Hubbell Policies

construction of an asset; 5. A significant time delay of the expected in use-date of a construction of an asset;

6. A current-period operating or cash flow loss combined with a history of operating or cash flow losses or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset; 7. A current expectation that, more likely than not, a long-lived asset will be sold or otherwise disposed of significantly before the end of its previously estimated useful life. The term more likely than not refers to a level of likelihood that is more than 50 percent; 8. Consideration of restructuring activities; plant closures or relocations of manufacturing or administrative sites; and 9. The potential to discontinue or significantly curtail product lines or the use of trademarks and trade names. This list is not meant to be all inclusive and there may be other situations, including circumstances that are specific to an entity’s business or industry that are impairment indicators. The Segment Controller’s ongoing analysis and review of the entity and its operations should provide a basis for determining whether there are any indicators of impairment. Indefinite-Lived Intangible Assets are required to be reviewed for impairment at least annually, and also should be reviewed for impairment whenever an impairment indicator becomes present. The annual review of Indefinite-Lived Intangible Assets for impairment compares the fair value of the Intangible Asset to its carrying value. The fair value of the Intangible Asset is calculated using various inputs in order to determine the fair value of the Intangible Asset. Those inputs include, forecast sales growth and sales growth rates for multiple year periods, tax rates, royalty savings rates, and discount rates. The Segment Controller is responsible for monitoring forecast sales growth, multi-period growth rates and tax rates and to inform the Corporate Controllers office on a timely basis when there is a significant adverse change in any of these inputs. On an annual basis, in the second quarter of each year, Indefinite-Lived Intangible Assets will be formally tested for impairment by comparing the fair value of the Intangible Asset to its carrying value. The Corporate Controller’s office is responsible for the fair value estimates and segment Controllers are responsible for forecast sales growth, sales growth rates for multiple year periods and tax rates that are inputs to the fair value model. Intangible Assets that are not amortized (Indefinite-Lived Intangible Assets)

ADMINISTRATION

Roles and Responsibilities. None.

Monitoring, Evaluation and Review. None.

Exceptions. None.

ACCOUNTING AND DISCLOSURE

None.

REPORTING

None.

DEFINITIONS

Intangible Assets shall mean assets (not including financial assets) that lack physical substance. Intangible Assets can be acquired through a business combination, an asset acquisition, or may be internally generated. Certain Intangible Assets are individually identified and separately recognized in the financial statements under U.S. GAAP,

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