| Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies
Basis of Presentation and Principles of Consolidation
The accompanying consolidated financial statements have been
prepared in accordance with accounting principles generally
accepted in the United States of America (“U.S. GAAP”).
The consolidated financial statements include the accounts of the
Company and its wholly-owned subsidiaries. All intercompany
accounts and transactions have been eliminated in
consolidation.
Reclassifications
Certain reclassifications have been made to conform the prior year
consolidated financial statements and notes to the current year
presentation. These reclassifications include:
• During the first quarter of 2016, the
Company early adopted ASU No. 2015-17, non-current
• Reclassification of $9.1 million
of computer software, net to property, plant & equipment,
net in the consolidated balance sheet at December 31,
2015.
Initial Public Offering
On June 25, 2015, in conjunction with its initial public
offering (“IPO”), the Company effected a corporate
reorganization, whereby Lantheus MI Intermediate, Inc. (formerly
the direct parent of LMI and the direct subsidiary of Holdings) was
merged with and into Holdings.
On June 30, 2015, the Company completed an IPO of its common
stock at a price to the public of $6.00 per share. The
Company’s common stock is traded on the NASDAQ Global Market
under the symbol “LNTH”. The Company issued and sold
12,256,577 shares of common stock in the IPO, including 1,423,243
shares that were offered and sold pursuant to the
underwriters’ exercise in full of their overallotment option.
The IPO resulted in proceeds to the Company of approximately
$67.2 million, after deducting $6.4 million in
underwriting discounts, commissions and related expenses.
On June 30, 2015, the Company also entered into a
$365.0 million senior secured term loan facility (the
“Term Facility”). The net proceeds of the Term
Facility, together with the net proceeds from the IPO and cash on
hand of $10.9 million were used to repay in full the aggregate
principal amount of LMI’s $400.0 million 9.750% Senior
Notes due 2017 (the “Senior Notes”), pay related
premiums, interest and expenses and pay down the $8.0 million
of outstanding borrowings under LMI’s $50.0 million
revolving credit facility (the “Revolving
Facility”).
Manufacturing and Customer Concentrations, Liquidity and
Management’s Plans
The Company currently relies on Jubilant HollisterStier
(“JHS”) as its sole source manufacturer of DEFINITY,
Neurolite and evacuation vials for TechneLite. The Company recently
completed its technology transfer activities at JHS and received
Food and Drug Administration (“FDA”) approval for its
Cardiolite product supply. The Company’s technology transfer
activities with Pharmalucence for the manufacture and supply of
DEFINITY have been repeatedly delayed, and the Company is now in
the process of negotiating an exit to that arrangement. The Company
currently has additional on-going
Until the Company successfully becomes dual sourced for its
principal products, the Company is vulnerable to future supply
shortages. Disruption in the Company’s financial performance
could occur if it experiences significant adverse changes in
customer mix, broad economic downturns, adverse industry or Company
conditions or catastrophic external events. If the Company
experiences one or more of these events in the future, it may be
required to implement additional expense reductions, such as a
delay or elimination of discretionary spending in all functional
areas, as well as scaling back select operating and strategic
initiatives.
During 2014, the Company utilized its Revolving Facility as a
source of liquidity from time to time. Borrowing capacity under the
Revolving Facility is calculated by reference to a borrowing base
consisting of a percentage of certain eligible accounts receivable,
inventory and machinery and equipment minus any reserves (the
“Borrowing Base”). If the Company is not successful in
achieving its forecasted operating results, the Company’s
accounts receivable and inventory could be negatively affected,
thus reducing the Borrowing Base and limiting the Company’s
borrowing capacity. As of December 31, 2016, the aggregate
Borrowing Base was approximately $44.6 million, which was
reduced by an $8.8 million unfunded Standby Letter of Credit
and $0.1 million in accrued interest, resulting in a net
Borrowing Base availability of approximately $35.7 million.
The Company’s Term Facility contains a number of affirmative,
negative, reporting and financial covenants, in each case subject
to certain exceptions and materiality thresholds. Incremental
borrowings under the Revolving Facility may affect the
Company’s ability to comply with the covenants in the Term
Facility, including the financial covenant restricting total net
leverage. Accordingly, the Company may be limited in utilizing its
net Borrowing Base availability as a source of liquidity.
Based on the Company’s current operating plans, the Company
believes its existing cash and cash equivalents, cash generated by
operating activities and availability under the Revolving Facility
will be sufficient to continue to fund the Company’s
liquidity requirements for the foreseeable future.
