Sunbeam 2007 Annual Report Download - page 79

The Company believes that the assumptions utilized in recording its obligations under its plans are reasonable
based on its experience, market conditions and input from its actuaries and investment advisors.
Reorganization and Acquisition-Related Integration Costs
Reorganization and acquisition-related integration costs include costs associated with exit or disposal
activities, which do not meet the criteria of discontinued operations, including costs for employee and lease
terminations, facility closing or other exit activities. Additionally, these costs include expenses directly related to
integrating and reorganizing acquired businesses and include items such as employee retention costs, recruiting
costs, certain moving costs, certain duplicative costs during integration and asset impairments.
New Accounting Standards
In September 2006, the Financial Accounting Standards Board (the “FASB”) issued SFAS No. 157, “Fair
Value Measurements” (“SFAS 157”). SFAS 157 defines fair value, establishes a framework for measuring fair
value and expands disclosures about fair value measurements. Certain provisions of SFAS 157 related to
financial assets and liabilities as well as other assets and liabilities carried at fair value on a recurring basis
became effective for the Company on January 1, 2008 and are being applied prospectively. These provisions of
SFAS 157 are not expected to have any impact on the Company’s consolidated financial statements. The
provisions of SFAS 157 related to other nonfinancial assets and liabilities will be effective for the Company on
January 1, 2009, and will be applied prospectively. The Company is currently evaluating the impact the
provisions of SFAS 157 will have on the Company’s consolidated financial statements as it relates to other
nonfinancial assets and liabilities.
In February 2007, the FASB issued Statement of Financial Accounting Standards No. 159 “The Fair Value
Option for Financial Assets and Financial Liabilities – Including an Amendment of FASB Statement No. 155”
(“SFAS 159”). SFAS 159 permits entities to choose to measure many financial instruments and certain other
items at fair value that are not currently required to be measured at fair value. SFAS 159 also established
presentation and disclosure requirements designed to facilitate comparisons that choose different measurement
attributes for similar types of assets and liabilities. SFAS 159 is effective as of the beginning of an entity’s first
fiscal year that begins after November 15, 2007. SFAS 159 will not have a material impact on the Company’s
consolidated financial position, results of operations or cash flows.
On December 4, 2007, the FASB issued SFAS No. 141(R), “Business Combinations” (“SFAS 141(R)”).
SFAS 141(R) will significantly change the financial accounting and reporting for business combinations. The
provisions of SFAS 141(R) in part include requirements to recognize, with certain exceptions, 100 percent of the
fair values of assets acquired, liabilities assumed, and noncontrolling interests in acquisitions of less than a 100
percent controlling interest when the acquisition constitutes a change in control of the acquired entity: measure
acquirer shares issued in consideration for a business combination at fair value on the acquisition date; recognize
contingent consideration arrangements at their acquisition-date fair values, with subsequent changes in fair value
generally reflected in earnings; expense, as incurred, acquisition-related transaction costs; capitalize acquisition-
related restructuring costs only if the appropriate accounting criteria are met as of the acquisition date; and
recognize changes that result from a business combination transaction in an acquirer’s existing income tax
valuation allowances and tax uncertainty accruals as adjustments to income tax expense. SFAS 141(R) will also
require any adjustments related to pre-existing tax contingencies for prior acquisitions to be recorded in the
income statement. SFAS 141(R) is generally effective for business combination transactions for which the
acquisition date is on or after the beginning of the first annual reporting period beginning on or after
December 15, 2008. Earlier adoption is prohibited.
On December 4, 2007, the FASB issued SFAS No. 160, “Noncontrolling Interests in Consolidated Financial
Statements, an amendment of ARB No. 51” (“SFAS 160”). SFAS 160 will significantly change the financial
accounting and reporting for noncontrolling (or minority) interests in consolidated financial statements. The
provisions of SFAS 160 in part; establish accounting and reporting standards for the noncontrolling interest in a
subsidiary and for the deconsolidation of a subsidiary; clarifies that a noncontrolling interest in a subsidiary is an
ownership interest in the consolidated entity that should be reported as equity in the consolidated financial
statements; establishes a single method of accounting for changes in a parent’s ownership interest in a subsidiary
that do not result in deconsolidation; requires that a parent recognize a gain or loss in net income when a
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