Dick's Sporting Goods 2015 Annual Report Download - page 53

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Recently Adopted Accounting Pronouncement
Deferred Taxes
In November 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU")
2015-17, "Balance Sheet Classification of Deferred Taxes." This update requires an entity to classify deferred tax liabilities and
assets as noncurrent within a classified statement of financial position. ASU 2015-17 is effective for annual reporting periods,
and interim periods therein, beginning after December€15, 2016. This update may be applied either prospectively to all deferred
tax liabilities and assets or retrospectively to all periods presented. Early application is permitted as of the beginning of the
interim or annual reporting period. The Company has elected to early adopt ASU 2015-17 during the fourth quarter of fiscal
2015, with retrospective application. Accordingly, deferred tax assets in the amount of $51.6 million, which were previously
classified as current assets at January 31, 2015, and deferred tax liabilities in the amount of $44.5 million, which were
previously classified as long-term liabilities at January 31, 2015, were reclassified to non-current deferred income tax assets on
the Company's Consolidated Balance Sheets to conform to current year presentation.
Recently Issued Accounting Pronouncements
Leases
In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)." This update requires an entity to recognize lease assets
and lease liabilities on the balance sheet and to disclose key information about the entity's leasing arrangements. ASU 2016-02
is effective for annual reporting periods, and interim periods therein, beginning after December€15, 2018, with early application
permitted. A modified retrospective approach is required. The Company is currently evaluating the impact of the adoption of
ASU 2016-02 on the Company's Consolidated Financial Statements.
Measurement of Inventory
In July 2015, the FASB issued ASU 2015-11, "Simplifying the Measurement of Inventory." This update requires an entity that
determines the cost of inventory by methods other than last-in, first-out (LIFO) and the retail inventory method (RIM) to
measure inventory at the lower of cost and net realizable value. ASU 2015-11 is effective for annual reporting periods, and
interim periods therein, beginning after December€15, 2016. Prospective application is required. Early application is permitted
as of the beginning of the interim or annual reporting period. The Company does not expect that the adoption of this guidance
will have a significant impact on the Company's Consolidated Financial Statements.
Contracts with Customers
In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers." This update requires an entity to
recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration
to which the entity expects to be entitled in exchange for those goods or services. Additionally, the update (1) specifies the
accounting for some costs to obtain or fulfill a contract with a customer and (2) expands disclosure requirements related to
revenue and cash flows arising from contracts with customers. The update permits the use of either the retrospective or
cumulative effect transition method. €In August 2015, the FASB subsequently issued ASU 2015-14, "Revenue from Contracts
with Customers - Deferral of the Effective Date," which approved a one year deferral of ASU 2014-09 for annual reporting
periods beginning after December 15, 2017, including interim periods within that reporting period. Early application is
permitted as of the original effective date for annual reporting periods beginning after December 15, 2016, including interim
reporting periods within that reporting period. The Company is currently evaluating the impact of the adoption of ASU 2014-09
and ASU 2015-14 on the Company's Consolidated Financial Statements.
DICK'S SPORTING GOODS,€INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
2.€Goodwill and Other Intangible Assets
At January€30, 2016 and January€31, 2015, the Company reported goodwill of $200.6 million net of accumulated impairment
charges of $111.3 million. There was no change in the carrying value of goodwill during fiscal 2015 or fiscal 2014. No
impairment charges were recorded for goodwill in fiscal 2015, 2014 or 2013.
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