)$2*+:*+%:X+':)&%$:4+.:>&+
C&&(+).&+C:*$*+,-%+,#%).&%+&^54-%:)$-(+:(/+/&>&4-5'&()@
;55%-:2.$(0+ ).&+ >:%$-#*+ *2%&&(+ )&2.(-4-0$&*+ &^5&%$'&():446+
GZT
I;KDK
I;KDK
KDVDOVRPHDQW¿QGLQJOHVVDSSDUHQWSURSHUWLHVWKDWDUHXVXDOO\
(-)+C%-#0.)+)-+).&+2-(*2$-#*+:))&()$-(+:*+¿JXUH<+C#)+%&*$/&+$(+
).&+ #(2-(*2$-#*+ :*+ +/591#@+ N(+ &^5-*$(0+ -%+ C#$4/$(0+ -(+ ).&*&+
0%-#(/*<+-#%+:55%-:2.+%&*&'C4&*+X.:)+J2U#.:(+/&*2%$C&/+:*+
).&+%-4&+-,+).&+:%)$*)h+)-+%&>&:4+).&+.$//&(+0%-#(/+-,+'&/$:+C6+
2%&:)$(0+e:()$!&(>$%-('&()*f+).:)+&'5.:*$Y&+5&%$5.&%:4+"#:4$!
)$&*+ -,+ ).&+ '&/$#'@+;0:$(<+ ).$*+ X:*+ (-)+ ).&+ -(46+ 0-:4+ -,+ ).&+
5%-_&2)*<+C#)+$*<+(-(&).&4&**<+&>$/&(2&+-,+:+5%:2)$2&+).:)+,-2#*&/+
-(+':)&%$:4$)6+:)+':(6+4&>&4*@
%&*&:%2.+5%-_&2)+)$)4&/+!"#$%&'%(%#")<+%#(($(0+,%-'+EFFR+)-+
EFGF+C:*&/+$(+).&+$()&%:2)$-(+/&*$0(+4:C<+I;aN+7*&&+\:4*?-><+
EFGG8<+:)+;:%.#*+=($>&%*$)6@+a:%6$(0+(#'C&%*+-,+5:%)$2$5:()*+
X&%&+$(>-4>&/+,%-'+2:*&+)-+2:*&<+,%-'+)X-+)-+:%-#(/+)&(+5&%!
*-(*@+B.&+5%-_&2)+':(:0&%<+M#(&+O$&4*&(<+$*+:(+:%2.$)&2)<+3.1<+
:(/+ :**$*):()+ 5%-,&**-%+ X.-<+ :4-(0+ X$).+ '6*&4,<+ ,-%'&/+ ).&+
2-%&+)&:'+-,+%&*&:%2.&%*+$(>-4>&/+$(+).&+5%-_&2)@+B.&+0-:4+-,+
).$*+ 5%-_&2)+ .:*+ ).&+ &^54-%:)$-(+ -,+ ).&+ 5-)&()$:4+ -,+ '&/$:+ ,:!
2:/&*+,-%+2-''#($2:)$>&+:(/+$()&%:2)$>&+5#%5-*&*<+/&>&4-5$(0+
#(/&%*):(/$(0*+-,+).&+':)&%$:4*+:(/+)--4*+$(>-4>&/+$(+).&+2%&!
:)$>&+5%-2&**+7I;aN<+EFFR8@
$ VLJQL¿FDQW QXPEHU RI FDVHV ZHUH GHYHORSHG DQG UHDOL]HG
).%-#0.-#)+ ).&+ ).%&&+ 6&:%*+ /#%$(0+ X.$2.+ ).&+ '&/$:+ ,:2:/&*+
5%-_&2)+X:*+,#(/&/<+-,)&(+/%:X$(0+-(+%&*-#%2&*+,%-'+).&+5%-_!
&2)+ 5:%)(&%*h+ LN]+ 7:%2.$)&2)*8<+ J:%)$(+ 3%-,&**$-(:4+ 74$0.)$(08<+
:(/+W:44+-,+3$^&4*+70%:5.$2:4+:($':)$-(8@
B.&+I&()&%+,-%+;/>:(2&/+a$*#:4$Y:)$-(+:(/+N()&%:2)$-(+7I;aN8+
$*+).&+$()&%:2)$-(+/&*$0(+4:C+:)+;:%.#*+=($>&%*$)6<+X.$2.+5%-!
>$/&/+).&+5.6*$2:4+,:2$4$)$&*+:(/+)&2.($2:4+:**$*):(2&+).:)+X&%&+
2%#2$:4+ )-+ ).&+ /&>&4-5'&()+ -,+ ).&+ 2:*&*+ /&*2%$C&/+ $(+ ).&+ ,-4!
4-X$(0+5:0&*@
N(+).&+,-44-X$(0+5:0&*+N+/&*2%$C&+*&>&%:4+5%-_&2)*<+:(/+.-X+/$,!
,&%&()+':)&%$:4$)$&*+X&%&+&**&()$:4+)-+).&$%+:55%-:2.&*+)-+>$*#:4+
WHFKQRORJLHV7KHVHDVSHFWVPD\EHLGHQWL¿HGDVERWKDQ$:;
A-$($,+*&(*$)$>$)6+)-+':)&%$:4+"#:4$)$&*+/#%$(0+).&+/&>&4-5'&()+
5%-2&**<+ :(/+ :*+ &,,&2)*+ -,+ ':)&%$:4$)6<+ X$).+ ).&$%+ /&54-6'&()+
$(+ :(+ :2)#:4+ *$)#:)$-(@+ N+ 24:%$,6+ ).$*+ 5&%*5&2)$>&+ -(+ ':)&%$:4!
$)6+$(+).&+/&*2%$5)$-(*+-,+5%-2&**+:(/+).&+$()&%5%&):)$-(*+-,+).&+
¿QLVKHGZRUNE\GHVFULELQJVSHFL¿FVHFWLRQVRIHDFKFDVHDV
eD^54-%$(0+':)&%$:4$)6+$(+5%-2&**f+:(/+eI-(*$/&%$(0+':)&%$:4!
$)6+$(+%&)%-*5&2)f@+B.&*&+*&2)$-(*+X$44+%&46+-(+).&+>-2:C#4:%6+
:(/+ #(/&%*):(/$(0*+ ).:)+ .:>&+ C&&(+ 5%&*&()&/+ $(+ ).&+ 5%&>$-#*+
FKDSWHUVUHÀHFWLQJWKHZD\LQZKLFKWKLVWKLQNLQJLQÀXHQFHG
WKH ZRUN DQG KRZ VSHFL¿F DVSHFWV RI WKH FDVHV PD\ EH LQ!
*2%$C&/+$(+).&+#(/&%*):(/$(0+-,+':)&%$:4$)6@
0\UROHDVDYLVXDODUWLVWDQGGHVLJQHUSURYLGHG¿UVWKDQGH[!
5&%$&(2&+-,+).&+X:6*+$(+X.$2.+).&*&+2:*&*+X&%&+$($)$:)&/<+2%&!
:)&/<+:(/+%&2&$>&/@+J-*)+5%-_&2)*+X&%&+).&+2-44:C-%:)$>&+&,,-%)*+
-,+:+*':44+0%-#5+-,+/&*$0(&%*<+5%-0%:''&%*<+:(/+:%)$*)*<+/&>&4!
-5$(0+).&+2-(2&5)*+:(/+2-()&()@
7()CJ6?J"J)(-6.H%S(",
B.&+2:*&*+/$*2#**&/+.&%&+X&%&+/&>&4-5&/+$(+).&+2-()&^)+-,+:+
GRF
7()CJ6JH"MC,(",GH(6C$6,M(6'C*M,6%Q6+J,(HCJ'C,D
N)+$*+$'5-%):()+)-+(-)&+).:)+).&+2:*&*+5%&*&()&/+$(+).&+,-44-X$(0+
5:0&*+.:>&+(-)+C&&(+5%-/#2&/+X$).+).&+&^54$2$)+0-:4+-,+*)#/6!
$(0+:%,"/$%-$,@@+M:).&%<+).&6+X&%&+2%&:)&/+X$).+).&+'#2.+'-%&+
0&(&%:4+$()&()$-(+-,+&^54-%$(0+).&+5-)&()$:4+-,+'&/$:+:%2.$)&2!
)#%&<+'&:($(0+).:)+).&6+:%&+(-)+5%-)-)65$2:4+&^:'54&*+-,+'&!
/$#'+':)&%$:4$)6@+B.$*+'&:(*+).:)+).&6+/-+(-)+2->&%+:44+:*5&2)*+
-,+ ':)&%$:4$)6<+ C#)+ ).&6+ &^&'54$,6+ .-X+ ':)&%$:4$)6+ 2-(2&5)#!
:446+ /&*2%$C&*+ *-'&+ &**&()$:4+ :*5&2)*@+ B.&+ ?(-X4&/0&+ -,+ ).&+
2%&:)$>&+5%-2&**<+X.$2.+.:*+C&&(+0:$(&/+C6+X-%?$(0+X$).+).&*&+
GRG
I;KDK
2:*&*<+.:*+,:2$4$):)&/+:+/&&5&%+$(*$0.)+$()-+:+'-/&+-,+).$(?$(0+
).:)+2-(2&5)#:446+%&>-4>&*+:%-#(/+$/&:*+).:)+':6+C&+/&*2%$C&/+
$(+)&%'*+-,+:%,"/$%-$,@@+B.&%&+X:*+:(+&^54$2$)+0-:4+-,+&^:'$($(0+
e(&X+$()&%:2)$>&+)&2.(-4-0$&*+:(/+':)&%$:4*f+7I;aN<+EFFR8<+$(!
24#/$(0+>:%$-#*+*2%&&(+)&2.(-4-0$&*+:(/+e&^5&%$'&():4+':)&!
%$:4*+X.-*&+>$*#:4+-%+'&2.:($2:4+5%-5&%)$&*+2:(+2-()%$C#)&+)-+
(&X+'&/$:+,:2:/&*f+7NC$/@8@+;%0#:C46<+).&%&+X:*+:(++$'54$2$)+
$()&()$-(+ )-+ &^54-%&+ ).&+ ':)&%$:4$)6+ -%+ ':)&%$:4+ 5%-5&%)$&*+ -,+
'&/$:+,:2:/&*+:(/+).&$%+)&2.(-4-0$2:4+C:*$*@
7KHVXEVHTXHQWUHÀHFWLRQRQWKHNQRZOHGJHJDLQHGIURPH[!
&2#)$(0+).&+2:*&*+4&/+)-+).&+$(*$0.)*+:(/+$()&%5%&):)$-(*+).:)+:5!
5&:%+$(+).&+/&*2%$5)$-(*+:(/+:(:46*&*+-,+).&+2:*&*<+X.$2.+,#%).&%+
OHGWRUH¿QLQJWKHYLHZRQPDWHULDOLW\DVZLOOEHGLVFXVVHG)RU
$(*):(2&<+N+/$*2#**+).&+:554$2:)$-(+-,+J2U#.:(`*+)&%'*+85,+:(/+
(5-#+7$(+).&$%+&^)&(/&/+'&:($(0*8+:*+:+X:6+-,+/&*2%$C$(0+*)%:)!
&0$&*+-,+/&>&4-5$(0+'&:($(0,#4+-%+:C*)%:2)+2-()&()@+B.#*<+X&+
':6+0&)+:+C&))&%+#(/&%*):(/$(0+-,+.-X+).&+5%&*&()&/+)&%'*+2-(!
(&2)&/+)-+:%,"/$%-$,@+':6+&()&%+).&+:(:46*$*+:(/+/&*2%$5)$-(+-,+
'&/$:+:%2.$)&2)#%&<+:(/+5-)&()$:446+5%->$/&+:+%$2.&%+>-2:C#4:%6+
X$).+:+*&(*$)$>$)6+,-%+).&+':)&%$:4@
,QFRQFOXGLQJWKLVFKDSWHU,GLVFXVVWKH¿QGLQJVWKDWHPHUJHG
X.&(+/&*2%$C$(0+:(/+:(:46Y$(0+).&+2:*&*+,%-'+).&+5&%*5&2)$>&+
-,+':)&%$:4$)6@+O-)+-(46+:%&+).&+2:*&*+#*&/+:*+&^:'54&*+-,+*5&!
FL¿FDSSURDFKHVDQGWKLQNLQJIURPWKLVSHUVSHFWLYHWKH\DOVR
*&%>&+:*+&^:'54&*+-,<+:(/+&4:C-%:)&+-(<+).&+).&-%&)$2:4+,%:'&!
X-%?+).:)+.:*+C&&(+5%&*&()&/+$(+).$*+/$**&%):)$-(@+L6+2%$)$2:446+
:5546$(0+$/&:*+*#2.+:*+).&+-%/&%*+-,+':)&%$:4$)6<+).&+&^)&(/&/+
QRWLRQVRIKRWFROG¿JXUHJURXQGDQGWKHFRQWHQWPHGLXPGX!
:4$*'<+).&+2:*&*+':6+.&45+)-+C%-:/&(+).&+5&%*5&2)$>&+-(+).&*&+
$/&:*@+
GRE
I;KDK
B.&+2:*&*+5%&*&()&/+:%&h
7%/89)&0@&2$+8,+7EFFS8<+N()&%:2)$>&+'&/$:+,:2:/&
`911$1+&N(9-A,9/"+7EFFS8<+1:(2&+5&%,-%':(2&
E-$:%,"&a%--+7EFFT8<+N()&%:2)$>&+X:44+5%-_&2)$-(
7,:5)A8"/"+7EFFT8<+U$0.)+:(/+*-#(/+$(*):44:)$-(
*"1:%/>&M%3$-$51+7EFGF8<+J&/$:+,:2:/&
B.&+2:*&*+:%&+>&%6+/$,,&%&()+$(+2.:%:2)&%<+*-'&+C&$(0+:%)+$(*):4!
4:)$-(*<+X.$4&+-).&%*+:%&+$()&%:2)$-(+/&*$0(+&^5&%$'&()*+C:*&/+
-(+'&/$:+:%2.$)&2)#%&@+1&*5$)&+).$*+>:%$&)6<+).&6+':6+:44+C&+/&!
*2%$C&/+ :*+ X-%?*+ ).:)+ $'54&'&()+ &^5&%$'&():4+ :55%-:2.&*+ )-+
).&+*2%&&(<+:*+/&*2%$C&/+&:%4$&%+:*+:+5%:2)$2&+-,+:55%-:2.$(0+).&+
':)&%$:4+*2%&&(@
!!/5296AF618L54
7KH¿UVWFDVHLQWKH!"#$%&'%(%#")+%&*&:%2.+5%-_&2)+X:*+$($)$!
:)&/+$(+EFFR+:*+:+5$4-)+2:*&+,-%+).&+5%-_&2)@+N)*+5-$()+-,+/&5:%!
WXUHZDVDVSHFL¿FGLVSOD\WHFKQRORJ\GHYHORSHGE\RQHRIRXU
5:%)(&%*<+:(/+5%->$/&/+)-+#*+g+).&+/&*$0(&%*+:(/+%&*&:%2.&%*+:)+
I;aN@+B.$*+)&2.(-4-06+X:*+:+(&X+)65&+-,+UD1+*2%&&(+':/&+-,+
GtE+'&)&%+5:(&4*<+&:2.+.:>$(0+:+%&*-4#)$-(+-,+-(46+EQtQF+5$^!
&4*@+W.:)+':/&+).&*&+5:(&4*+/$,,&%&()+,%-'+-).&%+)65&*+-,+UD1+
*2%&&(+X:*+).:)+).&6+.:/+>&%6+4-X+%&*-4#)$-(<+0%&:)+C%$0.)(&**<+
:(/+X&%&+>&%6+&:*6+)-+$(*):44@+;(-).&%+%&':%?:C4&+5%-5&%)6+X:*+
).:)+).&+UD1*+X&%&+'-#()&/+-(+%-/*+-(+).&+*#55-%)$(0+,%:'&<+
':?$(0+$)+5-**$C4&+)-+*&&+).%-#0.+).&+5:(&4*<+:*+X$).+>&(&)$:(+
C4$(/*@
B.$*+2:*&+X:*+&^)%&'&46+-5&(+,%-'+).&+C&0$(($(0<+4$?&+:+C4:(?+
FDQYDVDQGWKH¿UVWPRQWKVZHUHVSHQWWU\LQJWRFRPHXSZLWK
:(+$()&%&*)$(0+2-(2&5)+).:)+X-#4/+':?&+#*&+-,+).$*+5:%)$2#4:%+
)&2.(-4-06@+B.&%&,-%&<+$)+*&&'&/+(:)#%:4+)-+&^54-%&+).&+5%-5&%!
WLHVRIWKHPHGLXPWR¿QGSRVVLEOHZD\VRIPDNLQJXVHRILW
GRH
I;KDK
0TK'%HC$*6+J,(HCJ'C,D6C$6KH%"(-W$).+ &$0.)+ -,+ ).&+ :C->&!'&()$-(&/+ UD1+ 5:(&4*+ :>:$4:C4&+ :)+
&$9, WKH ¿UVW ZHHNV ZHUH VSHQW LQYHVWLJDWLQJ WKH :%,"/$%-&
A/5A"/,$")+-,+).&+UD1+*2%&&(@+B.$*+':$(46+%&0:%/&/+).&+>$*#:4+
5%-5&%)$&*+-,+).&+'&/$#'<+:(/+).&%&C6+).&+:*5&2)*+-,+$)*+':)&%$!
:4$)6+2-(2&%($(0+C5/:@+B.&+$(>&*)$0:)$-(*+$(24#/&/+)&*)*+-,+>:%$!
-#*+/$,,#*&%*<+/$,,&%&()+>$&X$(0+/$*):(2&*<+:(/+4:%0&+:'-#()*+-,+
>$*#:4+2-()&()@+B.$*+"#$2?46+4&/+)-+).&+%&:4$Y:)$-(+).:)<+$(+':(6+
%&0:%/*<+ ).$*+ )65&+ -,+ UD1+ *2%&&(+ X:*+ 3"/@+ /$,,&%&()+ ).:(+ ).&+
2-(>&()$-(:4+2-'5#)&%+'-($)-%+-%+)&4&>$*$-(+*2%&&(@+W.&%&:*+
)%:/$)$-(:4+ *2%&&(*+ :%&+ ':/&+ ,-%+ 24-*&+ >$&X$(0<+ ).&*&+ *2%&&(*+
X&%&+':/&+,-%+4-(0!/$*):(2&+>$&X$(0<+*#2.+:*+:)+*):/$#'+2-(!
2&%)*+:(/+5&%,-%':(2&*@+a$&X$(0+).&'+#5!24-*&+':/&+).&+':!
)&%$:4*+ /$*)$(2)<+ &>&(+ ':?$(0+ $)+ 5-**$C4&+ )-+ *&5:%:)&46+ /$*)$(!
0#$*.+).&+$(/$>$/#:4+%&/<+0%&&(<+:(/+C4#&+2-'5-(&()*+-,+&:2.+
5$^&4@+D^5&%$'&()$(0+X$).+:+>:%$&)6+-,+>$*#:4+2-()&()+*.-X&/+
).:)+).&+&^)%&'&46+4-X+%&*-4#)$-(+':/&+).&+%&:/$(0+-,+2-()&()+
YHU\GLI¿FXOW
3.-)-0%:5.$2+ ':)&%$:4+ X:*+ 5&%2&5)$C4&+ ,%-'+ 4-(0+ /$*):(2&*<+
:4).-#0.+-(46+:+*':44+5:%)+-,+:+5.-)-+2-#4/+C&+/$*54:6&/<+C#)+
:)+ *.-%)&%+ /$*):(2&*<+ ).&+ 5$^&4*+ *&&'&/+ )--+ /$*2-((&2)&/+ :(/+
VLPLODULQFRORU'LIIXVLQJWKHOLJKWZLWKRSDTXH¿OPGLGKHOSWR
*'--).+-#)+5$^&4*<+C#)+:4*-+%&/#2&/+).&+C%$0.)(&**<+:(/+).&+*&&!
).-#0.+"#:4$)6+-,+).&+5:(&4*@+P(+).&+-).&%+.:(/<+0%:5.$2*+X&%&+
'-%&+,-%0$>$(0<+$(+)&%'*+-,+>$&X$(0+/$*):(2&*@+N(2%&:*$(0+).&+
2-4-%+2-()%:*)+:(/+#*$(0+0&-'&)%$2+*.:5&*+).:)+X.&%&+:4$0(&/+
X$).+).&+5$^&4+0%$/+':/&+).&+2-()&()+5&%2&$>:C4&+C-).+(&:%+)-<+
:(/+,:%+,%-'+).&+*2%&&(@+M&:4$Y$(0+).$*+C:*$2+5%-5&%)6+4&/+#*+)-+
,-2#*+-(+0%:5.$2+2-()&()+X$).+.$0.+2-()%:*)<+X.$2.+:4*-+0#$/&/+
WKHJHQHUDOYLVXDOFRQFHSWRIWKH¿QLVKHGSURMHFW
;(-).&%+ $'5-%):()+ 5%-5&%)6+ -,+ ).&+ *2%&&(+ 5:(&4*+ X:*+ ).&$%+
GRV
I;KDK
*&'$!)%:(*5:%&(26@+UD1+5$^&4*+X&%&+'-#()&/+-(+>&%)$2:4+%-/*<+
2%&:)$(0+:+0:5+C&)X&&(+&:2.+%-X+-,+5$^&4*@+B.&+':(#,:2)#%&%+
)-4/+#*+).:)+).&6+X&%&+/&*$0(&/+).$*+X:6+5%$':%$46+C&2:#*&+-,+
SURGXFWLRQDQGVHUYLFHFRQVLGHUDWLRQVDQGQRWVSHFL¿FDOO\WR
2%&:)&+)%:(*5:%&(26@+O&>&%).&4&**<+X&+,-#(/+).$*+5%-5&%)6+>&%6+
$()&%&*)$(0<+&*5&2$:446+C&2:#*&+).&+*&&!).-#0.+&,,&2)+X:*+4&**+
&>$/&()+X.&(+4$0.)+,%-'+5$^&4*+X:*+&^)%&'&46+$()&(*&@+B.#*<+
).&+-5)$2:4+)%:(*5:%&(26+2-#4/+C&+>:%$&/+:22-%/$(0+)-+2-()&()@
N(>&*)$0:)$(0+).&+>$*#:4+5%-5&%)$&*+-,+).&+*2%&&(+C&2:'&+:+5%-!
FHVVRIH[SORULQJWKHPDWHULDOLW\RIWKLVVSHFL¿FPHGLXPDQG
#(2->&%$(0+$)*++/591#+g+ &*5&2$:446+X$).+%&0:%/+)-+).&+ ,-%':4+
SURSHUWLHV7KH¿QGLQJVGHGXFHGIURPWKLVSURFHVVODWHUFRQ!
)%$C#)&/+$(+4:%0&+5:%)+)-+/&>&4-5$(0+2-()&()+,-%+).&+*2%&&(@+B.$*+
4-X!%&*-4#)$-(+ *2%&&(<+ %&0:%/&/+ :*+ :+ 2--4+ '&/$#'<+ 5%->$/&/+
-(46+:+*':44+:'-#()+-,+$(,-%':)$-(+)-+).&+>$&X&%<+X.$2.+':/&+
$)+4$:C4&+)-+5%-/#2&+:'C$0#-#*+-%+*-'&)$'&*+:C*)%:2)+>$*#:4+&^!
5%&**$-(*@+9$(/$(0+'&:($(0,#4+2-()&()+)-+':)2.+).&+':)&%$:4$)6+
C&2:'&+:+':_-%+2-(2&%(+,-%+*#C*&"#&()+/&>&4-5'&()@
;,)&%+:+,&X+X&&?*+-,+)&*)$(0+).&+)&2.(-4-06<+).&+)&:'+C&0:(+
4--?$(0+ ,-%+ X:6*+ )-+ $'54&'&()+ $)+ :*+ :+ 5#C4$2+ '&/$:+ ,:2:/&+
*-'&X.&%&+ $(+ ).&+ 2$)6+ -,+ ;:%.#*@+ J:(6+ 5-)&()$:4+ C#$4/$(0*+
X&%&+:**&**&/+:22-%/$(0+)-+>:%$-#*+5%-5&%)$&*<+*#2.+:*+>$*$C$4!
$)6<+#%C:(+2-()&^)<+,:2:/&+/&*$0(<+:(/+).&+5-**$C4&+:554$2:)$-(+
-,+).&+*2%&&(+)&2.(-4-06+X&+.:/+-(+.:(/@+;,)&%+%&>$&X$(0+).&+
SRVVLEOH VLWHV DQG EXLOGLQJV LQ WKH XUEDQ DUHD LW ZDV ¿QDOO\
GHFLGHGWKDWWKH&RQFHUW+DOOLQ$DUKXV¿WWKHVHUHTXLUHPHQWV
>&%6+X&44@+B.$*+C#$4/$(0+$*+*$)#:)&/+$(+:+2&()%:4+4-2:)$-(+$(+).&+
2$)6+-,+;:%.#*<+(&^)+)-+).&+I$)6+\:44+:(/+).&+2$)6+:%)+'#*&#'@+
;(/<+).:(?*+)-+).&+4:%0&+4:X(+$(+,%-()+-,+).&+C#$4/$(0<+$)+$*+>$*!
$C4&+,%-'+/$*):(2&*+-,+*&>&%:4+.#(/%&/+'&)&%*@+L#)+).&+'-*)+%&!
':%?:C4&+,&:)#%&+-,+).&+C#$4/$(0<+:(/+X:*+:+4#2?6+2-$(2$/&(2&<+
GRQ
I;KDK
I;KDK
X:*+).:)+$)*+,:2:/&+2-(*$*)&/+-,+EtE+'&)&%+04:**+5:(&*+g+&^:2)46+
).&+*$Y&+-,+)X-+-,+-#%+*2%&&(+5:(&4*@
B.&+I-(2&%)+\:44+X:*+2-():2)&/+X$).+).&+5%-5-*:4+)-+)#%(+).&$%+
,:2:/&+$()-+:+4:%0&+'&/$:+,:2:/&@+B.&6+:0%&&/+X$).-#)+.&*$):!
)$-(<+:(/+*&)+(-+5:%)$2#4:%+%&*)%$2)$-(*+-(+X.:)+).&+,:2:/&+2-#4/+
C&+#*&/+,-%@+B.&+,-44-X$(0+'-().*+X&%&+#*&/+)-+/&>&4-5+:+2-(!
2&5)+:(/+/&*$0(+).&+)&2.(-4-0$&*+).:)+X&%&+(&2&**:%6+)-+%&:4$Y&+
).&+5%-_&2)@
:%$"(K,
B.&+2-(2&5)+C&.$(/+7%/89)&0@&2$+8,+7EFFS8+X:*+)-+&(0:0&+4-!
2:4+2$)$Y&(*+$(+:+54:6,#4+$()&%:2)$-(+X$).+).&+'&/$:+,:2:/&+-(+
).&+I-(2&%)+\:44<+X$).+).&+.-5&+-,+2%&:)$(0+:+*-2$:4+*5:2&+:)+).&+
4:X(+$(+,%-()+-,+).&+C#$4/$(0@+B.&+$(*):44:)$-(+#*&/+).%&&+2:'!
&%:*<+'-#()&/+-(+4:'5+5-*)*+$(+).&+5:%?<+)-+0&(&%:)&+*$4.-#&))&*+
-,+5&-54&+:*+).&6+X:4?&/+5:*)+).&+I-(2&%)+\:44@+B.$*+X-#4/+C&+
:(+$()%$0#$(0+*5&2):24&<+4&:/$(0+).&'+)-+*):6+:(/+&^54-%&+).&+
$(*):44:)$-(+:(/+$)*+5-**$C$4$)$&*@+;5:%)+,%-'+).&+*$4.-#&))&*<+:+
(#'C&%+-,+:($':)$-(*+-,+*':44+2%&:)#%&*+X&%&+/$*54:6&/+-(+).&+
*2%&&(@+B.&*&+ X&%&+ 5%-0%:''&/+ )-+ &(0:0&+ $(+ >:%$-#*+ :2)$>$!
)$&*<+*#2.+:*+*4&&5$(0<+X:4?$(0<+2%:X4$(0<+:(/+*-+-(<+2%&:)$(0+
:+2-(*):()46+2.:(0$(0+5:))&%(+-,+2-4-%&/+4$0.)@+L6+#*$(0+).&$%+
*$4.-#&))&*<+5&-54&+X&%&+:C4&+)-+$()&%:2)+X$).+).&*&+2%&:)#%&*<+
'->$(0+).&'+:%-#(/+-(+).&+,:2:/&@+N(+://$)$-(+)-+).&+*$4.-#!
&))&*+:(/+2%&:)#%&*<+:+).$(+X.$)&+-#)4$(&+/&5$2)&/+%&2-0($Y:C4&+
C#$4/$(0*+,%-'+).&+;:%.#*+*?64$(&@+B.&+$(*):44:)$-(+%:(+,-%+)X-+
'-().*+/#%$(0+).&+X$()&%+-,+EFFS@
7%/89)& 0@& 2$+8,+ $*+ /$*2#**&/+ $(+ ).&+ :%)$24&+ eK):0$(0+ =%C:(+
N()&%:2)$-(*+X$).+J&/$:+9:y:/&*f+7L%6(*?->+&)+:4@<+EFFT8<+$(+
X.$2.+ '6+ 2-44&:0#&*+ :(/+ N+ &'5.:*$Y&/+ *5:)$:4+ $()&%:2)$-(<+
VHQVHPDNLQJDQGVRFLDOPHGLDWLRQDVVSHFL¿FJRDOVRIWKHGH!
GRZ
'$+9/"&QKG&7%/89)&0@&2$+8,&IJKKlL
'$+9/"&QFG&2O*&A%1"-&,"),)B&*"(":0"/&JKKk
GRR
I;KDK
I;KDK
*$0(@+B.&+,-2#*+-,+).$*+:%)$24&+X:*+)-+&^54:$(+).&+$(*$0.)*+X&+
0:$(&/+ ,%-'+ 7%/89)& 0@& 2$+8,+ g+ &*5&2$:446+ X$).+ %&0:%/+ )-+ ).&+
$()&%:2)$-(+C&)X&&(+:#/$&(2&+:(/+,:2:/&<+:(/+X$).$(+:#/$&(2!
&*<+X$).+-(&+:(-).&%@+L:*$2:446<+X&+,-#(/+).:)+).&+$(*):44:)$-(+
5%->$/&/+:+*5:2&+,-%+(&X+)65&*+-,+C&.:>$-%+$(+:+5#C4$2+*5:2&<+
X.&%&+).&+:#/$&(2&+'&'C&%*+2-#4/+#*&+).&$%+&()$%&+C-/$&*+)-+
A-%@C9--@+ &(0:0&+ $(+ &^54-%$(0+ ).&+ 5-**$C$4$)$&*+ -,+ $()&%:2)$-(@+
B.$*+ 2%&:)&/+ :+ 2&%):$(+ :)'-*5.&%&<+ X.&%&C6+ 5:**&%*!C6+ C&!
2:'&+*5&2):)-%*<+:(/+&>&()#:446+$()&%:2)&/@+N(+*-'&+2:*&*<+X&+
-C*&%>&/+).:)+).&*&+C&.:>$-%*+&>&(+*5:%?&/+*-2$:4+&(2-#()&%*+
:'-(0+ *)%:(0&%*<+ X.$2.+ 0:>&+ ).&+ $(*):44:)$-(+ :+ /&!:4$&(:)$(0+
5-)&()$:4+$(+).&+#%C:(+&(>$%-('&()@+B.$*+5&%*5&2)$>&+$*+,#%).&%+
&4:C-%:)&/+$(+).&+:%)$24&@
:(/+*.-%)+>$&X$(0+/$*):(2&+$(>-4>&/@
I-'5:%&/+)-+':))&%+:(/+,-%'<+).&+(-)$-(+-,+51,5-5+$(%-+':)&!
ULDOLW\LVPRUHGLI¿FXOWWRWUDFHLQWKLVFDVH7KHPHGLDIDFDGH
$(*):44:)$-(+/-&*+(-)+*&&?+A9/$,@+$(+$)*+'&/$#'+C6+0-$(0+:0:$(*)+
$)*+ 2-(>&()$-(:4+ #*&<+ (-%+ /-&*+ $)+ /%:X+ -(+ 2#4)#%:4+ 2-/&*+ &'!
C&//&/+ $(+ ).&+ '&/$#'<+ :(/+ ).&%&C6+ ://+ 2%$)$2:4+ 2-''&():%6+
)-+).&+2-''&%2$:4+#*&+-,+'&/$:@+L#)+)-+*-'&+&^)&()<+7%/89)&
0@& 2$+8,+ /-&*+ C%&:?+ X$).+ ).&+ 2-(>&()$-(:4+ #(/&%*):(/$(0+ -,+
).&+ *2%&&(+ C6+ 5#))$(0+ $)+ $()-+ :+ (&X+ 2-()&^)+ :(/+ &'54-6$(0+ :+
(-(!)%:/$)$-(:4+ 4:6-#)+ -,+ ).&+ *2%&&(+ 5:(&4*@+ B.&+ UD1+ 5:(&4*+
X&%&+/$*)%$C#)&/+-(+).&+,:2:/&+$(+:(+#(&>&(+:%%:6<+$()&(/&/+)-+
':?&+).&+'&/$:+,:2:/&+4&**+4$?&+:+*2%&&(<+:(/+'-%&+4$?&+:(+-%!
(:'&():4+5:))&%(@+;+,&X+5:(&4*+X&%&+&>&(+$(*):44&/+:%-#(/+).&+
*$/&+-,+).&+C#$4/$(0<+).&%&C6+C%&:?$(0+X$).+).&+2-(>&()$-(+-,+
WKHÀDWVFUHHQ$QRWKHUPDWHULDOHIIHFWRIWKLVSDUWLFXODUVFUHHQ
)&2.(-4-06+X:*+).:)+).&+5:(&4*+X&%&+2-(*)%#2)&/+4$?&+>&(&)$:(+
C4$(/*<+':?$(0+$)+5-**$C4&+)-+*&&+).-#0.+).&+*2%&&(@+B.$*+:4*-+
FDXVHGWKHOLJKWIURPWKHVFUHHQWREHUHÀHFWHGRQWKHLQVLGH
-,+).&+04:**+,:2:/&<+).#*+2%&:)$(0+:+/-#C4&!*$/&/+*2%&&(+&,,&2)@
B.&*&+>:%$-#*+:*5&2)*+-,+).&+*2%&&(+X&%&+&**&()$:446+*)%#2)#%!
$(0+&4&'&()*+).:)+':6+C&+%&0:%/&/+:*+5:%)*+-,+).&++/591#+-,+).&+
'&/$#'@+L6+):?$(0+).&*&+:*5&2)*+$()-+2-(*$/&%:)$-(<+:(/+C#$4/!
