| Summary of Significant Accounting Policies | 2.
Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries; Columbia Laboratories Bermuda Ltd., Juniper Pharmaceuticals France SARL, Juniper Pharmaceuticals UK Ltd., and Juniper Pharma Services Ltd. All significant intercompany balances and transactions have been eliminated in consolidation. Segments The Company and its subsidiaries currently operate in two segments: product and service. The product segment oversees the supply chain and manufacturing of CRINONE, the Company’s sole commercialized product. The product segment also includes the royalty stream the Company receives from Allergan for CRINONE sales in the United States until the November 2016 monetization agreement, as well as the development of new product candidates. The service segment includes product development, clinical trial manufacturing, and advanced analytical and consulting services for the Company’s customers as well as characterizing and developing pharmaceutical product candidates for the Company’s internal programs and managing certain preclinical activities including manufacturing of the Company’s pipeline products. In September 2013, the Company acquired Juniper Pharma Services, a U.K.-based provider of pharmaceutical development, clinical trial manufacturing, and advanced analytical and consulting services to the pharmaceutical industry. The Company has integrated its supply chain management for its sole commercialized product, CRINONE into those operations and have therefore sought to capture synergies by transferring all operational activities related to its historic business. The Chief Executive Officer, who is the Company’s Chief Operating Decision Maker (CODM), currently manages the business based on revenue and gross profit and as such the Company has concluded that it is two segments, which consists of product and service. Segment information is consistent with the financial information regularly reviewed by our CODM, for purposes of evaluating performance, allocating resources, setting incentive compensation targets, and planning and forecasting future periods. Juniper’s CODM does not review its assets, operating expenses or non-operating income and expenses by business segment at this time. Management Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the U.S. requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses and related disclosures at the date of the financial statements during the reporting period. Significant estimates are used for, but are not limited to revenue recognition, sales return reserves, allowance for doubtful accounts, inventory reserves, impairment analysis of goodwill and intangibles including their useful lives, research and development accruals, deferred tax assets, liabilities and valuation allowances, common stock warrant valuations, and fair value of stock options. On an ongoing basis, management evaluates its estimates. Actual results could differ from those estimates. Foreign Currency The assets and liabilities of the Company’s subsidiaries in the United Kingdom and France are translated into U.S. dollars at current exchange rates and revenue and expense items are translated at average rates of exchange prevailing during the period. The functional currency of these subsidiaries is considered to be the local currency for each entity and, accordingly, translation adjustments for these subsidiaries are included in accumulated other comprehensive income (loss) within stockholders’ equity. Certain intercompany and third party foreign currency-denominated transactions generated foreign currency re-measurement losses of approximately $0.2 million, $70,000 and $33,000 during the years ended December 31, 2016, 2015 and 2014, respectively, which are included in other expense, net in the consolidated statements of operations. Cash Equivalents The Company considers all investments purchased with an original maturity of three months or less to be cash equivalents. Fair Value of Financial Instruments U.S. GAAP establishes a framework for measuring fair value under generally accepted accounting principles and enhances disclosures about fair value measurements. Fair value is defined as the amount that would be received for an asset or paid to transfer a liability (i.e., an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value maximize the use of observable inputs and minimize the use of unobservable inputs. The standard describes the following fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable, that may be used to measure fair value: Level 1: Quoted prices in active markets for identical assets and liabilities. Level 2: Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3: Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The fair value of cash and cash equivalents are classified as Level 1 at December 31, 2016 and 2015. Some of the estimates and assumptions in the Company's goodwill impairment assessment include: the amount and timing of the projected net cash flows, the discount rate, and the tax rate. The estimated fair value of the common stock warrant liability resulting from the October 2009 registered direct offering of 1,362,500 shares of the common stock and warrants to purchase 681,275 shares of common stock was $0 as of December 31, 2014 as the Company neared the expiration of these warrants in April 2015. The value was determined by using the Black-Scholes option pricing model which was based on the Company’s stock price at measurement date, exercise price of this common stock warrant, risk-free rate and historical volatility, and was classified as a Level 2 measurement. During the year ended December 31 2014, the Company recorded income of $0.4 million, to adjust the value of the common stock warrant liability to market. The fair value of the common stock warrant liability as of December 31, 2016 and 2015 was zero as the warrants expired in April 2015. Therefore, during the years ended December 31, 2016 and 2015, no income or expense was recorded.
