PSH-Annual-Report

Annual Report December 31, 2014Notes to Financial Statements (continued)9. TRADE AND OTHERRECEIVABLES/PAYABLESThe following is a breakdown of the Company’strade and other receivables/payables as stated inthe statement of financial position.2014 2013Trade and other receivablesDividend receivable $ 4,116,426 $ 2,880,537Receivable from PS VInternational, Ltd.(see Note 16) 337,015 310,783Interest and other receivables 332,989 180,226$ 4,786,430 $ 3,371,5462014 2013Trade and other payablesCapital redemptions payable $ - $ 89,399,636Incentive fees payable 62,814,093 37,749,239Payable to PS Fund 1, LLC(see Note 16) 49,259,207-Subscriptions received inadvance - 10,000,000Interest payable 663,795 557,393Other payables 6,474,927 1,503,635$ 119,212,022 $ 139,209,90310. CASH AND CASH EQUIVALENTSThe following is a breakdown of the Company’scash and cash equivalents as stated in thestatement of financial position.2014 2013Cash at banks $ 147,930 $ 191,353U.S. Treasury money market 565,661,983 389,465,278fund$ 565,809,913 $ 389,656,63111. SHARE CAPITALAuthorized and Issued Capital – Private PhasePrior to the IPO, the Company was authorized toissue an unlimited number of Private Shares,Management Shares, VoteCo Shares (discussedbelow) and other shares or classes of sharesdetermined by the Board of Directors. Each newseries of Private Shares issued during the yearwas issued at a price of $1,000 per share. ThePrivate Shares, Management Shares and VoteCoShares carried voting rights and participated in theprofits and losses of the Company. Each series ofshares earned their ownership percentage of theCompany’s profits and losses beginning from thesubscription date of their shares. The PrivateShares were issued as either restricted shares ornon-restricted shares, each having the same rightsand privileges, except that the non-restrictedshares participated in the gains and losses arisingfrom the Company’s trading of securities that areclassified as “new issues” as defined by Rule 5130and Rule 5131 of the Financial Industry RegulatoryAuthority as any public offering of equity securities(“New Issues”). For the years ended 2014 and2013, the Company did not have any securitiestransactions in New Issues.Shares were issued, redeemed and converted inaccordance with the terms of the OfferingMemorandum. Different series of shares wereissued in order to equitably reflect the differingincentive fee amounts payable with respect toeach series, due to the differing issue datesthroughout the fiscal year. At the year ended 2013,each series of Private Shares was redesignatedand converted to the initial offering series for theirrespective share class after an accrual or paymentto the Investment Manager was made for anyapplicable incentive fee. Such redesignation orconversion occurred with respect to a series ofPrivate Shares unless, at the end of such fiscalyear, no incentive fee was incurred with respect tosuch series for the fiscal year.Management Shares held by the InvestmentManager and its affiliates were generally subject tothe same redemption schedule as the PrivateShares, except that the Investment Managerand/or its affiliates were able to redeem all or aportion of their interests in the Company as of thelast day of any quarter to satisfy their taxobligations with respect to their respective interestsin the Company.PS Holdings Independent Voting Company Limited(“VoteCo”) was established as a limited liabilitycompany with the sole objective to hold issuedshares (the “VoteCo Shares”) that require it to votein the interest of the Company’s shareholders as awhole. The VoteCo Shares would at all times carry50.1% of the aggregate voting power in theCompany. The Investment Manager had noaffiliation with VoteCo. VoteCo is wholly owned bya trust established for the benefit of one or morecharitable organizations. VoteCo Shares carriedthe same economic rights as those carried byPrivate Shares.58 PERSHING SQUARE HOLDINGS, LTD.