Recently Issued and Adopted Accounting Guidance

3 Months Ended

Mar. 31, 2013

Recently Issued and Adopted Accounting Guidance

Recently Issued and Adopted Accounting Guidance

(2)  Recently Issued and Adopted Accounting Guidance

Testing of Indefinite-Lived Intangible Assets for Impairment

In July 2012, the FASB issued guidance on testing indefinite-lived intangible assets for impairment. This guidance simplifies the testing for indefinite lived intangible assets impairment by allowing an entity to first assess qualitative factors to determine whether it is more likely than not that the fair value of an indefinite lived intangible asset is less than its carrying amount before proceeding to the quantitative impairment test. We adopted this guidance for the quarterly period ended March 31, 2013. The adoption of this guidance did not have a material impact on our consolidated financial statements.

Disclosures About Offsetting Assets and Liabilities

In December 2011, the FASB issued guidance on disclosures about offsetting assets and liabilities.  This guidance requires an entity to disclose both gross and net information about financial instruments, such as sales and repurchase agreements and reverse sale and repurchase agreements and securities borrowing/lending arrangements, and derivative instruments that are eligible for offset in the statement of financial position and/or subject to a master netting arrangement or similar agreement. We adopted this guidance for the quarterly period ended March 31, 2013. The adoption of this guidance did not have a material impact on our consolidated financial statements.

Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income

In February 2013, the FASB issued guidance on reporting of amounts reclassified out of accumulated other comprehensive income.  This guidance requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under GAAP to be reclassified to net income in its entirety in the same reporting period. For other amounts that are not required under GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under GAAP that provide additional detail about those amounts.  We adopted this guidance for the quarterly period ended March 31, 2013. The adoption of this guidance did not have a material impact on our consolidated financial statements.

Accounting for Cumulative Translation Adjustments

In March 2013, the FASB issued guidance guidance with respect to the reclassification into income of the cumulative translation adjustment (“CTA”) recorded in accumulated other comprehensive income associated with a foreign entity of a parent company. The guidance differentiates between transactions occurring within a foreign entity and transactions/events affecting an investment in a foreign entity. For transactions within a foreign entity, the full CTA associated with the foreign entity would be reclassified into income only when the sale of a subsidiary or group of net assets within the foreign entity represents the substantially complete liquidation of that foreign entity. For transactions/events affecting an investment in a foreign entity (for example, control or ownership of shares in a foreign entity), the full CTA associated with the foreign entity would be reclassified into income only if the parent no longer has a controlling interest in that foreign entity as a result of the transaction/event. In addition, acquisitions of a foreign entity completed in stages will trigger release of the CTA associated with an equity method investment in that entity at the point a controlling interest in the foreign entity is obtained. For the Company, this guidance is effective prospectively beginning January 1, 2014, with early adoption permitted. This guidance would impact the Company’s consolidated results of operations and financial condition only in the instance of an event/transaction as described above.