Ross 2015 Annual Report Download - page 53

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51
Comprehensive income. Comprehensive income includes net earnings and components of other comprehensive income
(loss), net of tax, consisting of unrealized investment gains or losses.
Recently issued accounting standards. In May 2014, the Financial Accounting Standards Board (“FASB”) issued
Accounting Standards Update (ASU) 2014-09, Revenue from Contracts with Customers. The guidance provides a five-step
analysis of transactions to determine when and how revenue is recognized. The core principle of the guidance is that a
company should recognize revenue when the customer obtains control of promised goods or services in an amount that
reflects the consideration which the company expects to receive in exchange for those goods or services. ASU 2014-09 is
effective for the Company’s annual and interim reporting periods beginning in fiscal 2018. The Company is currently
evaluating the effect that adoption of this new guidance will have on its consolidated financial statements.
In February 2016, the Financial Accounting Standards Board (“FASB”) issued ASU 2016-02, Leases (Topic 842). The
guidance requires balance sheet recognition of the following for all leases with lease terms greater than one year including a
lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis;
and a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset
for the lease term. ASU 2016-02 is effective for the Company's annual and interim reporting periods beginning in fiscal 2019.
The Company is currently evaluating the effect adoption of this new guidance will have on its consolidated financial
statements.
Recently issued and adopted accounting standards. In April 2015, the FASB issued ASU 2015-03, Simplifying the
Presentation of Debt Issuance Costs. The standard amends existing guidance to require the presentation of debt issuance
costs in the balance sheet as a deduction from the carrying amount of the related debt liability instead of as an asset. ASU
2015-03 is effective for annual and interim reporting periods after December 15, 2015, with early adoption permitted. The
Company early adopted ASU 2015-03 retrospectively in its first fiscal quarter ended May 2, 2015. As a result of the
retrospective adoption, the Company reclassified unamortized debt issuance costs of $2.8 million as of January 31, 2015,
from Other long-term assets to a reduction in Long-term debt on the Consolidated Balance Sheet. Adoption of this standard
did not impact results of operations, retained earnings, or cash flows in the current or previous interim and annual reporting
periods. See Note D.
In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred
Taxes (ASU 2015-17), which simplifies the presentation of deferred taxes by requiring deferred tax assets and liabilities be
classified as noncurrent on the balance sheet. ASU 2015-17 is effective for annual and interim reporting periods after
December 15, 2016, with early adoption permitted. The Company early adopted ASU 2015-17 retrospectively, as of January
30, 2016. As a result, $13.0 million of its deferred tax assets previously presented in current assets have been reclassified to
long term deferred tax liabilities in the Consolidated Balance Sheet as of January 31, 2015. Adoption of this standard did not
impact results of operations, retained earnings, or cash flows in the current or previous annual reporting periods. See Note F.