$(0+).&+2-(2&5)+:(/+).&+2-()&()+-(+).&*&+2-(*$/&%:)$-(*<+).&6+
C&2:'&+,-%&0%-#(/&/+:*+¿JXUHV+,-%+).&+/&*$0(&%*<+C#)+:4*-+)-+
*-'&+&^)&()+,-%+).&+:#/$&(2&@+9-%+$(*):(2&<+).&+*)%#2)#%&+-,+).&+
C#$4/$(0`*+:%2.$)&2)#%&+X:*+2-(*$/&%&/+$(+%&4:)$-(+)-+).&+>$*#:4+
2-()&()+C&$(0+/$*54:6&/@+B.&+*':44+2%&:)#%&*+).:)+:55&:%&/+)-+
C&+2%:X4$(0+:%-#(/+-(+).&+,:2:/&+X&%&+5%-0%:''&/+)-+24$'C+
-(+).&+,%:'&*+-,+).&+,:2:/&@+B.$*+X:*+:(+:))&'5)+)-+$()&0%:)&+
).&+ -C*)%#2)$>&+ &4&'&()*+ -,+ ).&+ ,:2:/&+ :*+ 5:%)*+ -,+ ).&+ >$*#:4+
2-()&()@+N(*)&:/+-,+$0(-%$(0+).&+5.6*$2:4+2-(*)%:$()*+$'5-*&/+
C6+).&+,:2:/&+0%$/<+).&+$/&:+X:*+)-+)#%(+).&*&+2-(*)%:$()*+$()-+
:%$-C)(HC$*6+J,(HCJ'C,D6C$6H(,H%-K(",
,Q ERWK LWV GHYHORSPHQW DQG WKH ¿QDO LQVWDOODWLRQ 7%/89)& 0@&
2$+8,+&^.$C$)*+':(6+:*5&2)*++).:)+':6+C&+/&*2%$C&/+$(+)&%'*+-,+
).&+:%,"/$%-$,@+-,+).&+*2%&&(@+U--?$(0+'-%&+24-*&46+:)+).&+X-%?+
X$).+ %&0:%/*+ )-+ ).&+ #(/&%*):(/$(0*+ 5%&*&()&/+ &(+ ).&+ 5%&2&/!
LQJFKDSWHUVUHYHDOVVHYHUDOLGHQWL¿DEOHSURSHUWLHVZLWKLQWKLV
*2.&'&@
9$%*)<+).&+5:%)$2#4:%+*2%&&(+)&2.(-4-06+$(>-4>&/+X:*+%&0:%/&/+
%)+:+':)&%$:4<+%&2-0($Y$(0+$)+:*+:%,,"/+X.&%&+).&+5.6*$2:4+:(/+
-5)$2:4+5%-5&%)$&*+X&%&+$(>&*)$0:)&/+).-%-#0.46@+B.$*+:55%-:2.+
X:*+2%#2$:4+)-+).&+/&>&4-5'&()+5%-2&**<+:(/+).&+$(*$0.)*+0:$(&/+
IURP WKHVH LQLWLDO LQYHVWLJDWLRQV KDG D VLJQL¿FDQW LPSDFW RQ
2-()&()+ /&*$0(@+;4).-#0.+ ).&+ )&2.(-4-06+ X:*+ 2-''-(46+ %&!
,&%%&/+)-+:*+:+e*2%&&(f<+X&+X&%&+>&%6+:X:%&+).:)+).&+)&2.(-4-06+
.:/+-(46+:+C:*$2+*$'$4:%$)6+)-+)%:/$)$-(:4+*2%&&(*@+L#)+).$*+X-%?+
:4*-+&^54-%&/+).&+':)&%$:4+C5/:+-,+).&+*2%&&(<+X.&%&+*&>&%:4+:)!
)&'5)*+X&%&+':/&+)-+:4)&%+$)*+&^5%&**$-(+C6+#*$(0+/$,,#*&%*+:(/+
>:%$-#*+)65&*+-,+2-()&()+).:)+X&%&+):$4-%&/+)-+).&+4-X+%&*-4#)$-(+
GRS
GRT
I;KDK
I;KDK
¿JXUH+ &4&'&()*<+ :44-X$(0+ :+ 5&%2&5)#:4+ $()&%54:6+ C&)X&&(+ ).&+
*2%&&(+:(/+).&+:%2.$)&2)#%&@+B.$*+X-#4/+/%:X+:))&()$-(+)-+).&+
':)&%$:4$)6+-,+).&+,:2:/&<+$(*)&:/+-,+:))&'5)$(0+)-+/&':)&%$:4!
$Y&+$)@
N(+)&%'*+-,+2-()&()<+7%/89)&0@&2$+8,+-(46+5%->$/&/+:+4-X+4&>&4+
-,+ $(,-%':)$-(<+ :(/+ %&4$&/+ -(+ &^)&(*$>&+ $()&%5%&):)$-(+ C6+ ).&+
:#/$&(2&<+X.$2.+$*+2.:%:2)&%$*)$2+-,+:+(55-+'&/$#'<+$(+J2U#!
.:(`*+ )&%'*@+ B.&+ 4-X!%&*-4#)$-(+ 2%&:)#%&*+ X&%&+ /&*$0(&/+ :*+
$2-($2+ %&,&%&(2&*+ )-+ -4/+ 2-'5#)&%!0:'&+ 2.:%:2)&%*+ :(/+ 2.$4!
/%&(`*+ )-6*@+ B.&*&+ :'C$0#-#*+ %&,&%&(2&*+ ':/&+ ).&+ 2-()&()+
"#$)&+ -5&(!&(/&/<+ :44-X$(0+ ,-%+ :+ 0%&:)+ /&:4+ -,+ $()&%5%&):)$-(+
%&0:%/$(0+X.:)+).&6+5-%)%:6&/+:(/+X.:)+).&6+X&%&+/-$(0@+;*+$)+
&'54-6&/+:+(55-+'&/$#'<+7%/89)&0@&2$+8,FRQ¿UPHGWKHLGHD
WKDWORZGH¿QLWLRQPHGLDHQJDJHWKHDXGLHQFHLQSDUWLFLSDWLRQ
:(/+2-'54&)$-(+-,+).&+$(,-%':)$-(+5%->$/&/@
W&+:4*-+-C*&%>&/+).:)+).&+:#/$&(2&<+&*5&2$:446+2.$4/%&(<+X-#4/+
':?&+#5+*)-%$&*+:C-#)+).&+2%&:)#%&*<+:(/+.-X+).&$%+$()&%:2)$-(+
X$).+).&+*$4.-#&))&*+,#(2)$-(&/@+B.&+0#&**$(0+:(/+*&(*&!':?!
$(0+X-#4/+-,)&(+0-+,:%+C&6-(/+).&+)&2.($2:4+5-**$C$4$)$&*+-,+).&+
$(*):44:)$-(<+ 5%->$(0+ ).&+ -5&(!&(/&/+ 2.:%:2)&%+ -,+ ).&+ /&*$0(@+
B.$*+5&%*5&2)$>&+$*+/&*2%$C&/+$(+/&):$4+$(+).&+:%)$24&+://%&**$(0+
$)+7*&&+L%6(*?->+&)+:4@<+EFFT8@+B.&+-5&(!&(/&/(&**+).:)+6$&4/!
&/+).$*+4&>&4+-,+$()&%5%&):)$-(+X:*<+:%0#:C46<+:+/$%&2)+%&*#4)+-,+
).&+':)&%$:4+2-(*)%:$()*+-,+).&+'&/$#'<+X.$2.+.:/+#%0&/+#*+)-+
5#%*#&+4-X!%&*-4#)$-(+$2-(-0%:5.6+?(-X(+,%-'+-4/+2-'5#)&%+
0:'&*@+B.&%&,-%&<+$)+':6+C&+:%0#&/+).:)+).&+:#/$&(2&`*+%$2.+&(!
0:0&'&()+-%$0$(:)&/+$(+$()&%5%&)$(0+).&+(55-+'&/$#'+2-()&()<+
:(/+ ).:)+ ).$*+ 2-()&()+ .:/+ C&&(+ $()&()$-(:446+ /&*$0(&/+ X$).+ :+
.$0.+4&>&4+-,+:))&()$-(+)-X:%/+).&++/591#+-,+).&+'&/$#'@
I-(2&%)+ \:44+ ':(:0&'&()+ X:*+ :4*-+ 54&:*&/+ X$).+ ).&+ :))&(!
)$-(+:(/+5-*$)$>&+$':0&+).&6+.:>&+0:$(&/+).-#0.+).$*+5&%$-/@+
N(+,:2)<+).&6+&>&(+.:/+).&+$/&:+-,+5#%2.:*$(0+:+*':44+*&2)$-(+
-,+).&+*2%&&(+,-%+*.-X$(0+:/>&%)$*&'&()*+,-%+).&$%+*.-X*@+L#)+
:,)&%+)%6$(0+)-+/$*54:6+*-'&+-,+).&$%+5-*)&%*+-(+).&+*2%&&(<+).&6+
"#$2?46+%&:4$Y&/+).:)+).&+%&*-4#)$-(+X:*+)--+4-X+,-%+).$*+)65&+-,+
2-()&()@+B.$*+':6+C&+%&0:%/&/+:(+&^:'54&+-,+,:$4$(0+)-+#(/&%!
*):(/+).&+':)&%$:4$)6+-,+).&+'&/$#'+:(/+$)*+>$*#:4+2:5:2$)$&*<+
C6+/$*%&0:%/$(0+$)*+e:%2.$)&2)#%&f@+B.:)+X:*+:+2%#2$:4+%&:4$Y:!
)$-(+).:)+5%-'5)&/+*-'&+-,+).&+).$(?$(0+:C-#)+*2%&&(+':)&%$:4!
$)6@
B.&+'&/$:+,:2:/&+$(*):44:)$-(+X:*+X&44+%&2&$>&/<+:(/+X:*+>$*!
$)&/+C6+).-#*:(/*+-,+5&-54&+/#%$(0+).&+)X-+'-().*+$)+%:(@+B.&+
GSF
E/"%,$3"&,"%:G&!%/,$1&=/@1)>53&IA/5^"(,&:%1%+"/LB&450$%)&
O0)"1B&M","/&*%-)+%%/#B&`91"&R$"-)"1
/2;;8;L69:21.42/0
1#%$(0+ ).&+ 5&%$-/+ ).:)+ 7%/89)& 0@& 2$+8,+ %:(<+ ).&+ *:'&+ *2%&&(+
X:*+ #*&/+ -(+ ).%&&+ &>&($(0*+ ,-%+ :+ /:(2&+ 5&%,-%':(2&+ :)+ ).&+
I-(2&%)+ \:44<+ $(+ 2-44:C-%:)$-(+ X$).+ ).&+ 4-2:4+ /:(2&+ ).&:)&%<+
;%2.:#Y@+B.&+5&%,-%':(2&<+`911$1+&N(9-A,9/"+7EFFS8<+X:*+:+
%&X-%?$(0+-,+:+5%&>$-#*+5&%,-%':(2&+).:)+).&6+X:()&/+)-+%&!
4:#(2.+$(+:(+:4)&%(:)$>&+>&%*$-(@
1:(2&%*+X&%&+)-+5&%,-%'+-(+).&+*):0&+$(+).&+,-6&%+-,+).&+C#$4/!
$(0<+X.$4&+).&$%+'->&'&()*+X&%&+/$*54:6&/+-(+).&+4:%0&+*2%&&(<+
X.$2.+:4*-+,#(2)$-(&/+:*+:+C:2?/%-5+-%+*&))$(0+,-%+).&+5&%,-%!
':(2&@+L&2:#*&+-,+).&+)65&+-,+UD1+5:(&4*+#*&/<+$)+X:*+5-**$!
C4&+)-+*&&+).&+*2%&&(+,%-'+C-).+$(*$/&+:(/+-#)*$/&+).&+C#$4/$(0<+
2%&:)$(0+'#4)$54&+5-)&()$:4+>$&X$(0+4-2:)$-(*@
N+X:*+:**$0(&/+:*+:+>$*#:4+:%)$*)+)-+/&*$0(+*2&(&%6+).:)+2-#4/+
*#554&'&()+ ).&+ 5&%,-%':(2&<+ #*$(0+ ).&+ 4:%0&+ UD1+ *2%&&(<+
X.$2.+ X:*+ $(*):44&/+ C&.$(/+ ).&+ 04:**+ ,:2:/&+ -,+ ).&+ I-(2&%)+
\:44@+;,)&%+ *&>&%:4+ '&&)$(0*+ X$).+ ).&+ /:(2&%*+ :(/+ ).&+ 2.-%&!
GSG
I;KDK
I;KDK
-0%:5.&%<+N+*):%)&/+)-+/&>&4-5+:+,&X+>$*#:4+2-(2&5)*+).:)+C-).+
*#55-%)&/+ ).&+ &^$*)$(0+ *.-X<+ :(/+ 5%->$/&/+ :(+ :4)&%(:)$>&+ &^!
5%&**$-(+ ,-%+ ).&+ 5&%,-%':(2&@+ B.&*&+ X&%&+ 5:%)46+ $(*5$%&/+ C6+
).&+2.-%&-0%:5.6<+:(/+5:%)46+C6+:+/&*$%&+)-+&^54-%&+:+/$,,&%&()+
5-)&()$:4+-,+).&+*2%&&(+).:(+.:/+C&&(+#*&/+$(+7%/89)&0@&2$+8,@
&()$%&+,-6&%+:(/+).&+5:%?+$(+,%-()+-,+).&+2-(2&%)+.:44@+B.#*<+).&+
e$'':)&%$:4f+4$0.)+,%-'+).&+*2%&&(+2-#4/+:,,&2)+).&+5&%2&5)$-(+
-,+:%2.$)&2)#%:4+*5:2&@+B.$*+4&/+'&+)-+%&0:%/+).&+*2%&&(+:*+(-)+
-(46+:(+$':0&<+C#)+'#4)$54&+4$0.)+*-#%2&*+g+:+/$,,&%&()+':)&%$:4+
2-(2&5)$-(+-,+$)*+:%,,"/+g+:(/+).&%&C6+/&*$0(+).&+2-()&()+,%-'+
:(+&()$%&46+(&X+5&%*5&2)$>&@
0TK'%HC$*6+J,(HCJ'C,D6C$6KH%"(-`911$1+&N(9-A,9/"+)--?+$)*+5-$()+-,+/&5:%)#%&+$(+).&+?(-X4&/0&+
0:$(&/+,%-'+':?$(0+7%/89)&0@&2$+8,<+:(/+).#*+-%$0$(:)&/+,%-'+
).&+*:'&+#(/&%*):(/$(0+-,+).&+*2%&&(`*+':)&%$:4$)6@+B.&+$()&(!
)$-(+X:*+)-+&^54-%&+:+%:(0&+-,+>$*#:4+*&))$(0*+).:)+X-#4/+2.:4!
4&(0&+).&+&>&%6/:6+5&%2&5)$-(+-,+).&+C#$4/$(0+:*+:+*):)$2+*)%#2!
)#%&@+B.&+I-(2&%)+\:44+$*+/&*$0(&/+X$).+:+*)%$2)+0&-'&)%6+:(/+:+
0%$/!4$?&+/$>$*$-(+-,+).&+,:2:/&@+;+4-)+-,+).&+>$*#:4+$':0&%6+).:)+
X:*+/&>&4-5&/+,-%+).&+5&%,-%':(2&+X:*+$()&(/&/+)-+C%&:?+X$).+
).&*&+2-(/$)$-(*<+:(/+$()%-/#2&+'-%&+-%0:($2+&^5%&**$-(*@+B.$*+
$(24#/&/+>:%$-#*+>$/&-*+-,+%#(($(0+5:$()+:(/+*54:*.&*+-,+5:$()<+
ZKLFK ZHUH WLPHG WR VSHFL¿F FXHV LQ WKH VRXQG WUDFN 7KXV
).&+*2&(&%6+*$0(:4&/+:+/&2$*$>&+C%&:?+X$).+).&+*)%$2)+0%:5.$2*+
-,+ 7%/89)& 0@& 2$+8,<+ C#)+ :4*-+ %&,&%&(2&/+ ).&+ )%:/$)$-(:4+ :%)+ -,+
5:$()$(0+:(/+$)*+2%&:)$>&+5%-2&**@
9%-'+ ).&+ &^5&%$&(2&+ -,+ 7%/89)& 0@& 2$+8,+ :(/+ *-'&+ )&*)*+ X&+
/$/+ X.$4&+ $)+ X:*+ %#(($(0<+ N+ .:/+ 0:$(&/+ :+ (#'C&%+ -,+ $(*$0.)*+
$()-+ ).&+ ':)&%$:4$)6+ -,+ ).&+ '&/$:+ ,:2:/&+ ).:)+ C&2:'&+ 2%#2$:4+
,-%+).&+,#%).&%+/&>&4-5'&()+-,+).&+2-(2&5)@+9$%*)<+N+.:/+4&:%(&/+
).:)+/&*5$)&+).&+(55-<+4-X!%&*-4#)$-(+'&/$#'<+$)+X:*+:2)#:446+
5-**$C4&+ )-+ 5&%2&$>&+ 2-()&()+ ).:)+ X:*+ 5&%2&5)#:446+ 85,,"/+ 7$(+
).&+ &^)&(/&/+ *&(*&+ -,+ J2U#.:(`*+ )&%'*8<+ ).:(+ X.:)+ X&+ .:/+
/&>&4-5&/+,-%+7%/89)&0@&2$+8,@+B.$*+4&/+'&+)-+&^:'$(&+>:%$-#*+
)65&*+-,+>$/&-+2-()&()+).:)+2-#4/+&^5%&**+).$*+C5/:%-+':)&%$:4!
$)6@+ K&2-(/<+ N+ .:/+ /$*2->&%&/+ ).:)+ ).&+ 4$0.)+ &'$))&/+ ,%-'+ ).&+
*2%&&(+2-#4/+C&+"#$)&+$()&(*&<+:(/+2-#4/+:2)#:446+4$0.)+#5+).&+
GSE
7KH¿QDOUHVXOW
B.&+5&%,-%':(2&+X:*+*.-X(+-(+).%&&+($0.)*+$(+J:%2.+EFFS@+N)+
X:*+-(46+($(&+'$(#)&*+4-(0<+C#)+X:*+5&%,-%'&/+).%&&+)$'&*+&>!
&%6+($0.)+:%-#(/+*#(/-X(@+BX-+/:(2&%*+5&%,-%'&/+-(+:+*):0&+
LQ WKH JODVV IR\HU RI WKH$DUKXV &RQFHUW +DOO 7KHLU ¿JXUHV
ZHUH ¿UVW UHYHDOHG DV ZKLWH VLOKRXHWWHV RQ WKH PHGLD IDFDGH
DOWKRXJKWKHVFUHHQZDVQRWFOHDUO\YLVLEOH7KLV¿UVWSDUWRI
).&+2.-%&-0%:5.6+X:*+5&%,-%'&/+$(+*$4&(2&<+:(/+X$).+(-+>$*#!
:4*+:5:%)+,%-'+).&+%&:4!)$'&+%&5%&*&():)$-(+-,+).&+*$4.-#&))&*+-(+
).&+*2%&&(@+;,)&%+:+'$(#)&<+).&+*-#(/)%:2?+*):%)&/+54:6$(0+,%-'+
*5&:?&%*+$(+).&+,-6&%<+:*+X&44+:*+-#)*$/&+$(+).&+5:%?@+B.$*+X:*+
:22-'5:($&/+C6+).&+>:%$-#*+>$/&-+*&"#&(2&*+).:)+X&%&+)$'&/+
WRVSHFL¿FFXHVLQWKHPXVLFDQGOD\HUHGZLWKVLOKRXHWWHVRI
/:(2&%*@+B.&%&+X&%&+).%&&+2:'&%:*+'-#()&/+C6+).&+*):0&<+X.$2.+
)%:(*'$))&/+$':0&%6+$()-+).&+2-'5#)&%<+X.&%&+:44+).&+2-()&()+
X:*+:**&'C4&/+:(/+)%:(*'$))&/+)-+).&+'&/$:+,:2:/&+*2%&&(@+;*+
).&+/:(2&%*+':/&+*':44+>:%$:)$-(*+)-+).&$%+2.-%&-0%:5.6+/#%$(0+
&:2.+ 5&%,-%':(2&<+ ).&+ &,,&2)*+ :(/+ 2:'&%:+ 5&%*5&2)$>&+ .:/+ )-+
C&+:/_#*)&/+/#%$(0+).&+*.-Xn+0$>$(0+:+#($"#&+&^5&%$&(2&+&:2.+
)$'&+$)+X:*+%#(@
:%$-C)(HC$*6+J,(HCJ'C,D6C$6H(,H%-K(",
B.&+ >$*#:4*+ -,+ `911$1+& N(9-A,9/"+ %&5%&*&()&/+ :(+ :))&'5)+ )-+
&^54-%&+:(-).&%+>$*#:4+>-2:C#4:%6+-,+).&+*2%&&(+).:(+).:)+#*&/+
X$).+7%/89)&0@&2$+8,@+B-+*-'&+&^)&()<+).$*+X:*+:(+$(>&*)$0:)$-(+
GSH
I;KDK
-,+:(-).&%+:%,"/$%-$,@+).:)+&'&%0&/+,%-'+:+%&2-(2&5)#:4$Y:)$-(+
-,+).&+>$*#:4+4:(0#:0&<+:(/+:+/&*$%&+)-+&^54-%&+:+/$,,&%&()+:5!
5%-:2.+)-+).&+,-%':4+"#:4$)$&*+-,+).&+*2%&&(@+L#)+-()-4-0$2:446<+
).&+*2%&&(+X:*+:4*-+%&:4$Y&/+:*+:+/$,,&%&()+2-(2&5)+g+:+5-**$C$4!
$)6+)-+'&):5.-%$2:446+e5:$()+-(+).&+C#$4/$(0f+X$).+4$0.)+g+&,!
,&2)$>&46+ ':?$(0+ ).&+ C#$4/$(0+ $()-+ :+ e2:(>:*f<+ *$'$4:%+ )-+ ).&+
(-)$-(+-,+).&+:%,"/$%-&:",%A85/+5%&*&()&/+C6+\:64&*+7\:64&*<+
EFFE8@+L#)+).&+&^5%&**$-(+X:*+:4*-+'-)$>:)&/+C6+).&+%&:4$Y:)$-(+
).:)+ ).&+ $()&(*&+ 4$0.)+ -,+ ).&+ *2%&&(+ 2-#4/+ :2)#:446+ $44#'$(:)&+
C-).+).&+,-6&%+:(/+).&+5:%?+*#%%-#(/$(0+).&+C#$4/$(0@+B.$*+':!
)&%$:4+#(/&%*):(/$(0+-,+).&+*2%&&(+:*+:+*-#%2&+-,+C-).+$':0&*+
:(/+4$0.)+X:*+:(+$'5-%):()+%&:4$Y:)$-(+).:)+X:*+:55%-:2.&/+:(/+
&^54-$)&/+X$).+`911$1+&N(9-A,9/"@+N(+).:)+*&(*&<+).&+)&2.($2:4+
5%-5&%)6+-,+).&+*2%&&(+,#(2)$-($(0+:*+:+4$0.)+*-#%2&+.:/+:+':_-%+
LQÀXHQFHRQWKHGHYHORSPHQWRIFRQWHQWZKLFKPHDQWWKDWWKH
LQWHUQDOFRQWHQWZDVJUHDWO\LQÀXHQFHGE\WKHH[WHUQDOPHGLXP
:(/+$)*+$()%$(*$2+2-(/$)$-(*@
B.&+ )65&+ -,+ 2-()&()+ ).:)+ N+ /&>&4-5&/+ ,-%+ `911$1+& N(9-A,9/"+
:4*-+&'5.:*$Y&/+).&+/-#C4&!*$/&/+(:)#%&+-,+).&+*2%&&(<+2%&:)!
$(0+*)%-(0+&^5%&**$-(*+C-).+$(*$/&+).&+C#$4/$(0+:(/+-#)*$/&<+$(+
).&+5:%?@+B.$*+:4)&%(:)&+#*&+-,+).&+*2%&&(<+/&5:%)$(0+,%-'+).&+
7%/89)& 0@& 2$+8,+ $(*):44:)$-(<+ *.-X&/+ .-X+ ).&+ '&/$#'+ 2-#4/+
C&+#*&/+)-+&^.$C$)+:+2-'54&)&46+/$,,&%&()+>$*#:4+*2.&'&<+C:*&/+
RQ D GLIIHUHQW HPSKDVLV RQ VSHFL¿F PDWHULDO TXDOLWLHV RI WKH
*2%&&(@
K&&(+$(+4$0.)+-,+7%/89)&0@&2$+8,<+`911$1+&N(9-A,9/"+':6+,#(2!
)$-(+:*+:(+&^:'54&+-,+.-X+)X-+/$,,&%&()+*)%:)&0$&*+,-%+/&>&4-5!
$(0+2-()&()+2:(+5%-/#2&+>&%6+/$,,&%&()+%&*#4)*<+$(+)&%'*+-,+).&+
5&%2&5)#:4+ "#:4$)$&*<+ :(/+ :#/$&(2&+ 2-'54&)$-(+ :(/+ 5:%)$2$5:!
)$-(@+W.&%&+`911$1+&N(9-A,9/"+X:*+:%0#:C46+e.-))&%f+$(+)&%'*+
-,+ >$*#:4+ 2-()&()<+ $)+ :4*-+ 2-():$(&/+ ,&X&%+ &^)&%(:4+ %&,&%&(2&*+
)-+ $()&%5%&)<+ ).&%&C6+ *#55-%)$(0+ J2U#.:(`*+ #(/&%*):(/$(0+ -,+
GSV
I;KDK
'$+9/"&QJG&`911$1+&N(9-A,9/"&IJKKlLB&$1)$#"
'$+9/"&QQG&`911$1+&N(9-A,9/"&IJKKlLB&59,)$#"
GSQ
I;KDK
I;KDK
85,&:"#$%+:*+%&"#$%$(0+4&**+2-'54&)$-(@+B.$*+2-%%&4:)$-(+':6+
(-)+:4X:6*+&^$*)<+C#)+$(+).$*+2:*&+$)+*#55-%)*+).&+2.:%:2)&%$Y:!
)$-(+-,+`911$1+&N(9-A,9/"+:*+&'54-6$(0+:+.-))&%+'&/$#'+).:(+
7%/89)&0@&2$+8,@+B.&%&,-%&<+$)+$*+%&4&>:()+)-+"#&*)$-(+).&+%&4:!
WLRQEHWZHHQVSHFL¿FW\SHVRIFRQWHQWDQGKRZZHGHWHUPLQH
).&$%+ .-)r2-4/+ >:4#:)$-(@+ B.$*+ C&2-'&*+ &>&(+ '-%&+ 2-'54&^+
X.&(+2-(*$/&%$(0+:44+).&+/$,,&%&()+:*5&2)*+-,+).&+2-()&()<+:(/+
.-X+).&$%+$()&%54:6+':6+2%&:)&+-).&%+'&:($(0*@+B.$*+2-'54&^!
$)6+$*<+#(,-%)#(:)&46<+(-)+://%&**&/+$(+J2U#.:(`*+X%$)$(0*+:(/+
).&%&C6+%&':$(*+:+':))&%+-,+:(:46*$*+:(/+$()&%5%&):)$-(*+X.&(+
%&>$&X$(0+).&+X-%?@+O-%+/-&*+.&+5%->$/&+:(6+(-%':)$>&+'&:!
*#%&*+,-%+_#/0$(0+0%:/&*+-,+.-)+-%+2-4/@+K)$44<+`911$1+&N(9-A;
,9/"+':6+C&+/&*2%$C&/+:*+:+5&%,-%':(2&+).:)+X:*+$()&(/&/+)-+
SURYLGH DQ H[SHULHQFH FORVHU WR KRW ¿OP WKDQ WR WKH FRRO
)&4&5.-(&@
W&+':6+:%0#&+).:)+).&+.-)r2-4/!:*5&2)*+-,+:+'&/$#'+:%&+(-)+
VFLHQWL¿FPHDVXUHVEXWVXEMHFWLYHGHVFULSWLRQVRIH[SHULHQFHG
&,,&2)*@+ D*5&2$:446+ X.&(+ 2-(*$/&%$(0+ `911$1+& N(9-A,9/"+ :(/+
7%/89)& 0@& 2$+8,+ :*+ )X-+ /$,,&%&()+ '&/$:+ $(*):44:)$-(*<+ $)+ C&!
2-'&*+&>$/&()+).:)+).&+$(,-%':)$-(+GH¿QLWLRQ+$*+(-)+-(46+/&)&%!
'$(&/+C6+).&+'&/$#'<+C#)+:4*-+)-+2-()&()+:554$&/@+B.&%&,-%&+$)+
*&&'*+%&:*-(:C4&+)-+&^)&(/+J2U#.:(`*+)&%'*+)-+:4*-+://%&**+
WKHFRQWHQWZKHQDQDO\]LQJWKHVHVSHFL¿FW\SHVRIPHGLDLQ!
*):44:)$-(*@
E/"%,$3"&,"%:G&450$%)&O0)"1&I3$)9%-&%/,$),LB&H",,"&i"^-&I%/,$),$(&
%#3$)5/LB&O3"&i%/1$"/&I#%1("/LB&n%1+&!%&I#%1("/LB&2%/)&
*%8-&M"#"/)"1&I(85/"5+/%A8"/L
;*+N+/$*2#**&/+&:%4$&%<+).&+*)%:)&06+-,+2%&:)$(0+:+.-))&%+'&/$!
#'+':6+C&+%&0:%/&/+:*+:+/&5:%)#%&+,%-'+).&+'-%&+':)&%$:446+
0%-#(/&/+2--4+'&/$:<+X.$2.+)&(/+)-+C%$/0&+:'C$0#-#*+2-()&()+
:(/+ :+ '&/$#'+ ).:)+ ,%:'&*+ ).&+ '&:($(0@+ P(+ ).&+ -).&%+ .:(/<+
).&%&+ :%&+ *-'&+ :*5&2)*+ -,+ `911$1+& N(9-A,9/"+ ).:)+ C#$4/+ -(+ :+
':)&%$:4+#(/&%*):(/$(0+-,+).&+'&/$#'<+*#2.+:*+).&+#*&+-,+4$0.)@
GSZ
:187!406@!11
N(+EFFT<+5#C4$2+/&C:)&+$(+1&(':%?+X:*+.$0.46+,-2#*&/+-(+24$!
':)&+2.:(0&<+04-C:4+X:%'$(0<+:(/+2:%C-(+&'$**$-(*@+B.$*+X:*+
:4*-+ ).&+ 6&:%+ -,+ ).&+ IP3GQ+ 24$':)&+ *#''$)+ $(+ I-5&(.:0&(<+
:(/+-).&%+1:($*.+2$)$&*+X&%&+4$($(0+#5+)-+C&+:+5:%)+-,+).&+(&X+
&(>$%-('&():446+:X:%&+$':0&@+N(+&:%46+EFFT<+).&+2$)6+-,+;:%!
.#*+:((-#(2&/+).:)+).&$%+5%-_&2)&/+0-:4+X:*+)-+C&2-'&+2:%C-(!
(&#)%:4+C&,-%&+).&+6&:%+EFHF@+B.&+&(/&:>-%+X:*+:4%&:/6+X&44+-(+
$)*+X:6<+:(/+).&+'&:*#%&*+:4%&:/6+):?&(+X&%&+)-+C&+5%&*&()&/+
$(+).&+.$*)-%$2:4+&^.$C$)$-(+C#$4/$(0<+M$/&.#*&)<+$(+J:%2.+-,+).&+
*:'&+6&:%@+B.&+&^.$C$)$-(<+IPEFHF<+X:*+*):0&/+:*+:+/$*54:6+-,+
2#%%&()+ :(/+ ,#)#%&+ $($)$:)$>&*+ ).:)+ X&%&+ )-+ C&+ $'54&'&()&/+ )-+
2#)+2:%C-(+&'$**$-(*<+C#)+).&%&+X:*+:4*-+:+*)%-(0+,-2#*+-(+/$:!
4-0+X$).+4-2:4+2$)$Y&(*+-,+;:%.#*+:(/+>$*$)-%*+)-+).&+&^.$C$)$-(@
E-$:%,"& a%--+ X:*+ 2-(2&$>&/+ :*+ :(+ $()&%:2)$>&+ ,:2:/&+ $(*):4!
4:)$-(+ ,-%+ ).&+ &^.$C$)$-(+ .:44<+ M$/&.#*&)<+ :22-''-/:)$(0+ ).&+
IPEFHF+ &^.$C$)$-(@+ I-''$**$-(&/+ C6+ ).&+ '#($2$5:4$)6+ -,+
;:%.#*<+ ).&+ $(*):44:)$-(+ X:*+ /&*$0(&/+ :(/+ /&>&4-5&/+ C6+ %&!
VHDUFKHUVDI¿OLDWHGZLWKWKH0HGLD)DFDGHVSURMHFWDW$DUKXV
=($>&%*$)6@+B.&+ $()&()$-(+ X:*+ )-+ &(0:0&+ 5&/&*)%$:(*+ X:4?$(0+
5:*)+).&+&^.$C$)$-(+C#$4/$(0+$(+#*$(0+).&+,:2:/&+:*+:+>$%)#:4+C#4!
4&)$(+C-:%/+,-%+5#C4$2+/&C:)&@
0TK'%HC$*6+J,(HCJ'C,D6C$6KH%"(-M$/&.#*&)+X:*+C#$4)+$(+GSRR+:*+:+2:>:4%6+.:44<+:(/+).#*+$*+/&*$0!
(:)&/+:*+:+2#4)#%:4+.&%$):0&+C#$4/$(0@+B.$*+'&:()+).:)+X&+X&%&+
(-)+:44-X&/+)-+'-#()+:(6+.:%/X:%&+-(+).&+&^)&%$-%@+B.&%&,-%&<+
GSR
I;KDK
X&+/&2$/&/+)-+#*&+:+)&2.(-4-06+).:)+%&"#$%&/+(-+.:%/X:%&+-(+
).&+.$*)-%$2:4+,:2:/&@+L6+#*$(0+>$/&-+5%-_&2)-%*<+X&+X-#4/+$(!
*)&:/+C&+:C4&+)-+:5546+>$*#:4+2-()&()+)-+).&+,:2:/&+#*$(0+-(46+
4$0.)@+B.$*+X-#4/+2-(2&5)#:446+)#%(+).&+X:44+$()-+:+>$/&-+2:(!
>:*+:(/+$(2-%5-%:)&+).&+)&^)#%&+-,+).&+C%-X(+C%$2?+*#%,:2&@+B.$*+
-4/+X:44+$*+24&:%46+':%?&/+C6+.$*)-%6<+:(/+.:*+:+>$*#:446+%$2.<+
X&:).&%&/+:(/+X-%(+*#%,:2&@
W&+ /&2$/&/+ )-+ ':?&+ *-'&+ )&*)*<+ 5%-_&2)$(0+ >:%$-#*+ )65&*+ -,+
FRQWHQWRQWRWKHIDFDGHZLWKDVPDOORI¿FHSURMHFWRU,WTXLFNO\
C&2:'&+24&:%+).:)+).&+C%$2?*+.:/+:+*)%-(0+>$*#:4+:55&:4<+*$(2&+
).&6+://&/+)&^)#%&+)-+).&+>$*#:4+&,,&2)@+L#)+C&*$/&*+).&+>$*#:4+
)&^)#%&<+).&6+:4*-+2%&:)&/+:+):2)$4&+2-((&2)$-(+C&)X&&(+5%-_&2)!
