Emerging Issues Task Force Issue No. 06-11 In June 2007, the FASB ratified EITF Issue No. 06-11, Accounting for Income
Tax Benefits on Share-Based Payment Awards. EITF 06-11 requires entities to record the tax benefit associated with dividends or
dividend equivalents on certain share-based payment awards that are charged to retained earnings, as an increase in additional
paid-in capital. Generally, the payment of such dividends can be treated as deductible compensation for tax purposes. EITF 06-11
is to be applied prospectively for tax benefits on dividends declared beginning after December 15, 2007. The adoption of
EITF 06-11 will not have a material impact on the Company’s financial position, results of operations or liquidity.
Statement of Financial Accounting Standards No. 159 In February 2007, the FASB issued SFAS 159, The Fair Value
Option for Financial Assets and Financial Liabilities, Including an amendment of FASB Statement No. 115, which permits an entity
the option to choose to measure certain financial assets and financial liabilities at fair value. The fair value option may be elected on
an instrument-by-instrument basis with few exceptions. In addition, SFAS 159 amends previous accounting guidance to extend
the fair value option to available-for-sale and held-to-maturity securities. SFAS 159 applies to all entities and is effective as of the
beginning of the first fiscal year that begins after November 15, 2007. The Company does not expect the adoption of SFAS 159 to
have a material impact on the Company’s financial position, results of operations or liquidity.
Statement of Financial Accounting Standards No. 158 In September 2006, the FASB issued SFAS 158, Employers’
Accounting for Defined Benefit Pension and Other Postretirement Plans — an amendment of FASB Statements No. 87, 88, 106
and 132(R). SFAS 158 requires an entity to recognize the funded status of a defined benefit postretirement plan in its statement of
financial position measured as the difference between the fair value of plan assets and the benefit obligation. For a pension plan,
the benefit obligation would be the projected benefit obligation; for any other postretirement benefit plan, the benefit obligation
would be the accumulated postretirement benefit obligation. The pronouncement also requires disclosure of additional information in the notes to financial statements about certain effects of net periodic benefit cost in the subsequent fiscal year that arise
from delayed recognition of the actuarial gains and losses and the prior services costs and credits. The Company adopted these
requirements as of December 31, 2006. For fiscal years ending after December 15, 2008, the pronouncement also requires
entities to recognize the actuarial gains and losses and the prior service costs and credits that arise during the period, but which are
not recognized as components of net periodic benefit cost as a component of other comprehensive income. SFAS 158 also
requires entities to measure defined benefit plan assets and obligations as of the date of the employer’s statement of financial
position. The Company is currently evaluating the impact of the adoption of these requirements on its financial statements.
Statement of Financial Accounting Standards No. 157 In September 2006, the FASB issued SFAS 157, Fair Value
Measurements, which is effective for fiscal years beginning after November 15, 2007 and interim periods within those fiscal
years. This statement defines fair value, establishes a fair value hierarchy, and requires separate disclosure of fair value
measurements by level within the fair value hierarchy. The Company does not expect the adoption of SFAS 157 to have a
material impact on the Company’s financial position, results of operations or liquidity.
FORWARD-LOOKING STATEMENT DISCLOSURE
In this annual report on Form 10-K, statements that are not reported financial results or other historical information are
“forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking
statements give current expectations or forecasts of future events and are not guarantees of future performance. These forwardlooking statements relate to, among other things, the Company’s future operating performance, the Company’s share of new and
existing markets, the Company’s short- and long-term revenue and earnings growth rates, the Company’s implementation of costreduction initiatives and measures to improving pricing, including the optimization of the Company’s manufacturing capacity, and
the ongoing SEC and DOJ investigations. The use of the words “will,” “believes,” “anticipates,” “expects,” “intends” and
similar expressions is intended to identify forward-looking statements that have been made and may in the future be made by or
on behalf of the Company.
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