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46
In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest, Simplifying the Presentation of
Debt Issuance Costs, which requires that debt issuance costs related to a recognized debt liability be presented in
the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt
discounts. The ASU is effective retrospectively for fiscal years and interim periods within those years beginning
after December 15, 2015. We do not expect the adoption of this ASU to have a material impact on our
Consolidated Financial Statements.
In July 2015, the FASB issued ASU No. 2015-11, Inventory, Simplifying the Measurement of Inventory, which
requires an entity to measure in scope inventory at the lower of cost and net realizable value. Net realizable value
is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion,
disposal, and transportation. The ASU is effective for fiscal years and interim periods within those years beginning
after December 15, 2016. We do not expect the adoption of this ASU to have a material impact on our
Consolidated Financial Statements.
In November 2015, the FASB issued ASU No. 2015-17, Income Taxes, which changes how deferred taxes are
classified on the balance sheet. The ASU eliminates the requirement for organizations to present deferred tax
liabilities and assets as current and noncurrent in a classified balance sheet. Instead, organizations will be
required to classify all deferred tax assets and liabilities as noncurrent. The ASU is effective for fiscal years and
interim periods within those years beginning after December 15, 2016. Early adoption is permitted under this
ASU. We adopted ASU No. 2015-17 prospectively effective January 30, 2016. Adoption of this ASU resulted in a
reclassification of our net current deferred tax assets to the net noncurrent deferred tax assets in our
Consolidated Balance Sheet as of January 30, 2016. No prior periods were retrospectively adjusted.
In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall: Recognition and
Measurement of Financial Assets and Financial Liabilities. The new guidance is intended to improve the
recognition and measurement of financial instruments. The ASU is effective for fiscal years and interim periods
within those years beginning after December 15, 2017. We are currently assessing the potential impact of this
ASU on our Consolidated Financial Statements.
In February 2016, the FASB issued ASU No. 2016-02, Leases. Under the new guidance, lessees will be required
to recognize a lease liability and a right-of-use asset for all leases (with the exception of short-term leases) at the
commencement date. The ASU is effective for fiscal years and interim periods within those years beginning after
December 15, 2018. We are currently assessing the impact of this ASU on our Consolidated Financial
Statements, but expect that it will result in a significant increase in our long-term assets and liabilities.
In March 2016, the FASB issued ASU No. 2016-06, Derivatives and Hedging: Contingent Put and Call Options in
Debt Instruments. The amendments clarify the steps required to assess whether a call or put option meets the
criteria for bifurcation as an embedded derivative. The ASU is effective for fiscal years and interim periods within
those years beginning after December 15, 2016. We do not expect the adoption of this ASU to have a material
impact on our Consolidated Financial Statements.
In March 2016, the FASB issued ASU No. 2016-08, Revenue from Contracts with Customers: Principal versus
Agent Considerations. The amendments are intended to improve the operability and understandability of the
implementation guidance on principal versus agent considerations. The effective date for this ASU is the same as
the effective date for ASU 2014-09, Revenue from Contracts with Customers. We are currently assessing the
potential impact of this ASU on our Consolidated Financial Statements.