&/+'&/$#'+:(/+:%2.$)&2)#%&@
B.&+)&*)*+:4*-+*.-X&/+).:)+#*$(0+C4:2?+C:2?0%-#(/*+,-%+>:%$!
-#*+0%:5.$2*+.$/+).&+%&2):(0#4:%+/&4$'$):)$-(+-,+).&+5%-_&2)$-(+
:%&:@+W.:)+).&+2-'5#)&%+*2%&&(+*.-X&/+:*+:+C4:2?+C:2?0%-#(/+
C&2:'&+ $(+ %&:4$)6+ ).&+ C%$2?+ X:44@+ L#)+ :(6+ 0%:5.$2*+ ).:)+ X&%&+
SURMHFWHGDJDLQVWWKHEDFNJURXQGEHFDPHOXPLQRXV¿JXUHVRQ
).&+X:44@+B.&%&,-%&<+).&+5%-_&2)$-(+$(>-4>&/+:+>$*#:4+4:6&%$(0+
-,+ $':0&%6<+ X.&%&+ ).&+ &^$*)$(0+ C%$2?+ X:44+ *&%>&/+ :*+ :+ >$*#:4+
C:2?0%-#(/+,-%+:#0'&()$(0+).&+5%-_&2)&/+0%:5.$2*@+B.$*+:*5&2)+
-,+).&+5%-_&2)&/+'&/$#'+C&2:'&+:(+$'5-%):()+/$*2->&%6+:(/+:+
JURXQGFRQGLWLRQWKDWZDVNH\WRWKH¿QLVKHGFRQFHSW
N(+).$*+$(*):(2&<+).&+)&:'`*+2-(>&%*:)$-(*+X&%&+:2)#:446+&^54$2$)+
:C-#)+$(2-%5-%:)$(0+).&+e':)&%$:4+"#:4$)$&*f+-,+).&+C%$2?+X:44+
:*+:+,-%':4+>$*#:4+:*5&2)+-,+).&+*2%&&(@+;4).-#0.+-#%+>-2:C#!
4:%6+:(/+#(/&%*):(/$(0+-,+':)&%$:4$)6+X:*+*-'&X.:)+4$'$)&/<+
X&+%&0#4:%46+):4?&/+:C-#)+).&+X:44+://$(0+e':)&%$:4$)6f+)-+).&+
&^5%&**$-(@+P#%+$()&()$-(+X:*+)-+5%&*&%>&+).$*+"#:4$)6+X$).+).&+
SURMHFWLRQ E\ XVLQJ VLPSOL¿HG JUDSKLFV (55- RU ORZGH¿QL!
)$-(<+*-+)-+*5&:?8<+X.$2.+X-#4/+-(46+:#0'&()+).&+:%2.$)&2)#%&<+
$(*)&:/+-,+.$/$(0+$)@+N(+-#%+&^5&%$'&()*+X&+,-#(/+).:)+85,+>$!
GSS
I;KDK
'$+9/"&QWG&E-$:%,"&a%--&IJKKTL
'$+9/"&QVG&E-$:%,"&a%--&IJKKTLB&3$#"5&A/5^"(,5/)
GST
I;KDK
I;KDK
*#:4+ 2-()&()<+ *#2.+ :*+ 5.-)-*+ :(/+ %$2.46!2-4-%&/+ 0%:5.$2*<+ /$!
%&2)&/+:))&()$-(+:X:6+,%-'+).&+C%$2?+X:44<+X.&%&:*+2--4+'&/$:+
2-()&()<+*#2.+:*+)&^)+:(/+C4:2?+:(/+X.$)&+0%:5.$2*<+&'5.:*$Y&/+
WKHUHODWLRQVKLSWRWKHEDFNJURXQGWH[WXUH7KLVZDVDGH¿QLQJ
$(*$0.)+$()-+)-+':)&%$:4$)6+-,+C-).+).&+'&/$#'+:(/+).&+*#%,:2&+
-(+X.$2.+$)+X:*+5%-_&2)&/<+X.$2.+*.:5&/+).&+2-(2&5)+/&>&4-5!
'&()+5%-,-#(/46@
,:2:/&@+W-%/*+:(/+*5&&2.+C#CC4&*+:55&:%&/+:*+$'':)&%$:4+:%)$!
,:2)*+-(+).&+)&^)#%&/+C%$2?+X:44@+N(*)&:/+-,+).$(?$(0+-,+).&+X:44+
:*+ :+ *2%&&(<+ ).&+ >$/&-+ 5%-_&2)$-(+ X:*+ #*&/+ :*+ '&:(*+ -,+ ://!
$(0+*&&'$(046+$(/$>$/#:4+5$&2&*+-,+0%:5.$2*<+).&%&C6+C%&:?$(0+
X$).+).&+%&2):(0#4:%+C-#(/:%$&*+-,+)%:/$)$-(:4+>$/&-+5%-_&2)$-(<+
:*+)%:/$)$-(:446+#*&/+,-%+5%&*&()$(0+*4$/&*+-%+'->$&*@+W:6+X&+
:%%$>&/+:)+).$*+#*&+-,+).&+)&2.(-4-06+C6+).$(?$(0+-,+).&+>$/&-+
5%-_&2)$-(+:*+:+'&:(*+-,+5%-/#2$(0+>$*#:4+&,,&2)*+-(+:+':)&!
%$:4<+ $(*)&:/+ -,+ %&0:%/$(0+ $)+ :*+ '&:(*+ -,+ 2%&:)$(0+ $'':)&%$:4+
$':0&*@+B.&+C%$2?+X:44+X:*+(-)+-(46+:+C:2?0%-#(/+,-%+).&+>$!
*#:4+ 2-()&()<+ C#)+ :4*-+ 2-(*2$-#*46+ &'&%0&/+ :*+ :+ ¿JXUH+ $(+ ).&+
2%&:)$>&+5%-2&**<+:(/+4:)&%+C&2:'&+:+?&6+>$*#:4+&4&'&()+$(+).&+
¿QDOLQVWDOODWLRQ
4M(6:%$"(K,
B.&+ 2-(2&5)+ -,+ ).&+ $(*):44:)$-(+ X:*+ /&>&4-5&/+ ,%-'+ ).&+ $/&:+
-,+2%&:)$(0+:+/$:4-0+:C-#)+)-5$2*+*#%%-#(/$(0+24$':)&+2.:(0&@+
B.&+ X:44+ -,+ M$/&.#*&)+ X-#4/+ C&+ 2->&%&/+ $(+ :+ 4:%0&+ (#'C&%+
-,+ X-%/*<+ X.$2.+ 5&/&*)%$:(*+ 2-#4/+ 2-'C$(&+ $()-+ *&()&(2&*<+
*5&44$(0+-#)+>:%$-#*+*):)&'&()*+:(/+-5$($-(*@+J-*)+X-%/*+X&%&+
%&4:)&/+)-+).&+).&'&+-,+24$':)&+2.:(0&<+X.$4&+-).&%*+X&%&+2-(!
_#(2)$-(*+:(/+>&%C*+(&2&**:%6+)-+5%-/#2&+5%-5&%+*&()&(2&*@
W.&(+5&-54&+X:4?&/+:4-(0+).&+*$/&X:4?+(&^)+)-+).&+X:44<+).&$%+
'->&'&()*+ X-#4/+ *)$%+ #5+ ).&+ X-%/*<+ 2:#*$(0+ ).&'+ )-+ *X$%4+
:%-#(/@+ K):(/$(0+ *)$44+ X-#4/+ ':?&+ ).&+ 24-*&*)+ X-%/+ *4-X46+
0%-X+C$00&%<+:(/+&>&()#:446+C&2-'&+2$%2#'*2%$C&/+C6+:+*5&&2.+
C#CC4&@+B.$*+*5&&2.+C#CC4&+X:*+5%-_&2)&/+%$0.)+:C->&+).&+.&:/+
-,+).&+5&%*-(+*):(/$(0+-(+).&+*$/&X:4?<+>$*#:446+*#00&*)$(0+).:)+
).$*+5&%*-(+X:*+*5&:?$(0+).$*+X-%/@+W.&(+'->$(0+,%-'+*$/&+)-+
*$/&<+).&+*5&&2.+C#CC4&+,-44-X&/+).&+5-*$)$-(+-,+).&+5&%*-(+-(+
).&+*$/&X:4?<+:(/+&(:C4&/+.$'r.&%+)-+'->&+$)+$()-+).&+*&()&(2&+
2-'5-*&/+-,+4:%0&%+X-%/*+:)+).&+)-5+-,+).&+X:44@+P(2&+:+(&X+
ZRUG ZDV DGGHG WR WKH VHQWHQFH WKH ¿UVW DGGHG ZRUG GLVDS!
5&:%&/@
:%$-C)(HC$*6+J,(HCJ'C,D6C$6H(,H%-K(",
N(+).$*+2:*&<+)&2.(-4-06+X:*+:554$&/+C6+://$(0+2-()&()+)-+).&+
&^$*)$(0+:%2.$)&2)#%&+X$).-#)+://$(0+):(0$C4&+':)&%$:4*+)-+).&+
GTF
;%0#:C46<+ #*$(0+ ).&+ 85,+ '&/$#'+ -,+ >$/&-+ 5%-_&2)$-(+ ,-%+ /$*!
54:6$(0+X-%/*+%:).&%+).:(+$':0&*+'#*)+C&+%&0:%/&/+:*+:+):2)$2+
,-%+ e2--4$(0+ /-X(f+ ).&+ '&/$#'@+ W.$4&+ $':0&*+ ':6+ C&+ /$*!
SOD\HGLQUDWKHUKLJKGH¿QLWLRQJUDSKLFDOH[SUHVVLRQVVXFKDV
)&^)<+-(+).&+-).&%+.:(/<+5%&*&()+4&**+>$*#:4+$(,-%':)$-(+)-+C&+$(!
)&%5%&)&/+7*&&+).&+/$*2#**$-(+-,+J2U#.:(`*+(-)$-(+-,+GH¿QLWLRQ&
-(+ 5:0&+ TV8@+ B.$*+ /&4$C&%:)&+ *)%:)&06+ 5%->$/&/+ :+ (#'C&%+ -,+
#(2-(>&()$-(:4+%&*#4)*@+9$%*)<+$)+2%&:)&/+:(+&^5%&**$-(+).:)+X:*+
(-)+$''&/$:)&46+'&:($(0,#4<+C#)+$(*)&:/+%&"#$%&/+).&+:#/$&(2&+
)-+&(0:0&+X$).+).&+X-%?@+K&2-(/<+).&+X-%/*+).&'*&4>&*+5%-!
>$/&/+-(46+:+*':44+:'-#()+-,+$(,-%':)$-(<+C#)<+$(+J2U#.:(`*+
)&%'*<+%&"#$%&/+).&+:#/$&(2&+)-+e2-'54&)&f+).&+*&()&(2&*@+B.$*+
):*?+X:*+,#%).&%+.$(/&%&/+C6+).&+,:2)+).:)+).&+*&()&(2&*+'-*)+
-,)&(+2-(*$*)&/+-,+%:(/-'+X-%/*+,%-'+).&+X:44@
B.&+2-'54&)$-(+-,+'&:($(0+X:*+).&%&,-%&+>&%6+-5&(+)-+$()&%!
5%&):)$-(+ g+ $(+ &,,&2)<+ 2%&:)$(0+ :(+ &>&(+ 2-4/&%+ '&/$#'+ C6+ $)*+
%:(/-'(&**@
GTG
I;KDK
I;KDK
B.$*+2:*&+%&4:)&*+)-+(-)$-(*+-,+:%,"/$%-$,@+$(+*&>&%:4+X:6*@+L6+
#*$(0+>$/&-+5%-_&2)$-(<+).&+$(*):44:)$-(+://*+2-()&()+)-+:(+&^$*)!
$(0+*#%,:2&+).:)+.:*+:+/$*)$(2)+)&^)#%&+:(/+>$*#:4+:55&:%:(2&<+C#)+
:4*-+.:*+-()-4-0$2:4+'&:($(0@+B.$*+*#%,:2&+X:*+24&:%46+).&+X:44+
-,+ :+ .$*)-%$2:4+ C#$4/$(0<+ X$).+ >:%$-#*+ *$0(*+ -,+ X&:%+ :(/+ )&:%@+
B.&+2-()&()+X:*+/&*$0(&/+X$).+).$*+,-%':4+':)&%$:4+"#:4$)6+$(+
'$(/<+:*+:+X:6+-,+4:6&%$(0+)&^)+-()-+).&+C#$4/$(0@+E-$:%,"&a%--+
:$'&/+ :)+ C4#%%$(0+ ).&+ C-#(/:%$&*+ C&)X&&(+ *2%&&(+ :(/+ C#$4/!
$(0+C6+#*$(0+:+>$*#:4+4:(0#:0&+).:)+2-(2&:4&/+).&+%&2):(0#4:%+
2:(>:*+)-+X.$2.+).&+)&2.(-4-06+$*+2-(*)%:$(&/@+B.&+$(*):44:)$-(+
).&%&C6+&^54-%&/+).&+$/&:+-,+).&+#(!,%:'&/+$':0&+:*+:(+:4)&%!
(:)$>&+ )-+ ).&+ 2-(>&()$-(:4+ %&2):(0#4:%+ *2%&&(@+ N(+ ).:)+ %&0:%/<+
).&+$(*):44:)$-(+5-)&()$:446+"#&*)$-(&/+).&+':)&%$:4+51,5-5+@+-,+
).&+*2%&&(+C6+2%&:)$(0+:+)&^)#%&/+:(/+#(2-(>&()$-(:446+*.:5&/+
*2%&&(+,-%+:+4:%0&+:#/$&(2&@+N(+$)*+,-%':4<+':)&%$:4+:55&:%:(2&<+
$)+$*+#(4$?&+-#%+2-(>&()$-(:4+2-(2&5)$-(+-,+).&+*2%&&(<+).&%&C6+
&*):C4$*.$(0+:(+&^5&%$'&():4+:55%-:2.+,-%+$)*+#*&@
:%0#:C46+(-)+:*+$()%$0#$(0+:*+).&+-%$0$(:4+$(*):44:)$-(+:)+M$/&!
.#*&)<+$(+;:%.#*@
B.&+"#:4$)6+-,+).&+-%$0$(:4+$(*):44:)$-(+X:*+/$*)$(2)46+0%-#(/&/+
$(+ ).&+ 2-()%:*)+ C&)X&&(+ ).&+ )X-+ /-':$(*+ -,+ ':))&%h+ ).&+ 7$'!
':)&%$:48+>$/&-+5%-_&2)$-(+:(/+).&+7':)&%$:48+C%$2?+X:44@+B.$*+
_#^):5-*$)$-(+':/&+,-%+*#%5%$*$(046+*$'54$*)$2+&^5%&**$-(<+X$).+
:+>$*#:446+:(/+-()-4-0$2:446+%$2.+C:2?0%-#(/@
K$(2&+$)*+-%$0$(:4+$(*):44:)$-(+$(+EFFT<+E-$:%,"&a%--+.:*+C&&(+
*&)+#5+*&>&%:4+)$'&*+:)+/$,,&%&()+4-2:)$-(*<+:'-(0+X.$2.+X&%&+
).&+ ODzB+ &^.$C$)$-(+ $(+;:%.#*+ 4:)&%+ $(+ EFFT<+ ).&+ I%&:)$>$)6+
W-%4/+ L$&((:4&+ &^.$C$)$-(+ $(+ P?4:.-':+ I$)6+ 7=K8+ $(+ EFGF<+
DQG ¿QDOO\ UHZRUNHG DV D SRHWU\JHQHUDWLQJ LQVWDOODWLRQ IRU
).&+3-&)%6+\:44+:)+M-*?$4/&+9&*)$>:4+EFGG@+;4).-#0.+).&*&+>&%!
*$-(*+.:>&+)&2.($2:446+,#(2)$-(&/+4$?&+).&+-%$0$(:4+$(*):44:)$-(<+
).&$%+>$*#:4+2.:%:2)&%+.:*+C&&(+>&%6+/$,,&%&()@+N(+&:2.+2:*&<+).&+
#*&+-,+C4:2?+2:%5&)*+:(/+X.$)&+X:44*+:*+5%-_&2)$-(+*#%,:2&*+5%-!
>$/&/+:+*$'54&%<+4&**+):2)$4&+&^5%&**$-(+).:)+:))%:2)&/+4&**+:))&(!
)$-(+)-+).&+':)&%$:4+:(/+:%2.$)&2)#%&+C&.$(/+).&+*2%&&(@+;4*-<+
).&+2.:(0&+-,+2-()&^)+)-+&^.$C$)$-(+*5:2&*+:(/+&>&()+>&(#&*<+
.:/+:(+$'5:2)+-(+).&+5&%2&5)$-(+-,+).&+$(*):44:)$-(@+;4).-#0.+
).&+(&X+*&))$(0*+,#(2)$-(&/+X&44<+).&+0&(&%:4+:55&:%:(2&+X:*+
GTE
E/"%,$3"&,"%:G&`91"&R$"-)"1&IA/5^"(,&:%1%+"/LB&450$%)&O0;
)"1B&M"/&X"1/$>&N,5/:
!47<9.50/0
7,:5)A8"/"+X:*+:+4$0.)+:(/+*-#(/+$(*):44:)$-(+-%$0$(:446+2%&!
X:*+:+4$0.)+:(/+*-#(/+$(*):44:)$-(+-%$0$(:446+2%&!
:)&/+,-%+).&+I$)6+\:44+K"#:%&+$(+I-5&(.:0&(<+:(/+/$*54:6&/+,-%+
)X-+X&&?*+/#%$(0+).&+IP3GQ+24$':)&+*#''$)+-,+EFFT@+N)+X:*+
C:*&/+-(+).&+$/&:+-,+2%&:)$(0+:+>$*#:4+:(/+:#/$C4&+&^5%&**$-(+
-,+'&:*#%&'&()*+-,+2:%C-(+/$-^$/&+:)+).%&&+/$,,&%&()+4-2:)$-(*+
$(+ ).&+ I-5&(.:0&(+ '&)%-5-4$):(+ :%&:@+ I:%C-(+ /$-^$/&<+ :+ 0:*+
).:)+$*+(-)+5&%2&5)$C4&+)-+).&+.#':(+*&(*&*<+X:*+&^5%&**&/+:*+
.$0.46+ 5&%2&5)$C4&+ &^5&%$&(2&@+ 3%&*&()$(0+ :(+ :C*)%:2)+ &^5%&*!
*$-(+X$).+>&%6+,&X+*6'C-4$2+:**-2$:)$-(*+:4*-+"#&*)$-(*+.-X+
X&+ %&5%&*&()+ ).&+ /:):+ ).:)+ $(/$2:)&+ 24$':)&+ 2.:(0&<+ :(/+ .-X+
*#2.+%&5%&*&():)$-(*+':6+C$:*+).&+5#C4$2+/&C:)&@
7,:5)A8"/"+ X:*+ C:*&/+ -(+ %&:4!)$'&+ /:):+ ,%-'+ IPE+ *&(*-%*<+
X.$2.+2-(*):()46+2-44&2)&/+:(/+)%:(*,-%'&/+/:):+$()-+:(+&>&%!
2.:(0$(0+ 4$0.)+ :(/+ *-#(/+ &^5&%$&(2&+ :)+ ).&+ 2$)6+ *"#:%&@+ B.&+
$(*):44:)$-(+ 2-(*$*)&/+ -,+ :+ 4:%0&+ C-^!*.:5&/+ UD1+ *2#45)#%&<+
>$&X:C4&+ ,%-'+ :44+ *$/&*<+ *.-X$(0+ ).%&&+ /$*)$(2)<+ 5#4*:)$(0+
'->&'&()*@+B.&*&+'->&'&()*+5%&*&()&/+.-%$Y-():4+$44#'$(:)!
HGVTXDUHVÀRDWLQJXSDQGGRZQWKHVFXOSWXUH7KHWHPSRRI
).&*&+5#4*&*<+:4-(0+X$).+).&+->&%:44+2-4-%+-,+).&+4$0.)<+2.:(0&/+
GTH
I;KDK
I;KDK
:22-%/$(0+)-+).&+4&>&4*+-,+2:%C-(+/$-^$/&+:)+).&+).%&&+4-2:)$-(*@+
B.$*+2%&:)&/+/$,,&%&()+&^5%&**$-(*+:)+/$,,&%&()+)$'&*+-,+).&+/:6<+
DOVR VKRZLQJ XQH[SHFWHG FKDQJHV GHSHQGLQJ RQ WUDI¿F DQG
X&:).&%+ 2-(/$)$-(*@+B.&+ ->&%:44+ &^5%&**$-(+ X:*+ :+ '&/$):)$>&+
%.6).'+-,+*-#(/+:(/+4$0.)+).:)+*4-X46+2.:(0&/+2.:%:2)&%+/#%!
$(0+).&+/:6@
O&^)+)-+).&+*2#45)#%&+X:*+:+*):(/:%/+2-'5#)&%+'-($)-%<+*.-X!
$(0+/&):$4&/+$(,-%':)$-(+:C-#)+).&+4&>&4*+-,+2:%C-(+/$-^$/&+:)+
).&+).%&&+4-2:)$-(*+$(+I-5&(.:0&(@+N)+:4*-+*.-X&/+.-X+).&*&+
'&:*#%&'&()*+ X&%&+ C&$(0+ )%:(*4:)&/+ $()-+ *-#(/+ :(/+ 4$0.)<+
).&%&C6+&^54:$($(0+).&+:C*)%:2)+&(2-/&/+'&**:0&@
B.&+$/&:+C&.$(/+7,:5)A8"/"+X:*+)-+"#&*)$-(+.-X+/"A/")"1,%;
,$51)+,#(2)$-(+:*+$(/$2:)-%*+-,+).$(0*+).:)+:%&+-).&%X$*&+$(:22&*!
*$C4&+)-+).&+.#':(+*&(*&*<+*#2.+:*+2:%C-(+/$-^$/&@+I-(2%&)&46+
&^5%&**$(0++:(+$'5&%2&5)$C4&+*#C*):(2&+$(>-4>&*+:+5%-2&**+-,+
WUDQVODWLRQZKHUHV\PEROLFVLJQL¿HUVPD\ELDVWKHLQWHUSUHWD!
)$-(+-,+).&+&^5%&**$-(@+9-%+$(*):(2&<+).&+2-4-%+0%&&(+':6+/&(-)&+
e*:,&f<+X.$4&+%&/+$*+2-(>&()$-(:446+4$(?&/+)-+e/:(0&%f@+K$'$4:%+
2-(>&()$-(*+:5546+)-+*2:4&*<+'&)&%*<+-%+(#'C&%*+).:)+:4*-+$'546+
).&+(-)$-(*+-,+e.$0.f+-%+e4-Xf@+B.&+/&2$*$-(+)-+:>-$/+-,+).&*&+
(-%':)$>&+&^5%&**$-(*<+X$/&46+5%&>:4&()+$(+5#C4$2+/$*2-#%*&+-(+
24$':)&+2.:(0&<+X:*+2-(*2$-#*46+':/&@+N(*)&:/<+X&+X:()&/+)-+
2%&:)&+:+(55-+'&/$#'+).:)+5%->$/&/+:+>&%6+4$'$)&/+:'-#()+-,+
$(,-%':)$-(<+:44-X$(0+,-%+'#4)$54&+$()&%5%&):)$-(*+C6+).&+:#/$!
&(2&@
B.$*+ 2:*&+ .:*+ :4*-+ C&&(+ /$*2#**&/+ $(+ ).&+ 5:5&%+ eD^5&%$&(2!
$(0+ ).&+ (-(!*&(*#-#*+ g+ P(+ '&:*#%&'&()<+ %&5%&*&():)$-(+ :(/+
2-(2&5)$-(+$(+#%C:(+:%)+$(*):44:)$-(*f+7L%&$(C_&%0+&)+:4@<+EFGF8<+
X.&%&+).&+5%-C4&'+-,+%&5%&*&()$(0+24$':)&+/:):+$*+,#%).&%+&4:C!
RUDWHG7KHSDSHUDGGUHVVHVWKHSUREOHPDWLFFRQÀLFWEHWZHHQ
VFLHQWL¿F DQG DUWLVWLF DSSURDFKHV WR GDWD UHSUHVHQWDWLRQ DQG
GTV
'$+9/"&QUG&7,:5)A8"/"&D&#$)A-%@"#&$1&N@#1"@&JKFF
M85,5&0@&M","/&!9/A8@&m
GTQ
I;KDK
I;KDK
:4*-+).&+"#&*)$-(+-,+.-X+:C*)%:2)+&^5%&**$-(*+:%&+%&2&$>&/+C6+
:(+$()&%5%&)$(0+:#/$&(2&@
*"#:%&@+B.$*+'&:()+).:)+:4).-#0.+).&+'&/$#'+X:*+"#$)&+2-4/<+
$)+.:/+).&+5-)&()$:4+)-+:))%:2)+:))&()$-(+)-+).&+'&/$#'+$)*&4,+:*+
¿JXUH
0TK'%HC$*6+J,(HCJ'C,D6C$6KH%"(-B.&+/&*$0(+-,+ ).&+*2%&&(+#*&/+ $(+).&+ 7,:5)A8"/"+$(*):44:)$-(+
X:*+2-(2&$>&/+,%-'+).&+/&*$%&+,-%+:+.$0.46+>$*$C4&+&^5%&**$-(+
,-%+).&+I$)6+K"#:%&+$(+I-5&(.:0&(<+X.$4&+"#&*)$-($(0+).&+%&5!
%&*&():)$-(+-,+2:%C-(+/$-^$/&+:*+:+>:4#&4&**+&^5%&**$-(@+;,)&%+
2-(*$/&%$(0+>:%$-#*+UD1+)&2.(-4-0$&*<+X&+/&2$/&/+)-+#*&+).&+
5:(&4*+).:)+X&%&+:4*-+#*&/+,-%+).&+5%&>$-#*46!/$*2#**&/+$(*):4!
4:)$-(<+ 7%/89)& 0@& 2$+8, DV LW ZDV D ÀH[LEOH WHFKQRORJ\ WKDW
X:*+:4*-+>&%6+C%$0.)+:(/+*&'$!)%:(*5:%&()@+L6+%&!).$(?$(0+).&+
SK\VLFDOFRQ¿JXUDWLRQRIH[LVWLQJVFUHHQSDQHOVZHZHUHDEOH
2%&:)&+ :+ (&X+ >$*#:4+ &()$)6n+ :+ '&/$#'+ X$).+ :+ *2#45)#%:4+ "#:4!
$)6+).:)+':)2.&/+).&+4&>&4+-,+:C*)%:2)$-(+X&+$()&(/&/+,-%+).$*+
2-(2&5)@
B.&+5.6*$2:4+$(*):44:)$-(+X:*+':/&+-,+,-#%+UD1+*2%&&(*<+X.$2.+
X&%&+:%%:(0&/+$(+:+*"#:%&+,-%':)$-(<+).&%&C6+2%&:)$(0+:+C-^!
*.:5&/+*2#45)#%&+).:)+2-#4/+C&+>$&X&/+,%-'+:44+*$/&*@+B.&+,-#%+
*2%&&(*+ X&%&+ 2-(*)%#2)&/+ X$).+ :+ X$/&+ 5$^&4+ 5$)2.<+ ':?$(0+ $)+
5-**$C4&+)-+4--?+C&)X&&(+).&+UD1+*)%$5*@+B.$*+'&:()+).:)+).&+
:#/$&(2&+2-#4/+>:0#&46+*&&+).&+2-()&()+-(+).&+-).&%+*$/&*+-,+
).&+*2#45)#%&+C6+4--?$(0+).%-#0.+).&+5:(&4*@+L&2:#*&+).&+$(*):4!
4:)$-(+/$*54:6&/+5#4*:)$(0+4$(&*+-(+).&+*2%&&(*<+).&+5&%2&$>&/+
&,,&2)+X:*+-,+).%&&!/$'&(*$-(:4+*"#:%&*+'->$(0+#5+:(/+/-X(<+
$(*)&:/+-,+)X-!/$'&(*$-(:4+4$(&*@
;4).-#0.+ ).&+ *2%&&(+ )&2.(-4-06+ #*&/+ $(+ 7,:5)A8"/"+ X:*+ ).&+
*:'&+:*+).:)+#*&/+$(+7%/89)&0@&2$+8,<+$)+X:*+2.-*&(+,-%+:(-).&%+
*&)+ -,+ %&:*-(*@+ L&*$/&*+ .:>$(0+ :+ 4-X!%&*-4#)$-(<+ $)*+ 5-)&()$:4+
C%$0.)(&**+X:*+"#$)&+.$0.<+':?$(0+$)+.$0.46+>$*$C4&+$(+).&+2$)6+
GTZ
:%$-C)(HC$*6+J,(HCJ'C,D6C$6H(,H%-K(",
W$).+7,:5)A8"/"<+).&+*2%&&(+C&2:'&+:+*2#45)#%&+).:)+(-)+-(46+
/&,-%'&/+).&+$':0&+*5:)$:446<+C#)+:4*-+2%&:)&/+(&X+&^5%&**$-(*+
).:)+X&%&+/&)&%'$(&/+C6+).&+,-%'+-,+).&+'&/$#'@+B.&+':)&%$:4!
$)6+-,+).&+*2%&&(+%&4:)&*+)-+C-).+).&+5.6*$2:4+5%-5&%)$&*+-,+).&+
VFUHHQSDQHOVDQGWKHVSHFLDOFRQ¿JXUDWLRQRISDQHOV7,:5;
)A8"/"+:55%-:2.&/+).&+*2%&&(+C-).+:*+:%,,"/<+$(+).&+*&(*&+).:)+
LWSURYLGHVDQH[SHULPHQWDOFRQ¿JXUDWLRQRIWKHLPDJHVXUIDFH
:(/+:4*-+:*+).&+*&)+-,+C5/:%-+>$*#:4+2.:%:2)&%$*)$2*+$(+).&+2-(!
)&()+).:)+X:*+/&>&4-5&/+,%-'+).&+-#)*&)+-,+).$*+(-(!)%:/$)$-(:4+
VFUHHQFRQ¿JXUDWLRQ7KHSXOVDWLQJFRQWHQWRQWKHSDQHOVZDV
/&*$0(&/+X$).+).$*+':)&%$:4$)6+$(+'$(/<+2%&:)$(0+'&/$#'!*5&!
FL¿FJUDSKLFVIRUWKHVFXOSWXUH
N(+)&%'*+-,+C-).+%&*-4#)$-(+:(/+2-()&()<+).&+7,:5)A8"/"+*2%&&(+
X:*+ :+ (5-#+ '&/$#'<+ :*+ $)+ 5%->$/&/+ :+ >&%6+ 4$'$)&/+ :'-#()+ -,+
$(,-%':)$-(<+5%&*&()&/+$(+:(+:C*)%:2)&/+,-%'@+B.$*+2-4/(&**<+$(+
J2U#.:(`*+*&(*&<+%&"#$%&*+'-%&+$()&%5%&):)$-(+-(+).&+5:%)+-,+
).&+:#/$&(2&<+/&':(/$(0+).:)+).&6+%&:/+).&+:)):2.&/+&^54:(:!
)$-(+5%&*&()&/+C&*$/&+).&+$(*):44:)$-(@+a$*#:446<+).&+2-()&()+X:*+
:4*-+ (5-#<+ C#)+ ).&+ &,,&2)+ -,+ 5#4*:)$(0+ 4$0.)+ 2%&:)&/+ :(+ :4'-*)+
'&/$):)$>&+&,,&2)<+&>-?$(0+).&+%&2&5)$-(+-,+e.-)f+'&/$:<+X.&%&+
).&+>$&X&%+$*+4&**+:2)$>&+:(/+'-%&+$''&%*&/+$(+).&+&^5&%$&(2&@+
;)'-*5.&%&+2:44*+,-%+:+2-'54&^+5&%2&5)$-(+-,+).&+*2%&&(`*+':!
)&%$:4$)6<+://%&**$(0+'&/$#'<+2-()&()<+:(/+).&$%+$()&%%&4:)$-(@
W$).+7,:5)A8"/"<+X&+&(2-#()&%&/+).&+5%-C4&'+-,+).&+:#/$&(2&+
(-)+ $''&/$:)&46+ 0%:*5$(0+ $)*+ '&:($(0@+ B.$*+ X:*+ *-'&X.:)+
&^5&2)&/<+*$(2&+).&+X-%?+X:*+>&%6+:C*)%:2)<+-X$(0+)-+$)*+(5-#+
GTR
I;KDK
I;KDK
(:)#%&@+L#)+'-*)+-,+).&+:#/$&(2&+/$/+(-)+*&&?+-#)+).&+$(,-%':!
)$-(+ 5%&*&()&/+ C&*$/&+ ).&+ *2#45)#%&<+ &$).&%@+ N)+ $*+ 5-**$C4&+ ).:)+
).&+:C*)%:2)+&^5%&**$-(+X:*+)--+2-4/+)-+2-'5%&.&(/<+:(/+':(6+
5&-54&+_#*)+0:>&+#5+-(+#(/&%*):(/$(0+$)@+B.$*+*#00&*)*+).:)+).&+
2-4/(&**+-,+).&+'&/$#'+%&*#4)&/+$(+/$*&(0:0&'&()<+%:).&%+).:(+
5:%)$2$5:)$-(+ :(/+ 2-'54&)$-(<+ :*+ J2U#.:(+ '$0.)+ :%0#&@+ N(!
*)&:/+-,+C&$(0+%&0:%/&/+:*+:(+$()%$0#$(0+:%)+$(*):44:)$-(<+':(6+
5:**&%*!C6+':6+.:>&+%&0$*)&%&/+$)+:*+:#)-':)&/<+:C*)%:2)+4$0.)!
$(0<+:+'&/$#'+X$).-#)+:+'&**:0&<+:*+J2U#.:(+/&*2%$C&/+).&+
&4&2)%$2+4$0.)$(0+7J2U#.:(<+GTZV<+h+S8@
;*+/$*2#**&/+&:%4$&%<+).&+(-)$-(+-,+2--4+'&/$:+:4*-+$'54$&*+:+
/&*$%&+,-%+(5:A-",$51<+C6+.$()$(0+:)+X:6*+-,+2%&:)$(0+24-*#%&@+N(+
7%/89)&0@&2$+8,<+).&%&+X:*+:(+-C>$-#*+-5&($(0+,-%+$()&%5%&):!
