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December 15, 2008. We will adopt SFAS No. 160
New Accounting Standards
beginning in the first quarter of fiscal 2010. We are
In March 2008, the FASB issued SFAS No. 161, evaluating the impact the adoption of SFAS No. 160 will
Disclosures about Derivative Instruments and Hedging have on our consolidated financial position or results of
Activities, an amendment of SFAS No. 133. SFAS No. 161 operations.
is intended to improve financial standards for derivative
In February 2007, the FASB issued SFAS No. 159, The
instruments and hedging activities by requiring enhanced
Fair Value Option for Financial Assets and Financial
disclosures to enable investors to better understand their
Liabilities. SFAS No. 159 permits companies to choose to
effects on an entity’s financial position, financial
measure many financial instruments and certain other
performance and cash flows. Entities are required to
items at fair value. The objective is to improve financial
provide enhanced disclosures about: how and why an
reporting by providing companies with the opportunity to
entity uses derivative instruments; how derivative
mitigate volatility in reported earnings caused by
instruments and related hedged items are accounted for
measuring related assets and liabilities differently without
under SFAS No. 133 and its related interpretations; and
having to apply complex hedge accounting provisions.
how derivative instruments and related hedged items affect
SFAS No. 159 is effective for fiscal years beginning after
an entity’s financial position, financial performance and
November 15, 2007. Companies are not allowed to
cash flows. SFAS No. 161 is effective for financial
adopt SFAS No. 159 on a retrospective basis unless they
statements issued for fiscal years and interim periods
choose early adoption. We adopted SFAS No. 159 on
beginning after November 15, 2008. We will adopt SFAS
March 2, 2008, and did not elect the fair value option for
No. 161 beginning in the fourth quarter of fiscal 2009.
eligible items that existed at the date of adoption.
We are evaluating the impact the adoption of SFAS
No. 161 will have on our consolidated financial In September 2006, the FASB issued SFAS No. 157, Fair
statements. Value Measurements. SFAS No. 157 defines fair value,
establishes a framework for measuring fair value in
In December 2007, the FASB issued SFAS No. 141(revised
accordance with GAAP and expands disclosures about fair
2007), Business Combinations (‘‘141R’’). SFAS No. 141R
value measurements. SFAS No. 157 applies under other
significantly changes the accounting for business
accounting pronouncements that require or permit fair
combinations in a number of areas including the treatment
value measurements, the FASB having previously
of contingent consideration, preacquisition contingencies,
concluded in those accounting pronouncements that fair
transaction costs, in-process research and development
value is the relevant measurement attribute. Accordingly,
and restructuring costs. In addition, under SFAS No. 141R,
SFAS No. 157 does not require any new fair value
changes in an acquired entity’s deferred tax assets and
measurement. SFAS No. 157, as originally issued, was
uncertain tax positions after the measurement period will
effective for fiscal years beginning after November 15,
impact income tax expense. SFAS No. 141R is effective for
2007. However, in December 2007, the FASB issued FASB
fiscal years beginning after December 15, 2008. We will
Staff Position FAS157-b, which deferred the effective date
adopt SFAS No. 141R beginning in the first quarter of
of SFAS No. 157 for one year, as it relates to nonfinancial
fiscal 2010. This standard will change our accounting
assets and liabilities. We will adopt SFAS No. 157 as it
treatment for business combinations on a prospective
relates to financial assets and liabilities beginning in the
basis.
first quarter of fiscal 2009. We are evaluating the impact
In December 2007, the FASB issued SFAS No. 160, the adoption of SFAS No. 157 will have on our financial
Noncontrolling Interests in Consolidated Financial statements and related disclosures, but do not expect SFAS
Statements, an amendment of ARB No. 51. SFAS No. 160 No. 157 to have a material impact on our consolidated
changes the accounting and reporting for minority financial position or results of operations.
interests, which will be recharacterized as noncontrolling
interests and classified as a component of equity. This new Outlook for Fiscal 2009
consolidation method significantly changes the accounting
Our outlook for fiscal 2009 is based on information
for transactions with minority interest holders. SFAS
presently available and contains certain assumptions
No. 160 is effective for fiscal years beginning after
55