MWI Veterinary Supply (MWIV)

Goodwill and Intangible Assets

        We assess the potential impairment of goodwill and non-amortizing intangible assets annually and on an interim basis whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Factors that we consider important and may trigger an interim impairment review include:

•

significant underperformance relative to expected historical or projected future operating results;



•

significant changes in the manner of our use of acquired assets or the strategy of our overall business; and



•

significant negative industry or economic trends.

        If we determine through the impairment review process that goodwill or non-amortizing intangible assets are impaired, an impairment charge is recognized in our consolidated statement of income.

        Goodwill and non-amortizing intangible assets were evaluated for impairment in our fourth quarter of 2008 and we determined that the recorded amount was not impaired. The fair value calculations used for these tests require us to make assumptions about items that are inherently uncertain. Assumptions related to future market demand, market prices and product costs could vary from actual results, and the impact of such variations could be material. Factors that could affect the assumptions include changes in economic conditions, changes in government regulations, success in marketing products and competitive conditions in our industry. The factors that most significantly affect the fair value calculation are market multiples and estimates of future cash flows. Fair value was determined using the discounted cash flow method.

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Table of Contents

Goodwill and Intangible Assets

        We assess the potential impairment of goodwill and non-amortizing intangible assets annually and on an interim basis
whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Factors that we consider important and may trigger an interim impairment review
include:

•

significant underperformance relative to expected historical or projected future operating results;




•

significant changes in the manner of our use of acquired assets or the strategy of our overall business; and




•

significant negative industry or economic trends.

        If
we determine through the impairment review process that goodwill or non-amortizing intangible assets are impaired, an impairment charge is recognized in our consolidated
statement of income.

        Goodwill
and non-amortizing intangible assets were evaluated for impairment in our fourth quarter of 2008 and we determined that the recorded amount was not impaired. The
fair value calculations used for these tests require us to make assumptions about items that are inherently uncertain. Assumptions related to future market demand, market prices and product costs
could vary from actual results, and the impact of such variations could be material. Factors that could affect the assumptions include changes in economic conditions, changes in government
regulations, success in marketing products and competitive conditions in our industry. The factors that most significantly affect the fair value calculation are market multiples and estimates of
future cash flows. Fair value was determined using the discounted cash flow method.

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HREF="#bg47901a_main_toc">Table of Contents

Goodwill and Intangible Assets

        We assess the potential impairment of goodwill and non-amortizing intangible assets annually and on an interim basis whenever events or changes in circumstances indicate that the carrying value may not be recoverable. Factors that we consider important and may trigger an interim impairment review include:

•

significant underperformance relative to expected historical or projected future operating results;



•

significant changes in the manner of our use of acquired assets or the strategy of our overall business; and

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•

significant negative industry or economic trends.

        If we determine through the impairment review process that goodwill or non-amortizing intangible assets are impaired, an impairment charge is recognized in our consolidated statement of income.

        Goodwill and non-amortizing intangible assets were evaluated for impairment in our fourth quarter of 2007 and we determined that the recorded amount was not impaired. The fair value calculations used for these tests require us to make assumptions about items that are inherently uncertain. Assumptions related to future market demand, market prices and product costs could vary from actual results, and the impact of such variations could be material. Factors that could affect the assumptions include changes in economic conditions, changes in government regulations, success in marketing products and competitive conditions in our industry. The factors that most significantly affect the fair value calculation are market multiples and estimates of future cash flows. Fair value was determined using the discounted cash flow method.