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62
In July 2015, the FASB issued ASU 2015-11, "Inventory (Topic 330): Simplifying the Measurement of Inventory." This ASU
changes the measurement principle for certain inventory methods from the lower of cost or market to the lower of cost and net
realizable value. Net realizable value is defined as the estimated selling price in the ordinary course of business, less reasonably
predictable costs of completion, disposal, and transportation. This ASU does not apply to inventory that is measured using
Last-in First-out ("LIFO") or the retail inventory method. The provisions of ASU 2015-11 are effective for fiscal years
beginning after December 15, 2016, including interim periods within those fiscal years. The Company is currently evaluating
this guidance to determine the impact it may have on its consolidated financial statements.
In April 2015, the FASB issued ASU 2015-04, "Compensation - Retirement Benefits (Subtopic 715): Practical Expedient for
the Measurement Date of an Employer's Defined Benefit Obligation and Plan Assets." This update provides a practical
expedient that permits a company to measure defined benefit plan assets and obligations using the month-end date that is
closest to the company's fiscal year-end and apply that practical expedient consistently from year to year. The practical
expedient should be applied consistently to all plans if the company has more than one plan. This ASU is effective
prospectively for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within
those fiscal years. Early adoption is permitted. The Company adopted this standard in 2015 and it did not have an impact on its
consolidated financial statements.
In April 2015, the FASB issued ASU 2015-03, "Interest - Imputation of Interest (Subtopic 835-30): Simplifying the
Presentation of Debt Issuance Costs." The new standard requires that all costs incurred to issue debt be presented in the
balance sheet as a direct deduction from the carrying value of the associated debt liability, consistent with the presentation of a
debt discount. The standard also indicates that debt issuance costs do not meet the definition of an asset because they provide
no future economic benefit. This ASU is effective for financial statements issued for fiscal years beginning after December 15,
2015, and interim periods within those fiscal years. Early adoption is permitted for financial statements that have not been
previously issued. The new guidance should be applied on a retrospective basis. The Company will adopt this guidance in the
first quarter of 2016 and does not expect it to have a material impact on its consolidated financial statements.
In February 2015, the FASB issued ASU 2015-02, "Consolidation (Topic 810): Amendments to the Consolidation Analysis."
The new standard amends the consolidation guidance in ASC 810 and significantly changes the consolidation analysis required
under current generally accepted accounting principles. This ASU is effective for fiscal years, and interim periods within those
fiscal years, beginning after December 15, 2015. Early adoption is permitted. The Company does not expect this new guidance
to have a significant impact on its consolidated financial statements.
In January 2015, the FASB issued ASU 2015-01, "Income Statement - Extraordinary and Unusual Items (Subtopic 225-20):
Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items," which eliminates from GAAP
the concept of extraordinary items stating that the concept causes uncertainty because it is unclear when an item should be
considered both unusual and infrequent and that users do not find the classification and presentation necessary to identify those
events and transactions. This ASU is effective for fiscal years, and interim periods within those fiscal years, beginning after
December 15, 2015, with early adoption permitted provided the guidance is applied from the beginning of the fiscal year of
adoption. The Company does not expect this standard to have an impact on its consolidated financial statements upon adoption.
In August 2014, the FASB issued ASU 2014-15, "Presentation of Financial Statements - Going Concern (Subtopic 205-40):
Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern," which requires management of a
company to evaluate whether there is substantial doubt about the company’s ability to continue as a going concern. This ASU
is effective for the annual reporting period ending after December 15, 2016, and for interim and annual reporting periods
thereafter, with early adoption permitted. The Company does not expect this standard to have an impact on its consolidated
financial statements upon adoption.
In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers (Topic 606)." The new revenue
recognition standard outlines a comprehensive model for companies to use in accounting for revenue arising from contracts
with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The new
model provides a five-step analysis in determining when and how revenue is recognized. The core principle of the new
guidance is that a company should 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. In July
2015, the FASB affirmed its proposal to defer the effective date of the standard to annual reporting periods (and interim
reporting periods within those years) beginning after December 15, 2017. Entities are permitted to apply the new revenue
standard early, but not before the original effective date of annual periods beginning after December 15, 2016. The standard
shall be applied retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. The
Company is currently evaluating the new guidance to determine the impact it may have on its consolidated financial statements.