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‘‘Effective Date of FASB Statement No. 157’’ which defers the implementation for certain non-recurring,
nonfinancial assets and liabilities from fiscal years beginning after November 15, 2007 to fiscal years
beginning after November 15, 2008, which will be our fiscal year 2010. 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’’ which clarifies the application of FAS 157 in a market that is not active. FSP FAS 157-3 is effective
upon issuance, including prior periods for which financial statements have not been issued. The statement
provisions effective as of April 1, 2008 and July 1, 2008, did not have a material effect on our results of
operations, financial position or cash flows. We adopted the remaining provisions of this statement on
April 1, 2009, and the adoption did not have a material impact on our results of operations, financial
position or cash flows.
FSP FAS 157-4, ‘‘Determining Fair Value When the Volume and Level of Activity for the Asset or Liability
Have Significantly Decreased and Identifying Transactions That Are Not Orderly (‘‘FSP FAS 157-4’’),’’
provides guidance on how to determine the fair value of assets and liabilities in an environment where the
volume and level of activity for the asset or liability have significantly decreased and re-emphasizes that the
objective of a fair value measurement remains an exit price. FSP FAS 157-4 is effective for interim and
annual periods ending after June 15, 2009, but entities may early adopt the FSP for the interim and annual
periods ending after March 15, 2009. The adoption is not expected to have a material impact on our results
of operations, financial position or cash flows.
In February 2007, the FASB issued SFAS No. 159, ‘‘The Fair Value Option for Financial Assets and
Financial Liabilities—Including an amendment of FASB Statement No. 115’’ (‘‘FAS 159’’). FAS 159
permits an entity to choose to measure many financial instruments and certain other items at fair value at
specified election dates. Subsequent unrealized gains and losses on items for which the fair value option
has been elected will be reported in earnings. We adopted this statement on April 1, 2008 and did not
make this election for any of our existing financial assets and liabilities. As such, the adoption of this
statement did not have any impact on our results of operations, financial position or cash flows. The
Company did elect the fair value option for a financial instrument acquired in the third quarter of fiscal
2009 (see ‘‘Note 2—Investments’’).
In May 2008, the FASB issued SFAS No. 162, ‘‘The Hierarchy of Generally Accepted Accounting
Principles’’ (‘‘FAS 162’’). FAS 162 is intended to improve financial reporting by identifying a consistent
framework, or hierarchy, for selecting accounting principles to be used in preparing financial statements
that are presented in conformity with GAAP for nongovernmental entities. FAS 162 is effective 60 days
following the SEC’s approval of the Public Company Accounting Oversight Board amendments to AU
Section 411, ‘‘The Meaning of Present Fairly in Conformity with Generally Accepted Accounting
Principles.’’ We do not expect the adoption of this statement to have a material impact on our results of
operations, financial position or cash flows.
In December 2007, the FASB issued SFAS No. 141(R), ‘‘Business Combinations’’ (‘‘FAS 141R’’).
FAS 141R retains the fundamental requirements in SFAS No. 141 that the acquisition method of
accounting (which SFAS No. 141 called the purchase method) be used for all business combinations and
for an acquirer to be identified for each business combination. FAS 141R defines the acquirer as the entity
that obtains control of one or more businesses in the business combination and establishes the acquisition
date as the date that the acquirer achieves control. FAS 141R is 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, which will be our fiscal year 2010. We adopted this statement on
April 1, 2009, and the adoption is expected to have a significant effect on our financial statements for
material acquisitions consummated subsequent to April 1, 2009.
In April 2008, the FASB issued FSP FAS 142-3, ‘‘Determination of the Useful Life of Intangible Assets’’
(‘‘FSP 142-3’’). FSP 142-3 amends the factors that should be considered in developing renewal or extension
assumptions used to determine the useful life of a recognized intangible asset under SFAS No. 142,
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