Use of Estimates
The preparation of consolidated financial statements in conformity
with U.S. GAAP requires management to make certain estimates and
assumptions that affect the reported amounts of assets and
liabilities at the date of the consolidated financial statements,
and the reported amounts of revenues and expenses during the
reporting period. The more significant estimates reflected in the
Company’s consolidated financial statements include, but are
not limited to, certain judgments regarding revenue recognition,
goodwill, tangible and intangible asset valuation, inventory
valuation, asset retirement obligations, income tax liabilities and
related indemnification receivable, deferred tax assets and
liabilities and accrued expenses. Actual results could materially
differ from those estimates or assumptions.
Revenue Recognition
The Company recognizes revenue when evidence of an arrangement
exists, title has passed, the risks and rewards of ownership have
transferred to the customer, the selling price is fixed and
determinable, and collectability is reasonably assured. For
transactions for which all revenue recognition criteria have not
yet been met, the respective amounts are recorded as deferred
revenue until such point in time all criteria have been met and
revenue can be recognized. Revenue is recognized net of reserves,
which consist of allowances for returns and rebates.
Revenue arrangements with multiple elements are divided into
separate units of accounting if certain criteria are met, including
whether the delivered element has stand-alone value to the
customer. The arrangement’s consideration is then allocated
to each separate unit of accounting based on the relative selling
price of each deliverable. The estimated selling price of each
deliverable is determined using the following hierarchy of values:
(i) vendor-specific objective evidence of fair value;
(ii) third-party evidence of selling price; and
(iii) best estimate of selling price. The best estimate of
selling price reflects the Company’s best estimate of what
the selling price would be if the deliverable was regularly sold by
the Company on a stand-alone basis. The consideration allocated to
each unit of accounting is then recognized as the related goods or
services are delivered, limited to the consideration that is not
contingent upon future deliverables. Supply or service transactions
may involve the charge of a nonrefundable initial fee with
subsequent periodic payments for future products or services.
The up-front
Product Returns
The Company provides a reserve for its estimate of sales recorded
for which the related products are expected to be returned. The
Company does not typically accept product returns unless an over
shipment or non-conforming non-conforming
Shipping and Handling Revenues and Costs
The Company typically does not charge customers for shipping and
handling costs, but any shipping and handling costs charged to
customers are included in revenues. Shipping and handling costs are
included in cost of goods sold and were $13.6 million,
$17.4 million and $19.4 million for the years ended
December 31, 2016, 2015 and 2014, respectively.
Accounts Receivable
Accounts receivable consist of amounts billed and currently due
from customers. The Company maintains an allowance for doubtful
accounts for estimated losses. In determining the allowance,
consideration includes the probability of recoverability based on
past experience and general economic factors. Certain accounts
receivable may be fully reserved when the Company becomes aware of
any specific collection issues.
Also included in accounts receivable are miscellaneous receivables
of $0.7 million and $1.0 million as of December 31,
2016 and 2015, respectively.
Rebates and Allowances
Estimates for rebates and allowances represent the Company’s
estimated obligations under contractual arrangements with third
parties. Rebate accruals and allowances are recorded in the same
period the related revenue is recognized, resulting in a reduction
to revenue and the establishment of a liability which is included
in accrued expenses in the accompanying consolidated balance
sheets. These rebates result from performance-based offers that are
primarily based on attaining contractually specified sales volumes
and growth, Medicaid rebate programs for certain products,
administration fees of group purchasing organizations and certain
distributor related commissions. The calculation of the accrual for
these rebates and allowances is based on an estimate of the third
party’s buying patterns and the resulting applicable
contractual rebate or commission rate(s) to be earned over a
contractual period.
Income Taxes
The Company accounts for income taxes using an asset and liability
approach. The provision for income taxes represents income taxes
paid or payable for the current year plus the change in deferred
taxes during the year. Deferred taxes result from differences
between the financial and tax bases of the Company’s assets
and liabilities. Deferred tax assets and liabilities are measured
using the currently enacted tax rates that apply to taxable income
in effect for the years in which those tax attributes are expected
to be recovered or paid, and are adjusted for changes in tax rates
and tax laws when such changes are enacted.
