Credit is extended to our advertisers and our subscribers based upon an evaluation of the customer’s financial  condition, and collateral is not required from such customers. Allowances for estimated credit losses, rebates, returns,  rate adjustments and discounts are generally established based on historical experience. Inventories are stated at the lower of cost or current market value. Inventory cost is generally based on the last- in, first-out (“LIFO”) method for newsprint and the first-in, first-out (“FIFO”) method for other inventories. Investments in which we have at least a 20%, but not more than a 50%, interest are generally accounted for  under the equity method. Investment interests below 20% are generally accounted for under the cost method, except  if we could exercise significant influence, the investment would be accounted for under the equity method.  Property, plant and equipment are stated at cost. Depreciation is computed by the straight-line method over the  shorter of estimated asset service lives or lease terms as follows: buildings, building equipment and improvements –  10 to 40 years; equipment – 3 to 30 years; and software – 2 to 5 years. We capitalize interest costs and certain staffing  costs as part of the cost of major projects. We evaluate whether there has been an impairment of long-lived assets, primarily property, plant and  equipment, if certain circumstances indicate that a possible impairment may exist. These assets are tested for  impairment at the asset group level associated with the lowest level of cash flows. An impairment exists if the  carrying value of the asset (1) is not recoverable (the carrying value of the asset is greater than the sum of  undiscounted cash flows) and (2) is greater than its fair value.  Goodwill is the excess of cost over the fair value of tangible and other intangible net assets acquired. Goodwill  is not amortized but tested for impairment annually or in an interim period if certain circumstances indicate a  possible impairment may exist. Our annual impairment testing date is the first day of our fiscal fourth quarter.  We test for goodwill impairment at the reporting unit level, which is our single operating segment. We first  perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit  is less than its carrying value. The qualitative assessment includes, but is not limited to, the results of our most recent  quantitative impairment test, consideration of industry, market and macroeconomic conditions, cost factors, cash  flows, changes in key management personnel and our share price. The result of this assessment determines whether it  is necessary to perform the goodwill impairment two-step test. For the 2014 annual impairment testing, based on our  qualitative assessment, we concluded that it is more likely than not that goodwill is not impaired. If we determine that it is more likely than not that the fair value of a reporting unit is less than its carrying  value, in the first step, we compare the fair value of the reporting unit with its carrying amount, including goodwill.  Fair value is calculated by a combination of a discounted cash flow model and a market approach model. In  calculating fair value for our reporting unit, we generally weigh the results of the discounted cash flow model more  heavily than the market approach because the discounted cash flow model is specific to our business and long-term  projections. If the fair value exceeds the carrying amount, goodwill is not considered impaired. If the carrying amount  exceeds the fair value, the second step must be performed to measure the amount of the impairment loss, if any. In the  second step, we compare the implied fair value of the reporting unit’s goodwill with the carrying amount of that  goodwill. An impairment loss would be recognized in an amount equal to the excess of the carrying amount of the  goodwill over the implied fair value of the goodwill. The discounted cash flow analysis requires us to make various judgments, estimates and assumptions, many of  which are interdependent, about future revenues, operating margins, growth rates, capital expenditures, working  capital and discount rates. The starting point for the assumptions used in our discounted cash flow analysis is the  annual long-range financial forecast. The annual planning process that we undertake to prepare the long-range  financial forecast takes into consideration a multitude of factors, including historical growth rates and operating  performance, related industry trends, macroeconomic conditions, and marketplace data, among others. Assumptions  are also made for perpetual growth rates for periods beyond the long-range financial forecast period. Our estimates of  THE NEW YORK TIMES COMPANY – P. 67 Goodwill Property, Plant and Equipment Investments Inventories Accounts Receivable