2010 10-K: Part II Stock-Based Compensation Impairment of Long-Lived Assets The process of evaluating the potential impairment of goodwill is  subjective and requires significant judgment. In estimating the fair  value of the reporting units, we make estimates and judgments  about the future cash flows of the reporting unit. These estimates  include assumptions about future market growth and trends, fore- casted revenue and costs, capital investments, appropriate discount  rates, and other variables that can significantly affect the value of  the reporting unit. future cash flows generated over extended periods of time. Changes  in these estimates could result in a determination of asset impair- ment, which would result in a reduction to the carrying value and  could adversely affect our operating results in the related period. We include stock-based compensation expense in each of our oper- ating expense categories. Our stock-based compensation expense  primarily reflects grants of restricted stock units and restricted stock. Although our cash flow forecasts are based on assumptions that  are consistent with plans and estimates we use to manage the  underlying business, there is significant judgment in determining  the cash flows attributable to these businesses over a long-term  horizon. We update these assumptions and cash flow estimates at  least annually. We believe that the accounting estimate related to goodwill impair- ment is a critical accounting estimate because the assumptions  used are highly susceptible to changes in the operating results and  cash flows of the reporting units included in our segments. If actual  results differ from our estimates, future tests may indicate an impair- ment of goodwill. This would result in a non-cash charge, adversely  affecting our results of operations. Under FASB ASC 718,  Compensation—Stock Compensation , stock- based compensation expense is measured at the grant date based  on the fair value of the award, and the cost is recognized as expense  ratably over the award’s vesting period. We measure the fair value  of our restricted stock units on the date of grant based on the mar- ket price of the underlying common stock as of the close of trading  on the day prior to grant. We estimate expected forfeitures of stock- based awards at the grant date and recognize compensation cost  only for those awards expected to vest. We ultimately adjust this  forfeiture assumption to the actual forfeiture rate. Therefore,  changes in the forfeiture assumptions do not impact the total amount  of expense ultimately recognized over the vesting period. Instead,  different forfeiture assumptions would only impact the timing of  expense recognition over the vesting period. Because our largest annual equity grants typically have vesting  dates in the second quarter of the year, we adjust the stock-based  compensation expense at that time to reflect those awards that  ultimately vested. In addition, we update our estimate of the for- feiture rate that will be applied to awards not yet vested. In 2010  and 2009, we recorded approximately $0.2 million of additional  stock-based compensation expense related to these changes in estimates. Our Consolidated Balance Sheet as of December 31, 2010 includes  $62.1 million of property, equipment, and capitalized software, net  of accumulated depreciation, and $169.0 million of intangible assets,  net of accumulated amortization. In accordance with FASB ASC  360-10-35,  Subsequent Measurement—Impairment or Disposal of  Long-Lived Assets , we review our property, equipment, capitalized  software, and intangible assets for impairment whenever events  or changes in circumstances indicate that the carrying value may  not be recoverable. Such events or changes may include deteriora- tion in the business climate for a specific product or service. If the  total of projected future undiscounted cash flows is less than the  carrying amount of an asset, we may need to record an impairment  loss based on the excess of the carrying amount over the fair value  of the assets. We believe that the estimates related to stock-based compensation  expense are critical accounting estimates because the assumptions  used could significantly impact the timing and amount of stock-  based compensation expense recorded in our Consolidated Financial Statements. Estimates of future cash flows and the estimated useful lives asso- ciated with these assets are critical to the assessment of recover- ability and fair values. They are susceptible to change from period  to period because of the requirement to make assumptions about 94