Valuation allowances are recorded to reduce deferred tax assets
when it is more likely than not that a tax benefit will not be
realized. The assessment of whether or not a valuation allowance is
required involves the weighing of both positive and negative
evidence concerning both historical and prospective information
with greater weight given to evidence that is objectively
verifiable. A history of recent losses is negative evidence that is
difficult to overcome with positive evidence. In evaluating
prospective information there are four sources of taxable income:
reversals of taxable temporary differences, items that can be
carried back to prior tax years (such as net operating
losses), pre-tax
The Company accounts for uncertain tax positions using a
recognition threshold and measurement attribute for the financial
statement recognition and measurement of a tax position taken or
expected to be taken in a tax return. Differences between tax
positions taken in a tax return and amounts recognized in the
financial statements are recorded as adjustments to other long-term
assets and liabilities, or adjustments to deferred taxes, or both.
The Company classifies interest and penalties within the provision
for income taxes.
Net Income (Loss) per Common Share
Basic earnings per common share is computed by dividing net income
(loss) by the weighted-average number of shares of common stock
outstanding during the period. Diluted earnings per common share is
computed by dividing net income by the weighted-average number of
shares of common stock outstanding during the period, plus the
potential dilutive effect of other securities if those securities
were converted or exercised. During periods in which the Company
incurs net losses, both basic and diluted loss per common share is
calculated by dividing the net loss by the weighted-average shares
of common stock outstanding and potentially dilutive securities are
excluded from the calculation because their effect would be
anti-dilutive.
Cash and Cash Equivalents
Cash and cash equivalents include savings deposits, certificates of
deposit and money market funds that have original maturities of
three months or less when purchased.
Concentration of Risks and Limited Suppliers
Financial instruments which potentially subject the Company to
concentrations of credit risk consist principally of trade accounts
receivable. The Company periodically reviews its accounts
receivable for collectability and provides for an allowance for
doubtful accounts to the extent that amounts are not expected to be
collected. The Company sells primarily to large national
distributors, which in turn, may resell the Company’s
products.
The following table sets forth customers that contributed revenues
of 10% or more during any of the years ended December 31,
2016, 2015 and 2014 and/or represented 10% or more of the total net
accounts receivable balance at either December 31, 2016 or
2015:
Accounts December 31, Revenues Year Ended December 31,
2016 2015 2016 2015 2014
Company A *** *** 10.3 % 11.3 % 18.0 %
Company B
13.1 %
12.9 %
11.4 %
11.9 %
11.1 %
*** Amount represented less than 10% for
the reporting period
The Company relies on certain materials used in its development and
manufacturing processes, some of which are procured from only one
or a few sources. The failure of one of these suppliers to deliver
on schedule could delay or interrupt the manufacturing or
commercialization process and would adversely affect the
Company’s operating results. In addition, a disruption in the
commercial supply of, or a significant increase in the cost of one
of the Company’s materials from these sources could have a
material adverse effect on the Company’s business, financial
position and results of operations.
Historically, an important supplier of Moly and Xenon was Nordion,
which relied on the NRU reactor in Chalk River, Ontario. From
November 2016 the NRU reactor transitioned from providing regular
supply of medical isotopes to providing only an
emergency back-up
The Company currently relies on JHS as its sole source manufacturer
of DEFINITY, Neurolite and evacuation vials for TechneLite. The
Company recently completed its technology transfer activities at
JHS and received FDA approval for its Cardiolite product supply. In
the meantime, the Company has no other currently active supplier of
DEFINITY, Neurolite and Cardiolite.
Based on current projections, the Company believes that it will
have sufficient supply of DEFINITY, Neurolite, Cardiolite and
evacuation vials from JHS to meet expected demand.
The following table sets forth revenues for each of the
Company’s products representing 10% or more of revenues:
Year Ended
2016 2015 2014
DEFINITY
43.6 %
38.1 %
31.8 %
TechneLite 32.9 % 24.7 % 31.0 %
Xenon *** 16.7 % 12.1 %
*** Amount represented less than 10% for
the reporting period
Inventory
Inventory includes material, direct labor and related manufacturing
overhead, and is stated at the lower of cost or market on
a first-in, first-out
The Company assesses the recoverability of inventory to determine
whether adjustments for excess and obsolete inventory are required.
Inventory that is in excess of future requirements is written down
to its estimated net realizable value based on product shelf life,
forecasted demand and other factors.
