WNR » Topics » Goodwill and Other Intangible Assets

These excerpts taken from the WNR 10-K filed Mar 13, 2009.
Goodwill and Other Intangible Assets
 
Goodwill represents the excess of the purchase price (cost) over the fair value of the net assets acquired and is carried at cost. The Company tests goodwill for impairment at the reporting unit level annually. In addition, goodwill of that reporting unit is tested for impairment if any events or circumstances arise during a quarter that indicate goodwill of a reporting unit might be impaired. The reporting unit or units used to evaluate and measure goodwill for impairment are determined primarily from the manner in which the business is managed. A reporting unit is an operating segment or a component that is one level below an operating segment. Within its refining segment, the Company has determined that it has three reporting units for purposes of assigning goodwill and testing for impairment. The Company’s retail and wholesale segments are considered reporting units for purposes of assigning goodwill and testing for impairment. In accordance with SFAS No. 142, Goodwill and Other Intangible Assets (“SFAS No. 142”), the Company does not amortize goodwill for financial reporting purposes.
 
The Company applies SFAS No. 142 in determining the useful economic lives of intangible assets that are acquired. SFAS No. 142 requires the Company to amortize intangible assets, such as rights-of-way, licenses, and permits over their economic useful lives, unless the economic useful lives of the assets are indefinite. If an intangible asset’s economic useful life is determined to be indefinite, then that asset is not amortized. The Company considers factors such as the asset’s history, its plans for that asset, and the market for products associated with the asset when the intangible asset is acquired. The Company considers these same factors when reviewing the economic useful lives of its existing intangible assets as well. The Company reviews the economic useful lives of its intangible assets at least annually.
 
The risk of goodwill and other intangible asset impairment losses may increase to the extent the Company’s market capitalization, results of operations, or cash flows decline. Impairment losses may result in a material, non-cash write-down of goodwill or other intangible assets. Furthermore, impairment losses could have a material adverse effect on the Company’s results of operations and shareholders’ equity.
 
Goodwill
and Other Intangible Assets



 



Goodwill represents the excess of the purchase price (cost) over
the fair value of the net assets acquired and is carried at
cost. The Company tests goodwill for impairment at the reporting
unit level annually. In addition, goodwill of that reporting
unit is tested for impairment if any events or circumstances
arise during a quarter that indicate goodwill of a reporting
unit might be impaired. The reporting unit or units used to
evaluate and measure goodwill for impairment are determined
primarily from the manner in which the business is managed. A
reporting unit is an operating segment or a component that is
one level below an operating segment. Within its refining
segment, the Company has determined that it has three reporting
units for purposes of assigning goodwill and testing for
impairment. The Company’s retail and wholesale segments are
considered reporting units for purposes of assigning goodwill
and testing for impairment. In accordance with
SFAS No. 142, Goodwill and Other Intangible Assets
(“SFAS No. 142”), the Company does not
amortize goodwill for financial reporting purposes.


 



The Company applies SFAS No. 142 in determining the
useful economic lives of intangible assets that are acquired.
SFAS No. 142 requires the Company to amortize
intangible assets, such as rights-of-way, licenses, and permits
over their economic useful lives, unless the economic useful
lives of the assets are indefinite. If an intangible
asset’s economic useful life is determined to be
indefinite, then that asset is not amortized. The Company
considers factors such as the asset’s history, its plans
for that asset, and the market for products associated with the
asset when the intangible asset is acquired. The Company
considers these same factors when reviewing the economic useful
lives of its existing intangible assets as well. The Company
reviews the economic useful lives of its intangible assets at
least annually.


 



The risk of goodwill and other intangible asset impairment
losses may increase to the extent the Company’s market
capitalization, results of operations, or cash flows decline.
Impairment losses may result in a material, non-cash write-down
of goodwill or other intangible assets. Furthermore, impairment
losses could have a material adverse effect on the
Company’s results of operations and shareholders’
equity.


