the calculation of earnings per share (“EPS”) described in paragraphs 60 and 61 of FASB Statement No. 128,
“Earnings per Share” for share-based payment awards with rights to dividends or dividend equivalents. It states that
unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether
paid or unpaid) are participating securities and shall be included in the computation of EPS pursuant to the two-class
method. FSP EITF 03-6-1 is effective for financial statements issued for fiscal years beginning after December 15,
2008, and interim periods within those fiscal years. Early adoption is prohibited. All prior-period EPS data presented
should be adjusted retrospectively to conform to the provisions of this FSP. The Company will apply the requirements
of FSP EITF 03-6-1 upon its adoption on January 1, 2009 and it does not believe the adoption of FSP EITF 03-6-1 will
have a material impact on its financial position or results of operations.
In May 2008, the FASB issued SFAS No. 162, “The Hierarchy of Generally Accepted Accounting Policies”
(“SFAS No. 162”). SFAS No. 162 identifies sources of accounting principles and the framework for selecting such
principles used in the preparation of financial statements of nongovernmental entities presented in conformity with
U.S. generally accepted accounting principles. SFAS No. 162 is effective beginning November 15, 2008. The
Company adopted the provisions of SFAS No. 162 on November 15, 2008 and it had no impact on its financial
position and results of operations.
In April 2008, the FASB issued Staff Position No. 142-3, “Determination of Useful Life of Intangible Assets”
(“FSP FAS 142-3”). FSP FAS 142-3 amends the factors that should be considered in developing renewal or extension
assumptions used to determine the useful life of a recognized intangible asset under FASB Statement No. 142,
“Goodwill and Other Intangible Assets” (“SFAS No. 142”). The intent of this FSP is to improve the consistency
between the useful life of a recognized intangible asset under SFAS No. 142 and the period of expected cash flows
used to measure the fair value of the asset under SFAS No. 141(R), “Business Combinations” (“SFAS No. 141(R)”).
FSP FAS 142-3 is effective for financial statements issued for fiscal years beginning after December 15, 2008, and
interim periods within those fiscal years. Early adoption is prohibited. The guidance for determining the useful life of a
recognized intangible asset should be applied prospectively to intangible assets acquired after the effective date. The
disclosure requirements should be applied prospectively to all intangible assets recognized as of, and subsequent to, the
effective date. The Company will apply the requirements of FSP FAS 142-3 upon its adoption on January 1, 2009 and
it does not believe the adoption of FSP FAS 142-3 will have a material impact on its financial position or results of
operations.
In March 2008, the FASB ratified the Emerging Issues Task Force (“EITF”) reached consensus on EITF Issue
No. 07-4, “Application of the Two-Class Method under FASB Statement No. 128, Earnings per Share, to Master
Limited Partnerships” (“EITF No. 07-4”), an update of EITF No. 03-6 “Participating Securities and the Two-Class
Method under FASB Statement No. 128". EITF No. 07-4 requires the calculation of a Master Limited Partnership’s
(“MLPs”) net earnings per limited partner unit for each period presented according to distributions declared and
participation rights in undistributed earnings as if all of the earnings for that period had been distributed. In periods
with undistributed earnings above specified levels, the calculation per the two-class method results in an increased
allocation of such undistributed earnings to the general partner and a dilution of earnings to the limited partners. EITF
No. 07-4 is effective for fiscal periods beginning on of after December 15, 2008. The Company does not expect the
application of EITF 07-4 to have a material effect on its earnings per unit calculation. The Company’s net earnings per
unit of the Class B unit holders calculated under the requirements of EITF No. 03-6 would not have materially differed
under the requirements of EITF No. 07-04.
In March 2008, the FASB issued Statement of Financial Accounting Standards No. 161, “Disclosures about
Derivative Instruments and Hedging Activities” (“SFAS No. 161”), an amendment of FASB Statement No. 133,
“Accounting for Derivative Instruments and Hedging Activities” (“SFAS No. 133”). SFAS No. 161 requires entities to
provide qualitative disclosures about the objectives and strategies for using derivatives, quantitative data about the fair
value of and gains and losses on derivative contracts, and details of credit-risk-related contingent features in their
hedged positions. The standard is effective for financial statements issued for fiscal years and interim periods
beginning after November 15, 2008, with early application encouraged but not required. SFAS No. 161 also requires
entities to disclose more information about the location and amounts of derivative instruments in financial statements;
how derivatives and related hedges are accounted for under SFAS No. 133, and how the hedges affect the entity’s
financial position, financial performance, and cash flows. The Company will apply the requirements of SFAS No. 161
on its adoption on January 1, 2009 and does not expect it to have an impact on its financial position or results of
operations.
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