Inventory costs associated with product that has not yet received
regulatory approval are capitalized if the Company believes there
is probable future commercial use of the product and future
economic benefits of the asset. If future commercial use of the
product is not probable, then inventory costs associated with such
product are expensed as incurred. At December 31, 2016 and
2015, the Company had no capitalized inventories associated with
product that did not have regulatory approval.
Property, Plant & Equipment
Property, plant & equipment are stated at cost.
Replacements of major units of property are capitalized, and
replaced properties are retired. Replacements of minor components
of property and repair and maintenance costs are charged to expense
as incurred. Certain costs to obtain or develop computer software
are capitalized and amortized over the estimated useful life of the
software. Depreciation and amortization is computed on a
straight-line basis over the estimated useful lives of the related
assets. The estimated useful lives of the major classes of
depreciable assets are as follows:
Class
Range of Estimated Useful Lives
Buildings 50 years
Land improvements 15 - 40 years
Machinery and equipment 3 - 20 years
Furniture and fixtures 15 years
Leasehold improvements
Lesser of lease term or 15 years
Computer software 3-5
Upon retirement or other disposal of property, plant &
equipment, the cost and related amount of accumulated depreciation
are removed from the asset and accumulated depreciation accounts,
respectively. The difference, if any, between the net asset value
and the proceeds is included in operating income.
Goodwill, Intangibles and Long-Lived Assets
Goodwill is not amortized, but is instead tested for impairment at
least annually and whenever events or circumstances indicate that
it is more likely than not that they may be impaired. The Company
has elected to perform the annual test for goodwill impairment as
of October 31 of each year. All goodwill has been allocated to
the U.S. reporting unit.
In performing tests for goodwill impairment, the Company is first
permitted to perform a qualitative assessment about the likelihood
of the carrying value of a reporting unit exceeding its fair value.
If the Company determines that it is more likely than not that the
fair value of a reporting unit is less than its carrying amount
based on the qualitative assessment, it is required to perform
the two-step two-step two-step
In performing the annual goodwill impairment test in 2016 and 2015,
the Company bypassed the option to perform a qualitative assessment
and proceeded directly to performing the first step of
the two-step
The Company calculates the fair value of its reporting unit using
the income approach and market approach using level 3 inputs. The
income approach utilizes discounted forecasted future cash flows
and the market approach utilizes fair value multiples of comparable
publicly traded companies. The discounted cash flows are based on
management’s long-term financial projections as of the
valuation date and are discounted using a risk adjusted rate of
return, which is determined using estimates of market participant
risk-adjusted weighted-average costs of capital and reflects the
risks associated with achieving future cash flows. The market
approach is calculated using the guideline company method, where
the Company uses market multiples derived from stock prices of
companies engaged in the same or similar lines of business. There
is not a quoted market price for the Company’s reporting
unit, therefore, a combination of the two methods is utilized to
derive the fair value of the business. The Company evaluated and
weighed the results of these approaches as well as ensures it
understands the basis of the results of these two methodologies.
The Company believes the use of these two methodologies ensures a
consistent and supportable method of determining its fair value
that is consistent with the objective of measuring fair value. If
the fair value were to decline, then the Company may be required to
incur material charges relating to the impairment of those assets.
The Company completed its required annual impairment test for
goodwill in the fourth quarter of 2016 and determined that the fair
value of the Company’s reporting unit was substantially in
excess of its carrying value.
The Company tests intangible and long-lived assets for
recoverability whenever events or changes in circumstances suggest
that the carrying value of an asset or group of assets may not be
recoverable. The Company measures the recoverability of assets to
be held and used by comparing the carrying amount of the asset to
future undiscounted net cash flows expected to be generated by the
asset. If those assets are considered to be impaired, the
impairment equals the amount by which the carrying amount of the
assets exceeds the fair value of the assets. Any impairments are
recorded as permanent reductions in the carrying amount of the
assets. Long-lived assets, other than goodwill and other intangible
assets that are held for sale are recorded at the lower of the
carrying value or the fair market value less the estimated cost to
sell.
During the first quarter of 2013, the Company executed a strategic
shift in how it funds its research and development
(“R&D”) programs, which significantly altered the
expected future costs and revenue associated with the
Company’s agents in development. Property, plant &
equipment dedicated to R&D activities, which were impacted by
the March 2013 R&D strategic shift, have a carrying value of
$2.9 million as of December 31, 2016. The Company
believes these fixed assets will be utilized for either internally
funded ongoing R&D activities or R&D activities funded by a
strategic partner. If the Company is not successful in finding a
strategic partner, and there are no alternative uses for those
fixed assets, they could be subject to impairment in the
future.