 




These excerpts taken from the WNR 10-K filed Feb 29, 2008.
Goodwill and Other Intangible Assets
 
Goodwill represents the excess of the purchase price (cost) over the fair value of the net assets acquired and is carried at cost less impairment write-offs. The Company tests goodwill for impairment at the reporting unit level annually. The reporting unit or units used to evaluate and measure goodwill for impairment are determined primarily from the manner in which the business is managed. A reporting unit is an operating segment or a component that is one level below an operating segment. Within our refining segment, the Company has determined that we have two reporting units for purposes of assigning goodwill and testing for impairment. The Company’s retail and wholesale segments are considered reporting units for purposes of assigning goodwill and testing for impairment. In addition, goodwill of that reporting unit is tested for impairment if any events or circumstances arise during a quarter that indicate goodwill of a reporting unit might be impaired. The Company has elected July 1 as its annual goodwill impairment test date for all of its reporting units. In accordance with SFAS No. 142, Goodwill and Other Intangible Assets (“SFAS No. 142”), the Company does not amortize goodwill for financial reporting purposes.
 
The Company applies SFAS No. 142 in determining the useful economic lives of intangible assets that are acquired. SFAS No. 142 requires the Company to amortize intangible assets, such as right-of-ways, licenses, and permits over their economic useful lives, unless the economic useful lives of the assets are indefinite. If an intangible asset’s economic useful life is determined to be indefinite, then that asset is not amortized. The Company considers factors such as the asset’s history, its plans for that asset, and the market for products associated with the asset when the intangible asset is acquired. The Company considers these same factors when reviewing the economic useful lives of our existing intangible assets as well. The Company reviews the economic useful lives of its intangible assets at least annually and accounts for


64


Table of Contents

 
WESTERN REFINING, INC. AND SUBSIDIARIES
 
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
 
impairment losses on intangible assets in accordance with SFAS No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets, (“SFAS No. 144”).
 
Goodwill
and Other Intangible Assets



 



Goodwill represents the excess of the purchase price (cost) over
the fair value of the net assets acquired and is carried at cost
less impairment write-offs. The Company tests goodwill for
impairment at the reporting unit level annually. The reporting
unit or units used to evaluate and measure goodwill for
impairment are determined primarily from the manner in which the
business is managed. A reporting unit is an operating segment or
a component that is one level below an operating segment. Within
our refining segment, the Company has determined that we have
two reporting units for purposes of assigning goodwill and
testing for impairment. The Company’s retail and wholesale
segments are considered reporting units for purposes of
assigning goodwill and testing for impairment. In addition,
goodwill of that reporting unit is tested for impairment if any
events or circumstances arise during a quarter that indicate
goodwill of a reporting unit might be impaired. The Company has
elected July 1 as its annual goodwill impairment test date for
all of its reporting units. In accordance with
SFAS No. 142, Goodwill and Other Intangible Assets
(“SFAS No. 142”), the Company does not
amortize goodwill for financial reporting purposes.


 



The Company applies SFAS No. 142 in determining the
useful economic lives of intangible assets that are acquired.
SFAS No. 142 requires the Company to amortize
intangible assets, such as
right-of-ways,
licenses, and permits over their economic useful lives, unless
the economic useful lives of the assets are indefinite. If an
intangible asset’s economic useful life is determined to be
indefinite, then that asset is not amortized. The Company
considers factors such as the asset’s history, its plans
for that asset, and the market for products associated with the
asset when the intangible asset is acquired. The Company
considers these same factors when reviewing the economic useful
lives of our existing intangible assets as well. The Company
reviews the economic useful lives of its intangible assets at
least annually and accounts for





64





Table of Contents





 




WESTERN
REFINING, INC. AND SUBSIDIARIES




 




NOTES TO
CONSOLIDATED FINANCIAL
STATEMENTS — (Continued)


 



impairment losses on intangible assets in accordance with
SFAS No. 144, Accounting for the Impairment or
Disposal of Long-Lived Assets
,
(“SFAS No. 144”).


 




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