| Summary of Significant Accounting Policies | 2.
Summary of Significant Accounting Policies Consolidation The consolidated financial statements include the accounts of the Company and the Subsidiaries. All intercompany accounts and transactions are eliminated in
consolidation. Use of estimates The preparation of these financial statements, in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”), required
management to make estimates and assumptions that affected the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities, at the date of the financial statements and the reported amounts of revenue and expenses
during the reporting period. Actual results may differ from these estimates. Reclassifications Certain prior
period amounts have been reclassified to conform with current presentation. The Company reclassified $25.6 million and $13.5 million of interest expense interest expense Cash and cash equivalents Cash equivalents are short-term, highly liquid instruments with original maturities of 90 days or less. Accounts receivable Accounts receivable represents amounts owed to us through
our operating activities and are presented net of allowance for doubtful accounts. Accounts receivable for core Nu Skin consists primarily of credit card receivables, while accounts receivable for our Rhyz businesses consists primarily of trade
receivables from customer sales. For the Company’s trade receivables from its Rhyz customers, the Company performs ongoing credit evaluations of its customers and maintains an allowance for expected credit losses. The allowance for expected
credit losses represents the Company’s best estimate based on current and historical information, and reasonable and supportable forecasts of future events and circumstances. Inventories Inventories consist primarily of merchandise purchased for resale and are stated at the lower of standard cost or net realizable value, using a standard cost method
which approximates the first-in, first-out method. The Company had reserves of its inventory carrying value totaling $84.0 million and $83.4 million as of December 31, 2024 and 2023, respectively. Inventories consist of the following (U.S. dollars in thousands):
December 31,
2024
2023
Raw materials
$
121,929
$
140,133
Finished goods
68,313
139,845
Total inventory, net
$
190,242
$
279,978 Reserves of inventories consist of the following (U.S. dollars in thousands):
2024
2023
2022
Beginning balance
$
83,378
$
37,267
$
18,643
Ad ditions (1)
48,211
88,108
43,286
Disposals
(47,583
)
(41,997
)
(24,662
)
Ending balance
$
84,006
$
83,378
$
37,267
(1)
During the fourth quarter of 2024, the Company which resulted in an incremental $ 38.8 During the third quarter of
2023, the Company made the strategic decision to re-balance and narrow its product portfolio, which resulted in an incremental inventory write-off charge of $65.7 million. During the third quarter of 2022, the Company reserved an incremental $26.9
million of inventory. Prepaid expense and other Prepaid expenses and other consist of the following (U.S. dollars in thousands):
December 31,
2024
2023
Deferred charges
$
6,023
$
10,227
Prepaid income tax
11,532
8,376
Prepaid inventory and import costs
4,931
5,689
Prepaid rent, insurance and other occupancy costs
3,597
1,643
Prepaid promotion and event cost
5,818
6,556
Prepaid other taxes
3,237
5,608
Derivative financial instruments 4,708 8,955
Prepaid software license
15,118
13,931
Deposits
3,960
2,287
Other
13,719
17,794
Total prepaid expense and other
$
72,643
$
81,066 Property and equipment Property and equipment are stated at cost less accumulated depreciation. Depreciation is recorded using the straight-line method over the following estimated useful
lives:
Buildings
39 years
Furniture and fixtures
5 - 7 years
Computers and equipment
3 - 5 years
Leasehold improvements
Shorter of estimated useful life or lease term
Scanners
3 years
Vehicles
3 - 5 years Expenditures for maintenance and repairs are charged to expense as incurred. When an asset is sold or otherwise disposed of, the cost and associated accumulated
depreciation are removed from the accounts and the resulting gain or loss is recognized in the statement of income. Property and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of
such assets may not be recoverable. An impairment loss is recognized if the carrying amount of the asset exceeds its fair value. Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, accrued expenses and
operating lease liabilities on the consolidated balance sheets. Finance leases are included in other assets, accrued expenses and other liabilities on the consolidated balance sheets. Operating lease ROU assets represent the Company’s right to
