Classmates.com 2008 Annual Report Download - page 117

Table of Contents
UNITED ONLINE, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
1. DESCRIPTION OF BUSINESS, BASIS OF PRESENTATION, ACCOUNTING POLICIES, AND RECENT ACCOUNTING
PRONOUNCEMENTS (Continued)
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. The Company does not expect the
adoption of SFAS No. 160 to have a material impact on its consolidated financial statements.
Disclosures about Derivative Instruments and Hedging Activities
In March 2008, the FASB issued SFAS No. 161, Disclosures about Derivative Instruments and Hedging Activities,
an amendment of SFAS
No. 133. SFAS No. 161 changed the disclosure requirements for derivative instruments and hedging activities. Entities are required to provide
enhanced disclosures about (i) how and why an entity uses derivative instruments, (ii) how derivative instruments and related hedged items are
accounted for under SFAS No. 133, and its related interpretations, and (iii) how derivative instruments and related hedged items affect an entity's
financial position, financial performance, and cash flows. SFAS No. 161 encourages, but does not require, presenting disclosures for earlier
periods for comparative purposes at initial adoption. SFAS No. 161 is effective for financial statements issued for fiscal years and interim
periods beginning after November 15, 2008, with early application encouraged. The Company adopted SFAS No. 161 on January 1, 2009.
Because SFAS No. 161 amended only the disclosure requirements for derivative instruments and hedged items, the adoption of SFAS No. 161
will only affect the disclosure in the Company's consolidated financial statements.
Determination of the Useful Life of Intangible Assets
In April 2008, the FASB issued FASB Staff Position ("FSP") No. FAS 142-3, Determination of the Useful Life of Intangible Assets ("FSP
142-3"). This guidance is intended to improve the consistency between the useful life of a recognized intangible asset under SFAS No. 142,
Goodwill and Other Intangible Assets
, and the period of expected cash flows used to measure the fair value of the asset under SFAS No. 141(R)
when the underlying arrangement includes renewal or extension of terms that would require substantial costs or result in a material modification
to the asset upon renewal or extension. Companies estimating the useful life of a recognized intangible asset must now consider their historical
experience in renewing or extending similar arrangements or, in the absence of historical experience, must consider assumptions that market
participants would use about renewal or extension as adjusted for the entity-specific factors in SFAS No. 142. FSP 142-3 was effective for the
Company beginning January 1, 2009. The Company does not expect the adoption of FSP 142-3 to have a material impact on its consolidated
financial statements.
Determining Whether Instruments Granted in Share
-Based Payment Transactions are Participating Securities
In June 2008, the FASB issued FSP Emerging Issues Task Force ("EITF") Issue No. 03-6-1, Determining Whether Instruments Granted in
Share-Based Payment Transactions Are Participating Securities ("FSP EITF 03-6-1"), in which the FASB concluded that all outstanding
unvested share-based payment
F-22