)$-(+:(/+24-*#%&<+X.$4&+7,:5)A8"/"+X:*+4&**+*)%:$0.),-%X:%/@+
;4).-#0.+$)+5%&*&()&/+:+*)%-(0+¿JXUH<+$)*+2-(/$)$-(*+X&%&+4&**+
&>$/&()<+ :(/+ %&"#$%&/+ ).&+ :#/$&(2&+ )-+ &(0:0&+ $(+ &4:C-%:)&46+
GLVFHUQLQJ¿JXUHIURPJURXQGLQRUGHUWRUHDGLWVFRQWHQW7,;
:5)A8"/"+).&%&C6+C&2:'&+:(+&^:'54&+-,+.-X+(55-+'&/$:+':6<+
$(*)&:/+-,+$(2%&:*$(0+&(0:0&'&()+C6+).&+:#/$&(2&<+4&:/+)-+/$*!
&(0:0&'&()<+$,+$(,-%':)$-(+$*+)--+'&:0&%<+-%+$*+4&**+:22&**$C4&@
).&+:%)X-%?+X:*+54:2&/+$(+:+2-()&^)+-,+&^.$C$)$-(*+:C-#)+%&/#2!
$(0+2:%C-(+/$-^$/&+&'$**$-(*<+:(/+7,:5)A8"/"+':6+.:>&+C&&(+
$()&%5%&)&/+ :*+ :+ )&2.(-4-06+ ,-%+ *$'$4:%+ 5#%5-*&*@+ N,+ ).$*+ X:*+
:2)#:446+).&+2:*&<+).$*+':6+C&+/&*2%$C&/+:*+:+'$*':)2.+C&)X&&(+
).&+ $()&(/&/+ 0%-#(/+ -,+ ).&+ '&/$#'<+ :(/+ ).&+ :2)#:4+ 0%-#(/+
5%->$/&/+C&+).&+2$)6+*"#:%&@+M&,%:'$(0+).&+'&/$#'+,:$4&/+)-+
5%->$/&+).&+5%-5&%+5%&2-(/$)$-(*+%&"#$%&/+,-%+).&+:#/$&(2&+)-+
%&0:%/+$)+:*+:%)X-%?@+B.$*+*.-X*+.-X+0%-#(/+2-(/$)$-(*+':6+
FRPHIURPDQH[WHUQDOVRXUFHFKDQJLQJWKHUHDGLQJRI¿JXUHV
D>&(+ ).-#0.+ 7,:5)A8"/"+ X:*+ 2-'54&)&/+ :22-%/$(0+ )-+ -#%+
54:(*<+).&+$()&()$-(+-,+2%&:)$(0+:(+:'C$0#-#*+6&)+$()%$0#$(0+:%)!
X-%?+X:*+4&**+*#22&**,#4@+;+5-**$C4&+&^54:(:)$-(+,-%+).$*+':6+
C&+,-#(/+$(+).&+,%:'$(0+-,+).&+:%)X-%?<+).&+.$//&(+2-(/$)$-(*+-,+
).&++/591#RUPRUHVSHFL¿FDOO\LWVFRQWH[WRIWKHFLW\VTXDUH
LQ&RSHQKDJHQ$WWKHWLPHRI&23 WKHVTXDUHZDV ¿OOHG
X$).+>:%$-#*+&^.$C$)$-(*<+&>&()*<+:(/+5&%,-%':(2&*@+B.$*+':/&+
).&+:%&:+$()-+:+.&)&%-0&(&-#*+*5:2&+).:)+X:*+*-'&X.:)+2.:-)$2+
:(/+>&%6+#(2-(>&()$-(:4+,-%+:%)X-%?@+;4).-#0.+X&+?(&X+).:)+
).&%&+X-#4/+C&+-).&%+&^.$C$)$-(*+$(+).&+*"#:%&<+X&+.:/+(-+X:6+
-,+?(-X$(0+.-X+).&6+X-#4/+:2)#:446+4--?@+B.&+%&*#4)+X:*+).:)+
E/"%,$3"&,"%:G&!5/,"1&=/"$10^"/+&IA/5^"(,&:%1%+"/LB&!5/,"1&
`$$)B&450$%)&O0)"1B&`%):9)&291#$1+
GTS
7,:5)A8"/"+X:*+5%&*&()&/+:0:$(+$(+O->&'C&%+EFGE<+:*+5:%)+-,+
:+1:($*.+&^.$C$)$-(+$(+K6/(&6@+B.&+4$0.)+:(/+*-#(/+*2#45)#%&+
X:*+$(*):44&/+:)+).&+I#*)-'*+\-#*&+$(+2&()%:4+K6/(&6<+X.&%&+
$)+X:*+&^.$C$)&/+,-%+:C-#)+:+X&&?@+I#*)-'*+\-#*&+$*+:+5#C4$2+
C#$4/$(0+ ).:)+ .-#*&*+ :+ 5#C4$2+ 4$C%:%6<+ 2-(,&%&(2&+ %--'*<+ :(/+
&^.$C$)$-(+*5:2&*@+N(+).$*+2-()&^)<+).&+:%)X-%?+%&2&$>&/+:+4$))4&+
'-%&+:))&()$-(+).:)+$)+.:/+.:/+$(+I-5&(.:0&(<+C#)+*)$44+,:%+4&**+
).:(+X&+.:/+&^5&2)&/@+;0:$(<+).$*+*#00&*)*+).:)+).&+2-()&^)+X:*+
(-)+-5)$':4+,-%+%&:/$(0+).&+$(*):44:)$-(+:*+:(+:%)X-%?<+:(/+).:)+
).&+X-%?+X:*+5-**$C46+)--+(55-+,-%+'#2.+*&(*&+)-+C&+':/&+-,+$)@
30;7!/R6.!=818<;
B.&+ 4:*)+ 2:*&+ $(+ ).&+ '&/$:+ ,:2:/&+ 5%-_&2)+ X:*+ ).&+ *"1:%/>&
M%3$-$51+7-%+1:($*.+3:>$4$-(8+,-%+D^5-+EFGF<+$(+K.:(0.:$@+B.&+
C#$4/$(0+X:*+*.:5&/+4$?&+:+/-#C4&+*5$%:4+?(-)<+2%&:)$(0+:+4-(0<+
FXUYHGIDFDGHYLHZHGDVWZRÀRRUVDOWKRXJKEHLQJWKHVDPH
FRQWLQXRXV ÀRRU ZUDSSLQJ RYHU LW VHOI 7KLV PHWHUORQJ
,:2:/&<+5$&%2&/+C6+HZFF+$44#'$(:)&/+.-4&*<+X:*+)#%(&/+$()-+:+
4:%0&<+>$*#:4+'&/$#'@
GTT
I;KDK
B.&+ /&>&4-5'&()+ -,+ ).$*+ 2:*&+ 4:*)&/+ ,-%+ :4'-*)+ :+ 6&:%<+ ,%-'+
'$/+EFFT+)-+).&+-5&($(0+-,+).&+C#$4/$(0+$(+J:6+EFGF@+B.&%&!
,-%&<+).$*+2:*&+X$44+C&+/&*2%$C&/+$(+0%&:)&%+/&):$4+).:(+).&+-).&%+
2:*&*@+ N)+ $*+ /&*2%$C&/+ &>&(+ '-%&+ &^)&(*$>&46+ $(+ '6+ ':*)&%`*+
).&*$*+7DC*&(<+EFGF8@
B.&+*"1:%/>&M%3$-$51+'&/$:+,:2:/&+X:*+:+2-44:C-%:)$-(+X$).+
-#%+ 5%-_&2)+ 5:%)(&%*<+ LN]<+ X.-+ .:/+ X-(+ ).&+ 2-'5&)$)$-(+ ,-%+
/&*$0($(0+).&+C#$4/$(0@+B.&$%+/&*$0(+X:*+:4%&:/6+2-'54&)&/+:)+
).&+)$'&+X&+_-$(&/+).&+5%-_&2)<+:(/+$)+,&:)#%&/+:+,:2:/&+X$).+:+
*4:()&/+0%$/!5:))&%(+-,+.-4&*+-,+>:%$-#*+*$Y&*@+B.$*+*&&'&/+:(+
$()&%&*)$(0+C#)+2.:44&(0$(0+2:*&+,-%+).&+!"#$%&'%(%#")+5%-_&2)+
)-+&^54-%&+).&+5-)&()$:4+-,+'&/$:+:%2.$)&2)#%&+-(+:+4:%0&+*2:4&@
'$+9/"&QkG&*"1:%/>&M%3$-$51&:5#"-&0@&=<i
EFF
I;KDK
B.&+C#$4/$(0+X:*+(-)+-(46+54:((&/+:*+:+>&%6+2-'54&^+5$&2&+-,+
:%2.$)&2)#%&<+C#)+$)*+,:2:/&+X:*+:4*-+>&%6+#(#*#:4<+:(/+:44-X&/+
,-%+ ).&+ *&:'4&**+ $()&0%:)$-(+ -,+ 4$0.)$(0+ X$).$(+ ).&+ *)%#2)#%&<+
ZLWKRXWDGGLQJDQ\YLVLEOH¿[WXUHV7KHUHVXOWLQJPHGLDIDFDGH
X:*+).&+&"#$>:4&()+-,+:+ZEFtS+5$^&4+*2%&&(<+C#)+X$).+).&+5$^&4*+
4:$/+ -#)+ $(+ :+ 5:))&%(+ ).:)+ X%:55&/+ :%-#(/+ ).&+ C#$4/$(0<+ ':?!
$(0+$)+$'5-**$C4&+)-+*&&+'-%&+).:(+.:4,+-,+).&+*2%&&(+,%-'+:(6+
>$&X5-$()@+D:2.+5$^&4+X:*+%&5%&*&()&/+C6+:(+$44#'$(:)&/+)#C&<+
X.$2.+2%&:)&/+:+2$%2#4:%+-%+2%&*2&()+*.:5&<+/&5&(/$(0+-(+).&+
:(04&+-,+>$&X@+B.&*&+5.6*$2:4+5%-5&%)$&*+-,+).&+C#$4/$(0+':/&+
).&+ %&*#4)$(0+ '&/$:+ ,:2:/&+ >&%6+ /$,,&%&()+ ,%-'+ -).&%+ '&/$:+
,:2:/&*<+ :(/+ &*5&2$:446+ #(4$?&+ :(6+ )%:/$)$-(:4+ *2%&&(*@+ N)+ X:*+
FOHDUWKDWDORWRIYLVXDOFRQWHQWZRXOGEHGLI¿FXOWWRSHUFHLYH
:(/+).:)+2-()&()+.:/+)-+C&+*5&2$:446+/&*$0(&/+,-%+).$*+5:%)$2#4:%+
'&/$:+,:2:/&@
0TK'%HC$*6+J,(HCJ'C,D6C$6KH%"(-B.&+ 2.:44&(0&*+ -,+ /&*$0($(0+ '&:($(0,#4+ 2-()&()+ ,-%+ ).&+ 5:!
>$4$-(+ %&4:)&/+ (-)+ -(46+ )-+ #(/&%*):(/$(0+ $)*+ 2-()&^)<+ C#)+ :4*-+
)-+:(+#(/&%*):(/$(0+-,+).&+':)&%$:4+2-(*)%:$()*+:*+5:%)+-,+).&+
+/591#+,-%+).&+'&/$#'@+N)+C&2:'&+24&:%+).:)+:4).-#0.+X&+X&%&+
2-(*)%:$(&/+)-+/&*$0(+).&+2-()&()+-(+2-'5#)&%*<+).&+2-'5#)&%+
*2%&&(+:(/+).&+'&/$:+,:2:/&+.:/+-(46+,&X+*$'$4:%$)$&*<+':?$(0+
LWGLI¿FXOWWRSUHGLFWWKH¿QDOUHVXOWRIWKHGHVLJQSURFHVV$IWHU
%&>$&X$(0+&^$*)$(0+*-4#)$-(*+,-%+>$*#:4$Y$(0+'&/$:+,:2:/&*<+X&+
%&:4$Y&/+).:)+).&+:>:$4:C4&+*-,)X:%&+2-#4/+(-)+:22-#()+,-%+).&+
2-'54&^$)6+-,+).$*+5:%)$2#4:%+,:2:/&<+X$).+%&0:%/+)-+).&+*.:5&+-,+
).&+C#$4/$(0<+).&+5$^&4+:%%:6<+:(/+).&+5$^&4*`+)#C#4:%+*.:5&@+N(+:+
*&(*&<+).$*+2-(24#*$-(+5%->&/+).:)<+4$?&+*2%&&(*<+'&/$:+,:2:/&*+
DUHVWLOOZLGHO\SUHVXPHGWREHÀDWUHFWDQJXODUVXUIDFHV
B.$*+$**#&+,-%2&/+#*+)-+/&>&4-5+*-'&+2#*)-'+)--4*+,-%+>$*#:4$Y!
EFG
I;KDK
I;KDK
$(0+2-()&()+C&,-%&+$)+X:*+/&54-6&/+-(+).&+:2)#:4+C#$4/$(0@+B.&+
5%-0%:''&%*+5%-/#2&/+)X-+*&5:%:)&+>$*#:4$Y:)$-(+)--4*<+X.$2.+
DGGUHVVHGGLIIHUHQWDVSHFWVRIWKH¿QDOEXLOGLQJLQHDFKWKHLU
-X(+X:6*<+:*+:+>$%)#:4+'-/&4+:(/+:+5%-_&2)$-(+'-/&4@
7KH¿UVWWRROZDVDYLUWXDO'PRGHORIWKHWXEHVLQWKHSDYLO!
$-(`*+ ,:2:/&<+ C:*&/+ -(+ I;1+ + %&(/&%$(0*+ ,%-'+ ).&+ :%2.$)&2)*@+
N(+).$*+'-/&4<+/&*$0(&%*+X&%&+:C4&+://%&**+).&+2-4-%*+-,+&:2.+
)#C&+ $(+ %&:4!)$'&<+ X.$4&+ :4*-+ C&$(0+ :C4&+ )-+ %-):)&+ ).&+ '-/&4<+
:(/+>$&X+$)+,%-'+>:%$-#*+:(04&*@+B.$*+X:*+:+*$'54&+:(/+4$0.)!
X&$0.)+)--4+).:)+X:*+&:*6+)-+%#(+:*+:+>$*#:4$Y&%+X.$4&+/&*$0($(0+
2-()&()@+N)+,#(2)$-(&/+X&44+,-%+:+*$(04&+/&*$0(&%+$(+,%-()+-,+.$*+
2-'5#)&%<+C#)+X&+,&4)+).:)+$)+4:2?&/+).&+':)&%$:4$)6+-,+:+5.6*$2:4+
UHSUHVHQWDWLRQDVLWZDVVWLOODÀDWLPDJHZLWKRQO\RQHYLVXDO
5&%*5&2)$>&@
B.$*+$**#&+X:*+://%&**&/+C6+).&+*&2-(/+)--4<+X.$2.+X:*+:+GhGFF+
*2:4&<+5.6*$2:4+'-/&4@+=*$(0+:+*5&2$:4+)&2.($"#&+/&>&4-5&/+:)+
I;aN<+X&+X&%&+:C4&+)-+5%-_&2)+:+>$%)#:4+*#%,:2&+-()-+).&+5.6*$!
2:4+'-/&4+#*$(0+).%&&+>$/&-+5%-_&2)-%*<+).&%&C6+*$'#4:)$(0+).&+
5$^&4*+C6+://$(0+5:))&%(*+$(+4$0.)@+;4).-#0.+).&+%&5%&*&():)$-(+
-,+5$^&4*+X:*+(-)+:*+:22#%:)&+:*+$(+).&+>$%)#:4+'-/&4<+).$*+)--4+
&(:C4&/+/&*$0(&%*+)-+.:>&+/$*2#**$-(*+:%-#(/+).&+'-/&4<+:(/+
"#$2?46+(:>$0:)&+)-X:%/+/$,,&%&()+>$&X$(0+:(04&*+-,+).&+C#$4/!
$(0@
B.&+ /&>&4-5'&()+ -,+ >$*#:4$Y:)$-(+ )--4*+ -(46+ &'5.:*$Y&/+ ).&+
,:2)+ ).:)+ ).&+ 5:>$4$-(+ C#$4/$(0+ X:*+ )--+ 2-'54&^+ )-+ %&5%&*&()+
$(+ :+ )X-!/$'&(*$-(:4+ &(>$%-('&()@+ B.&*&+ )--4*+ %&5%&*&()&/+
)X-+ >&%6+ /$,,&%&()+ :55%-:2.&*+ )-+ >$*#:4$Y:)$-(<+ &:2.+ X$).+ $)*+
*)%&(0).*+:(/+4$'$):)$-(*@+L#)+X.$4&+-#%+>$*#:4$Y:)$-(+)--4*+:/!
/%&**&/+).&+5.6*$2:4+':)&%$:4$)6+-,+).&+'&/$:+,:2:/&<+-#%+/&!
>&4-5'&()+)--4*+70%:5.$2*<+:($':)$-(*<+&,,&2)*8+X&%&+*)$44+C:*&/+
EFE
'$+9/"&QlG&S$/,9%-&Q*&:5#"-
'$+9/"&QTG&M/5^"(,$51&:5#"-
EFH
I;KDK
I;KDK
-(+ ).&+ )X-!/$'&(*$-(:4+ 5$^&4!0%$/+ -,+ ).&+ )%:/$)$-(:4+ *2%&&(@+
B.&%&,-%&<+ ).&+ 2-()&()+ %&"#$%&/+ :+ 4-)+ -,+ )&*)$(0+ g+ 0-$(0+ C:2?+
:(/+,-%).+C&)X&&(+2-()&()+/&>&4-5'&()+:(/+>$*#:4$Y:)$-(@+B.$*+
5%-2&**+ 24&:%46+ *.-X&/+ ).&+ ,#(/:'&():4+ /$,,&%&(2&+ C&)X&&(+
).&+(:)#%&+-,+).%&&!/$'&(*$-(:4+*2%&&(*+:(/+)X-!/$'&(*$-(:4+
$':0&*@+W.$4&+).&+2-'5#)&%+$*+:C4&+)-+/&5$2)+).%&&+/$'&(*$-(*<+
$)+*)$44+X-%?*+$(+).&+%&:4'+-,+5$^&4*+:(/+%&2):(0#4:%+0%$/*@+B.$*+
24&:%46+ #(/&%4$(&/+ ).&+ (&&/+ ,-%+ (&X+ )--4*+ ).:)+ *#55-%)&/+ ).&+
/&>&4-5'&()+-,+'&/$:+:%2.$)&2)#%&+$(+X:6*+).:)+:2?(-X4&/0&/+
).&+*5:)$:4+(:)#%&+-,+).&+'&/$#'@
B.&+ >:%$-#*+ )--4*<+ :(/+ ).&+ 5%-2&**&*+ -,+ /&*$0($(0+ :(/+ #*$(0+
).&'+:%&+,#%).&%+/&*2%$C&/+$(+).&+:%)$24&<+e;+,%:'&X-%?+,-%+/&!
*$0($(0+2-'54&^+'&/$:+,:2:/&*f+7DC*&(+:(/+\:4*?-><+EFGH8@+
N(+ ).$*+ :%)$24&+ X&+ /$*2#**+ ).&+ >:%$-#*+ 5%-5&%)$&*+ -,+ /$,,&%&()+
)--4*<+:(/+.-X+).&*&+5%-5&%)$&*+://%&**+/$,,&%&()+:*5&2)*+-,+/&!
*$0($(0+'&/$:+,:2:/&+2-()&()@
0:%/&/+:*+:+5:%)+-,+).&+:%2.$)&2)#%&@
7/(8$,"(,9/"?+B.&+4$0.)$(0+/&*$0(+*.-#4/+&'5.:*$Y&+).&+:%2.$!
)&2)#%&@
'5/:?+B.&+>$*#:4+&^5%&**$-(+*.-#4/+C&+2%&:)&/+X$).+*&(*$)$>!
LW\WRWKHOD\RXWRIOLJKWLQJ¿[WXUHVDQGWKHSDWWHUQVWKH\
,-%'+-(+).&+,:2:/&@
NA""#?+;44+'->&'&()*+-,<+:(/+2.:(0&*+$(+4$0.)$(0+'#*)+C&+
*4-X@
7#%A,$3"?+U$0.)+4&>&4*+'#*)+C&+:/_#*)&/+:22-%/$(0+)-+-#)/--%+
4$0.)+4&>&4*@
E5-5/)?+B.&+->&%:44+2-4-%+*2.&'&+*.-#4/+5%$':%$46+2-(*$*)+-,+
X.$)&+-%+*.:/&*+-,+0%:6<+X$).+*-'&+/&):$4*+$(+&).&%+C4:2?+-%+
%&/@
S$)9%-&(51,"1,@+B.&+>$*#:4+2-()&()+*.-#4/+C#$4/+-(+:4%&:/6+
&^$*)$(0+>$*#:4+,&:)#%&*+-,+).&+5:>$4$-(@
:%$-C)(HJ,C%$N(+ /&>&4-5$(0+ ).&+ 2-()&()+ ,-%+ ).&+ *"1:%/>& M%3$-$51<+ $)+ X:*+
FOHDU IURP WKH RXWVHW WKDW RXU YLVXDO FRQFHSWV KDG WR ¿W LQWR
).&+0&(&%:4+/&*$0(+*2.&'&+-,+).&+5:>$4$-(`*+:%2.$)&2)#%&@+L:*&/+
-(+-#%+'&&)$(0+X$).+).&+:%2.$)&2)*<+X&+/&%$>&/+:+*&%$&*+-,+2-(!
*$/&%:)$-(*+).:)+*&&'&/+)-+://%&**+).&$%+>$*#:4+:(/+2-(2&5)#:4+
$/&:*+,-%+).&+C#$4/$(0@+L:*$2:446<+).&6+/$/+(-)+X:()+).&+,:2:/&+
)-+*)&:4+:))&()$-(+,%-'+).&+*.:5&+-,+).&+C#$4/$(0+:(/+$)*+'$($!
':4$*)$2+/&*$0(@+N(*)&:/<+).&6+*#00&*)&/+).:)+).&+,:2:/&+*.-#4/+
*#554&'&()+ ).&+ :%2.$)&2)#%&+ X$).+ *#C)4&+ &,,&2)*+ -,+ 4$0.)@+ B.&+
)&:'+/$*2#**&/+).&*&+2-(*$/&%:)$-(*<+:(/+/&2$/&/+)-+2-(/&(*&+
).&'+$()-+:+/&*$0(+':($,&*)-+0#$/$(0+).&+*#C*&"#&()+5%-2&**n+
$)+$(24#/&/+).&+,-44-X$(0+5-$()*h
!"#$9:?+B.&+,:2:/&+4$0.)+$*+(-)+:+*2%&&(<+:(/+*.-#4/+C&+%&!
EFV
B.&+ 5#%5-*&+ -,+ ).$*+ ':($,&*)-+ X:*+ )-+ :%)$2#4:)&+ *-'&+ -,+ ).&+
2-''-(+#(/&%*):(/$(0*+&^$*)$(0+:'-(0+)&:'+'&'C&%*<+:(/+)-+
&*):C4$*.+:+%$0-%-#*+*&)+-,+%#4&*+)-+&(*#%&+).:)+).&+$/&:*+:'-(0+
).&+)&:'+'&'C&%*+5%-0%&**&/+$(+).&+*:'&+/$%&2)$-(@+P(+':(6+
SUHYLRXVRFFDVLRQVPDQLIHVWRVKDYHEHHQXVHGLQWKH¿HOGRI
/&*$0(+)-+&*):C4$*.+:+2-''$)'&()<+:(+:*5$%:)$-(<+-%+:+/$%&2)$-(+
-,+/&>&4-5'&()+7D.(<+GTTSn+d:2-C*+:(/+;554&6:%/<+GTSR8@+N(+
-#%+ 2:*&<+ $)+ X:*+ '-%&+ $'5-%):()+ :*+ 5:%)+ -,+ :+ 5%-2&**<+ :(/+ :+
'&).-/+,-%+ #*+ :*+ /&*$0(&%*+ )-+ (&0-)$:)&+:(/+ :0%&&+-(+ 2&()%:4+
5-$()*+-,+).&+/&*$0(@
B.&+ ':($,&*)-+ 0&(&%:446+ &^5%&**&/+ ).&+ 51,5-5+$(%-+ 2-(*$/&%!
:)$-(+ -,+ (-)+ %&0:%/$(0+ ).&+ ,:2:/&+ 4$0.)$(0+ :*+ :+ *2%&&(<+ C#)+ :*+
:+5:%)+-,+).&+:%2.$)&2)#%&@+B.$*+:4*-+'&:()+C&2-'$(0+:X:%&+-,+
).&+ ':(6+ 5.6*$2:4+ /$,,&%&(2&*+ C&)X&&(+ ).&+ 2-'5#)&%+ *2%&&(+
:(/+).&+'&/$:+,:2:/&+g+,-%+&^:'54&<+).$(?$(0+:C-#)+2-()&()+$(+
)&%'*+-,+-$+8,&$1,"1)$,@<+$(*)&:/+-,+X.$)&<+0%:6<+:(/+C4:2?@+N'!
EFQ
I;KDK
I;KDK
54$2$)+$(+).&+':($,&*)-+X:*+).&+/&*$%&+)-+2-(*$/&%+).&+':)&%$:4!
$)6+-,+).&+:%2.$)&2)#%&+:*+5%&/-'$(:)$(0+->&%+).&+':)&%$:4$)6+-,+
).&+*2%&&(@+;*+:%,,"/+:(/+C5/:<+).&+*2%&&(+X-#4/+C&+5&%2&$>&/+
).%-#0.+).&+:%2.$)&2)#%&<+:(/+-(46+.$()+:)+*2%&&(+$2-(-0%:5.6+
$(+).&+%&5&)$)$>&+5:))&%(+-(+).&+,:2:/&@+B.&%&+X:*+0&(&%:446+:+
/&*$%&+)-+?&&5+).&+:%2.$)&2)#%&+:*+¿JXUH<+).&+2&()&%+-,+:))&()$-(<+
$(*)&:/+-,+':?$(0+$)+).&++/591#+,-%+).&+*2%&&(@+B.$*+X:*+/-(&+
C6+2--4$(0+/-X(+).&+:4%&:/6+2-4/+'&/$#'+X$).+2-(*)%:$()*+-(+
).&+&^5%&**$>&+,-%2&+-,+).&+2-()&()@+W&+,-#(/+).:)+2-4/(&**+-,+
&^5%&**$-(+.:/+(-)+-(46+)-+/-+X$).+*2%&&(+%&*-4#)$-(<+C#)+:4*-+
).&+(#'C&%+-,+2-4-%*+#*&/<+*5&&/+-,+'->&'&()<+*$'54$2$)6+-,+
2-()&()<+:(/+*-+,-%).@+B.&%&,-%&<+.-)+&,,&2)*+4$?&+).-*&+-,+*)%-(0+
2-4-%*+:(/+%:5$/+'->&'&()+X&%&+%&54:2&/+X$).+>:%$-#*+$()&(*$!
)$&*+-,+*4-X46+'->$(0+X.$)&+4$0.)<+$(+-%/&%+)-+:2.$&>&+).&+/&!
*$%&/+2--4(&**+-,+).&+2-()&()@
$()&(/&/+)-+ 2%&:)&+:'C$&()+&,,&2)*@+;0:$(<+ X&+ X&%&+ *#%5%$*&/+
E\KRZGLI¿FXOWLWZDVWRSHUFHLYHWKH¿JXUDWLYHFRQWHQWRQFH
$)+X:*+/$*54:6&/+).%-#0.+-#%+>$*#:4$Y&%*@
7KH ¿QDO VWDJH RI FRQWHQW GHYHORSPHQW RFFXUUHG RQVLWH LQ
K.:(0.:$<+ /#%$(0+ ).&+ 4:*)+ )X-+ X&&?*+ 5%&2&/$(0+ ).&+ -5&($(0@+
L:*&/+ -(+ %&:4!X-%4/+ &^5&%$&(2&*+ X$).+ ).&+ ,:2:/&<+ X&+ ':/&+
:/_#*)'&()*+)-+).&+5%&>$-#*46+/&>&4-5&/+2-()&()<+:(/+://&/+:+
,&X+ (&X+ :($':)$-(*<+ C:*&/+ -(+ $/&:*+ ).:)+ &'&%0&/+ #5-(+ *&&!
LQJ WKH IDFDGH DW ¿UVW KDQG 2QH RI WKHVH ODWH DGGLWLRQV ZDV
DQDEVWUDFWLRQRIWKH'DQLVKÀDJDVDZHERIZKLWHOLQHVRQD
%&/+C:2?0%-#(/@+;4).-#0.+).$*+X:*+:(+:C*)%:2)+&^5%&**$-(<+$)*+
¿JXUDWLYHFRQWHQWZDVHDV\WRSHUFHLYHDQGFUHDWHGDSRZHUIXO
>$*#:4+&^5%&**$-(@
3(N('%KC$*6"%$,($,
I-()&()+ ,-%+ ).&+ *"1:%/>& M%3$-$51+ '&/$:+ ,:2:/&+ X:*+ /&>&4!
-5&/+).%-#0.+>:%$-#*+5%-2&**&*+#*&/+:)+/$,,&%&()+*):0&*+-,+).&+
ZRUN7KHLQLWLDOVWDJHZDVDLPHGDWWHVWLQJ¿JXUDWLYHFRQWHQW
*#2.+ :*+ )&^)+ :(/+ '->$(0+ $':0&*@+ N)+ *--(+ -22#%%&/+ )-+ #*+ ).:)+
FRQWHQWKDGWREHH[WUHPHO\VLPSOL¿HGLQRUGHUWREHYLVXDOO\
%&2-0($Y:C4&@+B&^)+X:*+C:%&46+>$*$C4&<+&>&(+X$).+).&+4:%0&*)+:(/+
VLPSOHVWIRQWZHFRXOG¿QG7KLVDOVRUXOHGRXWWKHXVHRISKR!
)-0%:5.$2+':)&%$:4<+*$(2&+).&+5$^&4+%&*-4#)$-(+X:*+_#*)+)--+4-X@
B.&+(&^)+*):0&+-,+/&>&4-5'&()+X:*+).&+:2)#:4+/&*$0(+*):0&<+/&!
>&4-5$(0+/$>&%*&+)65&*+-,+0%:5.$2*+:(/+:($':)$-(*+C:*&/+-(+).&+
$/&:*+$(+).&+':($,&*)-@+B.&+>:%$-#*+$/&:*+X&%&+5%-/#2&/+:(/+
)&*)&/+:)+:+/&*$0(+X-%?*.-5+:)+I;aN<+:(/+:4*-+).%-#0.+:+(#'!
C&%+-,+/&*$0(+'&&)$(0*+/#%$(0+).&+5%-2&**@+J-)$,*+X&%&+C:*&/+
RQWKH'DQLVKDQG&KLQHVHÀDJVYDULRXVWH[WVSHRSOHZDONLQJ
DQGELF\FOLQJDQG¿QDOO\DODUJHQXPEHURIDEVWUDFWSDWWHUQV
EFZ
!)SG-,+($,7KHDGMXVWPHQWVWKDWZHUHPDGHLQWKH¿QDOVWDJHRIFRQWHQW
/&>&4-5'&()+':$(46+://%&**&/+)X-+/$,,&%&()+:*5&2)*+).:)+X&%&+
%&:4$Y&/+ :)+ ).$*+ 5-$()<+ X.&(+ 2-()&()+ X:*+ )&*)&/+ -(+ ).&+ :2)#:4+
C#$4/$(0@+ 9$%*)<+ ).&+ *5&&/+ -,+ '-*)+ :($':)$-(*+ X:*+ %&/#2&/@+
D>&(+ ).-#0.+ -#%+ ':($,&*)-+ /&24:%&/+ ).:)+ 4$0.)+ '->&'&()*+
VKRXOGEHVORZZHKDGQRWDQWLFLSDWHGWKHLQWHQVHÀLFNHULQJRI
4$0.)*+X.&(+>$&X$(0+).&+,:2:/&+#5+24-*&@+D*5&2$:446+$(*$/&+).&+
5:>$4$-(<+).&*&+'->&'&()*+*&&'&/+>&%6+,:*)+:(/<+:)+)$'&*<+2%&!
:)&/+*)%-C&!4$0.)+&,,&2)*@+B.$*+$(*$0.)+X:*+':$(46+%&4:)&/+)-+).&+
*2:4&+-,+).&+C#$4/$(0<+X.$2.+.:/+(-)+C&&(+/$%&2)46+://%&**&/+C6+
-#%+>$*#:4$Y:)$-(+)--4*<+C#)+$)+X:*+:4*-+2-((&2)&/+)-+).&+':(6+
5-**$C4&+>$&X$(0+/$*):(2&*+g+,%-'+.#(/%&/*+-,+'&)&%*+:X:6<+)-+
#5+24-*&+$(*$/&+).&+5:>$4$-(@
B.&+*&2-(/+2-(*$/&%:)$-(+).:)+.:/+)-+C&+://%&**&/+#5-(+*&&$(0+
).&+:2)#:4+'&/$:+,:2:/&+X:*+).&+$'5-%):(2&+-,+).&+,:2:/&+:*+:+
4$0.)+*-#%2&@+1&*5$)&+).&+5:>$4$-(+C&$(0+$44#'$(:)&/+C6+:+4:%0&+
QXPEHURIOLJKWLQJ¿[WXUHVWKHIDFDGHDOVRFRQWULEXWHGWRWKH
EFR
I;KDK
$()&%(:4+ 4$0.)$(0+ -,+ ).&+ C#$4/$(0@+ B.$*+ '&:()+ ).:)+ $(+ -%/&%+ )-+
':$():$(+:+%&4:)$>&46+&>&(+4&>&4+-,+$44#'$(:)$-(<+X&+.:/+)-+:/:5)+
).&+2-()&()+-,+).&+'&/$:+,:2:/&+)-+:22-''-/:)&+).$*+,:2)-%@+;+
*$'$4:%+:X:%&(&**+-,+).&+*2%&&(+:*+:+4$0.)+*-#%2&+X:*+/&*2%$C&/+
$(+).&+2:*&+-,+`911$1+&N(9-A,9/"<+,-%+X.$2.+$)+X:*+:%0#&/+).:)+
).$*+#(/&%*):(/$(0+$*+:(+$()%$2:)&+5:%)+-,+).&+':)&%$:4$)6+-,+).&+
*2%&&(@+L#)+X.&%&:*+`911$1+&N(9-A,9/"+':/&+#*&+-,+).&+*2%&&(+
:*+ :+ 4$0.)$(0+ &,,&2)<+ ).&+ 5:>$4$-(+ 4$0.)$(0+ X:*+ $()&(/&/+ )-+ C&+
'#2.+'-%&+:'C$&()<+X.$2.<+$(+).$*+2:*&<+'&:()+%&/#2$(0+).&+
2-()%:*)+C&)X&&(+C%$0.)+:(/+/$'+4$0.)$(0<+:(/+0&(&%:446+#*$(0+
4$0.)+)-+:4*-+$44#'$(:)&+).&+$()&%$-%+*5:2&@
?C$J'6H(-G',
7KH OLJKWLQJ VFKHPH WKDW ZDV ¿QDOO\ LPSOHPHQWHG LQ WKH ID!
