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In November 2008, the FASB issued EITF No. 08-6 ‘‘Equity Method Investment Accounting Considerations’’ (‘‘EITF 08-6’’),
which is effective for the first annual reporting period beginning on or after December 15, 2008. EITF 08-6 clarifies the effects
of the issuance of SFAS No. 141 (revised 2007) ‘‘Business Combinations’’ (‘‘SFAS 141(R)’’) and SFAS No. 160
‘‘Noncontrolling Interests in Consolidated Financial Statements-an amendment of ARB No. 51’’ (‘‘SFAS 160’’). See further
information on the issuance of SFAS 141(R) and SFAS 160 below. The Company will apply EITF 08-6 to any transactions
within scope occurring after December 31, 2008.
In November 2008, the FASB issued EITF No. 08-7 ‘‘Accounting for Defensive Intangible Assets’’ (‘‘EITF 08-7’’), which is
effective for the first annual reporting period beginning on or after December 15, 2008. EITF 08-7 provides guidance on
intangible assets acquired after the effective date of SFAS 141(R) that an entity does not intend to actively use but intends to
hold to prevent others from using. The Company will apply EITF 08-7 to any transactions within scope occurring after
December 31, 2008.
In October 2008, the FASB issued FSP FAS 157-3, ‘‘Determining the Fair Value of a Financial Asset When the Market for That
Asset Is Not Active’’ (‘‘FSP 157-3’’), which was effective upon issuance, including prior periods for which financial statements
have not been issued. FSP 157-3 clarifies the application of SFAS No. 157 ‘‘Fair Value Measurements’’ (‘‘SFAS 157’’) in a
market that is not active and provides an example of key considerations to determine the fair value of financial assets when
the market for those assets is not active. The adoption of FSP 157-3 did not have a material effect on the Company’s
consolidated results of operations and financial condition.
In June 2008, the FASB issued FSP EITF No. 03-6-1, ‘‘Determining Whether Instruments Granted in Share-Based Payment
Transactions are Participating Securities’’ (‘‘FSP EITF 03-6-1’’). FSP EITF 03-6-1 clarifies that unvested share-based payment
awards with nonforfeitable rights to dividends or dividend equivalents are considered participating securities and should be
included in the calculation of earnings per share pursuant to the two-class method. FSP EITF 03-6-1 is effective for financial
statements issued for periods beginning after December 15, 2008 with early adoption prohibited. FSP EITF 03-6-1 requires
that all prior-period earnings per share data be adjusted retrospectively to conform with the FSP provisions. The Company
does not expect the adoption of EITF 03-6-1 to have a material effect on its earnings per share and consolidated results of
operations.
In March 2008, the FASB issued SFAS No. 161 ‘‘Disclosures about Derivative Instruments and Hedging Activities—an
amendment of FASB Statement No. 133’’ (‘‘SFAS 161’’). SFAS 161 intends to improve financial reporting about derivative
instruments and hedging activities by requiring enhanced disclosures about their impact on an entity’s financial position,
financial performance, and cash flows. SFAS 161 requires disclosures regarding the objectives for using derivative
instruments, the fair value of derivative instruments and their related gains and losses, and the accounting for derivatives and
related hedged items. SFAS 161 is effective for fiscal years and interim periods beginning after November 15, 2008, with
early adoption permitted. The Company is currently evaluating the impact of SFAS 161 on its disclosures. The Company’s
adoption of SFAS 161 will not impact its consolidated results of operations and financial condition.
In December 2007, the FASB issued SFAS 141(R), which establishes principles and requirements for how an acquirer
recognizes and measures the identifiable assets acquired, the liabilities assumed, any noncontrolling interest in an acquiree,
and goodwill acquired. SFAS 141(R) also requires an acquirer to disclose information about the financial effects of a business
combination. SFAS 141(R) is effective prospectively for business combinations with an acquisition date on or after the
beginning of the first annual reporting period beginning on or after December 15, 2008, with early adoption prohibited. The
Company will apply the standard to any business combinations within the scope of SFAS 141(R) occurring after
December 31, 2008.
In December 2007, the FASB issued SFAS No. 160, which establishes the accounting and reporting for ownership interest in
subsidiaries not attributable, directly or indirectly, to a parent. SFAS 160 requires that noncontrolling (minority) interests be
classified as equity (instead of as a liability) within the consolidated balance sheet, and net income attributable to both the
parent and the noncontrolling interest be disclosed on the face of the consolidated statement of income. SFAS 160 is
effective for fiscal years beginning after December 15, 2008, and interim periods within those years with early adoption
prohibited. The provisions of SFAS 160 are to be applied prospectively, except for the presentation and disclosure
requirements which are to be applied retrospectively to all periods presented. The Company is currently evaluating the impact
of SFAS 160 on its consolidated results of operations and financial condition.
In September 2006, the FASB issued SFAS No. 158, ‘‘Employers’ Accounting for Defined Benefit Pension and Other
Postretirement Plans—an Amendment of FASB Statements No. 87, 88, 106, and 132(R)’’ (‘‘SFAS 158’’). As of
December 31, 2006, the Company adopted the recognition provisions of SFAS 158 which require an entity to recognize the
overfunded or underfunded status of an employer’s defined benefit postretirement plan as an asset or liability in its statement
of financial position and to recognize changes in that funded status in the year in which the changes occur through
comprehensive income. The Company’s adoption of the recognition provisions of SFAS 158 did not have a material effect on
the consolidated results of operations and financial condition. As of December 31, 2008, the Company adopted the
measurement provisions of SFAS 158 which require the measurement of plan assets and benefit obligations to be as of the
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