use an underlying asset for the lease term, and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the
estimated present value of lease payments over the lease term. The Company uses its estimated incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating
lease ROU assets also include any lease payments made and exclude lease incentives and initial direct costs incurred. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will
exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Leases with a term of 12 months or less are not recorded on the balance sheet. The Company’s lease agreements do not contain
any residual value guarantees. The Company has lease agreements with lease and non-lease components. The Company accounts for the lease and non-lease components as a single lease component. Goodwill and other intangible assets Goodwill is recorded when the cost of acquired businesses exceeds the fair value of the identifiable net assets
acquired. Goodwill and intangible assets with indefinite useful lives are not amortized, but are assessed for impairment annually on October 1. In addition, impairment testing is conducted when events occur or circumstances change that
would more likely than not reduce the fair value of a reporting unit below its carrying amount. Goodwill and intangible assets with indefinite useful lives would be written down to fair value if considered impaired. Guidance under
Accounting Standards Codification (“ASC”) 350, Intangibles - Goodwill and Other During the three months
ended June 30, 2024, the Company determined that the continued decline in the Company’s stock price and corresponding decrease in market capitalization as well as declines in some of the Company’s reporting units’ forecasts were triggering events
that required the Company to perform a quantitative impairment analysis for all reporting units. Based on the analysis, the Company concluded the estimated fair values of certain of its reporting units were less than their carrying values of equity
as June 30, 2024. As a result, the Company recorded non-cash goodwill impairment charges of $130.9 million within restructuring and
impairment expenses on the consolidated statement of income during the three months ended June 30, 2024. The impairment charges were $9.4
million for the Americas segment, $32.2 million for the Mainland China segment, $18.5 million for the Southeast Asia/Pacific segment, $16.0
million for the Japan segment, $29.3 million for the South Korea segment, $2.9 million for the Europe & Africa segment, $6.6 million for
the Hong Kong/Taiwan segment and $15.9 million for the BeautyBio reporting unit within the Rhyz Other segment. As part of the Company’s
impairment analysis, the fair values of the reporting units were determined using the income approach. The income approach used level 3 inputs and utilized management estimates related to revenue growth rates, profitability margins, estimated
future cash flows and discount rates. During
the three months ended September 30, 2024, the Company determined that the continued decline in the Company’s stock price and corresponding decrease in market capitalization were a triggering event that required the Company to perform a
quantitative impairment analysis for the Manufacturing and Rhyz Other reporting units. Based on the analysis, the Company concluded the fair value of the Manufacturing and Rhyz Other reporting units were in excess of their carrying amounts and no impairment charge was required at that time.
●
During the fourth quarter of 2024, the continued decline in our BeautyBio
reporting unit forecast was a triggering event that required us to perform a quantitative analysis. As a result, we concluded the estimated fair value of our BeautyBio reporting unit was less than its carrying value and as a result
recorded a non-cash goodwill impairment charge of $3.6 million.
●
At the time of the September 30, 2024 analysis, the estimated fair value
of the Manufacturing reporting unit exceeded the carrying value by approximately 8%; therefore, the reporting unit is
considered to be at risk of future impairment. The Manufacturing reporting unit’s fair values remain sensitive to unfavorable changes in assumptions utilized in the income approach, including revenue growth rates, profitability
margins, estimated future cash flows, and the discount rates that could result in impairment charges in a future period. Equity investments The Company holds strategic investments in other companies.
