compensation increases, expected return on plan assets,  and health care cost trend rates. The Company considers  historical data as well as current facts and circumstances  when determining these estimates. The Company uses third- party specialists to assist management in the determination  of these estimates and the calculation of certain employee  benefit expenses. impairment charge is recorded for the difference. Even if not  required, the Company periodically elects to perform the quan- titative test in order to confirm the qualitative assessment. Based on the qualitative assessment conducted in fiscal  2014, performance of the quantitative two-step test was not  required for any of the Company’s reporting units. No goodwill  impairment charges were recorded. Income Taxes:  The Company records income taxes in accor- dance with the liability method of accounting. Deferred taxes  are recognized for the estimated taxes ultimately payable or  recoverable based on enacted tax law. Changes in enacted tax  rates are reflected in the tax provision as they occur. In conducting the annual impairment test for its indefi- nite-lived intangible assets, the Company first performs a  qualitative assessment to determine whether it is more likely  than not ( >  50% likelihood) that an indefinite-lived intangible  asset is impaired. If the Company concludes that this is the  case, then a quantitative test for impairment must still be  performed. Otherwise, the Company does not need to perform  a quantitative test. The Company computes its provision for income taxes based  on the statutory tax rates and tax planning opportunities  available to it in the various jurisdictions in which it operates.  Significant judgment is required in evaluating the Company’s  tax positions and determining its annual tax provision. While  the Company considers all of its tax positions fully support- able, the Company is occasionally challenged by various tax  authorities regarding the amount of taxes due. The Company  recognizes a tax position in its financial statements when it is  more likely than not that the position will be sustained upon  examination, based on the technical merits of the position.  That position is then measured at the largest amount of  benefit that is greater than 50 percent likely of being realized  upon ultimate settlement. A change in judgment related to the  expected ultimate resolution of uncertain tax positions will be  recognized in earnings in the quarter of such change. In conducting the initial qualitative assessment, the Company  analyzes growth rates for historical and projected net sales and  the results of prior quantitative tests performed. Additionally,  each reporting unit assesses critical areas that may impact  their intangible assets or the applicable royalty rates to deter- mine if there are factors that could impair the asset. If performed, the quantitative impairment test compares the  fair value and carrying value of the indefinite-lived intangible  asset. The fair value of indefinite-lived intangible assets is pri- marily determined on the basis of estimated discounted value,  using the relief from royalty method. The assumptions used  in the estimate of fair value, including future sales projections  and discount rates, require significant judgment. The esti- mates and assumptions used consider historical performance  and are consistent with the assumptions used in determining  future sales projections for each reporting unit as included in  their profit plans. The Company reviews various Company and  industry factors when determining the assumptions to use in  estimating the fair value. Additionally, the Company performs  sensitivity testing of the sales assumptions and discount rate  to assess the impact on the fair value for each intangible asset  under various circumstances. If the carrying value exceeds  fair value, the indefinite-lived intangible asset is considered  impaired and an impairment charge is recorded for the differ- ence. Even if not required, the Company periodically elects to  perform the quantitative test in order to confirm the qualita- tive assessment. Contingent Liabilities:  At any time, the Company may be  subject to investigations, legal proceedings, or claims related  to the on-going operation of its business, including claims  both by and against the Company. Such proceedings typically  involve claims related to product liability, contract disputes,  wage and hour laws, employment practices, or other actions  brought by employees, consumers, competitors, or suppliers.  The Company routinely assesses the likelihood of any adverse  outcomes related to these matters on a case by case basis, as  well as the potential ranges of losses and fees. The Company  establishes accruals for its potential exposure, as appropriate,  for claims against the Company when losses become probable  and reasonably estimable. Where the Company is able to  reasonably estimate a range of potential losses, the Company  records the amount within that range that constitutes the  Company’s best estimate. The Company also discloses the  nature of and range of loss for claims against the Company  when losses are reasonably possible and material. These  accruals and disclosures are determined based on the facts  and circumstances related to the individual cases and require  estimates and judgments regarding the interpretation of facts  and laws, as well as the effectiveness of strategies or other  factors beyond our control. Based on the qualitative assessment conducted in fiscal 2014,  performance of the quantitative test was not required for any  of the Company’s indefinite-lived intangible assets. No impair- ment charges were recorded for indefinite-lived intangible  assets for fiscal 2014. Employee Benefit Plans:  The Company incurs expenses  relating to employee benefits, such as noncontributory  defined benefit pension plans and post-retirement health care  benefits. In accounting for these employment costs, man- agement must make a variety of assumptions and estimates  including mortality rates, discount rates, overall Company  16