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63
contingent liabilities at the date of the Consolidated
Financial Statements and the reported amounts of revenues
and expenses during the reporting periods to prepare
these Consolidated Financial Statements in conformity with
GAAP. Management believes that such estimates have
been based on reasonable and supportable assumptions and
that the resulting estimates are reasonable for use in the
preparation of the Consolidated Financial Statements.
Actual results, however, could differ from those estimates.
RECENT ACCOUNTING PRONOUNCEMENTS
Fair Value Measurements
In September 2006, the Financial Accounting Standards
Board (“FASB”) issued Statement of Financial Accounting
Standards (“SFAS”) No. 157, “Fair Value Measurements”
(“SFAS No. 157”). SFAS No. 157 defines fair value,
establishes a framework for measuring fair value and
expands disclosures about fair value measurements for
financial assets and liabilities, as well as any other assets
and liabilities that are carried at fair value on a recurring
basis in the financial statements. Effective August 2, 2008,
the first day of 2009, the Company adopted SFAS No. 157
on a prospective basis. The adoption of SFAS No. 157
resulted in a $5,809 decrease in the Company’s interest rate
swap liability related to non-performance risk, in the first
quarter of 2009, with the offset reflected in accumulated
other comprehensive loss, net of the deferred tax asset, on
the Company’s consolidated balance sheet. See Note 3
for additional information on the Company’s fair value
measurements and Note 6 for additional information on
the Company’s interest rate swap.
In February 2008, the FASB issued FASB Staff Position
(“FSP”) FAS No. 157-2, “Effective Date of FASB Statement
No. 157” (“FSP FAS No. 157-2”), which deferred the
effective date of SFAS No. 157 as it applies to certain
nonfinancial assets and liabilities to fiscal years beginning
after November 15, 2008. The deferral applies to such items
as nonfinancial long-lived asset groups measured at fair
value for an impairment assessment. We elected the
deferral for nonfinancial assets and liabilities under FSP FAS
No. 157-2. The Company does not expect the adoption of
FSP FAS No. 157-2 in the first quarter of 2010 will have a
significant impact on its consolidated financial statements.
In April 2009, the FASB issued FSP FAS No. 107-1 and
APB No. 28-1, “Interim Disclosures about Fair Value of
Financial Instruments” (“FSP FAS No. 107-1 and APB No.
28-1”), which amends SFAS No. 107, “Disclosures about Fair
Value of Financial Instruments” to require disclosures about
fair value of financial instruments for interim reporting
periods of publicly traded companies as well as in annual
financial statements. It also amends Accounting Principles
Board (“APB”) Opinion No. 28-1, “Interim Financial
Reporting” to require those disclosures in summarized
financial information at interim reporting periods. FSP FAS
No. 107-1 and APB No. 28-1 is effective for interim
reporting periods ending after June 15, 2009. The adoption
of FSP FAS No. 107-1 and APB No. 28-1 in the fourth
quarter of 2009 had no impact on the Company’s
consolidated financial statements.
Income Tax Benefits of Dividends on Share-Based
Payment Awards
The Emerging Issues Task Force (“EITF”) reached a
consensus on EITF 06-11, “Accounting for Income Tax
Benefits of Dividends on Share-Based Payment Awards”
(“EITF 06-11”) in June 2007. The EITF consensus indicates
that the tax benefit received on dividends associated with
share-based awards that are charged to retained earnings
should be recorded in additional paid-in capital and
included in the pool of excess tax benefits available to
absorb potential future tax deficiencies on share-based
award payments. The Company adopted EITF 06-11 on
August 2, 2008, the first day of 2009. The adoption of EITF
06-11 did not have a significant impact on the Company’s
consolidated financial statements.
Derivative Disclosures
In March 2008, the FASB issued SFAS No. 161, “Disclosures
about Derivative Instruments and Hedging Activities”
(“SFAS No. 161”), which amends SFAS No. 133, “Accounting
for Derivative Instruments and Hedging Activities” (“SFAS
No. 133”). SFAS No. 161 requires enhanced disclosures
about how and why an entity uses derivative instruments,
how derivative instruments and related hedged items
are accounted for under SFAS No. 133 and its related
interpretations, and how derivative instruments and related
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