Memorex 2010 Annual Report Download - page 38

units’ goodwill is impaired. If it is determined that it is more likely than not that the goodwill of one or more of its reporting
units is impaired, then Step 2 of the goodwill impairment test for those reporting unit(s) should be performed. Any resulting
goodwill impairment should be recorded as a cumulative-effect adjustment to beginning retained earnings in the period of
adoption. Any goodwill impairments occurring after the initial adoption of the amendments should be included in earnings.
The effective date for this guidance is for fiscal years, and interim periods within those years, beginning after December 15,
2010. Early adoption is not permitted. We do not expect this guidance to have a material impact on our Consolidated
Financial Statements.
In December 2010, the FASB issued additional and amended disclosure requirements for supplementary pro forma
information related to business combinations. The effective date for this guidance is prospective for business combinations
in which the acquisition date is on or after the beginning of the first annual reporting period beginning on or after
December 15, 2010. While early adoption is permitted, no business acquisitions occurred during 2010 that would
necessitate our adoption of this guidance during 2010. We do not expect this guidance to have a material impact on our
Consolidated Financial Statements.
A variety of proposed or otherwise potential accounting standards are currently under study by standard setting
organizations and various regulatory agencies. Due to the tentative and preliminary nature of those proposed standards,
management has not determined whether implementation of such proposed standards would be material to our
Consolidated Financial Statements.
Forward-Looking Statements
We may from time to time make written or oral forward-looking statements with respect to our future goals, including
statements contained in this Form 10-K, in our other filings with the SEC and in our reports to shareholders.
Certain information which does not relate to historical financial information may be deemed to constitute forward-
looking statements. The words or phrases “is targeting,” “will likely result,” “are expected to,” “will continue,” “is anticipated,”
“estimate,” “project,” “believe” or similar expressions identify “forward-looking statements” within the meaning of the Private
Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties that could cause
our actual results in the future to differ materially from our historical results and those presently anticipated or projected.
We wish to caution investors not to place undue reliance on any such forward-looking statements. Any forward-looking
statements speak only as of the date on which such statements are made, and we undertake no obligation to update such
statements to reflect events or circumstances arising after such date. Risk factors include our ability to successfully
implement our strategy; our ability to grow our business in new products with profitable margins and the rate of revenue
decline for certain existing products; changes in tax laws, regulations and results of inspections by various tax authorities;
our potential dependence on third parties for new product introductions or technologies in order to introduce our own new
products; our ability to introduce new offerings in a timely manner either independently or in association with TDK, OEMs
and other third parties and the market acceptance of newly introduced product and service offerings; continuing uncertainty
in global and regional economic conditions; our ability to identify, integrate and realize the expected benefits from any
acquisition which may occur in connection with our strategy; our ability to realize the benefits from our global sourcing and
development strategy for magnetic data storage products and the related restructuring; the volatility of the markets in which
we operate; foreign currency fluctuations; our ability to source and deliver products to our customers at acceptable quality,
volume and cost levels; significant changes in discount rates and other assumptions used in the valuation of our pension
plans; the ready availability and price of energy and key raw materials or critical components; our ability to meet our
revenue growth, gross margin and earnings targets; our ability to secure adequate supply of certain high demand products
at acceptable prices; our ability to efficiently source, warehouse and distribute our products globally; a material change in
customer relationships or in customer demand for products; the future financial and operating performance of major
customers and industries served; our ability to successfully defend our intellectual property rights and the ability or
willingness of our suppliers to provide adequate protection against third party intellectual property or product liability claims;
the possibility that our long-lived assets for any goodwill that we acquire in the future may become impaired, the outcome
of any pending or future litigation; the volatility of our stock price due to our results or market trends, as well as various
factors set forth from time to time in our filings with the SEC.
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