Intangible assets, consisting of patents, trademarks and customer
relationships related to the Company’s products are amortized
in a method equivalent to the estimated utilization of the economic
benefit of the asset. Trademarks and patents are amortized on a
straight-line basis, and customer relationships are amortized on an
accelerated basis.
Contingencies
In the normal course of business, the Company is subject to loss
contingencies, such as legal proceedings and claims arising out of
its business, that cover a wide range of matters, including, among
others, product and environmental liability. The Company records
accruals for those loss contingencies when it is probable that a
liability will be incurred and the amount of loss can be reasonably
estimated. The Company does not recognize gain contingencies until
realized.
Fair Values of Financial Instruments
The estimated fair values of the Company’s financial
instruments, including its cash and cash equivalents, accounts
receivable, accounts payable and accrued expenses approximate the
carrying values of these instruments due to their short term
nature. There are no assets measured at fair value on a
nonrecurring basis at December 31, 2016. The estimated fair
value of the Company’s Term Facility at both
December 31, 2016 and 2015 approximates carrying value because
the interest rate is subject to change with market interest
rates.
Advertising and Promotion Costs
Advertising and promotion costs are expensed as incurred. During
the years ended December 31, 2016, 2015 and 2014, the Company
incurred $3.6 million, $3.1 million and
$2.8 million, respectively in advertising and promotion costs,
which are included in sales and marketing in the consolidated
statements of operations.
Research and Development
Research and development costs are expensed as incurred and relate
primarily to the development of new products to add to the
Company’s portfolio and costs related to its medical affairs
and medical information functions. Nonrefundable advance payments
for goods or services that will be used or rendered for future
research and development activities are deferred and recognized as
an expense as the goods are delivered or the related services are
performed.
Foreign Currency
The consolidated statements of operations of the Company’s
foreign subsidiaries are translated into U.S. Dollars using net
weighted average exchange rates. The net assets of the
Company’s foreign subsidiaries are translated into U.S.
Dollars using the end of period exchange rates. The impact from
translating the net assets of these subsidiaries at changing rates
are recorded in the foreign currency translation adjustment
account, which is included in accumulated other comprehensive loss
in the consolidated balance sheets.
Remeasurement of the Company’s foreign currency denominated
transactions are included in net income. For the years ended
December 31, 2016, 2015 and 2014, losses arising from foreign
currency transactions totaled approximately $0.9 million,
$1.8 million and $0.3 million, respectively. Transaction
gains and losses are reported as a component of other income
(expense), net in the consolidated statements of operations.
Stock-Based Compensation
The Company’s stock-based compensation cost is measured at
the grant date of the stock-based award based on the fair value of
the award and is recognized as expense over the requisite service
period, which generally represents the vesting period, and includes
an estimate of the awards that will be forfeited. The Company uses
the Black-Scholes valuation model for estimating the fair value of
stock options. The fair value of stock option awards is affected by
the valuation assumptions, including the expected volatility based
on comparable market participants, expected term of the option,
risk-free interest rate and expected dividends. When a contingent
cash settlement of vested options becomes probable, the Company
reclassifies its vested awards to a liability and accounts for any
incremental compensation cost in the period in which the settlement
becomes probable.
Other Income (Expense), Net
Other income, net consisted of the following:
Years Ended December 31,
(in thousands) 2016 2015 2014
Foreign currency losses $ (853 ) $ (1,752 ) $ (279 )
Tax indemnification income 1,055 1,655 754
Other income 18 32 30
Total other income (expense), net $ 220 $ (65 ) $ 505
Comprehensive Income (Loss)
Comprehensive income consists of net income and other gains and
losses affecting stockholders’ equity that, under U.S. GAAP,
are excluded from net income. For the Company, such items consist
primarily of foreign currency translation gains and losses.
Asset Retirement Obligations
The Company’s compliance with federal, state, local and
foreign environmental laws and regulations may require it to remove
or mitigate the effects of the disposal or release of chemical
substances in jurisdictions where it does business or maintains
properties. The Company establishes accruals when those costs are
legally obligated and probable and can be reasonably estimated.
Accrual amounts are estimated based on currently available
information, regulatory requirements, remediation strategies,
historical experience, the relative shares of the total remediation
costs and a relevant discount rate, when the time periods of
estimated costs can be reasonably predicted. Changes in these
assumptions could impact the Company’s future reported
results.
