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These excerpts taken from the VSH 10-K filed Feb 26, 2009. Accounting for the Impairment or Disposal of Long-Lived
Assets, and certain indefinite-lived
intangible assets in accordance with SFAS No. 142. As a result of those
assessments, we recorded indefinite-lived intangible asset impairment charges
totaling $27 million during the third quarter of 2008.
-46- During the years ended December 31, 2008, 2007, and 2006, we recorded asset write-downs of $5.1 million, $3.9 million, and $6.7 million, respectively. Fixed asset write-downs included amounts to reduce the carrying value of certain buildings which had been vacated as part of our restructuring activities, based on expected future selling prices or the present value of expected rental receipts. Fixed asset write-downs also included charges to write down certain equipment to salvage value after we determined that it would not be used at other Vishay locations subsequent to the completion of our restructuring plans. The asset write-downs for 2008 also included definite-lived intangible write-downs of $0.8 million, as a result of our decision to close our facility in Brazil. During the year ended December 31, 2007, we recorded a write-off of prepaid assets associated with our Tower Semiconductor foundry agreement. The evaluation of the recoverability of long-lived assets, and the determination of their fair value, requires us to make significant estimates and assumptions. These estimates and assumptions primarily include, but are not limited to: the identification of the asset group at the lowest level of independent cash flows and the principal asset of the group; the discount rate; terminal growth rates; and forecasts of revenue, operating income, depreciation and amortization, and capital expenditures. The evaluation of the fair value of indefinite-lived trademarks also requires us to make significant estimates and assumptions. These estimates and assumptions primarily include, but are not limited to: the assumed market-royalty rate; the discount rate; terminal growth rates; and forecasts of revenue. Due to the inherent uncertainty involved in making these estimates, actual results could differ from those estimates. In addition, changes in underlying assumptions would have a significant impact on the conclusion that an asset group’s carrying value is recoverable, that an indefinite-lived asset is not impaired, or the determination of any impairment charge if it was determined that the asset values were indeed impaired. Accounting for the Impairment or Disposal of Long-Lived Assets, and certain indefinite-lived intangible assets in accordance with SFAS No. 142. As a result of those assessments, we recorded indefinite-lived intangible asset impairment charges totaling $27 million during the third quarter of 2008. -46- | |||||||||||||
During the years ended December 31, During the year ended December 31, The evaluation of the recoverability of The evaluation of the fair value of Due to the inherent uncertainty Accounting
for the Impairment or Disposal of Long-Lived Assets. The carrying value of long-lived assets held-and-used, other than
goodwill and indefinite-lived intangible assets, is evaluated when events or
changes in circumstances indicate the carrying value may not be recoverable. The
carrying value of a long-lived asset group is considered impaired when the total
projected undiscounted cash flows from such asset group are separately
identifiable and are less than the carrying value. In that event, a loss is
recognized based on the amount by which the carrying value exceeds the fair
market value of the long-lived asset group. Fair market value is determined
primarily using present value techniques based on projected cash flows from the
asset group. Losses on long-lived assets held-for-sale, other than goodwill and
indefinite-lived intangible assets, are determined in a similar manner, except
that fair market values are reduced for disposal costs.
Accounting for the Impairment or Disposal of Long-Lived Assets. The carrying value of long-lived assets held-and-used, other than goodwill and indefinite-lived intangible assets, is evaluated when events or changes in circumstances indicate the carrying value may not be recoverable. The carrying value of a long-lived asset group is considered impaired when the total projected undiscounted cash flows from such asset group are separately identifiable and are less than the carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair market value of the long-lived asset group. Fair market value is determined primarily using present value techniques based on projected cash flows from the asset group. Losses on long-lived assets held-for-sale, other than goodwill and indefinite-lived intangible assets, are determined in a similar manner, except that fair market values are reduced for disposal costs. This excerpt taken from the VSH 10-Q filed Nov 4, 2008. Accounting for the Impairment or
Disposal of Long-Lived Assets, and certain
indefinite-lived intangible assets in accordance with SFAS No. 142. As a result
of those assessments, we recorded indefinite-lived intangible asset impairment
charges totaling $27 million during the third quarter of 2008.
