SAE Annual Report 2010 - 49

SAE INTERNATIONAL
Notes to the Financial Statements (Continued) Note 1 - Summary of Significant Accounting Policies (Continued) O. Recent Accounting Pronouncements

In January 2010, the Financial Accounting Standards Board issued additional guidance for disclosing fair value. This guidance requires new and revised disclosures for recurring or non-recurring fair value measurements related to significant transfers into and out of Level 1 and Level 2, and for purchases, sales, issuances, and settlements in the roll forward of activity for Level 3 fair value measurements. The guidance also clarifies existing disclosures related to the level of disaggregation and the inputs and valuation techniques used for fair value measurements. The new disclosures and clarifications of existing disclosures about fair value measurements were effective for reporting periods beginning after December 15, 2009. However, the disclosures about purchases, sales, issuances, and settlements in the roll forward of activity for Level 3 fair value measurements are not effective until reporting periods ending after December 31, 2010. The adoption of this guidance did not, and is not expected to, have a material impact on SAE’s financial position, results of operations or cash flows. P. Consideration of Subsequent Events

The Financial Audit Committee of the Board of Directors evaluated subsequent events and transactions for potential recognition or disclosure in the financial statements through March 9, 2011, the day the financial statements were approved and authorized for issue. Q. Reclassifications

Certain reclassifications have been made to the 2009 financial statements to conform with the 2010 presentation. Note 2 - Acquisition On August 10, 2009, SAE purchased the assets of the bi-annual Convergence Conference (the Conference) from Convergence Transportation Electronics Association (CTEA). Accordingly, the results of operations for the Conference are included in the accompanying financial statements. The acquisition was made based on the belief that the Conference promotes dissemination of knowledge of mobility techniques for the purpose of advancement of the mobility field and its practitioners, which is a key component of SAE’s defined mission. Consideration for the acquisition was approximately $2,000,000 and consisted entirely of cash. The assets purchased include various intangible assets for which no value was assigned. Goodwill in the amount of $2,000,000 was recognized as a result of the acquisition. Additionally, CTEA contributed approximately $120,000 to SAE Foundation. In accordance with the acquisition agreement, this donation is restricted to the Trevor Jones Best Paper Award which is given at the bi-annual conference. The contribution is reflected in temporarily restricted contributions on the 2009 statement of activities. Page 17

SAE Annual Report 2010

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