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These excerpts taken from the SWN 10-K filed Feb 26, 2009. Cash and Cash Equivalents Cash and cash equivalents are defined by the Company as short-term, highly liquid investments that have an original maturity of three months or less and deposits in money market mutual funds that are readily convertible into cash. Management considers cash and cash equivalents to have minimal credit and market risk. Cash and Cash Equivalents Cash and cash align=justify>Inventory align=justify>Inventory recorded in current assets includes $24.1 million at December 31, 2008, and $25.0 million at December 31, 2007, for gas in underground storage owned by the Companys E&P segment, and $26.3 million at December 31, 2008, and $8.1 million at December 31, 2007, for tubulars and other equipment used in the Companys E&P segment. Additionally, the Natural Gas Distribution segment had current gas in underground storage of $21.6 million at December 31, 2007, that was classified in the balance sheet as Current Assets Held for Sale. align=justify>The Company has one facility containing gas in underground storage. The current portion of the gas is classified in inventory and carried at the lower of cost or market. The non-current portion of the gas is classified in property, plant and equipment and carried at cost. The carrying value of the non-current gas is evaluated for recoverability whenever events or changes in circumstances indicate that it may not be recoverable. Withdrawals of current gas in underground storage are accounted for by a weighted average cost method whereby gas withdrawn from storage is relieved at the weighted average cost of current gas remaining in the facility. align=justify>Other assets includes $43.8 million at December 31, 2008, and $16.7 million at December 31, 2007, for inventory held by the Midstream Services segment consisting primarily of pipe that will be used to construct gathering systems for the Fayetteville Shale play. align=justify>Tubulars and other equipment used by the Companys segments are carried at the lower of cost or market and are accounted for by a moving weighted average cost method that is applied within specific classes of inventory items. Purchases of inventory are recorded at cost and inventory is relieved at the weighted average cost of items remaining within a specified class. | EXCERPTS ON THIS PAGE:
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