Impaired Assets

We record losses on long-lived assets when events or circumstances indicate that the assets might be impaired. To meet our universal service requirement, we maintain real estate and certain other assets that are not fully utilized. As a result, we do not consider assets impaired solely based on volume of activity. Assets are evaluated for impairment when no longer required to provide mailing services. In accordance with ASC 360 (formerly FAS 144, Accounting for the Impairment or Disposal of Long-Lived Assets), we write down impaired assets to the lower of cost or fair value. If an asset is deemed impaired, fair value is determined by comparison to appraisals for real property. Due to the absence of a market for most types of equipment, impaired equipment assets are assigned a fair value of zero. See Note 7, Property and Equipment, in the Notes to the Financial Statements, for additional information.