These investments are accounted for under the measurement alternative described in ASC 321, Investments - Equity Securities Other assets Other assets consist of the following (U.S. dollars in thousands):
December 31,
2024
2023
Deferred taxes
$
174,249
$
107,692
Deposits for noncancelable operating leases
5,167
8,675
Cash surrender value for life insurance policies
44,091
45,041
Right-of-use assets, Financing, net
9,541
11,170
Derivative financial instruments — 3,734
Long-term investments 39,590 36,374
Other
25,370
34,920
Total other assets
$
298,008
$
247,606 Accrued expenses Accrued expenses consist of the following (U.S. dollars in thousands):
December 31,
2024
2023
Accrued sales force commissions and other payments
$
68,431
$
82,103
Accrued other taxes
22,140
21,245
Accrued payroll and other employee expenses
28,774
43,065
Accrued payable to vendors
18,667
22,752
Short-term operating lease liability
17,922
23,898
Short-term liability for deferred compensation plan 4,419 —
Accrued royalties
574
1,139
Sales return reserve
5,548
4,733
Deferred revenue
15,688
20,338
Contingent consideration — 6,300
Other
35,645
28,129
Total accrued expenses
$
217,808
$
253,702 Other liabilities Other liabilities consist of the following (U.S. dollars in thousands):
December 31,
2024
2023
Deferred tax liabilities
$
345
$
522
Reserve for other tax liabilities
39,521
35,013
Liability for deferred compensation plan
38,568
49,224
Finance lease liabilities
8,251
9,449
Asset retirement obligation
3,312
3,482
Other
7,478
8,951
Total other liabilities
$
97,475
$
106,641 Revenue recognition Net sales include products and shipping and handling charges, net of estimates for product returns and any related sales incentives. Revenue is measured as the amount of
consideration we expect to receive in exchange for transferring products. All revenue is recognized when we satisfy our performance obligations under the contract. The Company recognizes revenue by transferring the promised products to the customer,
with revenue recognized at shipping point, the point in time the customer obtains control of the products. The Company recognizes revenue for shipping and handling charges at the time the products are delivered to or picked up by the customer. A
reserve for product returns is accrued based on historical experience totaling $5.5 million and $4.7 million as of December 31, 2024 and 2023, respectively. During the years ended December 31, 2024, 2023 and 2022, the Company recorded sales returns of $36.7 million, $34.7 million and $31.6 million, respectively. The majority of the Company’s contracts have a single performance obligation and are short term in nature. Sales taxes and
value added taxes in foreign jurisdictions that are collected from customers and remitted to governmental authorities are accounted for on a net basis and therefore are excluded from net sales. Contract Liabilities – Customer Loyalty Programs C ontract liabilities, recorded as deferred
revenue within the accrued expenses line in the consolidated balance sheets, include loyalty point program deferrals with certain customers which are accounted for as a reduction in the transaction price and are generally recognized as points are
redeemed for additional products. The balance of deferred revenue related to contract
liabilities was $7.8 million and $12.6
million as of December 31, 2024, and 2023, respectively. The contract liabilities impact to revenue for the years ended December 31, 2024, 2023 and 2022 was an increase of $4.8 million, $6.1 million and $3.3 million, respectively. Disaggregation of Revenue Please refer to Note 16 - Segment Information for revenue by segment and product line. Arrangements with Multiple Performance Obligations The Company’s contracts with customers may include multiple performance obligations. For such arrangements, the Company allocates revenues to each performance obligation
based on its relative standalone selling price. The Company generally determines standalone selling prices based on the prices charged to customers for individual products sales to customers. Shipping and handling costs Shipping and handling costs are recorded as cost of sales and are expensed as incurred. Advertising expenses Advertising costs are expensed as incurred and are included
in general and administrative expenses in the accompanying consolidated statements of income. Advertising expense incurred for the years ended December 31, 2024, 2023 and 2022 totaled $17.4 million, $18.0 million and $14.5 million, respectively. Selling expenses Selling expenses are the Company’s most significant expense and are classified as
operating expenses. Selling expenses include commissions the Company pays to its Brand Affiliates, as well as salaries, service fees, benefits, bonuses and other labor and unemployment expenses the Company pays to its sales force in Mainland
China. Selling expenses do not include amounts the Company pays to its sales force based on their personal purchases; rather, such amounts are reflected as reductions to
revenue. The term “Brand Affiliates” refers to members of the Company’s independent sales force in all of the Company’s markets besides Mainland China. In each of the Company’s markets, except Mainland China,
Sales Leaders can earn “multi-level” compensation under the Company’s global sales compensation plan, including commissions for product sales to their consumer groups as well as the product sales made through the sales network they have
