The Company does not offset fair value amounts recognized for derivative instruments against
fair value amounts recognized for the right to reclaim cash collateral.
Refer to further discussion on financial instruments in Note 18.
Advertising and other promotional costs are expensed as incurred, and were $304, $1,035 and $1,233 for the years ended December 31, 2009, 2008 and 2007, respectively. As of December 31, 2009 and
2008, no advertising costs were reported as assets in the Companys consolidated balance sheets.
Goodwill and Other Intangible Assets
Companies acquired in purchase transactions are recorded at their fair value on the date of acquisition with the excess of the purchase price
over the fair value of assets acquired and liabilities assumed recognized as goodwill. In accordance with ASC Topic 350, IntangiblesGoodwill and Other (ASC 350), goodwill and intangible assets determined to have an
indefinite useful life are not amortized, instead these assets are evaluated for impairment on an annual basis and whenever events or business conditions warrant. The Company evaluates goodwill and other intangible assets for impairment at the
reporting unit level in the fourth quarter of each fiscal year. The Company establishes its reporting units based on an analysis of the components that comprise each of its operating segments. Components of an operating segment are aggregated to
form one reporting unit if the components have similar economic characteristics. Goodwill is assigned to reporting units as of the date of the related acquisition. If goodwill is assigned to more than one reporting unit, the Company utilizes an
allocation methodology that is consistent with the manner in which the amount of goodwill in a business combination is determined.
Goodwill: The Company performs an annual impairment review of goodwill in the fourth quarter of each fiscal year, unless events occur
which trigger the need for earlier impairment review. Managements judgments regarding the existence of impairment indicators are based on legal factors, market conditions, the operational performance and the financial forecasts of the
business. Management estimates the fair value of reporting units using discounted cash flow models based on the Companys most recent long-range plan giving consideration to valuation multiples (e.g., Invested Capital/EBITDA) for peer
companies. Management then compares the estimated fair value to the net book value of each reporting unit, including goodwill. Preparation of forecasts of revenue growth and profitability for use in the long-range plan, the selection of the discount
rate and the terminal year multiple involve significant judgments. Changes to the forecasts, the discount rate selected or the terminal year multiple could affect the estimated fair value of one or more of the reporting units and could result in a
goodwill impairment charge in a future period.
the carrying amount of a reporting unit exceeds its estimated fair value, the Company conducts a second step, which comprises additional factors in assessing the fair value of goodwill. If the carrying amount of the reporting units goodwill
exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination.
That is, the fair value of the reporting unit is allocated to all of the assets and liabilities of that unit (including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination and the fair value of
the reporting unit was the purchase price paid to acquire the reporting unit.
Intangible assets: Identified intangible assets, other than indefinite-lived intangible assets, are amortized over the useful life of the asset using a method of amortization that reflects the
pattern in which the economic benefits of the intangible asset are consumed over its estimated useful life. If that pattern cannot be reliably determined, then the Company amortizes the intangible asset using the straight-line method. Capitalized
software licenses are amortized on a straight-line basis over the term of the license. Costs incurred to renew or extend the term of an intangible asset are capitalized and amortized over the remaining useful life of the intangible asset. No such
costs were incurred during the years ended December 31, 2009, 2008 and 2007.