Assurant 2010 Annual Report Download - page 96

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F-26 ASSURANT, INC.2010 Form 10K
6 Fair Value Disclosures
e following table presents the Company’s fair value hierarchy for goodwill measured at fair value on a non-recurring basis on which an
impairment charge was recorded as of December 31, 2009.
Assets at Fair Value Non-Recurring Basis
Level 1 Level 2 Level 3 Total
Goodwill at December 31, 2009 $ — $ — $ 102,078 $ 102,078
e following table presents the goodwill and other intangible assets impairment charges as of December 31, 2010 and 2009:
Impairment Charges Twelve Months Ended December 31,
2010 2009
Goodwill $ 306,381 $ 83,000
Other intangible assets $ 47,612 $ —
Fair Value of Financial Instruments Disclosures
e fi nancial instruments guidance requires disclosure of fair value
information about fi nancial instruments, as defi ned therein, for which
it is practicable to estimate such fair value.  erefore, it requires fair
value disclosure for fi nancial instruments that are not recognized or are
not carried at fair value in the consolidated balance sheets. However,
this guidance excludes certain fi nancial instruments, including those
related to insurance contracts and those accounted for under the equity
method and joint ventures guidance (such as real estate joint ventures).
For the fi nancial instruments included within the following fi nancial
assets and fi nancial liabilities, the carrying value in the consolidated
balance sheets equals or approximates fair value. Please refer to the
Fair Value Inputs and Valuation Techniques for Financial Assets and
Liabilities Disclosures section above for more information on the fi nancial
instruments included within the following fi nancial assets and fi nancial
liabilities and the methods and assumptions used to estimate fair value:
•Cash and cash equivalents
•Fixed maturity securities
•Equity securities
•Short-term investments
•Other investments
•Other assets
•Assets held in separate accounts
•Collateral held under securities lending
•Other liabilities
•Liabilities related to separate accounts
In estimating the fair value of the fi nancial instruments that are not
recognized or are not carried at fair value in the consolidated balance
sheets, the Company used the following methods and assumptions:
Commercial mortgage loans and policy loans
e fair values of mortgage loans are estimated using discounted cash
fl ow analyses, based on interest rates currently being off ered for similar
loans to borrowers with similar credit ratings. Mortgage loans with
similar characteristics are aggregated for purposes of the calculations.
e carrying value of policy loans reported in the balance sheets
approximates fair value.
Policy reserves under investment products
e fair values for the Company’s policy reserves under the investment
products are determined using discounted cash fl ow analysis.
Funds withheld under reinsurance
e carrying value reported approximates fair value due to the short
maturity of the instruments.
Debt
e fair value of debt is based upon matrix pricing performed by the
pricing service.
Mandatorily redeemable preferred stock
e fair value of mandatorily redeemable preferred stock equals the
carrying value for all series of mandatorily redeemable preferred stock.
Obligations under securities lending
e obligations under securities lending are reported at the amount
received from the selected broker/dealers.