Vectren 2008 Annual Report Download - page 106

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104
Other – net in the Consolidated Statements of Income consists of the following:
(In millions) 2008 2007 2006
AFUDC & capitalized interest 6.2$ 6.3$ 5.3$
Interest income 2.3 2.9 4.0
Synfuel-related activity - 23.4 (11.4)
Commercial real estate impairment charge (5.2) - -
Broadband charges - 0.1 (1.9)
Cash surrender value of life insurance policies (2.8) 0.6 0.8
All other income 1.6 3.5 0.5
Total other – net 2.1$ 36.8$ (2.7)$
Year Ended December 31,
20. Impact of Recently Issued Accounting Guidance
SFAS 141 (Revised 2007)
In December 2007, the FASB issued SFAS No. 141, “Business Combinations” (SFAS 141R). SFAS 141R
establishes principles and requirements for how the acquirer of an entity (1) recognizes and measures the
identifiable assets acquired, the liabilities assumed, and any noncontrolling interest in the acquiree (2) recognizes
and measures acquired goodwill or a bargain purchase gain and (3) determines what information to disclose in its
financial statements in order to enable users to assess the nature and financial effects of the business combination.
SFAS 141R applies to all transactions or other events in which one entity acquires control of one or more
businesses and applies to all business entities. SFAS 141R applies prospectively to business combinations with an
acquisition date on or after the beginning of the first annual reporting period beginning on or after December 15,
2008. Early adoption is not permitted. The Company will adopt SFAS 141R on January 1, 2009, and because the
provisions of this standard are applied prospectively, the impact to the Company cannot be determined until the
transactions occur.
SFAS 160
In December 2007, the FASB issued SFAS No. 160, “Noncontrolling Interests in Consolidated Financial
Statements-an Amendment of ARB No. 51” (SFAS 160). SFAS 160 establishes accounting and reporting standards
that require that the ownership percentages in subsidiaries held by parties other than the parent be clearly identified,
labeled, and presented separately from the parent’s equity in the equity section of the consolidated balance sheet;
the amount of consolidated net income attributable to the parent and the noncontrolling interest to be clearly
identified and presented on the face of the consolidated income statement; that changes in the parent’s ownership
interest while it retains control over its subsidiary be accounted for consistently; that when a subsidiary is
deconsolidated, any retained noncontrolling equity investment be initially measured at fair value; and that sufficient
disclosure is made to clearly identify and distinguish between the interests of the parent and the noncontrolling
owners. SFAS 160 applies to all entities that prepare consolidated financial statements, except for non-profit
entities. SFAS 160 is effective for fiscal years beginning after December 31, 2008. Early adoption is not
permitted. The Company will adopt SFAS 160 on January 1, 2009, and the impact is not expected to be material to
the Company’s financial position or results of operations.
SFAS 161
In March 2008, the FASB issued SFAS No. 161, “Disclosures about Derivative Instruments and Hedging Activities
– an Amendment of FASB Statement No. 133” (SFAS 161). SFAS 161 enhances the current disclosures under
SFAS 133 and requires that objectives for using derivative instruments be disclosed in terms of underlying risk and
accounting designation in order to better convey the purpose of derivative use in terms of the risks that the entity is
intending to manage. Entities are required to provide enhanced disclosures about (a) how and why an entity uses
derivative instruments, (b) how derivative instruments and related hedged items are accounted for under Statement
133 and its related interpretations, and (c) how derivative instruments and related hedged items affect an entity’s
financial position, financial performance, and cash flows. Tabular disclosure of fair value amounts and gains and
losses on derivative instruments and related hedged items is required. SFAS 161 is effective for financial