developed and trained. The Company does not pay commissions on sales materials. Outside of Mainland China, the Company’s Brand Affiliates may
make profits by purchasing the products from the Company at a discount and selling them to consumers with a mark-up. The Company does not account for nor pay additional commissions on these mark-ups received by Brand Affiliates. In many markets,
the Company also allows individuals who are not members of its sales force, referred to as “preferred customers,” to buy products directly from the Company at a discount. The Company pays commissions on preferred customer purchases to the referring
member of its sales force. Research and development Research and development costs are expensed as incurred and
are included in general and administrative expenses in the accompanying consolidated statements of income and totaled $13.0 million, $22.6 million and $23.3 million in 2024,
2023 and 2022, respectively. Deferred tax assets and liabilities The Company accounts for income taxes in accordance with the Income Taxes Topic of the Financial Accounting Standards Codification. These standards establish
financial accounting and reporting standards for the effects of income taxes that result from an enterprise’s activities during the current and preceding years. The Company takes an asset and liability approach for financial accounting and
reporting of income taxes. The Company pays income taxes in many foreign jurisdictions based on the profits realized in those jurisdictions, which can be significantly impacted by terms of intercompany transactions between the Company and its
foreign affiliates. Deferred tax assets and liabilities are created in this process. The Company has netted these deferred tax assets and deferred tax liabilities by jurisdiction. These deferred tax assets assume sufficient future earnings will
exist for their realization and are calculated using anticipated tax rates. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be ultimately realized. Uncertain tax positions The Company files income tax returns in the U.S. federal jurisdiction, and in
various state and foreign jurisdictions. In 2009, we entered into a voluntary program with the IRS called Compliance Assurance Process (“CAP”). Under the CAP program, the IRS audits the tax position of the Company to identify and resolve any
tax issues that may arise throughout the tax year. In 2022, the IRS developed a new phase called “Bridge Plus.” Under Bridge Plus the taxpayer is required to provide book-to-tax reconciliations, credit utilization and other supporting
documentation shortly after their audited financial statement is finalized. The company was selected for Bridge Plus phase for the 2023, 2024, and 2025 tax years. As of December 31, 2024, all open tax years except 2021 have been audited and
are effectively closed to further examination. For the tax year 2021, the Company was in the Bridge phase of the CAP program, pursuant to which the IRS did not accept disclosures, did not conduct reviews and did not provide letters of
assurance for the year. There are limited circumstances that tax years in the Bridge phase will be opened for examination. With a few exceptions, we are no longer subject to state and local income tax examination by tax authorities for the
years before 2021. Foreign jurisdictions have varying lengths of statutes of limitations for income tax examinations. Some statutes are as short as three years and in certain markets may be as long as ten years. The Company is currently under examination in
certain foreign jurisdictions; however, the outcomes of those reviews are not yet determinable. A reconciliation of the beginning and ending amount of
unrecognized tax benefits included in other liabilities is as follows (U.S. dollars in thousands):
2024
2023
2022
Gross balance at January 1
$
22,002
$
23,099
$
15,090
Increases related to prior year tax positions
2,858
180
6,768
Increases related to current year tax positions
5,354
3,065
5,485
Settlements
(2,299
)
(2,378
)
(2,590
)
Decreases due to lapse of statutes of limitations
(489
)
(1,284
)
(95
)
Currency adjustments
(1,560
)
(680
)
(1,559
)
Gross balance at December 31
$
25,866
$
22,002
$
23,099 At December 31, 2024, the Company had $25.9 million in unrecognized tax benefits of which $25.9
million, if recognized, would affect the effective tax rate. In comparison, at December 31, 2023, the Company had $22.0 million in
unrecognized tax benefits of which $22.0 million, if recognized, would affect the effective tax rate. The Company’s unrecognized tax
benefits relate to multiple foreign and domestic jurisdictions. Due to potential changes in unrecognized tax benefits from the multiple jurisdictions in which the Company operates, as well as the expiration of various statutes of limitation, it
is reasonably possible that the Company’s gross unrecognized tax benefits, net of foreign currency adjustments, may decrease within the next 12 months by a range of approximately $1.0 to $2.0 million. During the years ended December 31, 2024, 2023 and 2022, the
Company recognized $0.7 million, $0.6
million and $5.7 million, respectively in interest and penalties expenses related to uncertain tax positions. The Company had $13.7 million, $13.0 million and $12.4 million of accrued interest and penalties related to uncertain tax positions at December 31, 2024, 2023 and 2022, respectively. Interest and