2:/&+2-()%-4+*6*)&'+$(>-4>&/+:+,&X+*&)*+-,+:($':)$-(*<+X.$2.+
2.:(0&/+ :)+ /$,,&%&()+ )$'&*+ /#%$(0+ ).&+ &>&($(0+ .-#%*@+;*+ ).&+
,:2:/&+4$0.)$(0+X:*+(-)+C%$0.)+&(-#0.+)-+C&+>$*$C4&+$(+/:64$0.)<+
LWVWDUWHGLQWKHODWHDIWHUQRRQZLWKRQO\ZKLWHOLJKWRQDOO¿[!
)#%&*@+B.$*+X:*+4:)&%+%&54:2&/+X$).+>:%$-#*+*#C)4&+:($':)$-(*+
$(+4$0.)+$()&(*$)6+/#%$(0+).&+&>&($(0+.-#%*@+B.&*&+:($':)$-(*+
ZHUH VKRUW LQWHUPH]]RV WKDW EULHÀ\ DWWUDFWHG DWWHQWLRQ WR WKH
,:2:/&+4$0.)$(0<+).&(+%&)#%(&/+)-+).&+:44!X.$)&+$44#'$(:)$-(@+B.&+
2-()&()+X:*+'-*)46+2-4/+:(/+:C*)%:2)+X:>&*+-,+4$0.)<+C#)+:4*-+
$(24#/&/+:(+:($':)$-(+).:)+0:>&+).&+$44#*$-(+-,+5&-54&+X:4?$(0+
$(*$/&+ ).&+ C#$4/$(0@+B.$*+ X:*+ :+ 5:%)$2#4:%46+ &,,&2)$>&+ $44#*$-(+
).:)+X:*+C:*&/+-(+).&+':)&%$:4$)6+-,+).&+'&/$:+,:2:/&<+2%&:)$(0+
%&4:)$-(*.$5*+C&)X&&(+2-()&()+:(/+'&/$#'@
;)+($0.)<+:+>$*#:446+e.-))&%f+*&)+-,+:($':)$-(*+:55&:%&/+-(+).&+
,:2:/&<+X$).+,:*)&%+'->&'&()<+:(/+$(24#/$(0+).&+#*&+-,+%&/<+,-%+
HIIHFWV7KLV³VKRZ´ZDVLQWHQGHGWRUHÀHFW6KDQJKDL¶VYLEUDQW
($0.)4$,&<+:(/+/%:X+:))&()$-(+)-+).&+5:>$4$-(+:)+:+4&**+C#*6+)$'&+
-,+/:6@+N)+X:*+*#554&'&()&/+C6+/$''$(0+).&+$()&%$-%+4$0.)*+$(+
I;KDK
'$+9/"&WKG&7--&68$,"&-$+8,
'$+9/"&WFG&a8$,"&-$1")
'$+9/"&WJG&70),/%(,&A%,,"/1)&5C&/"#&%1#&68$,"
7--&%053"&A85,5)&0@&2"$C&]/>"-05+;71#/")"1
EFS
EFT
I;KDK
I;KDK
).&+5:>$4$-(<+).&%&C6+/&!&'5.:*$Y$(0+).&+C#$4/$(0<+:(/+)#%($(0+
>$&X&%*`+ :))&()$-(+ )-X:%/+ ).&+ '&/$:+ ,:2:/&@+ B.&+ :($':)$-(*+
&^54-%&/+:+'-%&+&^5%&**$>&+5-)&()$:4+-,+).&+'&/$:+,:2:/&<+C6+
#*$(0+0%&:)&%+2-()%:*)*+C&)X&&(+/:%?+:(/+4$0.)<+C#)+:4*-+C6+#(!
/&%*2-%$(0+).&+*5$%:4+*.:5&+-,+).&+C#$4/$(0+C6+'&:(*+-,+>&%)$2:4+
'->&'&()*+,%-'+).&+0%-#(/+)-+).&+)-5+-,+).&+C#$4/$(0@+;0:$(<+
).$*+ X:*+ :(+ &,,&2)+ ).:)+ &'5.:*$Y&/+ ).&+ ':)&%$:4+ 5%-5&%)$&*+ -,+
).&+,:2:/&<+:(/+%&>&:4&/+$)*+5-)&()$:4+:*+:+*2%&&(@
&>&($(0+.-#%*<+X.$2.+5%->$/&/+:'C$&()+4$0.)+&,,&2)*+$()&(/&/+
)-+/%:X+-(46+'$($':4+:))&()$-(+)-+).&+'&/$:+,:2:/&n+E8+:+(#'!
C&%+-,+.-))&%+:($':)$-(*+*.-X(+/#%$(0+).&+($0.)<+X.&(+).&+5:!
>$4$-(+X:*+24-*&/<+X.$2.+X&%&+'&:()+)-+:))%:2)+'-%&+:))&()$-(+
)-+).&+C#$4/$(0+:*+e*5&2):24&f@
:%$-C)(HC$*6+J,(HCJ'C,D6C$6H(,H%-K(",
W$).+ ).&+ *"1:%/>& M%3$-$51+ 2:*&+ :%,"/$%-$,@+ X:*+ ://%&**&/+
:)+ *&>&%:4+ 4&>&4*@+ 9$%*)<+ ).&+ &()$%&+ :55%-:2.+ )-+ ).&+ '&/$:+ ,:!
2:/&+ X:*+ C:*&/+ -(+ #(/&%*):(/$(0+ ).&+ *5:)$:4+ :%2.$)&2)#%&+ -,+
).&+C#$4/$(0+:(/+$)*+,:2:/&<+:*+/&*$0(&/+C6+).&+:%2.$)&2)*@+B.&+
5.6*$2:4+5%-5&%)$&*+-,+).&+'&/$:+,:2:/&+7-%+*2%&&(8+X&%&+).&%&!
,-%&+*#C-%/$(:)&/+)-+).&+/&*$0(+-,+).&+C#$4/$(0<+'&:($(0+).:)+
).&+'&/$#'+&'&%0&/+,%-'+).&+*)%#2)#%&+$)*&4,@+N(+*-'&+*&(*&<+
).$*+ &'54-6&/+ :+ %&>&%*&+ 4-0$2<+ X.&(+ 2-'5:%&/+ )-+ ).&+ /&*$0(+
-,+)%:/$)$-(:4+*2%&&(*<+C#)+$)+2:44&/+,-%+&^)%&'&+:))&()$-(+)-+).&+
%/(8$,"(,9/"&5C&,8"&:"#$9:<+X.$2.+X:*+:+2-'54&^+2.:44&(0&@+
L&$(0+ 2-(*)%:$(&/+ C6+ ).&+ '&/$#'+ '&:()+ ).:)+ *-'&+ )65&*+ -,+
2-()&()+ X-#4/+ C&2-'&+ >$*#:446+ :C*)%:2)<+ X.$4&+ -).&%+ 2-()&()+
X-#4/+C&+&:*$&%+)-+5&%2&$>&@+P(+).&+-(&+.:(/<+X&+X:()&/+)-+
/&*$0(+ 2-()&()+ ).:)+ *#55-%)&/+ ).&+ 5&%2&5)$-(+ -,+ ).&+ :%2.$)&2!
)#%&<+ C#)+ -(+ ).&+ -).&%+ .:(/<+ X&+ :4*-+ X:()&/+ )-+ 2%&:)&+ :(+ &(!
2.:()$(0+&^5%&**$-(+C:*&/+-(+).&+$44#*$-(*+-,+'->$(0+$':0&*@+
B.&+4-X+%&*-4#)$-(+%&*#4)&/+$(+:+(55-+'&/$#'<+$(+J2U#.:(`*+
*&(*&<+X.$2.+2.:44&(0&/+5&%2&5)$-(+g+%&>&:4$(0+:+%&*&'C4:(2&+
)-+d$'+I:'5C&44`*+X-%?*+g+2%&:)$(0+,:$()+$':0&*+-(+).&+&/0&+
RIDEVWUDFWLRQ7KHFRQWHQWWKDWZDV¿QDOO\GLVSOD\HGZLWKWKLV
'&/$#'+':6+C&+%-#0.46+2:)&0-%$Y&/+:*+)X-+/$,,&%&()+0%-#5*h+
G8+:+*&)+-,+(55-+:($':)$-(*+/$*54:6&/+/#%$(0+).&+:,)&%(--(+:(/+
EGF
;+*&2-(/+:*5&2)+-,+).&+*2%&&(`*+:%,"/$%-$,@+X:*+).:)<+C&2:#*&+
-,+).&+2-'54&^+:%2.$)&2)#%&<+).&+*2%&&(+:2"#$%&/+*-'&+#($"#&+
TXDOLWLHVWKDWVLJQL¿FDQWO\FKDOOHQJHGWKHFRQFHSWRIWKHVFUHHQ
,QVWHDGRIDÀDWUHFWDQJXODUVXUIDFHWKHVFUHHQFXUYHGDORQJ
).&+.&4$2:4+C#$4/$(0<+X%:55$(0+$)*+>-4#'&+)X$2&<+).%-#0.+REF+
/&0%&&*@+B.$*+:4*-+'&:()+).:)+)X-+*&2)$-(*+-,+).&+HFF!'&)&%!
4-(0+ ,:2:/&+ X&%&+ >$*$C4&+ ,%-'+ :+ *$(04&+ 5-$()+ -,+ >$&X@+ B.$*+
:*5&2)+ 5%->$/&/+ &(-%'-#*+ 2-'54&^$)6<+ *$(2&+ ).&+ 2-()&()+ X:*+
/&*$0(&/+$(+)X-+/$'&(*$-(*<+C#)+X:*+:554$&/+)-+:+).%&&!/$'&(!
*$-(:4+*.:5&@+;(/+:4).-#0.+-(&+2-#4/+$':0$(&+.-X+).&+>$*#:4+
FRQWHQWPLJKWVSDQWKHWZRÀRRUVRIWKHEXLOGLQJLWZDVLQFUHG!
$C46+2-'54&^+)-+$'54&'&()+)&2.($2:446@
;+).$%/+:*5&2)+-,+).&+,:2:/&+X:*+).:)+).&+$44#'$(:)&/+)#C&*+X&%&+
:2)#:446+.-4&*+$(+).&+C#$4/$(0<+':?$(0+$)+5-**$C4&+)-+>$&X+).&+
'&/$:+,:2:/&+,%-'+C-).+-#)*$/&+:(/+$(*$/&+).&+C#$4/$(0@+B.&+
/$,,&%&(2&+ $(+ >$&X$(0+ /$*):(2&+ :(/+ ).&+ *.:5&+ -,+ ).&+ $()&%$-%+
*5:2&+':/&+).&+)X-+&^5&%$&(2&*+>&%6+/$,,&%&()@+W.:)+*&&'&/+
)-+ C&+ %&4:)$>&46+ *4-X+ '->&'&()*+ -(+ ).&+ -#)*$/&+ 4--?&/+ >&%6+
UDSLGDQGDOPRVWÀLFNHULQJRQWKHLQVLGH
P(&+-,+).&+'-*)+5%-C4&':)$2<+6&)+$()&%&*)$(0<+5%-5&%)$&*+-,+).&+
'&/$:+ ,:2:/&+ X:*+ ).&+ *.:5&+ :(/+ 5:))&%(+ -,+ 5$^&4*+ -(+ ).&+ ,:!
2:/&@+B.&+ )#C&*+ ).&'*&4>&*<+ C&$(0+ ).%&&!/$'&(*$-(:4+ *.:5&*<+
4--?&/+/$,,&%&()<+/&5&(/$(0+-(+).&+>$&X$(0+:(04&@+K&&(+,%-'+
).&+ ,%-()+ ).&6+ 4--?&/+ 4$?&+ 2$%24&*<+ X.$4&+ *&&(+ ,%-'+ ).&+ *$/&<+
).&6+C&2:'&+2%&*2&()+*.:5&/@+B.$*+':/&+).&+)#C&*+'-%&+>$*!
EGG
I;KDK
I;KDK
$C4&+X.&(+>$&X&/+:)+:(+:(04&+).:(+X.&(+>$&X&/+,%-'+).&+*$/&<+
'&:($(0+).:)+).&+)#C&*+5-$()$(0+:)+).&+>$&X&%+X&%&+4&**+>$*$C4&+
).:(+-).&%*@
4$2+*5:2&*<+X.&%&+$)+)65$2:446+*&%>&*+).&+%-4&+-,+:/>&%)$*$(0+:(/+
*5&2):2#4:%+:))%:2)$-(@+;*+J:(->$2.+:%0#&*<+'&/$:+:%2.$)&2)#%&+
'#*)+%&5%&*&()+:(+:4)&%(:)$>&+)-+C&$(0+e*$'546+:+'->$(0+C$44!
C-:%/+-%+:+'->$(0+-%(:'&()f+7J:(->$2.<+EFFZ8<+).&%&C6+%9+;
:"1,$1++:%2.$)&2)#%&+$(*)&:/+-,+.$/$(0+$)@
B.$*+:55%-:2.+.:*+).&+5-)&()$:4+)-+C&+/&C:)&/+$(+:%2.$)&2)#%&+
:(/+ '&/$:+ 5-4$)$2*+ ,-%+ 6&:%*+ )-+ 2-'&<+ :*+ '&/$:+ :%2.$)&2)#%&+
&'&%0&*+$(+':_-%+2$)$&*+:44+->&%+).&+X-%4/@
B.&+ *"1:%/>& M%3$-$51+ '&/$:+ ,:2:/&+ X:*+ :+ 2-'54&^+ $(*):4!
4:)$-(<+C-).+>$*#:446+:(/+*5:)$:446@+N)*+#($"#&+5%-5&%)$&*+':/&+
LW GLI¿FXOW WR FRPSUHKHQG DV D ³VFUHHQ´ LQ WUDGLWLRQDO WHUPV
M:).&%<+ $)+ &(.:(2&/+ ).&+ :%2.$)&2)#%&+ C6+ *#00&*)$(0+ >$*#:4+
*.:5&*+ $(+ ).&+ $44#'$(:)&/+ 5:))&%(*<+ ).&%&C6+ *$)#:)$(0+ $)+ *-'&!
X.&%&+C&)X&&(+:+*2%&&(+:(/+:+4$0.)$(0+$(*):44:)$-(@+B.&+*"1;
:%/>&M%3$-$51+$*+-(&+-,+).&+':(6+&^:'54&*+).:)+*#00&*)+).:)+
PHGLDIDFDGHVÀRDWLQWKLVXQGH¿QHGFRQWLQXXPRI(5-#+'&/$:<+
X.$2.+*)%&)2.&*+C&)X&&(+%&2-0($Y:C4&+%&5%&*&():)$-(+:(/+5#%&+
:C*)%:2)$-(@+L&2:#*&+-,+).&+2-4/(&**+-,+).&+'&/$:+,:2:/&<+*&>!
&%:4+:*5&2)*+-,+':)&%$:4$)6+(&&/&/+)-+C&+://%&**&/<+$(+-%/&%+)-+
:2.$&>&+:+*2%&&(!4$?&+&,,&2)<+:(/+:4*-+)-+&'5.:*$Y&+).&+2-((&2!
)$-(+C&)X&&(+'&/$:+2-()&()+:(/+:%2.$)&2)#%&@+1&*$0($(0+2-(!
)&()+,-%+).&+*"1:%/>&M%3$-$51+%&"#$%&/+:(+#(/&%*):(/$(0+-,+).&+
':)&%$:4$)6+-,+).&+*2%&&(+:)+*&>&%:4+4&>&4*<+:(/+).$*+#(/&%*):(/!
LQJZDVDQLQWULQVLFSDUWRIWKH¿QDOUHVXOWRIWKHPHGLDIDFDGH
7KLVFDVHH[HPSOL¿HVVRPHRIWKHLGHDVDERXWPHGLDDUFKLWHF!
)#%&+).:)+X&%&+5%&*&()&/+&:%4$&%@+N)+*#00&*)*+).:)+24-*&46+$()&0%:)!
$(0+:%2.$)&2)#%&<+'&/$#'<+:(/+2-()&()+':6+.&45+)-+2-#()&%:2)+
).&+'#2.!2%$)$2$Y&/+&,,&2)+).:)+&4&2)%-($2+'&/$:+.:>&+-(+5#C4$2+
*5:2&*+ :*+ *-#%2&*+ -,+ $44#*$-(<+ >$%)#:4+ $':0&*<+ :(/+ #4)$':)&46<+
/&':)&%$:4$Y:)$-(+ -,+ 5.6*$2:4+ *5:2&@+ B.&+ 2--4+ '&/$:+ ,:2:/&+
X:*+2-(2&$>&/+:*+:+*#C)4&+://$)$-(+)-+).&+&^$*)$(0+:%2.$)&2)#%&+
X.$2.+ X-#4/+ &'5.:*$Y&+ *-'&+ 5%&!&^$*)$(0+ ,&:)#%&<+ :(/+ .&45+
)-+:))%:2)+:))&()$-(+)-+).&+5:>$4$-(@+N(+).:)+*&(*&<+).&+*"1:%/>&
M%3$-$51+'&/$:+,:2:/&+/&'-(*)%:)&*+:(+&^5&%$'&():4+:55%-:2.+
).:)+0-&*+:0:$(*)+).&+)%:/$)$-(:4+#*&+-,+&4&2)%-($2+'&/$:+$(+5#C!
EGE
E/"%,$3"&,"%:G&`91"&R$"-)"1&IA/5^"(,&:%1%+"/LB&!5/,"1&2"/;
3$+B&450$%)&O0)"1
?8;38;L9
B.&+2:*&*+5%&*&()&/+-(+).&+5%&2&/$(0+5:0&*+*.-X+:+%:(0&+-,+
:55%-:2.&*+).:)+&'&%0&/+,%-'+).&+!"#$%&'%(%#")+5%-_&2)@+;*+
).&+0-:4+X:*+(-)+&^24#*$>&46+:(+&^54-%:)$-(+-,+).&+':)&%$:4$)6+
-,+).&+*2%&&(<+(-+&^54$2$)46+5%-(-#(2&/+&,,-%)+X:*+':/&+)-+#(!
FRYHUVXFKSRWHQWLDO%XWHYHQVR,KDYHLGHQWL¿HGKRZPDWHUL!
:4$)6+X:*+$(/&&/+:(+$:A-$($,+:*5&2)+-,+).&+5%-2&**+-,+/&>&4-5$(0+
2-(2&5)*+,%-'+:(+#(/&%*):(/$(0+-,+).&+C:*$2+5%-5&%)$&*+-,+).&+
>:%$-#*+)&2.(-4-0$&*@+B.&+2:*&*+.:>&+:4*-+5%->&(+)-+C&+%&4&>:()+
*#C_&2)*+,-%+%&)%-*5&2)$>&46+/$*2#**$(0+).&+':)&%$:4+:*5&2)*+-,+
*2%&&(!C:*&/+$(*):44:)$-(*@
P(&+-,+).&+':$(+-C_&2)$>&*+-,+).&*&+2:*&*+.:*+C&&(+).&+/&*$0(+
-,+2-()&()+,%-'+).&+5.6*$2:4+:(/+,-%':4+5%-5&%)$&*+-,+:+5:%)$2#!
4:%+'&/$#'@+B.$*+.:*+'&:()+).:)+:(+&^)&(*$>&+:'-#()+-,+X-%?+
.:*+C&&(+5#)+$()-+&^5&%$'&()*+:(/+)&*)*+).:)+%&>&:4+).&+"#:4$!
)$&*+&'C&//&/+$(+).&+2:*&*@+L6+#(/&%*):(/$(0+).&+'&/$#'+:*+:+
PDWHULDODUWLIDFWWKDWLQÀXHQFHVWKHSHUFHSWLRQDQGLQWHUSUHWD!
)$-(+-,+2-()&()<+X&+X&%&+:C4&+)-+5%-/#2&+:+)65&+-,+2-()&()+).:)+
X:*+2-(2-%/:()+X$).+).&+'&:(*+-,+-#)5#)@+B.$*+).$(?$(0+X:*+
EGH
I;KDK
I;KDK
PDQLIHVWHGDVDQDZDUHQHVVRIWKH¿QDOH[SUHVVLRQDWDOOVWDJHV
-,+).&+/&*$0(@
7J,(HCJ'C,D
L6+:5546$(0+).&+>:%$-#*+)&%'*+).:)+X&%&+5%&*&()&/+:(/+/&>&4!
-5&/+ $(+ ).&+ 5%&2&/$(0+ 2.:5)&%*<+ $)+ $*+ &>$/&()+ ).:)+ ).&*&+ )&%'*+
&'5.:*$Y&+':)&%$:4+:*5&2)*+-,+).&+2:*&*@+B.&+-%/&%*+-,+':)&%$!
:4$)6+/&*2%$C&/+:*+:%,,"/<+C5/:<+:(/+51,5-5+@+.:>&+C&&(+$/&()$!
¿HGDQGDUJXDEO\VKHGQHZOLJKWRQWKHXQGHUVWDQGLQJRIWKHVH
FDVHV7KHLGHQWL¿FDWLRQRIPDWWHULQWKHVHFDVHVKDVHPSKD!
*$Y&/+).&+X:6*+$(+X.$2.+).&+)&2.(-4-06+.:*+C&&(+:55%-:2.&/+
%)&:%,"/$%-+$(+).&+/&>&4-5'&()+5%-2&**@+L#)+':)&%$:4$)6+#(/&%!
*)--/+:*+':))&%+:4*-+.&45*+)-+/&*2%$C&+.-X+).$*+#(/&%*):(/$(0+
':6+C%$/0&+).&+2-(2&5)#:4+0:5+C&)X&&(+).&+':)&%$:4+'&/$#'+
:(/+).&+$'':)&%$:4+2-()&()+g+:4*-+%&,&%%&/+)-+:*+).&+/#:4$*'+-,+
$()&%$-%r&^)&%$-%+7L%-X(<+EFGFn+]#'C%&2.)<+GTTV8+g+:(/+':?&*+
$)+5-**$C4&+)-+%&).$(?+).&'+:*+$1,"/#"A"1#"1,+&4&'&()*@+N(+*-'&+
2:*&*<+$)+.:*+C&&(+&**&()$:4+)-+#*&+).&+'&/$#'+:*+:+*):%)$(0+5-$()+
,-%+2-()&()+/&>&4-5'&()<+).&%&C6+,-%2$(0+:(+$(2%&:*&/+,-2#*+-(+
).&+5.6*$2:4+':))&%+-,+).&+'&/$#'@
B.&+2:*&*+.:>&+:4*-+C&&(+/&*2%$C&/+$(+)&%'*+-,+).&+"#:4$)$&*+-,+
).&$%+':)&%$:4+,-%'@+N(+'-*)+2:*&*<+:(+&^5&%$'&():4+:55%-:2.+
WRWKHVKDSHDQGVSDWLDOFRQ¿JXUDWLRQRIWKHVFUHHQVZDVXVHG
W$).+7%/89)&0@&2$+8,<+`911$1+&N(9-A,9/"<+:(/+7,:5)A8"/"<+:+
2&()%:4+*)%:)&06+X:*+)-+$(*):44+).&+*2%&&(+5:(&4*+$(+(-(!%&2):(!
JXODUFRQ¿JXUDWLRQVZKHUHDVE-$:%,"&a%--+#*&/+:+C4:2?+C:2?!
0%-#(/+)-+C4#%+).&+C-#(/:%$&*+-,+).&+*2%&&(@+9$(:446<+).&+*"1;
:%/>&M%3$-$51+'&/$:+,:2:/&+)--?+).&+&^54-%:)$-(+-,+).&+,-%':4+
5%-5&%)$&*+-,+).&+*2%&&(+)-+&^)%&'&*<+C6+X%:55$(0+).&+2-'54&^+
*.:5&+-,+).&+C#$4/$(0+$(+:+4-X!%&*-4#)$-(+*2%&&(@
,W LV PRUH GLI¿FXOW WR LGHQWLI\ WKH PDWHULDO RQWRORJ\ LQ WKHVH
FDVHVVLQFHWKH\ZHUHQRWVSHFL¿FDOO\GHYHORSHGWRHPSKDVL]H
WKLVDVSHFW7KHFDVHVZHUHQRWVSHFL¿FDOO\GHVLJQHGWRVHHNRXW
).&+5#%$)6+-,+).&+'&/$#'+C6+&'5.:*$Y$(0+$)*+)%#&+(:)#%&<+(-%+/-+
).&6+/%:X+-(+2#4)#%:4+2-(>&()$-(*+)-+://+'&:($(0+-%+2%$)$2:4+
B-/:6<+5%-/#2$(0+>$*#:4+2-()&()+.:*+C&2-'&+:+2-'5#)&%!C:*&/+
:2)$>$)6<+ ).&%&C6+ ':?$(0+ ).&+ 2-'5#)&%+ *2%&&(+ ).&+ 5%$':%6+
'&:(*+-,+5%&>$&X$(0+$':0&*@+W.&(+X-%?$(0+X$).+:4)&%(:)$>&+
)65&*+ -,+ *2%&&(<+ *#2.+ :*+ UD1+ *2%&&(*<+ >$/&-+ 5%-_&2)$-(<+ :(/+
2-'5#)&%!2-()%-44&/+4$0.)$(0<+$)+C&2-'&*+24&:%+).:)+).&+2-()&()+
/-&*+(-)+'->&+#(:,,&2)&/+C&)X&&(+).&+/$0$):4+/-':$(+:(/+).&+
':)&%$:4+X-%4/@+;*+b$))4&%+5-$()&/+-#)<+/$0$):4+'&/$:+$(>-4>&+:+
.$0.+/&0%&&+-,+)%:(*4:)$-(+C&)X&&(+).&+:(:4-0+:(/+/$0$):4+/-!
PDLQVFDXVLQJORVVRIGHSWKUHVROXWLRQDQGGH¿QLWLRQ7KHUH!
,-%&<+ 5%-/#2$(0+ 2-()&()+ -(+ 2-'5#)&%*+ %&'->&*+ ).&+ :C$4$)6+ )-+
H[SHULHQFHWKHHIIHFWRIWKH¿QDOPHGLXPRQWKHFRPSXWHULW!
*&4,@+B.$*+2%&:)&*+:+/$*2-((&2)+C&)X&&(+).&+2-()&()+:*+$:%+$1"#+
:(/+).&+2-()&()+:*+:%,"/$%-$e"#@+M&:4$Y$(0+).&+':)&%$:4$)6+-,+).&+
*2%&&(+.&45*+)-+#(/&%*):(/+).$*+/$*2-((&2)<+X.$2.+-,)&(+:%$*&*+
C&)X&&(+ 151PHGLXPVSHFL¿F FRQWHQW DQG WKH VSHFL¿FV RI D
5:%)$2#4:%+'&/$#'@
L&2:#*&+)-/:6`*+*2%&&(*+:%&+.$0.46+&>-4>&/+)&2.(-4-0$&*<+X&+
:%&+ (-)+ #*&/+ )-+ ).$(?$(0+ -,+ ).&'+ :*+ %&/#2)$>&+ /&>$2&*@+ L#)+
X.&(+X-%?$(0+-(+*2%&&(*+*#2.+:*+).&+*"1:%/>&M%3$-$51+'&/$:+
,:2:/&<+$)+C&2-'&*+24&:%+).:)+).&6+*.:%&+>&%6+,&X+*$'$4:%$)$&*+
X$).+).&+2-'5#)&%+*2%&&(@+B.&+/$,,&%&(2&*+4$&+$(+).&+5.6*$2:4<+
':)&%$:4+"#:4$)$&*+).:)+2.:(0&+).&+:55&:%:(2&+-,+).&+/$*54:6&/+
$':0&*<+C#)+:4*-+$(+).&+5&%2&5)$-(+-,+*#%%-#(/$(0+*5:2&+:(/+).&+
>$&X$(0+*$)#:)$-(@+B.&*&+:*5&2)*+.:>&+C&&(+://%&**&/+$(+'#4!
)$54&+X:6*+$(+).&+2:*&*+5%&*&()&/<+:(/+':6+C&+4:%0&46+/&*2%$C&/+
:*+/$,,&%&()+X:6*+-,+:55%-:2.$(0+).&+':)&%$:4$)6+-,+).&+*2%&&(@
EGV
EGQ
I;KDK
I;KDK
2-''&():%6+:C-#)+).&+)%:/$)$-(:4+#*&+-,+'&/$:@+P(+).&+-).&%+
.:(/<+).&+2:*&*+/-+$(/&&/+2.:44&(0&+).&+2-(>&()$-(:4+X:6*+-,+
).$(?$(0+:C-#)+*2%&&(*<+:(/+).&%&C6+%&,&%+)-+:+':)&%$:4+-()-4!
-06+-,+).&+0&(&%:4+2-(2&5)+-,+).&+*2%&&(<+:(/+$)*+5:%:/$0':)$2+
5%-5&%)$&*@+B.$*+*#00&*)*+).:)+*2%&&(!C:*&/+$(*):44:)$-(*+/-+(-)+
:4X:6*+ ://%&**+ :44+ 4&>&4*+ -,+ ':)&%$:4$)6+ &"#:446<+ :(/+ ).:)+ ).&+
':)&%$:4+ *&(*$C$4$)6+ $(+ ).&+ '&/$:+ ,:2:/&*+ 5%-_&2)+ X:*+ ':$(46+
)#(&/+)-+:+,-2#*+-(+':))&%+:(/+,-%'<+%:).&%+).:(+).&+&^54-%:)$-(+
-,+-()-4-0$2:4+"#&*)$-(*@
4$/$)6+ -,+ J2U#.:(`*+ e2--4+ '&/$:+ :%&+ .$0.+ $(+ 5:%)$2$5:)$-(f+
7J2U#.:(<+ GTZV<+ 5@+ EV8+ :*+ :(+ $(/$*5#):C4&+ ,:2)@+ D^5&%$&(2&+
*#00&*)*+).:)+).&%&+$*+:)+4&:*)+:+).%&*.-4/+-,+2--4(&**<+:+4-X&%+
4$'$)+-,+5&%2&5)$-(<+C&4-X+X.$2.+$(,-%':)$-(+(-+4-(0&%+':?&*+
*&(*&<+:(/+C&2-'&*+:C*)%:2)$-(@+d$'+I:'5C&44`*+X-%?+&^&'!
SOL¿HVDQGH[SORUHVWKLVWKUHVKROGE\EDODQFLQJRQWKHHGJHRI
:C*)%:2)$-(<+X.$4&+*)$44+5%->$/$(0+_#*)+&(-#0.+$(,-%':)$-(+,-%+
*&(*&!':?$(0@
N(+).&+2:*&+-,+7,:5)A8"/"<+).&+:C*)%:2)+&^5%&**$-(+X:*+$()&(!
)$-(:4<+:(/+).&+:#/$&(2&+X:*+$(>$)&/+)-+':?&+*&(*&+-,+$)*+-%$0$(*+
C6+%&:/$(0+).&+:22-'5:(6$(0+&^54:(:)$-(*@+=(,-%)#(:)&46<+).$*+
$()&()$-(+ )-+ *-'&+ &^)&()+ ,:$4&/<+ :*+ >&%6+ ,&X+ 5&-54&+ X&%&+ $(!
24$(&/+)-+%&:/+$)@
B.&+*"1:%/>&M%3$-$51+:4*-+5%->$/&/+:+2--4<+:C*)%:2)+&^5%&*!
*$-(+ ).:)+ ':/&+ 4$))4&+ *&(*&+ )-+ ).&+ :#/$&(2&@+ L#)+ $(+ ).$*+ 2:*&<+
).&+2--4+2-()&()+X:*+$()&(/&/+)-+/%:X+4&**+:))&()$-(+).:(+:+.-)+
'&/$:+&^5%&**$-(+X-#4/+.:>&+/-(&@+;*+).&+5:))&%(*+X&%&+(-)+
C:*&/+ -(+ $(,-%':)$-(<+ ).&6+ $(*)&:/+ C&2:'&+ :(+ :'C$&()+ :#0!
'&():)$-(+-,+).&+:%2.$)&2)#%&@
B.&+ ':)&%$:4$)$&*+ /&*2%$C&/+ $(+ ).&+ 2:*&*+ .:>&+ :4*-+ .&45&/+ )-+
&^&'54$,6+*-'&+?&6+:*5&2)*+-,+'&/$:+).:)+X&%&+/&%$>&/+,%-'+
).&+).$(?$(0+-,+J:%*.:44+J2U#.:(@+1&*2%$C$(0+).&+$()&(*$)6+-,+
'&/$#'+:(/+2-()&()+:*+85,+-%+(5-#+.&45*+)-+24:%$,6+).&+:'-#()+
-,+$(,-%':)$-(+5%->$/&/<+:(/+C6+&^)&(*$-(<+.-X+'#2.+).&+:#/$!
&(2&+(&&/*+)-+e2-'54&)&f+$)@
N(+).&+2:*&+-,+7%/89)&0@&2$+8,<+).&+'&/$:+,:2:/&+X:*+C:*&/+-(+
:+2--4+'&/$#'<+:(/+).&+2--4+2-()&()+:44-X&/+).&+:#/$&(2&+)-+
':?&+ #5+ *)-%$&*+ :C-#)+ X.:)+ ).&6+ &^5&%$&(2&/@+B.&+ *"1:%/>&
M%3$-$51+ X:*+ C:*&/+ -(+ :(+ &>&(+ 2-4/&%+ '&/$#'+ :(/+ :+ 2-4/&%+
)65&+-,+2-()&()<+%&*#4)$(0+$(+:+>&%6+:C*)%:2)+&^5%&**$-(+).:)+X:*+
24-*&%+)-+:+4$0.)+*.-X+).:(+:(+:2)#:4+*2%&&(@+N(+2-()%:*)<+).&%&+
X:*+ :4*-+ ).&+ 2:*&+ -,+ ).&+ E-$:%,"& a%--<+ X.&%&+ ).&+ '&/$#'`*+
WHFKQRORJ\ZDVSRWHQWLDOO\KRWEHLQJDEOHWRVKRZKLJKGH¿QL!
)$-(+$':0&*<+C#)+).&+5%-_&2)$-(+*#%,:2&+:(/+).&+2.-$2&+-,+2-(!
)&()+X&%&+2--4<+5%->$/$(0+4$))4&+$(,-%':)$-(<+).&%&C6+4&:>$(0+).&+
2-()&()+-5&(+)-+$()&%5%&):)$-(+C6+).&+:#/$&(2&@+U:*)46<+).&+7,;
:5)A8"/"+2:*&+X:*+:4*-+C:*&/+-(+:+2--4+'&/$#'+:(/+2--4+2-(!
