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Table of Contents
In March 2008, the FASB issued FASB Statement No. 161, “Disclosures about Derivative Instruments and Hedging Activities” (“SFAS
161”). SFAS 161 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
FASB Statement No. 133 (“SFAS 133”) “Accounting for Derivative Instruments and Hedging Activities” and how derivative instruments and
related hedged items affect a company’s financial position, financial performance and cash flows. SFAS 161 is effective for financial statements
issued for fiscal years and interim periods beginning after November 15, 2008. The Company does not expect that the adoption of SFAS 161 will
have an impact on the consolidated financial statements.
In April 2008, the FASB issued FSP No. 142-3, “Determination of the Useful Life of Intangible Assets” (“FSP 142-3”), which 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. The Company will assess
the impact of FSP 142-3 if and when future acquisitions occur.
In September 2008, the FASB issued FSP No. 133-1 and FASB Interpretation No. 45-4 (“FSP SFAS 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 SFAS 133-1 and FIN 45-4 amends SFAS 133 to require disclosures by
sellers of credit derivatives, including credit derivatives embedded in hybrid instruments. FSP SFAS 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 SFAS 133-1 and FIN 45-
4
also clarifies the effective date in SFAS 161. Disclosures required by SFAS 161 are effective for financial statements issued for fiscal years and
interim periods beginning after November 15, 2008. The adoption of FSP SFAS 133-1 and FIN 45-4 did not have an impact on the Company’s
consolidated financial position, results of operations or cash flows.
In October 2008, the FASB issued FSP No. 157-3, “Determining the Fair Value of a Financial Asset When the Market for That Asset Is
Not Active
” (“FSP 157-3”). FSP 157-3 clarifies the application of SFAS 157 in a market that is not active and addresses application issues such
as the use of internal assumptions when relevant observable data does not exist, the use of observable market information when the market is not
active and the use of market quotes when assessing the relevance of observable and unobservable data. FSP 157-3 is effective for all periods
presented in accordance with SFAS 157. The guidance in FSP 157-3 is effective immediately and did not have an impact on the Company upon
adoption. See Note 12 for information and related disclosures regarding the Company’s fair value measurements.
In December 2008, the FASB issued FASB Staff Position (“FSP”) No. 140-4 and FIN 46R-8 (“FSP 140-4 and FIN 46R-8”), “Disclosures
by Public Entities (Enterprises) about Transfers of Financial Assets and Interests in Variable Interest Entities.” FSP 140-4 and FIN 46R-
8 require
additional disclosures about transfers of financial assets and involvement with variable interest entities. The requirements apply to transferors,
sponsors, servicers, primary beneficiaries and holders of 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 the Company in the first quarter of fiscal 2009. Because FSP 140-4
and FIN 46R-8 only require additional disclosures, the adoption will not impact the Company’s consolidated financial position, results of
operations or cash flows.
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