The following table sets forth selected consolidated financial information for the Company and its subsidiaries for the years indicated. The financial information for the period prior to July 2, 2004 relates solely to Dental Care Plus. The financial information should be read together with “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and our consolidated financial statements and related notes included elsewhere in this registration statement.
efficiency is becoming a more significant driver of margin sustainability. Consequently, we continually evaluate our administrative expense structure and attempt to realize administrative expense savings through productivity gains.
A summary of our future commitments as of December 31, 2008 is as follows:
At December 31, 2008, future approximate minimum annual lease payments under non-cancelable operating leases are as follows: 2009-$175,000; 2010-$151,000, and 2011-$34,000.
Our consolidated cash and short term investments were approximately $8.2 million at December 31, 2008. Our consolidated cash and short term investments increased by approximately $1,800,000 from approximately $6.4 million as of December 31, 2007.
In March 2008, the FASB issued SFAS No. 161, “Disclosures about Derivative Instruments and Hedging Activities-an amendment of SFAS No. 133.” SFAS No. 161 requires enhanced disclosures for derivative instruments and hedging activities regarding the impact on financial position, financial performance, and cash flows. This statement encourages but does not require comparative disclosures for earlier periods upon initial adoption. The effective date of SFAS 161 is the Company’s fiscal year beginning on or after January 1, 2009. The adoption of SFAS No. 161 will not have a material impact on the Company’s disclosures.
Investments classified at December 31, 2008 and 2007, as fixed maturities and short-term assets were as follows:
In 2003, the Company entered into an interest rate swap agreement (“Agreement”) (cash flow hedge) with a total notional amount of $1,500,000. The Agreement is used to manage the Company’s interest rate risk. The swap agreement effectively changed the interest rate related to $1,500,000 of the Company’s $1,800,000 mortgage note with a commercial bank from a variable rate based on the 30-day LIBOR rate plus 1.75% to a fixed rate of approximately 4.95% for the 10-year period through June 12, 2013. The Company’s risk management policy is to not enter into any trading activities related to the Agreement. The Company believes that the risk of nonperformance by the other party in conjunction with this arrangement is not material to the financial statements. The fair value of this Agreement at December 31, 2008 was a liability of approximately $38,000 and is included in other payables and accruals in the accompanying consolidated balance sheet. The fair value of the Agreement at December 31, 2007 was an asset of approximately $27,000 and is included in other assets in the accompanying consolidated balance sheet. The amount included in other comprehensive loss related to the interest rate swap was $42,885, $30,096, and $3,953, net of income tax benefit of $22,093, $15,504, and $2,037 during 2008, 2007, and 2006, respectively. The agreement will terminate upon termination of the mortgage loan payable (Note 11).
Certain assets and liabilities are measured at fair value on a non-recurring basis, and therefore, are not included in the table above. These include long-lived assets such as certain plant, property and equipment items, intangible assets and goodwill, as well as assets measured at cost that are written down to fair value during a period as a result of an impairment. For the year ended December 31, 2008, there were no assets or liabilities that were required to be measured at fair value on a non-recurring basis.