2014
Stock price
$
5.60
Exercise price
$
12.16
Risk free interest rate
0.030
%
Expected term
0.25 years
Dividend yield
—
Expected volatility
22.76
% The fair value of accounts receivable and accounts payable approximate their carrying amount. The Company’s long-term debt is carried at amortized cost, which approximates fair value based on current market pricing available to the Company for similar debt instruments and is categorized as a Level 2 measurement. Inventories Inventories are stated at the lower of cost (first-in, first-out) or market. Components of inventory cost include materials, labor and manufacturing overhead. Inventories consist of the following (in thousands):
December 31,
2016
2015
Raw materials
$
856
$
1,410
Work in process
3,806
1,840
Finished goods
959
373
Total
$
5,621
$
3,623
Reserves for excess and obsolete inventory were $45,000 and $0.3 million at December 31, 2016 and 2015, respectively. Juniper provides inventory allowances when conditions indicate that the selling price could be less than cost due to physical deterioration, usage, obsolescence, reductions in estimated future demand and reductions in selling prices. Juniper balances the need to maintain strategic inventory levels with the risk of obsolescence due to changing technology and customer demand levels. Unfavorable changes in market conditions may result in a need for additional inventory reserves that could adversely impact the Company’s gross margins. Conversely, favorable changes in demand could result in higher gross margins when the Company sells products. Accounts Receivable, net of allowances Accounts receivable are reported at their outstanding unpaid principal balances reduced by allowances for doubtful accounts. The Company estimates doubtful accounts based on its historical bad debts, factors related to specific customers’ ability to pay and current economic trends. The Company writes off accounts receivable against the allowance when a balance is determined to be uncollectable. Accounts receivable allowance activity consisted of the following for the years ended December 31 (in thousands):
2016
2015
2014
Balance at beginning of year
$
263
$
358
$
112
Additions
—
—
246
Deductions
(226
)
(95
)
—
Balance at end of year
$
37
$
263
$
358
Juniper’s accounts receivable balance, net of allowance for doubtful accounts, was $6.6 million as of December 31, 2016, and $7.5 million as of December 31, 2015. Included in the accounts receivable balance at December 31, 2016 and 2015 were $1.3 million and $1.9 million of unbilled accounts receivable, respectively. Juniper’s unbilled accounts receivable is derived from services performed that have not been billed as of the balance sheet date. Property and Equipment, net Property and equipment is stated at cost less accumulated depreciation. Leasehold improvements are amortized over the lesser of the useful life or the term of the leases. Depreciation is computed on the straight-line basis over the estimated useful lives of the respective assets, as follows:
Years
Machinery and equipment
3-10
Furniture and fixtures
3-5
Computer equipment and software
3-5
Buildings
Up to 39
Land
Indefinite Costs of major additions and improvements are capitalized and expenditures for maintenance and repairs that do not extend the life of the assets are expensed. Upon sale or disposition of property and equipment, the cost and related accumulated depreciation are eliminated from the accounts and any resultant gain or loss is credited or charged to operations. Juniper continually evaluates whether events or circumstances have occurred that indicate that the remaining useful life of its long-lived assets may warrant revision or that the carrying value of these assets may be impaired. Juniper evaluates the realizability of its long-lived assets based on profitability and cash flow expectations for the related asset. Any write-downs are treated as permanent reductions in the carrying amount of the assets. Based on this evaluation, Juniper believes, as of each balance sheet date presented, none of Juniper’s long-lived assets were impaired. Concentration of Risk The Company has two major customers – Allergan and Merck KGaA. See Note 13 of our consolidated financial statements for customer and product concentrations. The Company depends on one supplier for a key excipient (ingredient) used in its products and one supplier for one of the active pharmaceutical ingredients. Goodwill Goodwill represents the excess of the purchase price over the fair value of assets acquired and liabilities assumed in a business combination. The Company does not amortize its goodwill, but instead tests for impairment annually in the fourth quarter and more frequently whenever events or changes in circumstances indicate that the fair value of the asset may be less than its carrying value of the asset. In August 2016, the Company announced that its Phase 2b clinical trial evaluating its lead product candidate, COL-1077, did not achieve its primary and secondary endpoints and that further development on COL-1077 would be discontinued. The Company considered the determination that further development on COL-1077 would not continue to be a triggering event requiring a test for impairment under ASC 350. In accordance with Accounting Standards Codification, or ASC 350, Goodwill and Other Intangibles The Company has concluded that its business represents two reporting units for goodwill impairment testing, which are product and service. The Company’s goodwill is assigned to its service reporting unit. The Company has performed tests for impairment as of August 17, 2016, the date of the triggering event and October 1, 2016, the date of the annual test and have determined that goodwill is not impaired as of either date. Intangible Assets The Company capitalizes and includes in intangible assets the costs of trademark, developed technology and customer relationships. Intangible assets are recorded at fair value at the time of their acquisition and stated net of accumulated amortization. The Company amortizes