Macy's 2015 Annual Report Download - page 38

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33
New Pronouncements
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), which
clarifies the principles for recognizing revenue. The guidance is applicable to all contracts with customers regardless of
industry-specific or transaction-specific fact patterns. Further, the guidance requires improved and additional disclosures to
help users of financial statements better understand the nature, amount, timing, and uncertainty of revenue that is
recognized. The standard was originally effective for the annual reporting periods beginning after December 15, 2016,
including interim periods within that year. However, in August 2015, the FASB issued ASU No. 2015-14, which defers the
effective date of ASU No. 2014-09 by one year. The guidance is now effective for the Company beginning in the first
quarter of 2018, and early adoption is only permitted for the Company beginning in 2017. Upon becoming effective, the
Company will apply the amendments in the updated standard either retrospectively to each prior reporting period
presented, or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial
application. The Company is currently evaluating the impact, and the method of adoption, that this standard will have on its
consolidated financial position, results of operations, and cash flows.
In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which establishes a right-of-use (ROU)
model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for substantially all leases.
Leases will be classified as either financing or operating, with classification affecting the pattern of expense recognition in
the statement of income. The new standard is effective for years beginning after December 15, 2018, including interim
periods within those years. The Company has not yet evaluated the impact that this standard will have on its consolidated
financial position, results of operations, and cash flows.
The Company does not anticipate that the adoption of any other recent accounting pronouncements will have a
material impact on the Company's consolidated financial position, results of operations or cash flows.