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54
includes simplified methods to establish the beginning balance of the additional paid-in capital pool (“APIC pool”) related to
the tax effects of employee stock-based compensation, and to determine the subsequent impacts on the APIC pool and
Consolidated Statements of Cash Flows of the tax effects of employee stock-based compensation awards that are outstanding
upon adoption of SFAS 123r.
In March 2005,the FASB issued Interpretation No. 47,“Accounting for Conditional Asset Retirement Obligations”
(“FIN No. 47”), an interpretation of SFAS No. 143 “Asset Retirement Obligations.” FIN No. 47 is effective for fiscal years
ending after December 15,2005.For the year ending December 31,2005,the Company determined there was no significant
impact on the consolidated financial position, results of operations and cash flows as a result of adopting the provisions of
FIN No. 47.
In November 2004,the FASB issued SFAS No. 151,“Inventory Costs”, an amendment of ARB No. 43,Chapter 4
(“SFAS 151”). SFAS 151 requires the exclusion of certain costs from inventories and the allocation of fixed production over-
heads to inventories to be based on normal capacity of the production facilities. The adoption of this statement in 2006 had
no material impact on the Company’s financial position, results of operations or cash flows.
In December 2004,the FASB issued SFAS No. 153,“Exchanges of Nonmonetary Assets—an amendment of APB Opinion
No. 29”(“SFAS No. 153”). The guidance in APB Opinion No. 29,“Accounting for Nonmonetary Transactions,” (“Opinion
No. 29”) is based on the principle that exchanges of nonmonetary assets should be measured based on the fair value of the
assets exchanged. The guidance in Opinion No. 29,however, included certain exceptions to that principle. SFAS No. 153
amends Opinion No. 29 to eliminate the exception for nonmonetary exchanges of similar productive assets and replaces it
with a general exception for exchanges of nonmonetary assets that do not have commercial substance. A nonmonetary
exchange has commercial substance if the future cash flows of the entity are expected to change significantly as a result of the
exchange. The adoption of this statement had no material impact on the Company’s financial position, results of operations
or cash flows.
In May 2005,the FASB issued SFAS No. 154,“Accounting Changes and Error Correction,” effective for accounting
changes and corrections of errors made in fiscal years beginning after December 15,2005.SFAS No. 154 supersedes APB
Opinion No. 20,“Accounting Changes” and SFAS No. 3,“Reporting Accounting Changes in Interim Financial Statements”
and requires retrospective application to prior periods of any voluntary changes to alternatively permitted accounting princi-
ples, unless impracticable.
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”). Among other items,
SFAS 158 requires recognition of the overfunded or underfunded status of an entity’s defined benefit postretirement plan as
an asset or liability in the financial statements, requires the measurement of defined benefit postretirement plan assets and
obligations as of the end of the employer’s fiscal year and requires recognition of the funded status of defined benefit postre-
tirement plans in other comprehensive income. The effect of the adoption of SFAS 158 is disclosed in Note 15.
Notes to Consolidated Financial Statements
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