CVS 2011 Annual Report Download - page 45

CVS CAREMARK 43 2011 ANNUAL REPORT
fair value for both recurring and nonrecurring fair value mea-
surements that fall in either Level 2 or Level 3. ASU 2010-
06 was effective for annual reporting periods beginning after
December 15, 2009, except for (ii) above which is effective
for fiscal years beginning after December 15, 2010. The adop-
tion of ASU 2010-06 did not have a material impact on our
financial statement disclosures.
In May 2011, the FASB issued ASU 2011-05, Presentation
of Comprehensive Income (“ASU 2011-05”). ASU 2011-05
eliminates the current option to report other comprehensive
income and its components in the statement of sharehold-
ers’ equity. Instead, an entity will have the option to pres-
ent the total of comprehensive income, the components of
net income, and the components of other comprehensive
income either in a single continuous statement of compre-
hensive income or in two separate but consecutive state-
ments. ASU 2011-05 also required entities to present
reclassification adjustments out of accumulated other com-
prehensive income by component in both the statement in
which net income is presented and the statement in which
other comprehensive is presented. In December 2011, the
FASB issued ASU 2011-12 Deferral of the Effective Date
for Amendments to the Presentation of Reclassification of
Items Out of Accumulated Other Comprehensive Income in
Accounting Standards Update No. 2011-05, which indefi-
nitely defers the guidance related to the presentation of
reclassification adjustments. ASU 2011-05 is effective for
interim and annual periods beginning after December 15,
2011 and should be applied retrospectively. The Company
is still evaluating which of the two alternatives it will apply
in reporting comprehensive income. Neither alternative is
expected to have a material impact on the Company’s con-
solidated results of operations and neither alternative will
have an impact on the Company’s financial condition or
cash flows.
In September 2011, the FASB issued ASU 2011-08, Testing
Goodwill for Impairment (“ASU 2011-08”). ASU 2011-08
allows entities to use a qualitative approach to deter-
mine whether it is more likely than not that the fair value of a
reporting unit is less than its carrying value. If after perform-
ing the qualitative assessment an entity determines it is not
more likely than not that the fair value of a reporting unit is
less than its carrying amount, then performing the two-step
goodwill impairment test is unnecessary. However, if an entity
concludes otherwise, then it is required to perform the first
step of the two-step goodwill impairment test. ASU 2011-
08 is effective for annual and interim goodwill impairment
tests performed for fiscal years beginning after December 15,
2011. We do not expect the adoption of ASU 2011-08 will
have a material impact on our consolidated results of opera-
tions, financial condition or cash flows.
In September 2011, the FASB issued ASU 2011-09,
Disclosures about an Employer’s Participation in a
Multiemployer Plan (“ASU 2011-09”). ASU 2011-09 requires
additional quantitative and qualitative disclosures of entities
who participate in multiemployer pension and other postre-
tirement plans. ASU 2011-09 is effective for annual periods
ending after December 15, 2011 and should be applied ret-
rospectively. The adoption of ASU 2011-09 did not have a
material impact on our financial statement disclosures.
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