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significant variable interests in a variable interest entity or qualifying special purpose entity. Disclosures required by FSP
140-4 and FIN 46R-8 are effective for us in the first quarter of fiscal 2009. Because FSP 140-4 and FIN 46R-8 only require
additional disclosures, the adoption will not impact our consolidated financial position, results of operations or cash flows.
In September 2008, the FASB issued FASB Staff Position No. 133-1 and FIN 45-4 (“FSP FAS 133-1 and FIN 45-4”),
“Disclosures about Credit Derivatives and Certain Guarantees: An Amendment of FASB Statement No. 133 and FASB
Interpretation No. 45; and Clarification of the Effective Date of FASB Statement No. 161.” FSP FAS 133-1 and FIN 45-4
amends FASB Statement No. 133 (“SFAS 133”), “Accounting for Derivative Instruments and Hedging Activities,” to require
disclosures by sellers of credit derivatives, including credit derivatives embedded in hybrid instruments. FSP FAS 133-1 and
FIN 45-4 also amend FASB Interpretation No. 45 (“FIN 45”), “Guarantor’ s Accounting and Disclosure Requirements for
Guarantees, Including Indirect Guarantees of Indebtedness to Others,” to require additional disclosure about the current status
of the payment/performance risk of a guarantee. The provisions of the FSP that amend SFAS 133 and FIN 45 are effective
for reporting periods ending after November 15, 2008. FSP FAS 133-1 and FIN 45-4 also clarifies the effective date in FASB
Statement No. 161 (“SFAS 161”), “Disclosures about Derivative Instruments and Hedging Activities.” Disclosures required
by SFAS 161 are effective for us in the first quarter of fiscal 2009. Because FSP FAS 133-1 and FIN 45-4 only require
additional disclosures, the adoption will not impact our consolidated financial position, results of operations or cash flows.
In April 2008, the FASB issued FSP No. 142-3 (“FSP 142-3”), “Determination of the Useful Life of Intangible Assets.”
FSP 142-3 amends the factors an entity should consider in developing renewal or extension assumptions used in determining
the useful life of recognized intangible assets under FASB Statement No. 142, “Goodwill and Other Intangible Assets.” This
new guidance applies prospectively to intangible assets that are acquired individually or with a group of other assets in
business combinations and asset acquisitions. FSP 142-3 is effective for financial statements issued for fiscal years and
interim periods beginning after December 15, 2008. Early adoption is prohibited. Since this guidance will be applied
prospectively, on adoption, there will be no impact to our current consolidated financial statements.
In March 2008, the FASB issued SFAS 161 which requires companies with derivative instruments to disclose
information that should enable financial statement users to understand how and why a company uses derivative instruments,
how derivative instruments and related hedged items are accounted for under SFAS 133 and how derivative instruments and
related hedged items affect a company’s financial position, financial performance and cash flows. SFAS 161 is effective for
us in the first quarter of fiscal 2009. Because SFAS 161 only requires additional disclosure, the adoption will not impact our
consolidated financial position, results of operations or cash flows.
In June 2007, the American Institute of Certified Public Accountants (“AICPA”) issued Statement of Position 07-1
(“SOP 07-1”), “Clarification of the Scope of the Audit and Accounting Guide Investment Companies and Accounting by
Parent Companies and Equity Method Investors for Investments in Investment Companies.” SOP 07-1 defines investment
companies for purposes of applying the related AICPA Audit and Accounting Guide. SOP 07-1 provides guidance on
whether an investment company’s parent or equity-method investor should retain investment-company accounting in its
financial statements. SOP 07-1 would have been effective beginning in the first quarter of fiscal 2009; however, in February
2008, the FASB issued FSP SOP 07-1-1 which indefinitely delayed the effective date of SOP 07-1.
In September 2006, the FASB issued FASB Statement No. 157 (“SFAS 157”), “Fair Value Measurements,” which
defines fair value, establishes guidelines for measuring fair value and expands disclosures regarding fair value measurements.
SFAS 157 does not require any new fair value measurements but rather eliminates inconsistencies in guidance found in
various prior accounting pronouncements and is effective for fiscal years beginning after November 15, 2007. In February
2008, the FASB issued FASB FSP 157-2 which delays the effective date of SFAS 157 for all nonfinancial assets and
nonfinancial liabilities, except those that are recognized or disclosed at fair value in the financial statements on a recurring
basis (at least annually), until fiscal years beginning after November 15, 2008 and interim periods within those fiscal years.
These nonfinancial items include assets and liabilities such as reporting units measured at fair value in a goodwill impairment
test and nonfinancial assets acquired and liabilities assumed in a business combination. Effective December 1, 2007, we
adopted SFAS 157 for financial assets and liabilities recognized at fair value on a recurring basis. The partial adoption of
SFAS 157 for financial assets and liabilities did not have a material impact on our consolidated financial position, results of
operations or cash flows. Effective November 29, 2008, we adopted SFAS 157 for all nonfinancial assets and nonfinancial