SANM » Topics » Impairment of Goodwill, Tangible and Other Intangible Assets

These excerpts taken from the SANM 10-K filed Nov 24, 2008.

Impairment of Goodwill, Tangible and Other Intangible Assets

        During 2008, our annual impairment test performed in July did not result in impairment of goodwill. However, in September, due to the expected effect of deteriorating general economic conditions on our future cash flows, the illiquidity of the credit markets and the decline in the stock market generally, and in our stock price in particular, we performed another goodwill impairment test. Based on the results of our second test, we recorded an impairment charge of $478.7 million.

        During 2008, we also recorded an impairment charge of $5.0 million associated primarily with decreases in the fair value of certain assets held for sale.

        During 2007, we recorded a goodwill impairment charge of $1.0 billion due to a decline in sales, both domestically and internationally, a decrease in expected future cash flows, and a decline in our stock price.

        During 2006, we recorded a goodwill impairment charge of $3.8 million and a tangible and intangible assets impairment charge of $9.0 million due to our decision to reduce our ODM activities and to focus on joint development manufacturing opportunities. In addition, we recorded an impairment of tangible assets of $6.1 million related to a manufacturing facility as a result of our SFAS No. 144 impairment analysis.

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Impairment of Goodwill, Tangible and Other Intangible Assets



        During 2008, our annual impairment test performed in July did not result in impairment of goodwill. However, in September, due to the
expected effect of deteriorating general economic conditions on our future cash flows, the illiquidity of the credit markets and the decline in the stock market generally, and in our stock price in
particular, we performed another goodwill impairment test. Based on the results of our second test, we recorded an impairment charge of $478.7 million.




        During
2008, we also recorded an impairment charge of $5.0 million associated primarily with decreases in the fair value of certain assets held for sale.



        During
2007, we recorded a goodwill impairment charge of $1.0 billion due to a decline in sales, both domestically and internationally, a decrease in expected future cash flows,
and a decline in our stock price.



        During
2006, we recorded a goodwill impairment charge of $3.8 million and a tangible and intangible assets impairment charge of $9.0 million due to our decision to reduce
our ODM activities and to focus on joint development manufacturing opportunities. In addition, we recorded an impairment of tangible assets of $6.1 million related to a manufacturing facility
as a result of our SFAS No. 144 impairment analysis.



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EXCERPTS ON THIS PAGE:

10-K (2 sections)
Nov 24, 2008

RELATED TOPICS for SANM:

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