)&()@+N(+).$*+2:*&<+X&+,-#(/+).:)+).&+'&/$#'+:(/+2-()&()+X&%&+
5-**$C46+)--+2-4/<+*$(2&+).&+:#/$&(2&+-,)&(+'$*$()&%5%&)&/<+-%+
*$'546+/$/+(-)+#(/&%*):(/<+).&+$()&()$-(*+-,+).&+X-%?@
L:*&/+-(+).&*&+&^5&%$&(2&*<+$)+$*+%&4&>:()+)-+"#&*)$-(+).&+>:!
EGZ
7KH FDVHV KDYH EHHQ GHVFULEHG LQ WHUPV RI D VSHFL¿F XQGHU!
*):(/$(0+ -,+ J2U#.:(`*+ #*&+ -,+ ).&+ )&%'*+ ¿JXUH+ :(/+ +/591#<+
ZKHUHYDULRXV¿JXUHVPD\HPHUJHIURPDQXQGHUO\LQJJURXQG
9$0#%&*<+ $(+ J2U#.:(`*+ #(/&%*):(/$(0<+ ':6+ C&+ /&*2%$C&/+ :*+
(-)+-(46+).&+2-()&()+-,+).&+'&/$#'<+C#)+).&+>:%$-#*+&4&'&()*+
-,+5&%2&5)$-(+).:)+2-'&+)-+).&+:))&()$-(@+]%-#(/<+-(+).&+-).&%+
.:(/<+$*+$(:22&**$C4&+)-+/$%&2)+&^:'$(:)$-(<+:*+J2U#.:(+5-$()!
&/+-#)+7J2U#.:(+:(/+J2U#.:(<+GTSS<+5@+TS8<+C#)+$*+%&>&:4&/+
DVLWEHFRPH¿JXUHLQDJLYHQVLWXDWLRQ7KHGHYHORSPHQWRI
).&*&+2:*&*+,-2#*&/+&^)&(*$>&46+-(+#(2->&%$(0+).&+0%-#(/+-,+
).&+ '&/$#'+ &'54-6&/+ 7&*5&2$:446+ ).&+ )&2.(-4-0$2:4+ 0%-#(/8<+
:(/+:))&'5)&/+)-+':?&+#*&+-,+).&+5-)&()$:4+).:)+X:*+%&>&:4&/@+
EGR
I;KDK
L6+:55%-:2.$(0+).&+>:%$-#*+)&2.(-4-0$&*+).-#0.+&^5&%$'&():4+
5%:2)$2&*<+ &4&'&()*+ -,+ ).&+ 5:%)$2#4:%+ )&2.(-4-0$&*+ g+ (-%':446+
.$//&(+g+X&%&+C%-#0.)+)-+).&+:))&()$-(@
N(+7%/89)&0@&2$+8,<+5:%)+-,+).&+&'&%0&()+0%-#(/+X:*+).&+)%:(*!
5:%&(26+ -,+ ).&+ 5:(&4*<+ X.$2.+ ':/&+ ).&+ *2%&&(*+ :4'-*)+ $(>$*!
$C4&+ -(+ ).&+ ,:2:/&@+ `911$1+& N(9-A,9/"+ &^54-%&/+ ).&+ 4$0.)+ -,+
).&+ *2%&&(*+ :*+ ).&+ 0%-#(/$(0+ ':)&%$:4$)6+ -,+ ).&+ 5&%,-%':(2&@+
W$).+ E-$:%,"& a%--<+ ).&+ $(>$*$C$4$)6+ -,+ ).&+ '&/$#'+ X:*+ :0:$(+
&^54-%&/+X$).+5%-_&2)$-(*+-(+:+C%$2?+X:44@+B.&+*5:)$:4+*2%&&(+
FRQ¿JXUDWLRQXVHGLQ7,:5)A8"/"+X:*+:(+$'5-%):()+:*5&2)+-,+
).&+$(*):44:)$-(<+X.&%&+).&+$(/#*)%$:4+/&*$0(+-,+).&+*2%&&(*+C&!
2:'&+ &>$/&()<+ X.&(+ ).&6+ X&%&+ #*&/+ :*+ :+ *2#45)#%&@+;(/+ ).&+
*"1:%/>& M%3$-$51+ ,:2:/&+ &^54-%&/+ ).&+ /#:4+ 2.:%:2)&%+ -,+ ).&+
'&/$:+,:2:/&+:*+C-).+:+*-#%2&+-,+).&+:'C$&()+4$0.)$(0<+:(/+:*+
:(+&^5%&**$>&+*2%&&(@
;+ 2-''-(+ :*5&2)+ -,+ :44+ ).&+ 2:*&*+ .:*+ C&&(+ ).&+ (55-1"))+ -,+
'&/$#'+:(/+2-()&()@+B.$*+.:*+5:%)46+C&&(+).&+%&*#4)+-,+X-%?$(0+
X$).+4-X!%&*-4#)$-(+*2%&&(+)&2.(-4-0$&*<+C#)+X:*+:4*-+:+0&(&%:4+
$()&()$-(+X.&(+:55%-:2.$(0+).&*&+)&2.(-4-0$&*+%)&:%,"/$%-<+C6+
0&(&%:446+#(/&%*):(/$(0+:(/+#)$4$Y$(0+).&$%+':)&%$:4$)6+g+:)+:44+
4&>&4*+g+,-%+2%&:)$(0+&^5&%$&(2&*+C&6-(/+).&+)%:/$)$-(:4+*2%&&(+
5:%:/$0'@+B.$*+5%:2)$2&+$'54$&/+:(+$(>&*)$0:)$>&+:55%-:2.+)-+
).&+5%-5&%)$&*+-,+).&+)&2.(-4-0$&*<+X.$2.+$*+:4*-+&>$/&()+$(+).&+
¿QDOUHVXOWV7KHFDVHVKDYHHPSKDVL]HGKRZPDWHULDOLW\PD\
C&+:55%-:2.&/+C-).+:*+).&+'#4)$54&+5.6*$2:4+5%-5&%)$&*+-,+).&+
'&/$#'<+:(/+).&+5:%)$2#4:%+2-()&^)+$()-+X.$2.+$)+$*+54:2&/@+L#)+
$)+.:*+:4*-+C&2-'&+&>$/&()+).:)+$(+/&:4$(0+X$).+'&/$:+:%2.$)&2!
)#%&<+).&+':)&%$:4$)6+-,+).&+*2%&&(+$*+:4*-+).&+':)&%$:4$)6+-,+).&+
:%2.$)&2)#%&@+ B.&+ '#4)$)#/&+ -,+ ':)&%$:4$)$&*+ -,+ :+ '&/$#'<+ $)*+
2-()&()<+:(/+).&+5.6*$2:4+:%2.$)&2)#%&+X&%&+X$/&46+&^54-%&/+$(+
).&+2:*&*+5%&*&()&/<+C#)+':6+C&+,#%).&%+&4:C-%:)&/+$(+).&+,#)#%&@
EGS
I;KDK
9$(:446<+$)+$*+$'5-%):()+)-+&'5.:*$Y&+).:)+).&+&^5&%$&(2&+0:$(&/+
,%-'+).&+2:*&*+/&*2%$C&/+$(+).$*+2.:5)&%+$(*5$%&/+).&+$/&:*+:(/+
WKHRUHWLFDOIRXQGDWLRQVLQWKH¿UVWWZRFKDSWHUV7KHFRQFHSWRI
:%,"/$%-$,@+&'&%0&/+,%-'+&,,-%)*+)-+2-(2&5)#:4$Y&+:(/+/&*2%$C&+
).&+ 5%-5&%)$&*+ ).:)+ :%&+ 2-''-(+ )-+ ).&*&+ 2:*&*<+ :(/+ )-+ '&/$:+
:%2.$)&2)#%&+$(+0&(&%:4@+N(+).$*+5%-2&**<+N+-'$))&/+:*5&2)*+).:)+
X&%&+ (-)+ 2-''-(+ )-+ ).&+ 2:*&*<+ *#2.+ :*+ $()&%:2)$>$)6<+ /&*$0(+
5%$(2$54&*<+>$*#:4$Y:)$-(+)--4*<+:(/+*-+,-%).@+N(*)&:/<+N+.:>&+,-!
2#*&/+-(+).&+>$*#:4+'&/$#'<+).&+*2%&&(<+:%-#(/+X.$2.+:44+2:*&*+
:%&+C:*&/@+;4).-#0.+).&+)&2.(-4-06+>:%$&*+,%-'+2:*&+)-+2:*&<+
).&%&+ .:*+ C&&(+ :+ 5%&>:$4$(0+ $/&:+ -,+ :55%-:2.$(0+ ).&+ '&/$#'+
$(+ >&%6+ ,#(/:'&():4+ X:6*+ ).:)+ $(>&*)$0:)&+ ).&$%+ 5%-5&%)$&*+ :*+
C-).+ $':0&+ :(/+ ':)&%$:4+ ,-%'@+ B.$*+ :X:%&(&**+ :(/+ :))&()$-(+
)-+).&+'#4)$)#/&+-,+%&4:)$-(*+C&)X&&(+$'':)&%$:4+:(/+':)&%$:4+
LV SHUKDSV WKH PRVW LPSRUWDQW ¿QGLQJ RI WKLV SUDFWLFDO FDVH
%&4:)&/+X-%?@
EGT
5,&60)/!9%;)
CONCLUSION
IPOIU=KNPO
B.&+:$'+-,+).$*+/$**&%):)$-(+$*+)-+&^54-%&+:+(&X+&5$*)&'-4-0$!
2:4+,-#(/:)$-(+,-%+#(/&%*):(/$(0+:%)+:(/+/&*$0(+5%:2)$2&*+*#%!
%-#(/$(0+*2%&&(!C:*&/+$(*):44:)$-(*<+X.&%&+).&+'&/$#'+54:6*+:+
2&()%:4+%-4&+$(+).&+2-(2&5)$-(@+B.$*+.:*+C&&(+:22-'54$*.&/+C6+
5%-5-*$(0+).&+2-(2&5)+-,+:%,"/$%-$,@+:*+:+/&*2%$5)$>&+:(/+).&-!
%&)$2:4+)&%'+,-%+).&+)(/""1<+X.$2.+':6+C&+:554$2:C4&+)-+:44+)65&*+
-,+'&/$:@+B.&+-,,*&)+,-%+#(/&%*):(/$(0+':)&%$:4$)6+$*+C:*&/+-(+
).&+.65-).&*$*+).:)+).&+*2%&&(+.:*+)%:/$)$-(:446+15,+C&&(+%&0:%/!
&/+:*+$(+':)&%$:4+)&%'*<+C#)+%:).&%+:+/&>$2&+,-%+).&+/$*54:6+-,+
>$%)#:4+$':0&*<+#(/&%*)--/+:*+$'':)&%$:4+%&5%&*&():)$-(*+X$).!
-#)+ 2-((&2)$-(+ )-+ ).&+ 5.6*$2:4+ 2-()&^)+ ).&6+ :%&+ /$*54:6&/+ $(@+
L6+#(/&%*):(/$(0+>:%$-#*+X:6*+-,+).$(?$(0+:C-#)+:%,"/$%-$,@<+
$)+':6+C&+5-**$C4&+)-+%&2-0($Y&+:(+:4)&%(:)$>&+2-(2&5)+-,+>$*#:4+
'&/$:<+X.$2.+/$,,&%*+,%-'+).&+)%:/$)$-(:4+$/&:*+-,+).&+*2%&&(@+
7KLVKDVEHHQH[HPSOL¿HGWKRXJKYDULRXVDFFRXQWVRIPHGLD
:%)<+'&/$:+:%2.$)&2)#%&<+:(/+).&+5%&*&()&/+2:*&*<+X.$2.+,:44+$()-+
C-).+2:)&0-%$&*@
7KH ¿UVW FKDSWHU SUHVHQWHG D FROOHFWLRQ RI WUDGLWLRQDO XQGHU!
*):(/$(0*+).:)+.:>&+2-()%$C#)&/+)-+).&+$/&:+-,+).&+$'':)&%$:4!
$)6+ -,+ ).&+ *2%&&(@+ B.$*+ -#)4$(&*+ *-'&+ 2%$)$2:4+ $/&:*+ :C-#)+ ).&+
*2%&&(+:*+:(+$':0&!5%-/#2$(0+/&>$2&<+:(/+.-X+).&+*2%&&(+.:*+
:2"#$%&/+*-'&+-,+).&+,#(2)$-(*+).:)+X&%&+5%&>$-#*46+:*2%$C&/+
)-+ 5.6*$2:4+ *5:2&@+;+ *&4&2)$-(+ -,+ 2.:%:2)&%$*)$2*+ 5%&*&()&/+ $(+
).$*+2.:5)&%+*5-)4$0.)*+*-'&+-,+).&+$**#&*+).:)+.:>&+C&&(+%:$*&/<+
%&0:%/$(0+*2%&&(*<+$':0&*<+:(/+%&5%&*&():)$-(*+$(+'-%&+0&(&%:4+
)&%'*@+B.&+ $**#&*+ :%&+ 5%&*&()&/+ )-+ &'5.:*$Y&+ ).&+ $/&-4-0$2:4+
%&*$*):(2&+)-X:%/+).&+*2%&&(+$(+2%$)$2:4+4$)&%:)#%&<+:(/+5-**$C46+
&^54:$(+.-X+*#2.+).$(?$(0+.:*+-C*2#%&/+).&+$/&:+-,+*2%&&(*+:*+
':)&%$:4+:%)$,:2)*@
B.&+ *&2-(/+ 2.:5)&%+ 5%&*&()&/+ ).&+ ).&-%&)$2:4+ ,-#(/:)$-(*+ -,+
EEH
IPOIU=KNPO
IPOIU=KNPO
).&+/$**&%):)$-(<+C6+/%:X$(0+-(+:+%:(0&+-,+#(/&%*):(/$(0*+).:)+
&4:C-%:)&+).&+(-)$-(+-,+:%,"/$%-$,@@+B.$*+$*+C%-:/46+C:*&/+-(+).&+
).$(?$(0+-,+J:%*.:44+J2U#.:(<+X.-*&+$/&:*+/%:X+*5&2$:4+:)!
)&()$-(+)-+).&+$'5:2)+-,+).&+'&/$#'+$)*&4,<+%:).&%+).:(+).&+)65&+
-,+2-()&()+$)+2-(>&6*@+\$*+X%$)$(0*+:4*-+://%&**+).&+%-4&*+-,+:%)+
:(/+:%)$*)*+:*+:4)&%(:)$>&+X:6*+-,+:55%-:2.$(0+'&/$:+:(/+).&$%+
2-(/$)$-(*@+B.&+?&6+5-$()+-,+J2U#.:(`*+).$(?$(0+X$).+%&0:%/+
)-+ '&/$:+ ':)&%$:4$)6+ $*+ .$*+ *)%-(0+ ,-2#*+ -(+ ).&+ 5&%2&5)$-(+ -,+
'&/$:+ C6+ ).&+ :#/$&(2&@+ \$*+ ).$(?$(0+ $*+ :))#(&/+ )-+ ).&+ :2)#:4+
"CC"(,<+%:).&%+).:(+).&+$1,"1,$51+:(/+$)*+2-()&()<+X.$2.+X-#4/+$(+
*-'&+%&0:%/*+.:>&+C&&(+4&**+2-'54$2:)&/+)-+2-'5%&.&(/@+L#)+
&>&(+'-%&+$'5-%):()+$*+).:)+).&+&,,&2)+-,+'&/$:+$*+:+5%-/#2)+-,+
5&%2&5)$-(<+:(/+).:)+).$*+5&%2&5)$-(+$*+:,,&2)&/+C6+:+>:%$&)6+-,+
,:2)-%*+).:)+/&)&%'$(&+$)*+$'5:2)+-(+-#%+2-(*2$-#*(&**@+B.&*&+
,:2)-%*<+-%+2-(/$)$-(*<+:%&+&**&()$:4+)-+J2U#.:(`*+).$(?$(0@
;*+ N+ .:>&+ :%0#&/<+ ':)&%$:4$)6+ ':6+ &"#:446+ C&+ #(/&%*)--/+ :*+
).&+ *)%#2)#%:4+ 2-(/$)$-(*+ -,+ '&/$:@+ B.&*&+ 2-(/$)$-(*+ &^$*)+ :)+
/$,,&%&()+ 4&>&4*+ -,+ 5&%2&5)$-(<+ :(/+ ':6+ C&+ 2-(2&5)#:4$Y&/+ :*+
GLIIHUHQWXQGHUVWDQGLQJVRIPDWHULDOLW\,KDYHLGHQWL¿HGWKUHH
4&>&4*+g+:%,,"/<+C5/:<+:(/+51,5-5+@+g+C#)+-).&%+#(/&%*):(/$(0*+
':6+&^$*)+:5:%)+,%-'+).$*+$()&%5%&):)$-(@+B.&*&+4&>&4*+.:>&+C&&(+
4$(?&/+)-+>:%$-#*+#(/&%*):(/$(0*<+5&%*5&2)$>&*+:(/+).&-%&)$2:4+
)&%'*+,-%+'&/$:+C6+':(6+?&6+).$(?&%*<+*#2.+:*+9%$&/%$2.+b$)!
)4&%<+ b:).&%$(&+ \:64&*<+ L$44+ L%-X(<+ :(/+ &*5&2$:446+ J:%*.:44+
J2U#.:(@
BX-+*&)*+-,+/$2.-)-'$&*+,%-'+J2U#.:(`*+X%$)$(0*+.:>&+C&&(+
LGHQWL¿HGDVSDUWLFXODUO\HQOLJKWHQLQJZLWKUHJDUGWRPDWHULDO!
LW\ 7KH ¿UVW VHW FRPSULVHV WKH GLVWLQFWLRQV EHWZHHQ 85,+ :(/+
(55-+'&/$:<+X.$2.+%&5%&*&()+:+'&:*#%&+C6+X.$2.+'&/$:+':6+
C&+/&*2%$C&/+$(+)&%'*+-,+).&+:'-#()+-,+$(,-%':)$-(+).:)+).&6+
5%&*&()@+B.$*+%&4:)&*+)-+).&+$/&:+-,+'&/$:+':)&%$:4$)6+:*+,-%'<+
X.&%&+$(,-%':)$-(+$*+*.:5&/+C6+).&+5.6*$2:4+2.:%:2)&%$*)$2*+-,+
:+'&/$#'<+C#)+:4*-+.-X+2-()&()+':?&*+#*&+-,+).&+2:5:C$4$)$&*+
-,+).&+'&/$#'@+B.&%&,-%&<+J2U#.:(`*+(-)$-(*+-,+.-)+:(/+2--4+
.:>&+C&&(+&^)&(/&/+)-+,#(2)$-(+:*+%&4:)$>&<+/&*2%$5)$>&+'&:*#%&+
,-%+C-).+'&/$#'+:(/+2-()&()@+B.$*+&^)&(*$-(+5%->$/&*+:+X:6+-,+
/&*2%$C$(0+).&+:'-#()+-,+$(,-%':)$-(+:)+*&>&%:4+4&>&4*<+$(24#/!
$(0+).&+%&*-4#)$-(+-,+).&+*2%&&(+:(/+).&+$(,-%':)$-(+/$*54:6&/+
).%-#0.+$)@+\-)+:(/+2-4/+).&%&C6+/&*2%$C&+C-).+).&+$()&(*$)6+-,+
$(,-%':)$-(+ :(/+ .$()+ :)+ ).&+ %&"#$%&/+ 4&>&4+ -,+ 5&%2&5)$-(<+ $(!
)&%5%&):)$-(<+ :(/+ e2-'54&)$-(f+ C6+ ).&+ :#/$&(2&<+ :*+ J2U#.:(+
/&*2%$C&*+$)@
B.&+*&2-(/+*&)+-,+/$2.-)-'$&*+$(>-4>&+).&+(-)$-(*+-,+¿JXUH+:(/+
+/591#<+ X.$2.+ /&*2%$C&+ ).&+ /$*_#(2)$-(+ C&)X&&(+ -#%+ 5&%2&5!
)$-(+-,+'&/$:<+:(/+).&+0%-#(/$(0+2-(/$)$-(*+).:)+X&+:%&+(-%!
':446+ #(:X:%&+ -,@+ W.&%&:*+ -#%+ (-%':4+ 5&%2&5)$-(+ -,+ '&/$:+
LVRQO\DWWXQHGWRDOLPLWHGQXPEHURI¿JXUHVWKHUHLVDPXFK
4:%0&%+0%-#(/+).:)+%&':$(*+.$//&(+-%+4$'$(:4+)-+-#%+5&%2&5)$-(@+
N+.:>&+:%0#&/+).:)+).$*+/$*)$(2)$-(+*#00&*)*+).&+$/&:+-,+'&/$:+
':)&%$:4$)6+:*+-()-4-06<+X.&%&+).&+2-(>&()$-(:4+#(/&%*):(/$(0+
-,+:+'&/$#'+C&2-'&*+':)&%$:4+,-%+:%)$*)$2+5%:2)$2&@+B.$*+':6+
,#%).&%+%&4:)&+)-+C-).+,-%':4+5%-5&%)$&*+:(/+).&+2#4)#%:4+>:4#&*+
:))%$C#)&/+)-+2&%):$(+)65&*+-,+'&/$:+/&>$2&*@+]$>&(+J2U#.:(`*+
).$(?$(0<+ $)+ ':6+ C&+ 5%-5-*&/+ ).:)+ &^5&%$'&():4+ :(/+ :%)$*)$2+
5%:2)$2&*+).:)+&'5.:*$Y&+).&+0%-#(/+-,+'&/$:+':6+C&+://%&**!
$(0+).&+':)&%$:4$)6+-,+$)*+&^$*)&(2&+:)+>:%$-#*+4&>&4*@
1%:X$(0+.&:>$46+-(+J2U#.:(`*+).$(?$(0+-(+'&/$:<+N+.:>&+5%&!
*&()&/+:+2-(2&5)#:4+,%:'&X-%?+,-%+#(/&%*):(/$(0+':)&%$:4$)6+
:*+ 2-'5%$*$(0+:+ (#'C&%+-,+ 5%-5&%)$&*+).:)+%&4:)&+'-%&+)-+ ).&+
0$>&(+'&/$#'+).:(+).&+2-()&()+5%&*&()&/+).%-#0.+$)@+N)+$*+$'!
5-%):()+ )-+ "#&*)$-(+ ).&+ %&4&>:(2&+ -,+ J2U#.:(`*+ 5.$4-*-5.6<+
*$(2&+'-*)+-,+.$*+X-%?+X:*+5#C4$*.&/+C&,-%&+).&+5-5#4:%$Y:)$-(+
-,+/$0$):4+)&2.(-4-06<+4&)+:4-(&+).&+)65&*+-,+'&/$:+:%2.$)&2)#%&+
X&+ *&&+ )-/:6@+ 9-%+ $(*):(2&<+ .$*+ >$&X+ -,+ )&4&>$*$-(+ :*+ :+ 2--4+
EEV
EEQ
IPOIU=KNPO
IPOIU=KNPO
'&/$#'+':6+&:*$46+C&+2%$)$2$Y&/+:)+':(6+4&>&4*<+:*+N+.:>&+/$*!
2#**&/@+;4*-<+.$*+/$*%&0:%/+,-%+2-()&()+$*+.$0.46+5%-C4&':)$2<+
C#)+ -%$0$(:)&*+ ,%-'+ :+ >&%6+ 0&(&%:4$Y&/+ 5&%*5&2)$>&+ -(+ '&/$:+
:*+2&%):$(+)65&*+-,+,#(2)$-(+7-%+&^)&(*$-(8<+/&*2%$C&/+$(+':*)&%+
2:)&0-%$&*+).:)+*.:%&+).&+*:'&+2.:%:2)&%$*)$2*@+B.&*&+$**#&*+-,+
0&(&%:4$Y:)$-(+ ':6<+ :%0#:C46<+ #(/&%'$(&+ )%#*)+ $(+ J2U#.:(`*+
_#/0'&()<+:(/+).&+>:4$/$)6+-,+.$*+).&-%6@
P(+ ).&+ -).&%+ .:(/<+ J2U#.:(`*+ 24:$'*+ :C-#)+ #(/&%*):(/$(0+
'&/$:+.:>&+.:/+:+':_-%+$'5:2)+-(+'&/$:+).$(?$(0<+5%:2)$2:446+
*$(2&+ .$*+ &:%4$&*)+ 5#C4$2:)$-(*@+ N/&:*+ 4$?&+ ,8"& +-50%-& 3$--%+"<+
:(/+,8"&(51,"1,&5C&%1@&:"#$9:&$)&%-6%@)&%15,8"/&:"#$9:<+:%&+
&2.-&/+$(+:+4:%0&+:'-#()+-,+).&+%&2&()+4$)&%:)#%&+).:)+/&:4*+X$).+
(&X+'&/$:+54:),-%'*@
,Q WKLV GLVVHUWDWLRQ , KDYH H[WUDFWHG VRPH YHU\ VSHFL¿F LGHDV
,%-'+J2U#.:(`*+X-%?<+X.&%&+.&+/&*2%$C&*+).&+5&%2&5)$-(+-,+
'&/$:<+ :(/+ .-X+ >:%$-#*+ &4&'&()*<+ )-+ >:%$-#*+ &^)&()*<+ ':6+
2-'&+)-+-#%+:))&()$-(+:(/+:,,&2)+-#%+$()&%5%&):)$-(+-,+).&+'&!
/$#'+:*+:+X.-4&@+B.&*&+$/&:*+.:>&+C&&(+*&4&2)&/+C&2:#*&+).&6+
&,,&2)$>&46+/&*2%$C&+:(/+&^54:$(+).&+5%-5&%)$&*+).:)+':6+C&+:)!
)%$C#)&/+)-+':)&%$:4$)6@+L#)+:%0#:C46<+).$*+&^5&%$'&():4+2-((&2!
)$-(+':6+C&+&^54-%&/+,#%).&%@
:(/+:%2.$)&2)#%&+.:*+:+.$*)-%6+).:)+':6+C&+)%:2&/+C:2?+:)+4&:*)+
DKXQGUHG\HDUV%HFDXVHWKH¿HOGRIPHGLDDUFKLWHFWXUHLVQRW
GHOLPLWHG E\ DQ HQF\FORSHGLF GH¿QLWLRQ EXW UDWKHU E\ UHIHU!
HQFHWRYDULRXVZRUNVLWLVQHFHVVDU\WRH[DPLQHWKH¿HOGIURP
:+'#2.+'-%&+5%:2)$2:4+:(/+.$*)-%$2:4+5&%*5&2)$>&@+B.&+5&%*5&2!
WLYH SUHVHQWHG VXJJHVWV WKDW WKH ¿HOG RI PHGLD DUFKLWHFWXUH
':6+C&+&^)&(/&/+)-+$(>-4>&+:+'-%&+2-'54&^+>$&X+-,+':)&%$:4+
SUDFWLFHVRIPHGLDWHFKQRORJ\,SURSRVHWKDWWKHFXUUHQW¿HOG
-,+ '&/$:+ :%2.$)&2)#%&+ .:*+ C&&(+ &>-4>&/+ ,%-'+ :+ '-%&+ 0&(&%:4+
)&(/&(26+ )-+ ).$(?+ -,+ :%2.$)&2)#%&+ :*+ '&/$:<+ :(/+ >$2&+ >&%*:@+
J&/$:+:%2.$)&2)#%&+$*+5%&*&()&/+:*+:+5-**$C4&+#(/&%*):(/$(0+-,+
':)&%$:4+ *2%&&(*+ :*+ :55%-:2.&/+ C6+ :%2.$)&2)#%:4+ /&*$0(+ 5%:2!
)$2&*@+W&+':6+).&%&C6+/&*2%$C&+).&+5%:2)$2&+-,+:55%-:2.$(0+).&+
':)&%$:4$)6+-,+).&+*2%&&(+g+:*+$)+$*+':($,&*)&/+$(+'&/$:<+:%)<+:(/+
:%2.$)&2)#%&+g+:*+:+5%:2)$2&+-,+'&/$:+:%2.$)&2)#%&@
7KHWKLUGFKDSWHUH[SORUHVWKHHPHUJLQJ¿HOGRI:"#$%&%/(8$;
,"(,9/"DVD¿HOGWKDWRYHUODSVZLWKVFUHHQDUWDQGH[HPSOL¿HV
.-X+).&+*2%&&(`*+':)&%$:4$)6+':6+C&+&'5.:*$Y&/+:(/+&^5&%$!
PHQWDOO\WUDQVIRUPHGE\DGGUHVVLQJVSHFL¿FPDWHULDOSURSHU!
)$&*@+ B.&+ &^54-%:)$-(+ -,+ '&/$:+ :%2.$)&2)#%&+ .:*+ C&&(+ :22-'!
54$*.&/+C6+/&*2%$C$(0+*-'&+2-()&'5-%:%6+5%:2)$2&*<+:*+X&44+:*+
)%:2$(0+:+5-**$C4&+5%&!.$*)-%6+).%-#0.+$(*):(2&*+-,+'&/$:<+:%)<+
:(/+ :%2.$)&2)#%&+ $(+ ).&+ )X&()$&).+ 2&()#%6@+ N+ .:>&+ :%0#&/+ ).:)+
'&/$:+:%2.$)&2)#%&+':6+C&+:+%:).&%+(&X+)&%'+X$).$(+:%2.$)&2!
)#%&+:(/+/&*$0(<+C#)+).&+5%:2)$2&+-,+2-'C$($(0+&4&2)%-($2+'&/$:+
EEZ
7KHIRXUWKDQG¿QDOFKDSWHUSUHVHQWVDVHOHFWLRQRIFDVHVWKDW,
/&>&4-5&/+$(+2-44:C-%:)$-(+X$).+2-44&:0#&*+:)+;:%.#*+=($>&%!
*$)6@+B.&+$/&:*+-,+#(/&%*):(/$(0+).&+)&2.(-4-0$&*+:*+':)&%$:4*<+
:(/+4&:%($(0+:C-#)+).&$%+"#:4$)$&*+X&%&+$'5-%):()+&4&'&()*+-,+
).&+/&>&4-5'&()+-,+).&*&+2:*&*@+B.%-#0.+/&*2%$5)$-(*+:(/+$(!
)&%5%&):)$-(*<+ N+ .:>&+ *.-X(+ .-X+ $/&()$,6$(0+ ':)&%$:4$)6+ ':6+
C&+:+?&6+)-+#(4-2?$(0+:(/+2-''#($2:)$(0+>:4#:C4&+:*5&2)*+-,+
).&*&+$(*):44:)$-(*@
I-(2#%%&()46<+ 5%&*&()$(0+ ).&+ 2:*&*+ :4*-+ ,:2$4$):)&/+ ).&+ /$*!
2#**$-(+ -,+ ).&+ >:%$-#*+ #(/&%*):(/$(0*+ -,+ ':)&%$:4$)6+ ).:)+ :%&+
5%&*&()&/+$(+).$*+)&^)@+3#))$(0+).&'+)-+).&+)&*)+.:*+*.-X(+C-).+
*)%&(0).*+:(/+X&:?(&**&*+-,+).&+5%-5-*&/+,%:'&X-%?<+C#)+.:*+
0&(&%:446+.&45&/+)-+&'5.:*$Y&+:+(#'C&%+-,+$'5-%):()+:*5&2)*+
-,+).&+2:*&*<+:(/+#(/&%4$(&/+).&+':)&%$:4+:55%-:2.+).:)+X:*+:5!
54$&/+)-+).&+/&>&4-5'&()+5%-2&**@
EER
IPOIU=KNPO
IPOIU=KNPO
/090!/:56L<!196!;36?8;38;L9
B.&+ $(>&*)$0:)$-(*+ /&*2%$C&/+ $(+ ).$*+ /$**&%):)$-(+ .:>&+ C&&(+
C:*&/+ -(+ :+ *&)+ -,+ "#&*)$-(*+ ).:)+ 2-()%$C#)&+)-+ :+ C&))&%+#(/&%!
*):(/$(0+-,+:%)+:(/+/&*$0(+5%:2)$2&*+:%-#(/+*2%&&(!C:*&/+$(*):4!
4:)$-(*@+B.&*&+"#&*)$-(*+X&%&+5-*&/+$(+).&+$()%-/#2)$-(+75:0&+
GR8<+:(/+.:>&+,-%'&/+:+5&%*$*)&()+).%&:/+).%-#0.-#)+).$*+)&^)@
/$>&%*&+%:(0&+-,+#(/&%*):(/$(0*+).:)+://%&**+C-).+).&+5.6*$2:4+
DVSHFWVDQGWKHFXOWXUDOFRQGLWLRQVRIPHGLD$QG¿QDOO\WKH
/$**&%):)$-(+ .:*+ &^54-%&/+ ).&+ &'&%0$(0+ 2-(2&5)+ -,+ :"#$%& %/;
(8$,"(,9/"+:*+:+5-**$C4&+4:C&4+,-%+:+0&(&%:4+2-(2&5)+-,+5%:2)$2&*+
).:)+&'5.:*$Y&+).&+*2%&&(+:*+:+':)&%$:4+:%)$,:2)@
;&X56&(%1&6"&"YA%1#&,8"&,/%#$,$51%-&(51("A,$51)&5C&,8"&)(/""1&
,5& #")(/$0"& ,/%1)C5/:%,$51%-& %AA/5%(8")& ,8%,& +5& 0"@51#& ,8"&
A9/"-@&3$)9%-s
B.&+*2%&&(+.:*+-,)&(+C&&(+/&*2%$C&/+$(+C%-:/+)&%'*+:*+).&+>$!
*#:4+5:%:/$0'+-,+$':0&+%&5%&*&():)$-(+/&>$2&*<+*#2.+:*+5:$()!
$(0*<+ 5.-)-0%:5.*<+ :(/+ 2$(&':+ 2:(>:*&*@+ L#)+ /&*5$)&+ ).$*+ $(!
FOXVLYHFRQFHSWLRQWKHWHUPLVRIWHQUHVWULFWHGWRGHQRWHDÀDW
%&2):(0#4:%+*#%,:2&<+-(+X.$2.+).%&&+/$'&(*$-(*+:%&+%&/#2&/+)-+
)X-!/$'&(*$-(:4+ $':0&*@+ B.$*+ %&*)%$2)$-(+ '&:(*+ ).:)+ &^5&%$!
'&():4+5%:2)$2&*+X.&%&+*2%&&(*+:%&+&^)&(/&/+$()-+*5:)$:4+2-(!
¿JXUDWLRQVDVSUHVHQWHGWKURXJKYDULRXVH[DPSOHVIDOOVKRUW
-,+*#2.+:+2:)&0-%$Y:)$-(+:*+)(/""1)@+B.&%&,-%&<+N+.:>&+:%0#&/+
WKDWWKHWUDGLWLRQDOXQGHUVWDQGLQJRIWKHVFUHHQDVDÀDWUHFWDQ!
0#4:%+*#%,:2&+$*+$(:/&"#:)&+:(/+$(2-'5:)$C4&+X$).+).&+':)&%$:4+
2-(2&5)$-(+ -,+ ).&+ *2%&&(@+B.&%&+ $*+ :+ (&&/+ )-+ %&).$(?+ .-X+ X&+
#(/&%*):(/+>$*#:4+%&5%&*&():)$-(+$(+2-'54&^+'-/&*+-,+%&2&5!