Self-Insurance Reserves
The Company’s consolidated balance sheets at both
December 31, 2016 and 2015 include $0.4 million of
accrued liabilities associated with employee medical costs that are
retained by the Company. The Company estimates the required
liability of those claims on an undiscounted basis based upon
various assumptions which include, but are not limited to, the
Company’s historical loss experience and projected loss
development factors. The required liability is also subject to
adjustment in the future based upon changes in claims experience,
including changes in the number of incidents (frequency) and change
in the ultimate cost per incident (severity). The Company also
maintains a separate cash account to fund these medical claims and
must maintain a minimum balance as determined by the plan
administrator. The balance of this restricted cash account was
approximately $0.1 million at both December 31, 2016 and
2015, and is included in other current assets.
Recent Accounting Standards
The following table provides a description of recent accounting
pronouncements that could have a material effect on the
Company’s consolidated financial statements:
Standard
Description
Effective Date
Effect on the
Recently Issued Accounting Standards Not Yet
Adopted
ASU 2016-15, Statement of
Cash Flows (Topic 230): Classification of Certain Cash
Receipts and Cash Payments This standard addresses the presentation and
classification of eight specific cash flow issues, including debt
prepayment and extinguishment costs. Early adoption is permitted,
including adoption in an interim period. Adoption is required on a
retrospective basis unless it is impracticable to apply, in which
case the amendments for those issues are to be applied
prospectively as of the earliest date practicable. January 1, 2018
The Company does not expect the update to have
a material impact on its consolidated financial statements.
ASU 2016-09, Compensation—Stock
Compensation (Topic 718): Improvements to Employee Share-Based
Payment Accounting
ASU 2016-09
• Accounting for income taxes upon
vesting or exercise of share-based payments and related EPS
effects
• Classification of excess tax
benefits on the statement of cash flows
• Accounting for forfeitures
• Liability classification exception
for statutory tax withholding requirements
• Cash flow presentation of employee
taxes paid when an employer withholds shares for tax-withholding
• Elimination of the indefinite
deferral in Topic 718.
For public business entities, the amendments are effective for
annual periods beginning after December 15, 2016, and interim
periods within those annual periods. January 1, 2017 The Company does not expect the update to have a
material impact on its consolidated financial statements.
ASU 2016-02, Leases (Topic 842) This ASU supersedes existing guidance on
accounting for leases in “Leases (Topic 840)” and
generally requires all leases to be recognized in the statement of
financial position. The provisions of ASU 2016-02 January 1, 2019 The Company is currently assessing the impact that
this standard will have on its consolidated financial
statements.
ASU 2014-09, Revenue from Contracts with
Customers (Topic 606) 2015-14, 2016-08, 2016-10, 2016-11, 2016-12
This ASU and related amendments affect any entity that either
enters into contracts with customers to transfer goods or services
or enters into contracts for the transfer of nonfinancial assets,
unless those contracts are within the scope of other standards. The
guidance in this ASU supersedes the revenue recognition
requirements in Topic 605, Revenue Recognition and most
industry-specific guidance. The core principle of the guidance is
that an entity should recognize revenue upon 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. The new guidance also
includes a set of disclosure requirements that will provide users
of financial statements with comprehensive information about the
nature, amount, timing, and uncertainty of revenue and cash flows
arising from a reporting organization’s contracts with
customers. In August 2015, the Financial Accounting Standards Board
issued ASU No. 2015-14, 2014-09
The standard is effective for annual reporting periods beginning
after December 15, 2017, and interim periods therein, using
either of the following transition methods:
• A full retrospective approach
reflecting the application of the standard in each prior reporting
period with the option to elect certain practical expedients,
or
• A retrospective approach with the
cumulative effect of initially adopting ASU 2014-09 January 1, 2018 The Company is currently evaluating the impact the
adoption of ASU 2014-09
Accounting Standards Adopted During the Year Ended
December 31, 2016
ASU 2015-17, Income Taxes (Topic 740):
Balance Sheet Classification of Deferred Taxes During the first quarter of 2016, the Company
early adopted ASU No. 2015-17, non-current January 1, 2016 Adoption of this standard resulted in the
reclassification of $0.1 million of current deferred tax
assets to noncurrent deferred tax assets and $0.2 million of
current deferred tax liabilities to noncurrent deferred tax
liabilities on the accompanying consolida |
