This excerpt taken from the HBI 8-K filed Sep 5, 2006.
(m) Investments in Affiliates
The Company uses the equity method of accounting for its investments in and earnings or losses of affiliates that it does not control but over which it does exert significant influence. The Company considers whether the fair values of any of its equity method investments have declined below their carrying value whenever adverse events or changes in circumstances indicate that recorded values may not be recoverable. If the Company
Notes to Combined and Consolidated Financial Statements(Continued)
(dollars in thousands, except per share data)
considered any such decline to be other than temporary (based on various factors, including historical financial results, product development activities and the overall health of the affiliates industry), a write-down would be recorded to estimated fair value.