Recent Accounting Pronouncements

9 Months Ended

Sep. 30, 2011

Recent Accounting Pronouncements [Abstract]

Recent Accounting Pronouncements

Note 11 — Recent Accounting Pronouncements

In December 2010, the Financial Accounting Standards Board, or FASB, issued a new accounting standard requiring that Step 2 of the goodwill impairment test be performed for reporting units whose carrying value is zero or negative. We adopted the new guidance effective January 1, 2011. Our adoption of this standard did not have a material effect on our financial condition or consolidated results of operations.

In December 2010, the FASB issued new guidance clarifying certain disclosure requirements related to business combinations that are material on an individual or aggregate basis. Specifically, the guidance states that, if comparative financial statements are presented, the entity should disclose revenue and earnings of the combined entity as though the business combination(s) that occurred during the current year occurred as of the beginning of the comparable prior annual reporting period only. Additionally, the new standard expands the supplemental pro forma disclosures required by the authoritative guidance to include a description of the nature and amount of material, nonrecurring pro forma adjustments directly attributable to the business combination in the reported pro forma revenue and earnings. We adopted the new guidance effective January 1, 2011. Our adoption of this standard did not have a material effect on our financial condition or consolidated results of operations. However, it may result in additional disclosures in the event that we enter into a business combination that is material either on an individual or aggregate basis.

In May 2011, the FASB issued new guidance, which clarifies the application of some existing fair value measurement requirements and changes other requirements for measuring fair value and for disclosing certain information about fair value measurements. Specifically, the new guidance clarifies that the "highest and best use" concept applies only to nonfinancial assets. The new standard provides additional guidance on measuring the fair value of an instrument classified in the reporting entity's stockholders' equity. The new standard makes explicit the requirement to disclose quantitative information about the unobservable inputs used in a Level 3 fair value measurement. The new standard provides additional guidance for the valuation of financial instruments that are managed within a portfolio and for the application of valuation premium and discounts. Finally, the new standard requires additional disclosures related to fair value measurements. This new standard will be effective on a prospective basis for periods beginning after January 1, 2012. We are in the process of evaluating the potential impact this standard will have on our consolidated financial statements.

In June 2011, the FASB issued an accounting update, which requires that comprehensive income be presented either in a single continuous statement of comprehensive income or in two separate but consecutive statements, thus eliminating the option of presenting the components of other comprehensive income as part of the statement of changes in stockholders' equity. In addition, the new guidance requires that the reclassification adjustments for items that are reclassified from other comprehensive income to net income be presented on the face of the financial statements. This standard will be effective on a retrospective basis for periods beginning after January 1, 2012. The adoption of this standard affects financial statement presentation only and will have no effect on our financial condition or consolidated results of operations.

In September 2011, the FASB issued new guidance related to goodwill impairment testing. The accounting update allows, but does not require, an entity to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If, after assessing the totality of events or circumstances, an entity determines it is not more likely than not that the fair value of a reporting unit is less than its carrying amount, then performing the two-step impairment test is unnecessary. However, if an entity concludes otherwise, then it is required to perform the first step of the two-step impairment test by calculating the fair value of the reporting unit and comparing the fair value with the carrying amount of the reporting unit. If the carrying amount of a reporting unit exceeds its fair value, then the entity is required to perform the second step of the goodwill impairment test to measure the amount of the impairment loss, if any. The new standard gives an entity the option to bypass the qualitative assessment for any reporting unit in any period and proceed directly to performing the first step of the two-step goodwill impairment test. An entity may resume performing the qualitative assessment in any subsequent period. This new standard will be effective for periods beginning after January 1, 2012 and will not have a material effect on our financial condition or consolidated results of operations.