Classmates.com 2007 Annual Report Download - page 70

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Off
-
Balance Sheet Arrangements
At December 31, 2007, we had no off-balance sheet arrangements that have, or are reasonably likely to have, a current or future material
effect on our consolidated financial condition, results of operations, liquidity, capital expenditures or capital resources.
Recent Accounting Pronouncements
Fair Value Measurements
In September 2006, the FASB issued SFAS No. 157, Fair Value Measurements , which clarifies the definition of fair value, establishes
guidelines for measuring fair value, and expands disclosures regarding fair value measurements. SFAS No. 157 does not require any new fair
value measurements and eliminates inconsistencies in guidance found in various prior accounting pronouncements. SFAS No. 157 was effective
for us on January 1, 2008. We do not expect the adoption of SFAS No. 157 to have a material impact on our financial position, results of
operations and cash flows.
Fair Value Option
In February 2007, the FASB issued SFAS No. 159, The Fair Value Option for Financial Assets and Financial Liabilities , which permits
entities to choose to measure many financial instruments and certain other items at fair value that are not currently required to be measured at
fair value. SFAS No. 159 was effective for us on January 1, 2008. We do not expect the adoption of SFAS No. 159 to have a material impact on
our financial position, results of operations and cash flows.
Business Combinations
In December 2007, the FASB issued SFAS No. 141(R), Business Combinations . SFAS No. 141(R) requires an acquirer to measure the
identifiable assets acquired, the liabilities assumed and any noncontrolling interest in the acquiree at their fair values on the acquisition date, with
goodwill being the excess value over the net identifiable assets acquired. SFAS No. 141(R) is effective for financial statements issued for fiscal
years beginning after December 15, 2008. Early adoption is prohibited. We have not yet determined the effect on our consolidated financial
statements, if any, upon adoption of SFAS No. 141(R).
Noncontrolling Interests in Consolidated Financial Statements
In December 2007, the FASB issued SFAS No. 160, Noncontrolling Interests in Consolidated Financial Statements, an amendment of ARB
No. 51.
SFAS No. 160 clarifies that a noncontrolling interest in a subsidiary should be reported as equity in the consolidated financial statements.
The calculation of earnings per share will continue to be based on income amounts attributable to the parent. SFAS No. 160 is effective for
financial statements issued for fiscal years beginning after December 15, 2008. Early adoption is prohibited. We have not yet determined the
effect on our consolidated financial statements, if any, upon adoption of SFAS No. 160.
Inflation
Inflation did not have a material impact during the years ended December 31, 2007, 2006 and 2005, and we do not currently anticipate that
inflation will have a material impact on our results of operations for fiscal year 2008.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We are exposed to certain market risks arising from transactions in the normal course of business, principally risk associated with interest
rate and foreign currency fluctuations.
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