penalties related to uncertain tax positions are recognized as a component of income tax expense. Net income per share Net income per share is computed based on the weighted-average number of common shares outstanding during the periods presented. Additionally, diluted earnings per share
data gives effect to all potentially dilutive common shares that were outstanding during the periods presented (Note 9). Foreign currency translation A significant portion of the Company’s business operations
occurs outside of the United States. The local currency of each of the Company’s Subsidiaries is considered its functional currency, except for the Company’s subsidiaries in Singapore and countries deemed highly inflationary where the U.S. dollar
is used. All assets and liabilities are translated into U.S. dollars at exchange rates existing at the balance sheet dates, revenue and expenses are translated at weighted-average exchange rates and stockholders’ equity is recorded at historical
exchange rates. The resulting foreign currency translation adjustments are recorded as a separate component of stockholders’ equity in the consolidated balance sheets and transaction gains and losses are included in other income (expense), net in
the consolidated statements of income. Net of tax, the accumulated other comprehensive loss related to the foreign currency translation adjustments are $128.4
million (net of tax of $7.8 million), $110.0
million (net of tax of $7.4 million), and $102.0
million (net of tax of $8.1 million), at December 31, 2024, 2023 and 2022, respectively. Classification of a highly inflationary economy A market is considered to have a highly inflationary economy if it has a cumulative inflation rate of approximately 100% or more
over a three-year period as well as other qualitative factors including historic inflation rate trends (increasing and decreasing), the capital intensiveness of the operation and other pertinent economic factors. The functional currency in highly
inflationary economies is required to be the functional currency of the entity’s parent company, and transactions denominated in the local currency are remeasured to the functional currency. The remeasurement of local currency into U.S. dollars
creates foreign currency transaction gains or losses, which the Company includes in its consolidated statements of income. In the second quarter of 2018, published inflation indices indicated that the three-year cumulative inflation in Argentina exceeded 100 percent, and as of July 1, 2018,
we elected to adopt highly inflationary accounting for our subsidiary in Argentina. Under highly inflationary accounting, Argentina’s functional currency became the U.S. dollar, and its income statement and balance sheet have been measured in U.S.
dollars using both current and historical rates of exchange. The effect of changes in exchange rates on peso-denominated monetary assets and liabilities has been reflected in earnings in other income (expense), net and was not material. As of
December 31, 2024 and 2023, Argentina had a small net peso monetary position. Net sales of Argentina were less than 2 percent of our
consolidated net sales for the years ended December 31, 2024, 2023 and 2022. Fair value of financial instruments The carrying value of financial instruments including cash and cash equivalents, accounts receivable and accounts payable approximate fair values due to the
short-term nature of these instruments. The Company’s current investments as of December 31, 2024 include certificates of deposits and other investments with maturity dates within the next 12-months. The carrying
value of these current investments approximate fair values due to the short-term nature of these instruments. As of December 31, 2024 and 2023, the fair value of debt was $395.0 million and $505.0 million, respectively. The fair value
of the Company’s debt is estimated using level 2 inputs based on interest rates available for debt with similar terms and remaining maturities. The FASB Codification defines fair value as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous
market for the asset or liability in an orderly transaction between market participants at the measurement date. On a quarterly basis, the Company measures at fair value certain financial assets, including cash equivalents. Accounting standards
specify a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect data obtained from independent sources, while unobservable inputs reflect the Company’s
market assumptions. These two types of inputs have created the following fair-value hierarchy:
●
Level 1 – quoted prices in active markets for identical assets or liabilities;
●
Level 2 – inputs, other than the quoted prices in active markets, that are observable either directly or indirectly;
●
Level 3 – unobservable inputs based on the Company’s own assumptions. Accounting standards permit companies, at their option, to measure many financial instruments and certain other items at fair value. The Company has elected not to
apply the fair value option to existing eligible items. Stock-based compensation All share-based payments, including grants of stock options
and restricted stock units, are required to be recognized in the Company’s financial statements based upon their respective grant date fair values. The Black-Scholes option-pricing model is used to estimate the fair value of stock options. The
determination of the fair value of stock options is affected by the Company’s stock price and a number of assumptions, including expected volatility, expected life, risk-free interest rate and expected dividends. The Company uses historical
