SAE Annual Report 2010 - 46

SAE INTERNATIONAL
Notes to the Financial Statements (Continued) Note 1 - Summary of Significant Accounting Policies (Continued) I. Property and Equipment

Property and equipment acquired is recorded at cost. Depreciation is provided by the straight-line method over the estimated useful lives of the assets. Maintenance and repairs which are not considered to extend the useful lives of assets are charged to operations as incurred. Expenditures exceeding $1,000 for additions and improvements are capitalized. Upon sale or retirement, the cost of assets and related allowances are removed from the accounts and any resulting gains or losses are included in income (expense) for the year. J. Goodwill

Goodwill is not amortized but is tested for impairment on at least an annual basis. Impairment testing is required more frequently if impairment indicators arise. In conducting its impairment testing, SAE compares the fair value of each reporting unit to the related net book value. If the fair value of a reporting unit exceeds its net book value, goodwill is not considered to be impaired. If the book value of a reporting unit exceeds its fair value, an impairment loss is measured and recognized. SAE conducts its annual impairment testing in December each year. At December 31, 2010, SAE determined that the recorded value for goodwill was not impaired. K. Revenue Recognition Revenue is recognized when earned. Revenues received in advance of the year to which they relate, such as membership dues and meeting and conference attendance fees, are deferred and recognized over the periods to which the income relates. Magazines and publications revenue includes print advertising revenue; book, CD-ROM, and print sales; royalty revenue; and subscription revenue. Print advertising revenue is recognized when the advertisement is run. Book, CD-ROM and print sales are recognized when the products ship to the customer. Royalty revenues received under contract from a third party that sells SAE’s standards and related documents are recognized at the point of sale. Subscription revenue is recognized ratably over the term of the subscription.

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SAE Annual Report 2010

Table of Contents for the Digital Edition of SAE Annual Report 2010

SAE Annual Report 2010
Contents
Executive Message
Sectors – Aerospace, Automotive and Commercial Vehicle
Membership
Aerospace Standards
Ground Vehicle Standards
Engineering Events and Meetings
Electronic Publishing
Magazines and Books
Professional Development
Collegiate Design Series
SAE Foundation
Performance Review Institute (PRI)
Globally Relevant
SAE International Financials
Supplemental Information
SAE Annual Report 2010 - Intro1
SAE Annual Report 2010 - Intro2
SAE Annual Report 2010 - SAE Annual Report 2010
SAE Annual Report 2010 - Contents
SAE Annual Report 2010 - Executive Message
SAE Annual Report 2010 - 3
SAE Annual Report 2010 - Sectors – Aerospace, Automotive and Commercial Vehicle
SAE Annual Report 2010 - 5
SAE Annual Report 2010 - 6
SAE Annual Report 2010 - 7
SAE Annual Report 2010 - 8
SAE Annual Report 2010 - 9
SAE Annual Report 2010 - Membership
SAE Annual Report 2010 - 11
SAE Annual Report 2010 - Aerospace Standards
SAE Annual Report 2010 - 13
SAE Annual Report 2010 - Ground Vehicle Standards
SAE Annual Report 2010 - 15
SAE Annual Report 2010 - Engineering Events and Meetings
SAE Annual Report 2010 - Electronic Publishing
SAE Annual Report 2010 - Magazines and Books
SAE Annual Report 2010 - 19
SAE Annual Report 2010 - Professional Development
SAE Annual Report 2010 - Collegiate Design Series
SAE Annual Report 2010 - SAE Foundation
SAE Annual Report 2010 - 23
SAE Annual Report 2010 - Performance Review Institute (PRI)
SAE Annual Report 2010 - Globally Relevant
SAE Annual Report 2010 - SAE International Financials
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SAE Annual Report 2010 - 28
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SAE Annual Report 2010 - Supplemental Information
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