The evaluation of the recoverability of long-lived assets, and the determination of their fair value, requires us to make significant estimates and assumptions. These estimates and assumptions primarily include, but are not limited to: the identification of the asset group at the lowest level of independent cash flows and the principal asset of the group; the discount rate; terminal growth rates; and forecasts of revenue, operating income, depreciation and amortization, and capital expenditures. The evaluation of the fair value of indefinite-lived trademarks also requires us to make significant estimates and assumptions. These estimates and assumptions primarily include, but are not limited to: the assumed market-royalty rate; the discount rate; terminal growth rates; and forecasts of revenue. Due to the inherent uncertainty involved in making these estimates, actual results could differ from those estimates. In addition, changes in underlying assumptions would have a significant impact on the conclusion that an asset group’s carrying value is recoverable, that an indefinite-lived asset is not impaired, or the determination of any impairment charge if it was determined that the asset values were indeed impaired. This excerpt taken from the VSH 10-Q filed Aug 5, 2008. Accounting for the Impairment or
Disposal of Long-Lived Assets, and certain
indefinite-lived intangible assets in accordance with SFAS No. 142. As a result
of those assessments, we concluded that there was no impairment of these assets
as of June 28, 2008.
40 The evaluation of the recoverability of long-lived assets, and the determination of their fair value, requires us to make significant estimates and assumptions. These estimates and assumptions primarily include, but are not limited to: the identification of the asset group at the lowest level of independent cash flows and the principal asset of the group; the discount rate; terminal growth rates; and forecasts of revenue, operating income, depreciation and amortization, and capital expenditures. The evaluation of the fair value of indefinite-lived trademarks also requires us to make significant estimates and assumptions. These estimates and assumptions primarily include, but are not limited to: the assumed market-royalty rate; the discount rate; terminal growth rates; and forecasts of revenue. Due to the inherent uncertainty involved in making these estimates, actual results could differ from those estimates. In addition, changes in underlying assumptions would have a significant impact on the conclusion that an asset group’s carrying value is recoverable, that an indefinite-lived asset is not impaired, or the determination of any impairment charge if it was determined that the asset values were indeed impaired. These excerpts taken from the VSH 10-K filed Feb 27, 2008. Accounting
for the Impairment or Disposal of Long-Lived Assets. The carrying value of long-lived assets held-and-used, other than
goodwill and indefinite-lived intangible assets, is evaluated when events or
changes in circumstances indicate the carrying value may not be recoverable. The
carrying value of a long-lived asset is considered impaired when the total
projected undiscounted cash flows from such asset are separately identifiable
and are less than the carrying value. In that event, a loss is recognized based
on the amount by which the carrying value exceeds the fair market value of the
long-lived asset. Fair market value is determined primarily using the projected
cash flows from the asset discounted at a rate commensurate with the risk
involved. Losses on long-lived assets held-for-sale, other than goodwill and
indefinite-lived intangible assets, are determined in a similar manner, except
that fair market values are reduced for disposal costs.
Accounting for the Impairment or Disposal of Long-Lived Assets. The carrying value of long-lived assets held-and-used, other than goodwill and indefinite-lived intangible assets, is evaluated when events or changes in circumstances indicate the carrying value may not be recoverable. The carrying value of a long-lived asset is considered impaired when the total projected undiscounted cash flows from such asset are separately identifiable and are less than the carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair market value of the long-lived asset. Fair market value is determined primarily using the projected cash flows from the asset discounted at a rate commensurate with the risk involved. Losses on long-lived assets held-for-sale, other than goodwill and indefinite-lived intangible assets, are determined in a similar manner, except that fair market values are reduced for disposal costs. | EXCERPTS ON THIS PAGE:
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