volatility as the expected volatility assumption required in the Black-Scholes model. The expected life of the stock options is based on historical data trended into the future. The risk-free interest rate assumption is based on observed interest
rates appropriate for the expected terms of the Company’s stock options. The fair value of the Company’s restricted stock units is based on the closing market price of its stock on the date of grant less the Company’s expected dividend yield. The
Company recognizes stock-based compensation net of actual forfeitures over the requisite service period of the award. The total compensation expense related to equity compensation
plans was $14.8 million, $15.6
million and $12.4 million for the years ended December 31, 2024, 2023 and 2022, respectively. In 2024, 2023 and 2022, these amounts reflect
the reversal of $0, $0, and
$1.3, respectively, for certain performance-based awards that were no longer expected to vest. For the years ended December 31, 2024, 2023
and 2022, all stock-based compensation expense was recorded within general and administrative expenses. Reporting comprehensive income Comprehensive income is defined as the change in equity of a
business enterprise during a period from transactions and other events and circumstances from non-owner sources, and it includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. Derivative instruments and hedging activities FASB ASC 815, Derivatives and Hedging (“ASC 815”), provides
the disclosure requirements for derivatives and hedging activities with the intent to provide users of financial statements with an enhanced understanding of: (a) how and why an entity uses derivative instruments, (b) how the entity accounts for
derivative instruments and related hedged items, and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance, and cash flows. Further, qualitative disclosures are required that explain
the Company’s objectives and strategies for using derivatives, as well as quantitative disclosures about the fair value of and gains and losses on derivative instruments, and disclosures about credit-risk-related contingent features in derivative
instruments. As required by ASC 815, the Company records all derivatives
on the balance sheet at fair value. The accounting for changes in the fair value of derivatives depends on the intended use of the derivative, whether the Company has elected to designate a derivative in a hedging relationship and apply hedge
accounting and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. Derivatives designated and qualifying as a hedge of the exposure to changes in the fair value of an asset, liability, or firm commitment
attributable to a particular risk, such as interest rate risk, are considered fair value hedges. Derivatives designated and qualifying as a hedge of the exposure to variability in expected future cash flows, or other types of forecasted
transactions, are considered cash flow hedges. Derivatives may also be designated as hedges of the foreign currency exposure of a net investment in a foreign operation. Hedge accounting generally provides for the matching of the timing of gain or
loss recognition on the hedging instrument with the recognition of the changes in the fair value of the hedged asset or liability that are attributable to the hedged risk in a fair value hedge or the earnings effect of the hedged forecasted
transactions in a cash flow hedge. The Company may enter into derivative contracts that are intended to economically hedge certain of its risk, even though hedge accounting does not apply or the Company elects not to apply hedge accounting. In accordance with the FASB’s fair value measurement guidance
in ASU 2011-04, the Company made an accounting policy election to measure the credit risk of its derivative financial instruments that are subject to master netting agreements on a net basis by counterparty portfolio. Recent accounting pronouncements In November 2023, the FASB issued ASU 2023-07,Segment Reporting (Topic 280):Improvements to Reportable Segment Disclosures, expanding segment
disclosure requirements. The amendments require enhanced disclosure for certain segment items and required disclosure on how management uses reported measures to assess segment performance. The amendments do not change how segments are determined,
aggregated, or how thresholds are applied to determine reportable segments. The Company adopted ASU 2023-07 beginning with their 2024 annual reporting, through retrospective application. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The guidance requires disclosure of
disaggregated income taxes paid, prescribes standardized categories for the components of the effective tax rate reconciliation, and modifies other income tax-related disclosures. ASU 2023-09 is effective for the Company’s annual periods beginning
January 1, 2025, with early adoption permitted. The Company is currently evaluating the potential effect that the updated standard will have on their financial statement disclosures. In November 2024, the FASB issued ASU 2024-03, Income Statement – Reporting Comprehensive Income – Expense Disaggregation
Disclosures (Topic 220). This standard requires disclosure of specific information about costs and expenses. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026 and interim reporting periods beginning after December 15,
2027. The Company is currently evaluating the potential effect that the updated standard will have on their financial statement disclosures. |
