Lumber Liquidators 2015 Annual Report Download - page 71

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Lumber Liquidators Holdings, Inc.
Notes to Consolidated Financial Statements
(amounts in thousands, except share data and per share amounts)
Note 1. Summary of Significant Accounting Policies − (continued)
In November 2015, the FASB issued Accounting Standards Update No. 2015-17 (‘‘ASU 2015-17’’),
which amends ASC Topic 740, Balance Sheet Classification of Deferred Taxes. In summary, the core principle
of Topic 740 is that an entity classify both current and noncurrent deferred income tax assets and liabilities in
the noncurrent section of the statement of financial position. The current requirement that deferred tax
liabilities and assets of a tax-paying component of an entity be offset and presented as a single amount is not
affected by this amendment. The amendments in ASU 2015-17 are effective for annual reporting periods
beginning after December 15, 2017 and interim periods beginning after December 31, 2018. Early application
is permitted for all entities as of the beginning of an interim or annual reporting period. The Company is
currently assessing the impact of implementing the new guidance on its consolidated financial statements and
has not yet selected a method of adoption.
In May 2014, the FASB issued Accounting Standards Update No. 2014-09 (‘‘ASU 2014-09’’), which
creates ASC Topic 606, Revenue from Contracts with Customers, and supersedes the revenue recognition
requirements in Topic 605, Revenue Recognition, including most industry-specific revenue recognition
guidance throughout the Industry Topics of the Codification. In addition, ASU 2014-09 supersedes the cost
guidance in Subtopic 605-35, Revenue Recognition — Construction-Type and Production-Type Contracts, and
creates new Subtopic 340-40, Other Assets and Deferred Costs — Contracts with Customers. In summary, the
core principle of Topic 606 is that an entity recognizes 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. The amendments in ASU 2014-09 are effective for annual reporting
periods beginning after December 15, 2016, including interim periods within that reporting period, and early
application is not permitted. Therefore, the amendments in ASU 2014-09 will become effective for the
Company at the beginning of its 2017 fiscal year. The Company is currently assessing the impact of
implementing the new guidance on its consolidated financial statements and has not yet selected a method of
adoption.
Note 2. Property and Equipment
Property and equipment consisted of:
December 31,
2015 2014
Land .............................................. $ 4,937 $ 4,937
Building ............................................ 44,234 —
Property and Equipment ................................. 59,015 51,409
Computer Software and Hardware ........................... 44,026 40,071
Leasehold Improvement ................................. 35,495 30,715
Assets under Construction ................................ 1,623 51,097
189,330 178,229
Less: Accumulated Depreciation and Amortization ................ 67,333 53,362
Property and Equipment, net ............................. $121,997 $124,867
As of December 31, 2015 and 2014, the Company had capitalized $34,024 and $31,230 of computer
software costs, respectively. Amortization expense related to these assets was $3,501, $3,212 and $2,659 for
2015, 2014 and 2013, respectively.
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