)$-(@+9$%*)<+).$*+'&:(*+&^5:(/$(0+).&+)%:/$)$-(:4+2-(2&5)+-,+).&+
*2%&&(+ )-+ &(2-'5:**+ (-)+ -(46+ ).&+ $':0&<+ C#)+ :4*-+ ).&+ $':0&+
*#%,:2&+:(/+).&+)&2.(-4-06+).:)+5%-/#2&*+).&+$':0&*@+B.$*+:4*-+
4&:/*+)-+%&2-0($Y$(0+).:)+>:%$-#*+'&/$:+:%&+2-(*)$)#)&/+2#4)#%!
:446<+:(/+:%&+2-/&/+X$).+:+X$/&+%:(0&+-,+>:4#&*@+K&2-(/<+).&+
&^54-%:)$-(*+$(24#/&/+).&+(-)$-(+-,+:%,"/$%-$,@+:*+:+2-(2&5)#:4+
,-#(/:)$-(+ ,-%+ #(/&%*):(/$(0+ :(/+ /&*2%$C$(0+ ).&+ )%:(*,-%':!
)$-(*+-,+).&+*2%&&(+$(+:%)$*)$2+5%:2)$2&*@+J:)&%$:4$)6+$(>-4>&*+:+
EES
L6+/%:X$(0+-(+:+X$/&+%:(0&+-,+&^:'54&*+,%-'+'&/$:+:%)+:(/+
:%2.$)&2)#%&<+$)+$*+&>$/&()+).:)+).&%&+:%&+->&%4:55$(0+5%:2)$2&*+
).:)+ /&:4+ X$).+ >$*#:4+ '&/$:+ $(+ &^5&%$'&():4+ X:6*<+ X.&%&+ ).&+
'&/$#'+ $)*&4,+ $*+ &'5.:*$Y&/@+;4).-#0.+ ).&*&+ 5%:2)$2&*+ X-%?+
X$).+>$*#:4+'&/$:<+).&$%+'&/$#'+2:((-)+:4X:6*+C&+/&*2%$C&/+:*+
:+*2%&&(+$(+).&+)%:/$)$-(:4+*&(*&@+D^:'54&*+:%&+:*+/$>&%*&+:*+$(!
*):44:)$-(*+X.&%&+%&*-4#)$-(+$*+/&2%&:*&/+)-+:(+:C*-4#)&+5&%2&5!
)$C4&+'$($'#'<+5%-_&2)$-(*+-()-+>-4#'&)%$2+*#%,:2&*<+:(/+&>&(+
IUHHÀRDWLQJSL[HOVRIZKLFKWKHVXUIDFHKDVEHHQFRPSOHWHO\
GLVVROYHG,WLVFOHDUWKDWWKHVHZRUNVGRQRW¿WRXUWUDGLWLRQDO
2-(2&5)$-(+-,+).&+*2%&&(<+:(/+).:)+2-(>&()$-(:4+$/&:*+-,+>$/&-+
:%)+-%+*2%&&(+:%)+':6+(&&/+)-+C&+&^)&(/&/+)-+-).&%+0&(%&*<+*#2.+
:*+$(*):44:)$-(+:%)@
;&X56&(%1&,8"&15,$51&5C&[:%,"/$%-$,@\&%(,&%)&%&,8"5/",$(%-&C591;
#%,$51&C5/&91#"/),%1#$1+&%1#&#")(/$0$1+&,8"&)(/""1&$1&:"#$%&
%/,&%1#&%/(8$,"(,9/"Z
N)+.:*+C&&(+:%0#&/+).:)+':)&%$:4$)6+$*+:+2-'54&^+:(/+'#4)$>:!
4&()+)&%'+).:)+':6+.:>&+':(6+5-**$C4&+$()&%5%&):)$-(*@+N+.:>&+
&^5:(/&/+-(+:+*&4&2)$-(+-,+#(/&%*):(/$(0*<+C:*&/+-(+).&+$/&:*+
-,+ b:).&%$(&+ \:64&*<+ 9%$&/%$2.+ b$))4&%<+ L$44+ L%-X(<+ I4&'&()+
]%&&(C&%0<+J:%*.:44+J2U#.:(<+U#/X$0+3,&$,,&%<+:(/+\:(*+=4!
%$?+]#'C%&2.)@+B.&$%+).$(?$(0+*#55-%)*+).&+2-(2&5)*+:(/+#(!
/&%*):(/$(0*+).:)+4&:/+)-+:+C&))&%+:(/+/&&5&%+#(/&%*):(/$(0+-,+
.-X+ ':)&%$:4$)6+ ':6+ ,#(2)$-(+ :*+ :+ ).&-%&)$2:4+ ,-#(/:)$-(+ ,-%+
EET
IPOIU=KNPO
IPOIU=KNPO
#(/&%*):(/$(0+'&/$:+:%)+:(/+:%2.$)&2)#%&@+J2U#.:(`*+X-%?+.:*+
C&&(+5:%)$2#4:%46+$(*)%#'&():4+$(+).$*+5%-2&**@+;4).-#0.+J2U#!
.:(+(&>&%+&^54$2$)46+://%&**&/+':)&%$:4$)6+$(+.$*+X%$)$(0*<+N+:%!
JXH WKDW KLV LGHDV RI PHGLD ¿W ZHOO ZLWKLQ WKLV FRQFHSW +LV
24-*&+:))&()$-(+)-+).&+5&%2&5)#:4+&,,&2)*+-,+).&+'&/$#'<+:*+X&44+
:*+).&+'#2.+C%-:/&%+2-(/$)$-(*+:(/+2-/&*+-,+'&/$:<+5-$()+)-!
X:%/+-).&%+2$%2#'*):(2&*+-%+*)%#2)#%&*+).:)+':)2.&*+.-X+).$(?!
&%*+:(/+:%)$*)*+.:>&+:55%-:2.&/+':)&%$:4$)6@
,KDYHKLJKOLJKWHGDIHZNH\DVSHFWVWKDW,¿QGHVVHQWLDOWRXQ!
/&%*):(/$(0+':)&%$:4$)6@+B.&*&+:%&h+:%,,"/<+C5/:<+:(/+51,5-5+@@+
D:2.+-,+).&*&+:*5&2)*+%&5%&*&()*+:+5-**$C4&+5&%*5&2)$>&+-(+':!
)&%$:4$)6<+:(/+.-X+$)+':6+C&+#(,-4/&/+).&-%&)$2:446@+J2U#.:(`*+
2-(2&5)*+-,+85,p(5-#+'&/$:<+:(/+¿JXUHJURXQG+.:>&+://$)$-(!
:446+5%->$/&/+:+).&-%&)$2:4+0%-#(/$(0+:(/+:+%$2.&%+2-(2&5)#:4!
$Y:)$-(@+\$*+$/&:*+-,+'&/$:+$(>-4>&+).&+)-):4+&,,&2)*+-,+'&/$:+$(+
DPXFKODUJHUFRQWH[WWKDQWKHVSHFL¿FPHVVDJHZKLFKPDNHV
$)+5-**$C4&+)-+&^5&%$'&():446+&^)&(/+).&+$/&:*+,-%+).&+2-(2&5!
)#:4$Y:)$-(+ -,+ ':)&%$:4$)6+ :*+ :+ ,#(/:'&():4+ #(/&%*):(/$(0+ -,+
'&/$:+:(/+'&/$:+:%)@
,KDYHDOVRH[HPSOL¿HGWKHDSSOLFDWLRQRIWKHSUHVHQWHGDVSHFWV
:*+:(:46)$2:4+:(/+/&*2%$5)$>&+)&%'*<+C6+:(:46Y$(0+:+(#'C&%+-,+
:%)X-%?*+).:)+&'5.:*$Y&+).&$%+#*&@+9#%).&%'-%&<+N+.:>&+:554$&/+
).&+)&%'*+:(/+:*5&2)*+-,+':)&%$:4$)6+)-+:+(#'C&%+-,+2:*&*+).:)+
N+2:%%$&/+-#)<+/#%$(0+'6+X-%?+:*+:+3.@1@+,&44-X@+B.&+-%$0$(:4+
0-:4+-,+).&*&+2:*&*+X:*+(-)+)-+&^&'54$,6+-%+$(>&*)$0:)&+':)&!
%$:4$)6<+C#)+)-+&^54-%&+).&+'-%&+0&(&%:4+5-)&()$:4+-,+(&X+>$*#:4+
)&2.(-4-0$&*+ $(+ 5#C4$2+ *5:2&*@+ B.&%&,-%&<+ ).&6+ $44#*)%:)&+ .-X+
':)&%$:4$)6+':6+C&+:554$&/+$(+0&(&%:4+)-+:%)X-%?*+:(/+/&*$0(+
X-%?<+:*+5:%)+-,+:+,#(/:'&():4+>-2:C#4:%6@
2-()&()+:(/+'&/$#'+$(+'&/$:+:%)X-%?@+N(*)&:/+-,+'&%&46+,-!
2#*$(0+ -(46+ -(+ ).&+ $((&%+ 2-()&()+ -,+ ).&*&+ X-%?*<+ ':)&%$:4$)6+
':6+.&45+)-+/&*2%$C&+).&$%+%&4:)$-(+)-+).&+&^)&%(:4+,-%'<+-%+)-+
).&++/591#+-,+).&+'&/$#'@+B.&+&^:'54&*+5%&*&()&/+$(+).$*+/$*!
*&%):)$-(+ %&5%&*&()+ -(46+ :+ *':44+ *&4&2)$-(+ -,+ :%)X-%?*<+ X.&%&+
).&+'&/$#'+$*+:(+$()&0%:4+5:%)+-,+).&$%+'&:($(0@+B.&$%+'&/$#'!
VSHFL¿FDSSURDFKHVLOOXVWUDWHKRZWKHPHGLXPDQGSURSHUWLHV
-,+).&+'&/$#'+':6+C&+#*&/+%)&%&:%,"/$%-<+:(/+/%:X+:))&()$-(+
)-+).&+2-(>&()$-(:4+#(/&%*):(/$(0+-,+&4&2)%-($2+'&/$:+/&>$2&*+
:*+ 0&(&%$2+ :(/+ )%:(*5:%&()@+ L6+ X-%?$(0+ X$).+ ).&+ ':)&%$:4$)6+
-,+ '&/$:<+ :%)$*)*+ 2:(+ 2%$)$2:446+ $/&()$,6+ ).&+ 2-/&*+ -,+ -#%+ 5&%!
2&5)$-(<+:(/+&'5.:*$Y&+:4)&%(:)$>&+2-(2&5)$-(*+-,+'&/$:+:(/+
*2%&&(*@
, KDYH H[HPSOL¿HG KRZ XVLQJ PDWHULDOLW\ DQG UHODWHG WHUPV
':6+ 5%->$/&+ :+ C&))&%+ #(/&%*):(/$(0+ -,+ ).&+ %&4:)$-(*+ C&)X&&(+
EHF
+RZFDQZHGHVFULEHWKHHPHUJLQJ¿HOGRI³PHGLDDUFKLWHF;
,9/"\&%)&$135-3$1+&%&)",&5C&A/%(,$(")&,8%,&%AA/5%(8")&,8"&)(/""1&
%)&:%,"/$%-Z
0HGLDDUFKLWHFWXUHLVDJURZLQJ¿HOGWKDWLQYROYHVERWKYLVX!
:4+'&/$:+)&2.(-4-0$&*<+2-''-(46+?(-X(+:*+*2%&&(*<+:(/+).&+
5.6*$2:446+2-(*)%#2)&/+*5:2&+).:)+*#%%-#(/*+#*@+N+.:>&+:%0#&/+
).:)+'&/$:+:%2.$)&2)#%&+':6+C&+$()&%5%&)&/+$(+)X-+/$*)$(2)+X:6*<+
X.$2.+):?&+&$).&%+).&+'&/$#'+-%+).&+:%2.$)&2)#%&+:*+).&+5-$()+
-,+/&5:%)#%&@+9-2#*$(0+-(+).&+:"#$9:+$'54$&*+).&+$/&:+-,+).&+
*2%&&(+C&2-'$(0+:%2.$)&2)#%&<+X.$2.+$(>-4>&*+:(+:%2.$)&2)#%:4+
:55%-:2.+)-+$)*+5.6*$2:4+:(/+*5:)$:4+/&*$0(<+C:*&/+-(+).&+*?$44*+
:(/+ ?(-X4&/0&+ -,+ ).&+ :%2.$)&2)@+ I-(>&%*&46<+ ):?$(0+ %/(8$,"(;
,9/"+ :*+ :+ 5-$()+ -,+ /&5:%)#%&+ *#00&*)*+ ).:)+ C#$4/$(0*+ .:>&+ :/!
-5)&/+).&+2-''#($2:)$>&+2:5:C$4$)$&*+-,+:(+&4&2)%-($2+'&/$#'@
L-).+$()&%5%&):)$-(*+/&*2%$C&+:+%&4:)$-(*.$5+C&)X&&(+).&+':)&!
%$:4<+5.6*$2:4+*5:2&+:(/+).&+>$*#:446+/6(:'$2+'&/$#'+).:)+$*+
$'54$2$)+$(+).&+':)&%$:4+*2%&&(@+N+.:>&+:%0#&/+).:)+,-%&0%-#(/!
EHG
IPOIU=KNPO
IPOIU=KNPO
$(0+ ':)&%$:4$)6+ :*+ :+ ,-%':4+ -%+ 2-(2&5)#:4+ )%:(*,-%':)$-(+ 2:(+
,:2$4$):)&+:(+$(2%&:*&/+,-2#*+-(+).&+*)%#2)#%$(0+&4&'&()*+-,+).&+
'&/$#'@+N(*)&:/+-,+).&+/&':)&%$:4$Y&/+*2%&&(+).:)+).&+>$&X&%+
4--?*+ ,8/59+8<+ '&/$:+ :%2.$)&2)#%&+ ':6+ C&+ *:$/+ )-+ 5%&*&()+ :(+
:4)&%(:)$>&+5&%2&5)#:4+'-/&+-,+4--?$(0+%,+).&+*2%&&(@+B.$*+5-!
)&()$:446+':%?*+:+(&X+2-#%*&+,-%+'&/$:<+X.$2.+%&&^:'$(&*+).&+
'&/$#'+:(/+).&+2-()&()+:*+$()&%X->&(+2-(2&5)*@
J&/$:+:%2.$)&2)#%&+2:(+$(,-%'+:+X:6+-,+#(/&%*):(/$(0+'&/$:+
:%)+$(*):44:)$-(*+:*+X-%?*+).:)+:55%-:2.+':)&%$:4$)6+:)+*&>&%:4+
4&>&4*h+).&+':)&%$:4+)&2.(-4-06<+).&+,-%':4+&^5%&**$-(<+:(/+).&+
-()-4-0$2:4+0%-#(/$(0+-,+).&+'&/$#'@+B.#*<+).&+$(*$0.)*+$()-+
).&+2-(/$)$-(*+-,+'&/$:+%&0:%/&/+:*+:+)65&+-,+:%2.$)&2)#%&+':6+
.&45+)-+->&%2-'&+).&+,-%'&%+'6).+-,+$'':)&%$:4$)6+$(+%&0:%/*+
)-+ *2%&&(*@+ =(/&%*):(/$(0+ ).&+ *2%&&(+ ,%-'+ ).$*+ :%2.$)&2)#%:4+
5&%*5&2)$>&+ 2:(+ ).&%&C6+ %&!':)&%$:4$Y&+ ).&+ *2%&&(+ :*+ 2-(2&5)+
:(/+ ://*+ )-+ :+ /&&5&%+#(/&%*):(/$(0+-,+ *2%&&(*+ :(/+ ).&$%+%-4&+
$(+'&/$:+:%)@
:)+).&+_#(2)$-(+-,+'&/$:<+:%)<+:(/+:%2.$)&2)#%&@+7H8+9$(:446<+).&+
).$%/+ 2-()%$C#)$-(+ $*+ '6+ 5:%)$2$5:)$-(+ :(/+ /&&5+ $(>-4>&'&()+
$(+:+(#'C&%+-,+(%)")<+,%-'+X.$2.+).&+$/&:*+-,+':)&%$:4*+:(/+
':)&%$:4$)6+.:>&+&'&%0&/<+&>-4>&/<+:(/+':)#%&/@+B.&*&+2:*&*+
(-)+-(46+:/>:(2&/+).$*+2#%%&()+5%-_&2)<+C#)+:4*-+-).&%+%&4:)&/+
%&*&:%2.+5%-_&2)*+).:)+.:>&+#*&/+).&*&+:*+2:*&!*)#/$&*@
:<;4/8A248<;9
;)+4&:*)+).%&&+/$*)$(2)+2-()%$C#)$-(*+:%&+':/&+C6+).$*+/$**&%):!
WLRQ 7KH ¿UVW LV WKH DSSOLFDWLRQ RI :%,"/$%-$,@+ :*+ :(+ #(!
/&%*):(/$(0+-,+*2%&&(!C:*&/+:%)+:(/+'&/$:+:%)+$(+0&(&%:4@+B.$*+
$(24#/&*+:+).&-%&)$2:4+,-#(/:)$-(<+':$(46+C:*&/+-(+).&+X-%?+-,+
J:%*.:44+J2U#.:(<+).:)+://%&**&*+C-).+,-%':4+:(/+-()-4-0$2:4+
"#&*)$-(*+-,+'&/$:@+L6+5%&*&()$(0+(&X+%&:/$(0*+-,+J2U#.:(`*+
X&44!?(-X(+).&-%$&*<+N+.:>&+5%->$/&/+:+%$2.+#(/&%*):(/$(0+-,+
:%,"/$%-$,@+).:)+':6+5-)&()$:446+C&+&^)&(/&/+)-+-).&%+*#C_&2)*+
-,+*)#/6@+7E8+B.&+*&2-(/+2-()%$C#)$-(+$*+:(+$(>&*)$0:)$-(+-,+:";
#$%&%/(8$,"(,9/"DVDQHPHUJLQJ¿HOGDQGKRZLWUHODWHVWRWKH
H[LVWLQJ¿HOGRIVFUHHQEDVHGDUWDQGDUFKLWHFWXUH7KLVLVRQH
RIWKH¿UVWDWWHPSWVWRLQWHUSUHWWKHLPSOLFDWLRQVRIPHGLDDU!
2.$)&2)#%&<+:(/+2-((&2)+$)+)-+:+.$*)-%6+-,+&^5&%$'&():4+5%:2)$2&*+
EHE
?8;!16/07!/R9
B.&+*):%)$(0+5-$()+,-%+).$*+/$**&%):)$-(+X:*+).&+5%:2)$2:4+X-%?+
).:)+N+5&%,-%'&/+$(+).&+!"#$%&'%(%#")+%&*&:%2.+5%-_&2)@+B.&+
,#(/:'&():4+"#&*)$-(+).:)+.:*+'-)$>:)&/+).$*+/$**&%):)$-(+X:*h+
W.6+:%&+).&*&+2:*&*+$()&%&*)$(0s+3-(/&%$(0+).$*+"#&*)$-(+4&/+
'&+)-+&^54-%&+).&+'&:($(0*+-,+2-(2&5)*+4$?&+:"#$%&%/(8$,"(;
,9/"<+:(/+).&$%+$()%$(*$2+"#:4$)$&*+:(/+*)%:)&0$&*@
J6+X-%?+:*+:(+:%)$*)+:(/+/&*$0(&%+.:*+:44-X&/+'&+)-+:2"#$%&+
?(-X4&/0&+ :C-#)+ X-%?$(0+ X$).+ *2%&&(*+ &^5&%$'&():446<+ :(/+
5%->$/&/+>:4#:C4&+).&-%&)$2:4+$(*$0.)*+$()-+).&+$()&%/&5&(/&()+
(:)#%&+-,+2-()&()+:(/+'&/$#'@+B.&+/$**&%):)$-(+.:*+:+0&(&%:4+
,-2#*+-(+5%:2)$2&+:(/+).&+>:%$-#*+*)%:)&0$&*+$(>-4>&/+$(+C-).+:%)+
5%-/#2)$-(+:(/+'6+-X(+5%:2)$2&+:*+/&*$0(&%+:(/+:%)$*)@+=(/&%!
*):(/$(0+).&*&+5%:2)$2&*+$(+-%/&%+)-+/&*2%$C&+).&'+:(/+':*)&%+
).&'+.:*+C&&(+:+5&%*-(:4+0-:4+).%-#0.-#)+).&+X-%?+/&*2%$C&/+
.&%&@+ B.$*+ $(*$0.)+ $*+ 5-)&()$:446+ 5%-/#2)$>&+ ,-%+ C-).+ ).$(?&%*+
DQGSUDFWLWLRQHUVLQYDULRXV¿HOGVFRQFHUQLQJDUWDQGWHFKQRO!
-06@
N+.:>&+://%&**&/+':)&%$:4$)6+,%-'+).&+5&%*5&2)$>&+-,+'&/$:+:(/+
:%)+).&-%6<+X.&%&+$)+.:*+5%->&(+)-+C&+5%-/#2)$>&+,-%+).&+2#%%&()+
C-/6+-,+X-%?@+B.$*+.:*+C&&(+:$'&/+:)+$(>&*)$0:)$(0+$)*+:554$2:!
WLRQIRUWKHVSHFL¿FPHGLXPRI,8"&)(/""1@+\-X&>&%<+).&+0&(&%!
:4+(:)#%&+-,+).&+).&-%6+).:)+).$*+/$**&%):)$-(+$*+C:*&/+-(+*#00&*)*+
EHH
IPOIU=KNPO
).:)+'6+$()&%5%&):)$-(+-,+':)&%$:4$)6+':6+C&+:554$2:C4&+)-+-).&%+
)65&*+ -,+ '&/$:<+ :(/+ 5%->$/&+ 5%-/#2)$>&+ %&*#4)*@+B.&+ ':)&%$:4+
WXUQKDVLQÀXHQFHGDZLGHUDQJHRI¿HOGVWKDWLQFUHDVLQJO\DF!
NQRZOHGJHPDWHULDOTXDOLWLHVEXWPD\EHQH¿WIURPDEHWWHUDQG
/&&5&%+2-'5%&.&(*$-(+-,+).&$%+2.:%:2)&%@+9#%).&%+X-%?+*.-#4/+
C&+/-(&+)-+5%->$/&+:+'-%&+0&(&%:4+).&-%6+).:)+2-#4/+5%-'-)&+
).&+#*&+-,+:%,"/$%-$,@+:*+:+%$2.+:(/+2-'54&^+#(/&%*):(/$(0+-,+
'&/$:+:(/+:%)@
EHV
LIST OF FIGURES
9$0#%&+Gh+d$'+I:'5C&44+g+I.#%2.+-(+9$,).+;>&(#&+7EFFG8@@@@@ T
9$0#%&+Eh+d$'+I:'5C&44+g+I.#%2.+-(+9$,).+;>&(#&+7EFFG8<+
*$/&+>$&X+@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ T
9$0#%&+Hh+O:'+d#(&+3:$?+g+J:0(&)+Ba+7GTZQ8+@@@@@@@@@@@@@@@@@@@@@ GG
)LJXUH7KUHH¿HOGVRIWKHPDWHULDOVFUHHQ@@@@@@@@@@@@@@@@@@@@@@@@@ GZ
9$0#%&+Qh+;4C%&2.)+1o%&%+!+1%:#0.)*':(+1%:X$(0+:+
M&2#'C&()+W-':(+7GQEQ8+@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ VV
9$0#%&+Zh+GTZF*+)&4&>$*$-(+:/>&%)$*&'&()+@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ QH
9$0#%&+Rh+L:$%/`*+B&4&>$*$-%+#*$(0+:+O$5?-X+1$*?+@@@@@@@@@@@@@@@@ ZH
9$0#%&+Sh+]&C.:%/+K&(0'o44&%+g+;+3:%:44&4+N':0&+7EFFS8+@@@ RR
9$0#%&+Th+]&C.:%/+K&(0'o44&%+g+;+3:%:44&4+N':0&+7EFFS8+@@@ RR
9$0#%&+GFh+1:($&4+M-Y$(+g+W--/&(+J$%%-%+7GTTT8+@@@@@@@@@@@@@@@ RT
9$0#%&+GGh+b:).%$(&+\:64&*+g+W%$)$(0+J:2.$(&*+7EFFE8+@@@@@@@ SG
9$0#%&+GEh+O:'+d#(&+3:$?+g+Ba+I&44-+7GTRG8+@@@@@@@@@@@@@@@@@@@@@@ SE
)LJXUH7RQ\2XUVOHU±7KH,QÀXHQFH0DFKLQH+@@@ SV
9$0#%&+GVh+]&-%0&*+K&#%:)+g+U:+B-#%+D$,,&4+72@+GSST8+@@@@@@@@@@ ST
9$0#%&+GQh+J2U#.:(`*+.-)+:(/+2--4+'&/$:+@@@@@@@@@@@@@@@@@@@@@@@@@@@ TZ
9$0#%&+GZh+L%#2&+O:#':((+g+B.&+B%#&+;%)$*)+\&45*+).&+W-%4/+
C6+M&>&:4$(0+J6*)$2+B%#).*+@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ GFV
9$0#%&+GRh+d&((6+\-4Y&%+g+B%#$*'*+7GTSE8+@@@@@@@@@@@@@@@@@@@@@@@@@ GFZ
9$0#%&+GSh+;%:'+L:%).-44+g+M:(/-'+K2%&&(+7EFFQ8<+,%-()+@ GEG
9$0#%&+GTh+;%:'+L:%).-44+g+M:(/-'+K2%&&(+7EFFQ8<+C:2?+@ GEG
9$0#%&+EFh+b%Y6*Y)-,+W-/$2Y?-+g+K-4/$&%*+:(/+K:$4-%*+
J&'-%$:4+;%2.+3%-_&2)$-(+7GTSHrSV8+@@@@@@@@@@@@@@@@@@@@@@@@@ GEH
9$0#%&+EGh+b3O+B-X&%+7EFFG8+,:2:/&+C6+K)#/$-+1#'C:%+@@ GHQ
9$0#%&+EEh+LNz+7EFFH8+C6+%&:4$)$&*h#($)&/+@@@@@@@@@@@@@@@@@@@@@@@@@@@ GHR
9$0#%&+EHh+LNz+7EFFH8+C6+%&:4$)$&*h#($)&/+@@@@@@@@@@@@@@@@@@@@@@@@@@@ GHR
EHQ
UNKB+P9+9N]=MDK
9$0#%&+EVh+I-(*&44:)$-(+7EFFS8+C6+=($)&/+a$*#:4+;%)$*)*+@@@@ GVG
9$0#%&+EQh+I-(*&44:)$-(+7EFFS8+C6+=($)&/+a$*#:4+;%)$*)*+@@@@ GVG
9$0#%&+EZh+B-X&%+-,+W$(/*+7GTSZ8+C6+B-6-+N)-+@@@@@@@@@@@@@@@@@@ GQH
9$0#%&+ERh+I&()%&+3-'5$/-#<+2%-**+*&2)$-(+@@@@@@@@@@@@@@@@@@@@@@@@ GQQ
9$0#%&+ESh+I&()%&+3-'5$/-#<+,:2:/&+&4&>:)$-(+@@@@@@@@@@@@@@@@@@@ GQQ
9$0#%&+ETh+I$)%-{(+*$0(+-(+).&+D$,,&4+)-X&%+7GTEQ!HV8+@@@@@@@ GQT
9$0#%&+HFh+;:%.#*+C6+U$0.)+7EFFS8+@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ GRR
9$0#%&+HGh+UD1+5:(&4+)&*)*<+1&2&'C&%+EFFR+@@@@@@@@@@@@@@@@@@@@@@ GRR
9$0#%&+HEh+M#(($(0+K2#45)#%&+7EFFS8<+$(*$/&+@@@@@@@@@@@@@@@@@@@@@@ GSQ
9$0#%&+HHh+M#(($(0+K2#45)#%&+7EFFS8<+-#)*$/&+@@@@@@@@@@@@@@@@@@@@ GSQ
9$0#%&+HVh+I4$':)&+W:44+7EFFT8+@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ GST
9$0#%&+HQh+I4$':)&+W:44+7EFFT8<+>$/&-+5%-_&2)-%*+@@@@@@@@@@@@@@ GST
9$0#%&+HZh+;)'-*5.&%&+g+/$*54:6&/+$(+K6/(&6+EFGG+@@@@@@@@@@ GTQ
9$0#%&+HRh+1&(':%?+3:>$4$-(+'-/&4+C6+LN]+@@@@@@@@@@@@@@@@@@@@@@ EFF
9$0#%&+HSh+a$%)#:4+H1+'-/&4+@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ EFH
9$0#%&+HTh+3%-_&2)$-(+'-/&4+@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ EFH
9$0#%&+VFh+;44+X.$)&+4$0.)+@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ EFT
9$0#%&+VGh+W.$)&+4$(&*+@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@@ EFT
9$0#%&+VEh+;C*)%:2)+5:))&%(*+-,+%&/+:(/+X.$)&+@@@@@@@@@@@@@@@@@@@@@ EFT
EHZ
BIBLIOGRAPHY
LNLUNP]M;3\[
;4C&%)$<+U@+L@+7GVHQ8<+]1&A%$1,$1+<+&/@+J@+b&'5+7M&5%$()&/+
EFFV+&/(@n+U-(/-(h+3&(0#$(+I4:**$2*8@
L:#/%$44:%/<+d@+7GTTV8<+N$:9-%(/%&%1#&N$:9-%,$51+7=($>&%*$)6+
-,+J$2.$0:(+3%&**8@
L&2?':((<+d@+7GTTS8<+48"&S$/,9%-&*$:"1)$51G&7/(8$,"(,9/"B&
`"A/")"1,%,$51B&%1#&E/%)8&E9-,9/"+73%$(2&)-(+
;%2.$)&2)#%:4+3%&**8@
L&(_:'$(<+W@+7GTHQ8<+iB.&+X-%?+-,+:%)+$(+).&+:0&+-,+
'&2.:($2:4+%&5%-/#2)$-(`<+<--9:$1%,$51)+7GTTTn+
U-(/-(h+3$'4$2-8<+EGG!EVV@
L&(_:'$(<+W:4)&%<+;%&(/)<+\:((:.<+:(/+u-.(<+\:%%6+7GTRF8<+
<--9:$1%,$51)+7U-(/-(h+d-(:).:(+I:5&8@
L&%0&%<+d@+7GTRE8<+a%@)&5C&)""$1++77U-(/-(+:(/+
\:%'-(/X-%).8h+L%$)$*.+L%-:/2:*)$(0+I-%5-%:)$-(+:(/+
3&(0#$(8@
L$*.-5<+I@+7EFFQ8<+<1),%--%,$51&7/,+7U-(/-(h+B:)&+3#C4$*.$(08@
L-4)&%<+d@+1@+7EFFG8<+a/$,$1+&NA%("G&E5:A9,"/)B&X@A"/,"Y,B&
%1#&,8"&`":"#$%,$51&5C&M/$1,+7M-#)4&/0&8@
L-4)&%<+d@+1@+:(/+]%-':4:<+1@+7EFFH8<+a$1#56)&%1#&:$//5/)&
G&$1,"/%(,$51&#")$+1B&#$+$,%-&%/,B&%1#&,8"&:@,8&5C&
,/%1)A%/"1(@+7U&-(:%/-n+I:'C%$/0&<+J:**@h+JNB+
3%&**8@
L-4)&%<+d@+1@+:(/+]%#*$(<+M@+7EFFE8<+`":"#$%,$51&G&
91#"/),%1#$1+&1"6&:"#$%+7I:'C%$/0&<+J:**@h+JNB+
3%&**8@
L%&$(C_&%0<+J@<+&)+:4@+7EFGF8<+iD^5&%$&(2$(0+).&+(-(!*&(*#-#*h+
-(+'&:*#%&'&()<+%&5%&*&():)$-(+:(/+2-(2&5)$-(+
$(+#%C:(+:%)+$(*):44:)$-(*`<+M/5(""#$1+)&5C&,8"&U,8&
EHS
LNLUNP]M;3\[
R5/#$(&E51C"/"1("&51&X9:%1;E5:A9,"/&<1,"/%(,$51G&
OY,"1#$1+&=591#%/$")+7M&6?_:>$?<+N2&4:(/h+;IJ8<+
ZGG!ZGV@
L%$44<+U@+J@+7EFFH8<+iP(&+B$'&*+K"#:%&+M&>$*$-(*h+K$0(:0&+$(+
).&+2%-**%-:/*+-,+).&+X-%4/+).%-#0.+).&+6&:%*`@+|.))5hrr
XXX@*$0($(/#*)%6@2-'r4&/r:%)$24&*rEFGF!GG!FG!UL!
P(&}B$'&}K"#:%&}K$0(:0&}B.%-#0.}).&}[&:%*@5.5H+
~<+:22&**&/+d:(#:%6+G*)+EFGH@
L%-X(<+L@+7EFGF8<+iJ:)&%$:4$)6`<+$(+W@d@+J$)2.&44+:(/+J@L@O@+
\:(*&(+7&/*@8<+E/$,$(%-&4"/:)&C5/&!"#$%&N,9#$")+7B.&+
=($>&%*$)6+-,+I.$2:0-+3%&**8<+VT!ZH@
L%6(*?-><+J@<+&)+:4@+7EFFT8<+iK):0$(0+=%C:(+N()&%:2)$-(*+X$).+
J&/$:+9:y:/&*`<+<R4O`7E4&fKT+73%-2&&/$(0*+-,+).&+
GE).+N9N3+BI+GH+N()&%(:)$-(:4+I-(,&%&(2&+-(+\#':(!
