||Summary of Significant Accounting Policies |
Long-Lived Assets - The Company periodically evaluates the period of depreciation or amortization for long-lived assets to determine whether current circumstances warrant revised estimates of useful lives. The Company reviews its property, plant and equipment for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Recoverability is measured by a comparison of the carrying amount to the net undiscounted cash flows expected to be generated by the asset. An impairment loss would be recorded for the excess of net carrying value over the fair value of the asset impaired. The fair value is estimated based on expected discounted future cash flows. The results of impairment tests are subject to management's estimates and assumptions of projected cash flows and operating results. Changes in assumptions or market conditions could result in a change in estimated future cash flows and the likelihood of materially different reported results. Past estimates by management of the fair values and useful lives of long-lived assets and investments have been accurate but have periodically been impacted by one-time events.
Other Intangible Assets - Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") 350 requires that definite lived intangible assets subject to amortization be tested for recoverability at the asset group level in accordance with ASC 360. The Company had one asset group for the year ended December 31, 2010 and the quarterly period ended June 30, 2011. The recoverability test is described in the Company's accounting policy for long-lived assets set forth above.
Other intangible assets generally consist of patents, trademarks, procurement contracts, customer lists, non-compete agreements, selling and marketing relationships, licensing rights, and acquired exclusivity rights. Patents and trademarks are amortized on the straight-line method over the shorter of the remaining protection period or estimated useful lives of between 8 and 16 years. Procurement contracts, customer lists, non-compete agreements, selling and marketing relationships, and licensing rights are amortized over estimated useful lives of between 5 to 25 years. The acquired exclusivity rights are being amortized over eight years, the remaining term at the amendment date of the related amended distribution agreement.
Subsequent Events - The Company evaluated subsequent events as of the issuance date of the financial statements, August 5, 2011, and determined that there were no applicable recognized events or transactions required to be recorded or disclosed in the financial statements.