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Schedule II
Valuation and Qualifying Accounts
__________
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE.
Not applicable.
ITEM 9A. CONTROLS AND PROCEDURES.
Evaluation of Disclosure Controls and Procedures
We carried out an evaluation required by the Securities Exchange Act of 1934, under the supervision and with the participation of our principal executive officer and principal
financial officer, of the effectiveness of the design and operation of our disclosure controls and procedures, as defined in Rule 13a-
15(e) of the Securities Exchange Act of 1934, as of
December 31, 2007. Based on this evaluation, our principal executive officer and principal financial officer concluded that, as of December 31, 2007, our disclosure controls and
procedures were effective to provide reasonable assurance that information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act of
1934 is recorded, processed, summarized, and reported within the time periods specific in the SEC’
s rules and forms and to provide reasonable assurance that such information is
accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required
disclosures.
Management’s Report on Internal Control over Financial Reporting
Management is responsible for establishing and maintaining adequate internal control over financial reporting, as defined in Rule 13a-
15(f) of the Securities Exchange Act of
1934. Management has assessed the effectiveness of our internal control over financial reporting as of December 31, 2007 based on criteria established in Internal Control –
Integrated
Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission. As a result of this assessment, management concluded that, as of December 31, 2007,
our internal control over financial reporting was effective in providing reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements
for external purposes in accordance with generally accepted accounting principles.
PricewaterhouseCoopers LLP, the independent registered public accounting firm that also audited our financial statements included in this Annual Report on Form 10-
K, audited
the effectiveness of internal control over financial reporting as of December 31, 2007, and issued their related attestation report which is included herein.
Changes in Internal Control Over Financial Reporting
There were no changes in our internal control over financial reporting during the quarter ended December 31, 2007 that materially affected, or are reasonable likely to materially
affect, our internal control over financial reporting.
Limitation on Effectiveness of Controls
Management does not expect that our disclosure controls and procedures or our internal control over financial reporting will prevent or detect all error and fraud. Any control
system, no matter how well designed and operated, is based upon certain assumptions and can provide only reasonable, not absolute, assurance that its objectives will be met. Further,
no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, within the
Company have been detected.
ITEM 9B. OTHER INFORMATION.
None.
Balance at
Additions
Balance at
Beginning
Charged to
Costs
Charged to
Other
End of
of Period
and Expenses
Accounts
Deductions
Period
In thousands
Allowance for Doubtful Accounts Receivable
Year ended December 31, 2005
$
—
$
37
$
—
$
(
16
)
$
21
Year ended December 31, 2006
$
21
—
—
(
21
)
—
Year ended December 31, 2007
—
—
—
—
—
Deferred tax valuation allowance
Year ended December 31, 2005
$
25,008
$
—
$
(
230
)(1)
$
(24,778
)(2)
$
—
Year ended December 31, 2006
—
—
—
—
—
Year ended December 31, 2007
—
—
—
—
—
(1)
Reflects amounts related to items with no income statement effect.
(2)
Decrease in the Valuation allowance is due to the reversal of the valuation allowance in the fourth quarter of 2005.
47