I-'5#)&%8@
L%6*-(<+O@+7GTSH8<+S$)$51&%1#&A%$1,$1+G&,8"&-5+$(&5C&,8"&+%e"+
7J:2'$44:(8@
I:'5C&44<+d@+iI.%#2.+-(+9$,).+;>&(#&`<+|.))5hrr_$'2:'5C&44@
WYSRUWIROLRORZBUHVROXWLRQBZRUNV¿IWKBDYHQXH
FKXUFKBRQB¿IWKBDYHQXH!DFFHVVHG-DQWK
I:*)&44*<+J@+:(/+K:(6:4<+L@+7EFFV8<+iK5:2&+-,+94-X*<+K5:2&+
-,+34:2&*h+J:)&%$:4*+,-%+:+B.&-%6+-,+=%C:($*'+$(+).&+
N(,-%':)$-(+;0&`<+E5:A%/%,$3"&M-%11$1+&E9-,9/")+
7EFFQh+M-#)4&/0&8@
I;aN+iJ&/$:+9:2:/&*`<+|.))5hrrXXX@2:>$@/?r5%-_&2)*r
'&/$:,:2:/&*@5.5+~<+:22&**&/+d:(+S).+EFGH@
I-%C#*$&%<+U&+7GTEH8<+456%/#)&%&1"6&%/(8$,"(,9/"+7O&X+[-%?h+
1->&%+3#C4$2:)$-(*8@
I-#4)&%!K'$).<+]@+7EFFZ8+*"(51),/9(,$1+&<1),%--%,$51&7/,+
EHT
LNLUNP]M;3\[
j-(4$(&+)&^)l<+I;KN;1+3=LUNK\NO]+|.))5hrrXXX@
$(*):44:)$-(:%)@(&)r+~<+;22&**&/+d:(+G*)+EFGH
I%:%6<+d-(:).:(+7GTTZ8<+4"(81$b9")&5C&,8"&50)"/3"/&G&51&3$)$51&
%1#&:5#"/1$,@&$1&,8"&1$1",""1,8&("1,9/@+7P2)-C&%+
C--?n+I:'C%$/0&<+J:**@h+JNB+3%&**8@
I%:%6<+d@+7EFFG8<+N9)A"1)$51)&5C&A"/("A,$51&G&%,,"1,$51B&
)A"(,%(-"B&%1#&:5#"/1&(9-,9/"+7I:'C%$/0&<+J:**h+JNB+
3%&**8@
LNLUNP]M;3\[
L--?*8@
1-#%$*.<+3@+7EFFV8<+a8"/"&48"&7(,$51&<)G&48"&'591#%,$51)&
]C&O:05#$"#&<1,"/%(,$51+7$44#*)%:)&/<+%&5%$()+&/(@h+J$)+
3%&**8@
1#'C:%<+K)#/$-+ib3O+B-X&%+g+3$^&4*+-(+).&+K?64$(&`<+
|.))5hrr*)#/$-/#'C:%@2-'rX-%?r?5(!)-X&%!$/&()$)6+~<+
;22&**&/+J:%+GF).+EFGH
I%:%6<+d@+7EFFE8<+i]v%$2:#4)<+).&+3:(-%:':<+:(/+K$)&*+-,+
M&:4$)6+$(+).&+D:%46+O$(&)&&().+I&()#%6`<+i/"@&`55:B+
T+7;#)#'(+EFFE8<+Q!EQ@
DC*&(<+B@+7EFGF8<+iB-X:%/*+:+J&/$:+;%2.$)&2)#%&+g+;(+$("#$%6+
$()-+).&+2-(>&%0&(2$&*+-,+2-(*)%#2)&/+*5:2&+:(/+
*2%&&(!C:*&/+'&/$:`<+71&5:%)'&()+,-%+N(,-%':)$-(+:(/+
J&/$:+K)#/$&*h+;:%.#*+=($>&%*$)68@
I#C$))<+K@+iB.&+J:)&%$:4$)6+-,+).&+B&^)`<+|.))5hrrXXX@#24@
:2@#?r*4:/&r/$0$):r':)&%$:4$)6@.)'4+~<+:22&**&/+d:(+S).+
EFGH@
DC*&(<+B@+:(/+\:4*?-><+b@+7EFGH8<+i;+,%:'&X-%?+,-%+
/&*$0($(0+2-'54&^+'&/$:+,:2:/&*`<+*")$+1&N,9#$")&
IE51#$,$51%--@&%(("A,"#LB+a-4#'&+HQ@
I#C$))<+K@+7GTTS8<+*$+$,%-&7"),8",$()+7K;]D+3#C4$2:)$-(*8@
D2-<+=@+7GTZR8<+i;+B.&-%6+-,+D^5-*$)$-(*`<+4/%3"-)&$1&
X@A"//"%-$,@&G&"))%@)+7GTSZh+\:%2-#%)8<+ETG!HFR@
I#C$))<+K@+7EFFR8<+iN''&%*&/+N(+B$'&`<+S$)9%-&
E5::91$(%,$51B+Z+7E8<+EEF!EET@
I#C$))<+K@+7EFGG8<+iI#%%&()+K2%&&(*`<+$(+P@+]%:#+:(/+B@+a&$04+
7&/*@8<+<:%+"/@&$1&,8"&JF),&E"1,9/@+7JNB+3%&**8<+EG!
HQ@
'DQLHOV'µ0HGLDĺ$UW$UWĺ0HGLD
)RUHUXQQHUVRIPHGLDDUWLQWKH¿UVWKDOIRIWKH
)X&()$&).+2&()#%6`<+$(+M@+9%$&4$(0+:(/+1@+1:($&4*+7&/*@8<+
!"#$%&%/,&1",G&)9/3"@&5C&:"#$%&%/,+7K5%$(0&%8@
1&+P4$>&$%:<+O@<+P^4&6<+O@<+:(/+3&)%6<+J@+7EFFH8<+<1),%--%,$51&
7/,&<1&48"&R"6&!$--"11$9:G&48"&O:A$/"&]C&48"&
N"1)")+7B.:'&*++\#/*-(8@
1&C-%/<+]@+7GTTQ8<+N5($",@&5C&,8"&)A"(,%(-"+7O&X+[-%?h+u-(&+
EVF
D2-<+=@+7GTRT8<+7&48"5/@&5C&N":$5,$()+7N(/$:(:+=($>&%*$)6+
3%&**8@
D2-<+=@+7GTSZ8<+4/%3"-)&$1&8@A"//"%-$,@&G&"))%@)+7K:(+1$&0-h+
\:%2-#%)+L%:2&+d->:(->$2.8@
D2-<+=@+:(/+U&:2.<+O@+7GTSZ8<+i9#(2)$-(+:(/+K$0(h+B.&+
K&'$-)$2*+-,+;%2.$)&2)#%&`<+`",8$1>$1+&7/(8$,"(,9/"+
7GTTRn+O&X+[-%?h+M-#)4&/0&8<+GSE@
D/0&%)-(<+K@[@+7GTZQ8<+7-0"/,$f)&]A,$()8QLYHUVLW\0LFUR¿OPV
N()&%(:)$-(:48@
D.(<+3@+7GTTS8<+iJ:($,&*)-+,-%+:+/$0$):4+C:#.:#*+G`<+*$+$,%-&
E/"%,$3$,@B+T+7V8<+EFR!EGR@
D%(*)<+W@+7EFGG8<+i3%$()&/+U&))&%*<+;22#*)$2+*5:2&<+M&:4+B$'&+
EVG
LNLUNP]M;3\[
N()&%(&)`<+7U&2)#%&+-(+-22:*$-(+-,+).&+2-(,&%&(2&+
J2U#.:(+%&>$*$)&/+:)+).&+9%$))+P%/+9-#(/:)$-(<+P*4-<+
GE).+;5%$4<+EFGG8@
9%&&/':(<+K@+b@<+D224&*<+B@<+:(/+U$(0X--/<+d@+7EFFE8<+iN()%-+
g+P#)+-,+).&+L-^`<+$(+]&%%$&+>:(+O--%/+7&/@8<+451@&
2XUVOHU7KH,QÀXHQFH0DFKLQH+7L&%4$(h+;%):(0&48<+QE!
QH@
9%$&/<+J@+7GTZR8<+i;%)+:(/+PC_&2).--/`<+7/,C5/9:B+Q+7d#(&8<+
GE!EH@
9%$&/<+J@+7GTTS8<+7/,&%1#&]0^"(,855#G&O))%@)&%1#&`"3$"6)+
7=($>&%*$)6+-,+I.$2:0-+3%&**8@
LNLUNP]M;3\[
]-%/-(<+W@+B@+7EFGF8<+!(298%1G&7&i9$#"&C5/&,8"&M"/A-"Y"#+
7L4--'*C#%68@
]%:#<+P@+7EFFH8<+S$/,9%-&7/,G&'/5:&<--9)$51&45&<::"/)$51+
7J$)+3%&**8@
]%:#<+P@+:(/+a&$04<+B@+7EFGG8<+<:%+"/@&$1&,8"&JF),&E"1,9/@+
7J$)+3%&**8@
]%&&(C&%0<+I@+7GTVF8<+iB-X:%/*+:+O&X&%+U:-2--(`<+$(+I@+
\:%%$*-(+:(/+3@+W--/+7&/*@8<+7/,&$1&48"5/@&FTKK;JKKK+
7O&X+&/$)$-(+EFFH+&/(@h+L4:2?X&44+3#C4$*.$(08<+QZE!
QZS@
9%$&/C&%0<+;@+7GTTV8<+a$1#56&N85AA$1+G&E$1":%&u&,8"&
M5),:5#"/1+7=($>&%$)6+-,+I:4$,-%($:+3%&**8@
]%&&(C&%0<+I@+7GTZF8<+iJ-/&%($*)+3:$()$(0`<+$(+I@+\:%%$*-(+
:(/+3@+W--/+7&/*@8<+7/,&$1&48"5/@&FTKK;JKKK+7O&X+
&/$)$-(+EFFH+&/(@h+L4:2?X&44+3#C4$*.$(08<+RRH!RRT@
9%$&/C&%0<+;@+7EFFZ8<+48"&3$/,9%-&6$1#56&G&C/5:&7-0"/,$&,5&
!$(/5)5C,+7I:'C%$/0&<+J:**@h+JNB+3%&**8@
]%&&(C&%0<+I@+7GTZG8<+7/,&%1#&E9-,9/"G&E/$,$(%-&O))%@)+
7L&:2-(+3%&**8@
]:(&<+O@+:(/+\:(*&(!J:0(#**-(<+\@+7EFFZ8<+iL--?+M&>$&Xh+
J:)&%$:4$)6+$*+).&+J&**:0&s`<+48"5/@B&E9-,9/"&u&
N5($",@B+EH+7R!S8<+HGQ!HEH@
*UHHQ¿HOG$DQG6KHSDUG0µ8UEDQ&RPSXWLQJ
:(/+$)*+1$*2-()&()*`@+K$)#:)&/+B&2.(-4-0$&*+3:'5.4&)*+
ÄG+7B.&+;%2.$)&2)#%:4+U&:0#&+-,+O&X+[-%?8
]&(->:<+B@+iB&4&>$*$-(+9:2)*+:(/+K):)$*)$2*+!+GTHT+)-+EFFF`<+
4"-"3$)$51&X$),5/@&;&48"&'$/),&kV&o"%/)+|.))5hrrXXX@
)>.$*)-%6@)>r,:2)*!*):)*@.)'+~<+:22&**&/+d:(+R).+EFGH@
]#'C%&2.)<+\@+=@+7GTTV8<+i;+9:%&X&44+)-+N()&%5%&):)$-(`<+
!%,"/$%-$,$")&5C&E5::91$(%,$51+7K):(,-%/h+K):(,-%/+
=($>&%*$)6+3%&**8<+HST!VFE@
]&%&<+I@+7EFFZ8<+7/,B&,$:"B&%1#&,"(815-5+@+7I#4)#%&+':2.$(&+
*&%$&*n+P^,-%/h+L&%08@
]#'C%&2.)<+\@+=@+:(/+3,&$,,&%<+b@+U@+7GTTV8<+!%,"/$%-$,$")&5C&
E5::91$(%,$51+7K):(,-%/+=($>&%*$)6+3%&**8@
]&%&<+I@+7EFFZ8<+i]&(&:4-06+-,+).&+2-'5#)&%+*2%&&(`<+S$)9%-&
E5::91$(%,$51B+Q+7E8<+GVG!GQE@
\:&#*4&%<+J@+\@+7EFFT8<+!"#$%&'%(%#")G&X$),5/@B&4"(815-5+@B&
E51,"1,+7U#/X$0*C#%0<+]&%':(6h+:>&/$)$-(+]'C\8@
]-'C%$2.<+D@+\@+7GTZF8<+7/,&%1#&<--9)$51G&7&N,9#@&$1&,8"&
M)@(85-5+@&5C&M$(,5/$%-&`"A/")"1,%,$51+7K$^).+&/$)$-(+
EFFE+&/(@n+U-(/-(h+3.:$/-(+3%&**8@
\:0&(<+J@;@+7GTSF8<+48"&M"/("A,$51&5C&M$(,9/")G&7-0"/,$f)&
6$1#56B&,8"&A/5^"(,$3"&:5#"-&5C&A$(,5/$%-&$1C5/:%,$51+
7;2:/&'$2+3%&**8@
EVE
EVH
LNLUNP]M;3\[
\:4*?-><+b@+7EFGG8<+iI;aNh+:(+$()&%:2)$-(+/&*$0(+%&*&:%2.+
4:C`<+$1,"/%(,$51)B+GS+7V8<+TE!TQ@
\:%':(<+]@+7EFGE8<+a"$/#&`"%-$):G&253"(/%C,&%1#&M8$-5)5A8@+
7d-.(+\#()+3#C4$*.$(08@
\:%'-(<+U@1@+:(/+d#4&*Y<+L@+7GTRH8<+iB.&+M&2-0($)$-(+-,+
9:2&*`<+6FLHQWL¿F$PHULFDQ+EET+7Q8<+RG!SE@
\:%%$*-(<+I@+:(/+W--/<+3@d@+7EFFE8<+7/,&$1&48"5/@&FTKK&;&
JKKKG&71&71,85-5+@&5C&E8%1+$1+&<#"%)+7W$4&68@
\:64&*<+O@+b@+7EFFE8<+a/$,$1+&!%(8$1")+7J&/$:X-%?n+
I:'C%$/0&++U-(/-(h+B.&+JNB+3%&**8@
\&$/&00&%<+J@+7GTHZ8<+iB.&+P%$0$(+-,+).&+W-%?+-,+;%)`<+$(+
1:>$/+9:%%&44+b%&44+7&/@8<+=%)$(&a/$,$1+)+7G*)+\:%5&%+
3&%&(($:4+J-/&%(+B.-#0.)+D/$)$-(+&/(@n+O&X+[-%?h+
\:%5&%I-44$(*8<+GVH!EGE@
\&$/&00&%<+J@+7GTRR8<+48"&b9"),$51&(51("/1$1+&,"(815-5+@B&
%1#&5,8"/&"))%@)+7]:%4:(/+3#C@8@
\#.):'-<+D@+7EFFV8<+iD4&'&()*+-,+K2%&&(-4-06h+B-X:%/+:(+
;%2.:&-4-06+-,+).&+K2%&&(`<+<E]R<ENG&<1,"/1%,$51%-&
N,9#$")&5C&,8"&!5#"/1&<:%+"B+R<+HG!SE@
\#.):'-<+D@+7EFFS8<+i]$0:()-4-0$2:4+N(>&*)$0:)$-(*<+-%+:(+
;%2.:&-4-06+-,+3#C4$2+J&/$:+1$*54:6*`@
N(($*<+\@;@+7GTTG8<+48"&=$%)&5C&E5::91$(%,$51B&N"(51#&
O#$,$51+7=($>&%*$)6+-,+B-%-()-+3%&**8@
N(($*<+\@+;@+:(/+]-/,%&6<+1@+7GTQF8<+O:A$/"&u&
(5::91$(%,$51)+7H%/<+%&>$*&/<+$44#*)%:)&/+&/(@h+3%&**+
3-%2v5$28@
N(($*<+\@;@+:(/+W:)*-(<+;@d@+7EFFS8<+48"&=$%)&5C&
E5::91$(%,$51+7=($>&%*$)6+-,+B-%-()-+3%&**8@
EVV
LNLUNP]M;3\[
N*.$$<+\$%-*.$+:(/+=44'&%<+L%600+7GTTR8<+iB:(0$C4&+C$)*h+
)-X:%/*+*&:'4&**+$()&%,:2&*+C&)X&&(+5&-54&<+C$)*+:(/+
:)-'*`<+M/5(""#$1+)&5C&,8"&7E!&N<iEX<&E51C"/"1("&
51&X9:%1&C%(,5/)&$1&(5:A9,$1+&)@),":)+7;)4:():<+
]&-%0$:<+=($)&/+K):)&*h+;IJ8<+EHV!EVG@
d:2-C*<+;@+:(/+;554&6:%/<+1@+7GTSR8<+iB-X:%/+:(+#%C:(+
/&*$0(+':($,&*)-`<+H59/1%-&5C&,8"&7:"/$(%1&M-%11$1+&
7))5($%,$51B+QH+7G8<+GGE!GEF@
d&X$))<+I@+:(/+B%$00*<+B@+7EFFZ8<+iK2%&&(*+:(/+).&+*-2$:4+
4:(/*2:5&`<+S$)9%-&E5::91$(%,$51B+Q+7E8<+GHG!GVF@
b&)(&%<+d@+1@+7&/@8<+7EFFZ8<+O-9)$3"&)$+1)G&=/9("&R%9:%1&
65/>)&6$,8&-$+8,+7J$4X:#?&&+;%)+J#*&#'8@
b$))4&%<+9@+7EFGF8<+]A,$(%-&!"#$%+7W$4&68@
b$))4&%<+9@+7GTTT8<+i/%:5A851"B&'$-:B&4@A"6/$,"/+7K):(,-%/+
=($>&%*$)6+3%&**8@
b$)Y':((<+;@+]@+7EFFZ8<+iB.&+J:)&%$:4+B#%(h+J:?$(0+
1$0$):4+J&/$:+M&:4+7;0:$(8`<+E%1%#$%1&H59/1%-&5C&
E5::91$(%,$51B+HF+7V8@
b%:#**<+M@+7GTRT8<+iK2#45)#%&+$(+).&+D^5:(/&/+9$&4/`<+
](,50"/B+S+7K5%$(0<+GTRT8<+HF!VV@
b#.(&%)<+O@<+b%:,)<+K@<+:(/+P*X:4)<+3@+7&/*@8+7GTTG8<+'%))%#"1+
7;MI\Å<+GFSn+L&%4$(h+;MI\Å+a&%4:08@
U&:).&%C:%%-X<+1@+:(/+J-*):,:>$<+J@+7EFFQ8<+N9/C%("&
7/(8$,"(,9/"+7B.&+JNB+3%&**8@
U&-(:%/$<+3@+J@+7EFGF8<+i1$0$):4+':)&%$:4$)6s+\-X+:%)$,:2)*+
X$).-#)+':))&%<+':))&%`<+'$/),&!51#%@B+GQ+7Z!R+d#(&+
EFGF8@
U&*)&%<+3@+J@+7EFFZ8<+i=%C:(+K2%&&(*h+).&+C&0$(($(0+-,+:+
EVQ
LNLUNP]M;3\[
#($>&%*:4+>$*#:4+2#4)#%&`<+JKKU@
LNLUNP]M;3\[
J2U#.:(<+J@+7GTRF8<+E591,"/0-%),+7M:55++W.$)$(08@
U-0:(<+M@+b@+7EFGG8<+iJ2U#.:(+J$*#(/&%*)--/h+K&))$(0+
).&+M&2-%/+K)%:$0.)`<+$(+;4&^+b#*?$*+7&/@8<+!(298%1&
i%-%Y@+7EFGE8@
J2U#.:(<+J@+:(/+I:%*-(<+1@+7EFFH8<+48"&=55>&5C&M/50")<+
&/*+D@+J2U#.:(+:(/+W@+b#.(*+7I-%)&+J:/&%:<+I;+h+
]$(0?-+3%&**8@
U-X).&%<+I@+:(/+K2.#4)Y<+K@+7EFFS8<+=/$+8,G&7/(8$,"(,9/%-&
<--9:$1%,$51&%1#&2$+8,&<1),%--%,$51)+79%:'&+3#C@8@
J2U#.:(<+J@+:(/+9$-%&<+Ç@+7EFFS8<+!"#$9:&<)&48"&!%))%+"B&
48"&G&71&<13"1,5/+73&(0#$(+=?8@
J:(->$2.<+U@+7EFFG8<+48"&-%1+9%+"&5C&1"6&:"#$%+
7I:'C%$/0&<+J:**@h+JNB8@
J2U#.:(<+J@<+\#)2.-(<+b@<+:(/+J2U#.:(<+D@+7GTRR8<+E$,@&
%)&E-%))/55:G&.1#"/),%1#$1+&2%1+9%+"&%1#&!"#$%+
7L--?+K-2$&)6+-,+I:(:/:8@
J:(->$2.<+U@+7EFFE8<+iB.&+3-&)$2*+-,+;#0'&()&/+K5:2&h+
U&:%($(0+,%-'+3%:/:`@+|XXX@':(->$2.@(&)r1PIKr
;#0'&()&/}*5:2&@/-2+~<+;22&**&/+d:(+R).+EFGH
J:(->$2.<+U&>+7EFFZ8<+iB.&+5-&)$2*+-,+:#0'&()&/+*5:2&`<+
S$)9%-&E5::91$(%,$51B+Q+7E8<+EGT!EVF@
J:(->$2.<+U@+7EFFZ8<+iB.&+5-&)$2*+-,+#%C:(+'&/$:+*#%,:2&*`<+
'$/),&!51#%@B&NA"($%-&<))9"&vW
J:%)$(<+K@+:(/+]%-*&($2?<+=@+7EFFZ8<+S$#"5&7/,+7B:*2.&(8@
J:*.&2?<+d@+7GTTG8<+i;4C&%)$`*+W$(/-Xh+;%)!\$*)-%$-0%:5.$2+
O-)&*+-(+:(+;()$'-/&%($*)+J$*5%$*$-(`<+7/,&H59/1%-B+
QF+7G8<+HQ!VG@
J:6&%->$)2.<+\@+7GTTZ8<+X56&7/(8$,"(,9/"&NA"%>)G&71#&
'%)8$51)&]9/&2$3")+7M-C&%)+1:>$&*+J#4)$'&/$:+
3#C4$*.$(0+7=K88@
J2U#.:(<+J@+7GTQQ8<+i;+\$*)-%$2:4+;55%-:2.+)-+).&+J&/$:`<+
4"%(8"/)&E5--"+"&`"(5/#B+QR+7E8<+GFV!GGF@
J2U#.:(<+J@+:(/+J2U#.:(<+D@+7GTSS8<+2%6)&5C&!"#$%G&48"&
R"6&N($"1("+7=($>&%*$)6+-,+B-%-()-+3%&**8@
J2U#.:(<+J@+:(/+3:%?&%<+\@+7GTZS8<+48/59+8&,8"&3%1$)8$1+&
A5$1,G&)A%("&$1&A5",/@&%1#&A%$1,$1++7W-%4/+
5&%*5&2)$>&*+n+>-4@+HRn+O&X+[-%?h+\:%5&%++M-X8@
J2Ç#$%&<+K2-))+7EFFQ8<+iN'':)&%$:4+;%2.$)&2)#%&*h+=%C:(+
K5:2&+:(/+D4&2)%$2+U$0.)`@
J2Ç#$%&<+K2-))+7EFFZ8<+iB.&+5-4$)$2*+-,+5#C4$2+*5:2&+$(+).&+
'&/$:+2$)6`@+'$/),&!51#%@B&NA"($%-&<))9"&vW?
0F4XLUH6FRWWµ,PPHUVLRQUHÀH[LYLW\DQG
/$*)%:2)$-(h+*5:)$:4+*)%:)&0$&*+,-%+/$0$):4+2$)$&*`<+S$)9%-&
E5::91$(%,$51B+Z+7E8<+GVZ!GQQ@
J2Ç#$%&<+K2-))+7EFFS8<+48"&:"#$%&($,@&G&:"#$%B&%/(8$,"(,9/"&
%1#&9/0%1&)A%("+7B.&-%6<+2#4)#%&++*-2$&)6n+U-(/-(h+
K:0&8@
J2U#.:(<+J@+7GTZV8<+.1#"/),%1#$1+&:"#$%&G&,8"&"Y,"1)$51)&
5C&:%1+7E(/+&/(@n+O&X+[-%?h+M-#)4&/0&8@
J2Ç#$%&<+K@<+J:%)$(<+J@<+:(/+O$&/&%&%<+K@+7EFFT8<+./0%1&
N(/""1)&`"%#"/+7;'*)&%/:'h+N(*)$)#)&+-,+O&)X-%?+
I#4)#%&*8@
J2U#.:(<+J@+7GTZR8<+48"&:"#$9:&$)&,8"&:%))%+"+7O&X+[-%?<+
U-(/-(<+B-%-()-h+L:():'+L--?*8@
J&)Y<+I@+7GTSE8<+M)@(85%1%-@)$)&%1#&($1":%&G&,8"&$:%+$1%/@&
EVZ
EVR
LNLUNP]M;3\[
VLJQL¿HU+7U-(/-(h+J:2'$44:(8@
LNLUNP]M;3\[
=($>&%*$)6+3%&**8<+G!GE@
J&6%-X$)Y<+d@+7GTSQ8<+R5&)"1)"&5C&A-%("&G&,8"&$:A%(,&5C&
"-"(,/51$(&:"#$%&51&)5($%-&0"8%3$5/+7O&X+[-%?h+
P^,-%/+=($>&%*$)6+3%&**8@
%&:4$)$&*h#($)&/+7/$%@8+7EFFV8<+=<P&251+&S"/)$51&*5(9:"1,%/@<+
|+.))5hrr%&:4$)$&*!#($)&/@/&rÄ3MPdDIB<ZT<H<aHF~<+
;22&**&/+d:(+G*)+EFGH
J$40%:'<+3@+:(/+b$*.$(-<+9@+7GTTV8<+i;+):^-(-'6+-,+'$^&/+
%&:4$)6+>$*#:4+/$*54:6*`<+<O<EO&4`7RN7E4<]RN&51&
<1C5/:%,$51&%1#&N@),":)B+RR+7GE8<+GHEG!GHET@
M&&*<+;@U@<+&)+:4@+7&/*@8+7EFGG8<+D^5:(/&/+I$(&':h+;%)<+
3&%,-%':(2&<+9$4'+7\:%%6+O@+;C%:'*8@
J$)2.&44<+W@+d@+7GTTZ8<+E$,@&5C&=$,)G&NA%("B&M-%("B&%1#&,8"&
<1C50%1+7J$)+3%&**8@
J$)2.&44<+W@d@B@+:(/+\:(*&(<+J@L@J@L@O@+7EFGF8<+E/$,$(%-&
4"/:)&C5/&!"#$%&N,9#$")+7=($>&%*$)6+-,+I.$2:0-+
3%&**8@
Jw44&%<+I@+7EFFV8<+7&4$:"&%1#&M-%("G&!"#$%&7/(8$,"(,9/"&
FTTF;JKKQ+7U:%*+Jo44&%+3#C4$*.&%*8@
J-(/4-2.<+b@+7EFGF8<+N(/""1)G&S$"6$1+&!"#$%&<1),%--%,$51&
7/,+7=($>&%*$)6+-,+J$((&*-):+3%&**8@
J#(%-<+I@+9@+7GTSR8<+iK&'$-)$2*<+;&*).&)$2*+:(/+;%2.$)&2)#%&`<+
=/$,$)8&H59/1%-&5C&7"),8",$()B+ER+7E8@
P`K#44$>:(<+1@+:(/+N0-&<+B@+7EFFV8<+M8@)$(%-&E5:A9,$1+G&
N"1)$1+&%1#&E51,/5--$1+&,8"&M8@)$(%-&a5/-#&6$,8&
E5:A9,"/)+7I-#%*&+B&2.(-4-06+3)%8@
3:%$??:<+d@+7EFGF8<+iW.:)+$*+O&X+J:)&%$:4$*'!P5&($(0+X-%/*+
,%-'+).&+&>&()`@+|.))5hrr_#**$5:%$??:@(&)rEFGFrFZrEHr
X.:)!$*!(&X!':)&%$:4$*'!-5&($(0!X-%/*!,%-'!).&!
&>&()r+~<+;22&**&/+d:(+G*)+EFGH
3,&$,,&%<+b@+U@+7GTTV8<+iB.&+J:)&%$:4$)$&*+-,+I-''#($2:)$-(`<+
$(+\@=@+]#'C%&2.)+:(/+b@U@+3,&$,,&%+7&/*@8<+
!%,"/$%-$,$")&5C&E5::91$(%,$51+7K):(,-%/h+K):(,-%/+
EVS
M-0&%*<+M@+iI&()%&+3-'5$/-#`<+|.))5hrrXXX@%$2.:%/%-0&%*@
2-@#?rX-%?rC#$4/$(0*r2&()%&}5-'5$/-#r/&*$0(r+~<+
:22&**&/+d:(#:%6+G*)+EFGH@
M-Y$(<+1@+iW--/&(+J$%%-%`<+|.))5hrrXXX@*'--).X:%&@2-'r
/:((6rX--/&('$%%-%@.)'4+~<+;22&**&/+J:%+GQ).+EFGH
M#C6<+;@+:(/+M#C6<+N@+7EFFQ8<+iK5:)$:4+I-''#($2:)$-(+h+
:+(&X+"#:4$)6+-,+'&/$:+:%2.$)&2)#%&+$(+).&+X-%?+-,+
%&:4$)$&*h#($)&/`<+NM]4N&G&2$+8,&%1#&!"#$%&'%w%#"+
7\aL+N''-C$4&(+;]8<+HF!QT@
M#C6<+;(/%&:*+:(/+a$%$4$-<+3:#4+7GTTS8<+i;%2.$)&2)#%&+$(+).&+
;0&+-,+N)*+a$%)#:4+1$*:55&:%:(2&+h+:(+$()&%>$&X+X$).+
3:#4+a$%$4$-+C6+;(/%&:*+M#C6`<+48"&S$/,9%-&*$:"1)$51+
73%$(2&)-(+;%2.$)&2)#%:4+3%&**n+G+&/$)$-(8@
K:#(/&%*<+W@K@+7EFFQ8<+&RPPRGL¿FDWLRQ$QG6SHFWDFOHLQ
7/(8$,"(,9/"G&7&X%/3%/#&*")$+1&!%+%e$1"&`"%#"/+
7=($>&%*$)6+-,+J$((&*-):+3%&**8@
K&$)Y<+W@I@+7GTZG8<+48"&%/,&5C&%))":0-%+"+7J#*&#'+-,+
J-/&%(+;%)n+/$*)%$C#)&/+C6+1-#C4&/:6<+]:%/&(+I$)6<+
O@[@8@
K&(0'o44&%<+]@+:(/+Lo2.$(0&%<+9@+i;+3:%:44&4+N':0&`<+|.))5hrr
0&C*&(0@2-'rFS}:}5:%:44&4}$':0&r+~<+;22&**&/+;5%+
GG).+EFGH
EVT
LNLUNP]M;3\[
K.:(?&(<+D@;@+7EFFT8<+7/,&%1#&O-"(,/51$(&!"#$%+73.:$/-(+
3%&**8@
K.$,,<+M@+7EFGF8<+iU--?+)-+K&&+C6+U--?$(0`<+$(+K@+1$&)Y+7&/@8<+
H$:&E%:A0"--&G&!%,"/$%-&2$+8,2VW¿OGHUQ+DWMH
I:()Y+a&%4:08<+ZS!RT@
K#''&%*-(<+d@+7GTZH8<+48"&(-%))$(%-&-%1+9%+"&5C&%/(8$,"(,9/"+
7I:'C%$/0&h+B.&+J@+N@+B@+3%&**8@
7KRPVHQ&:µ0HGLDUFKLWHFWXUH±'H¿QLQJ
3-*$)$-(*`<+7q.<++7G8<+RS!SH@
B*2.&%)&#<+]@<+7EFFR8<+i'&/$::%2.$)&2)#%&@(&)+g+:+)&:'+
:55%-:2.+)-+/&>&4-5+*):(/:%/$Y&/+'&/$:+,:2:/&+
2-'5-(&()*`@++|.))5hrrXXX@'&/$::%2.$)&2)#%&@
-%0r'&/$:!:%2.$)&2)#%&!2-(,&%&(2&!EFFR!>$/&-!
/-2#'&():)$-(r+~
LNLUNP]M;3\[
L4--'$(0)-(h+N(/$:(:+=($>&%*$)6+3%&**8@
a$%$4$-<+3@<+O-#>&4<+d@<+:(/+]-#4&)<+3@+7GTTG8<+iÉ*).&)$?+/&*+
a&%*2.X$(/&(*`<+7`EXqB+GFS+7;#0#*)+GTTG8<+HE!VF+Å+
RS!SG@
a$%$4$-<+3@<+M#C6<+;@<+:(/+L&2?':((<+d@+7GTTH8<+i;%2.$)&2)#%&+
$(+).&+;0&+-,+N)*+a$%)#:4+1$*:55&:%:(2&`<+48"&S$/,9%-&
*$:"1)$51+7GTTSn+O&X+[-%?h+3%$(2&)$(+;%2.$)&2)#%:4+
3%&**8<+GRT!GSR@
W:4?&%<+d@+7GTTE8<+i;**&'C4:0&+;%)`<+i-5))%/@&5C&7/,B&
7/(8$,"(,9/"&u&*")$+1&)$1("&FTWV@
W:(/*<+L@+7EFFZ8<+7/,&5C&,8"&*$+$,%-&7+"+7B.:'&*++\#/*-(8@
W$44$:'*<+M@+7GTRV8<+4"-"3$)$51&G&,"(815-5+@&%1#&(9-,9/%-&
C5/:+7B&2.(-*5.&%&n+U-(/-(h+9-():(:rI-44$(*8@
a&()#%$<+M@+7GTZZ8<+E5:A-"Y$,@&%1#&(51,/%#$(,$51&$1&
%/(8$,"(,9/"+7O&X+[-%?h+B.&+J#*&#'+-,+J-/&%(+;%)8@
W$44$:'*<+M@+7GTSQ8<+n"@65/#)G7&S5(%09-%/@&5C&E9-,9/"&%1#&
N5($",@G&7&S5(%09-%/@&5C&E9-,9/"&%1#&N5($",@+7P^,-%/+
=($>&%*$)6+3%&**<+=K;8@
a&()#%$<+M@+7GTTZ8<+<(515+/%A8@&%1#&"-"(,/51$()&9A51&%&
+"1"/$(&%/(8$,"(,9/"G&%&3$"6&C/5:&,8"&#/%C,$1+&/55:+
7I:'C%$/0&<+J:**@h+JNB+3%&**8@
W-/$2Y?-<+b@+7GTTT8<+E/$,$(%-&S"8$(-")G&a/$,$1+)B&M/5^"(,)B&
<1,"/3$"6)+7J$)+3%&**8@
a&()#%$<+M@+:(/+K2-))+L%-X(<+1@+7EFFV8<+7/(8$,"(,9/"&%)&)$+1)&
%1#&)@),":)&G&C5/&%&:%11"/$),&,$:"+7L&4?(:5+3%&**+-,+
\:%>:%/+=($>&%*$)6+3%&**8
[-#(0C4--/<+]@+7GTRF8<+OYA%1#"#&($1":%+7U-(/-(h+K)#/$-+
a$*):8@
a&()#%$<+M@<+K2-))+L%-X(<+1@<+:(/+NY&(-#%<+K@+7GTRE8<+
2"%/1$1+&C/5:&2%)&S"+%)&G&,8"&C5/+5,,"1&)@:05-$):&5C&
%/(8$,"(,9/%-&C5/:+7I:'C%$/0&<+J:**h+JNB+3%&**8@
a$%$4$-<+3@+7GTSV8<+48"&-5),&#$:"1)$51+7O&X+[-%?<+O@[@h+
K&'$-)&^)7&88@
a$%$4$-<+3@+7GTTQ8<+48"&3$)$51&:%(8$1"+73&%*5&2)$>&*n+
EQF
EQG