its intangible assets that have finite lives using either the straight-line or accelerated method, based on the useful life of the asset over which it is expected to be consumed utilizing expected undiscounted future cash flows. Amortization is recorded over the estimated useful lives ranging from 3 to 7 years. The Company evaluates the realizability of its definite lived intangible assets whenever events or changes in circumstances or business conditions indicate that the carrying value of these assets may not be recoverable based on expectations of future undiscounted cash flows for each asset group. If the carrying value of an asset or asset group exceeds its undiscounted cash flows, the Company estimates the fair value of the assets, generally utilizing a discounted cash flow analysis based on the present value of estimated future cash flows to be generated by the assets using a risk-adjusted discount rate. To estimate the fair value of the assets, the Company uses market participant assumptions pursuant to ASC 820, Fair Value Measurements Income Taxes Deferred tax assets or liabilities are determined based on timing differences between when income and expense items are recognized for financial statement purposes versus when they are recognized for tax purposes, as measured by enacted tax rates expected to apply to taxable income in the fiscal years in which those temporary differences are expected to be settled. A valuation allowance is provided against deferred tax assets in circumstances where management believes it is more likely than not that all or a portion of the assets will not be realized. The Company has provided a full valuation allowance against its net domestic and foreign deferred tax assets as of December 31, 2016 and 2015. Accumulated Other Comprehensive Loss Changes to accumulated other comprehensive loss during the year ended December 31, 2016 were as follows (in thousands):
Translation Adjustment
Balance – December 31, 2015
$
(1,162
)
Current period other comprehensive income (loss)
(3,866
)
Balance – December 31, 2016
$
(5,028
) Revenue Recognition Revenues include product revenues, which primarily consist of sales of CRINONE to Merck KGaA, royalty revenues, which primarily consisted of royalty revenues from Allergan on sales of CRINONE until the November 2016 monetization agreement, and service revenues, which primarily consist of analytical and consulting services, pharmaceutical development and clinical trial manufacturing services and other revenues. Product Revenue Revenues from the sale of products are recognized when all of the following criteria are met: persuasive evidence of a sales arrangement exists; delivery has occurred or services have been rendered; the price is fixed or determinable; and collectability is reasonably assured. Selling prices to Merck KGaA for CRINONE (progesterone gel) are determined on an annual and country-by-country basis and are the greater of (i) a percentage of Merck KGaA’s net estimated selling price, or (ii) Juniper’s direct manufacturing cost plus 20% and are invoiced to Merck KGaA upon shipment. Juniper records revenue at the minimum selling price, which is Juniper’s direct manufacturing cost plus 20% at the time of shipment to Merck KGaA as that amount is considered fixed or determinable. The Company records deferred revenue related to amounts invoiced above the minimum selling price. Upon receiving sell through information from Merck KGaA on a quarterly and country-by-country basis, the Company records an adjustment to increase revenue to reflect the difference between Merck KGaA’s actual net selling price and the minimum price recorded at the time of shipment. Any difference between the amounts invoiced at Merck KGaA’s estimated net selling price and Merck KGaA’s actual net selling price are billed or credited to Merck KGaA in the quarter the product is sold through by Merck KGaA. Accordingly, product revenue in each period includes both an amount for product shipped to Merck KGaA in the current period recognized at the minimum purchase price as well as an amount for product shipped by Merck KGaA to its customers in the current period equal to the difference between Merck KGaA’s actual net selling price and the minimum purchase price. Merck KGaA is also entitled to a volume discount based on annual purchases. The Company records reserves against revenue on a quarterly basis to reflect the volume discount expected to be earned by Merck KGaA during the year. In April 2013, Juniper’s license and supply agreement with Merck KGaA for the sale of CRINONE outside the United States was renewed for an additional five year term, extending the expiration date to May 19, 2020. Service Revenue The professional service contracts that Juniper enters into and operates under specifies whether the engagement will be billed on a time-and-materials or a fixed-price basis. These engagements generally last three to six months, although some of Juniper’s engagements can be longer in duration. Juniper recognizes substantially all of the Company’s professional services revenues under written contracts when the fee is fixed or determinable, as the services are provided, and only in those situations where collection from the client is reasonably assured. In certain cases Juniper bills clients prior to work being performed, which requires Juniper to defer revenue in accordance with U.S. GAAP. Revenues from time-and-materials service contracts are recognized as the services are performed based upon hours worked and contractually agreed-upon hourly rates, as well as indirect fees based upon hours worked. Service revenues from a majority of Juniper’s fixed-price engagements are recognized on a proportional performance method based on the ratio of costs incurred, substantially all of which are labor-related, to the total estimated project costs. Project costs are classified in costs of services and are based on the direct salary of the employees on the engagement plus all direct expenses incurred to complete the engagement, including any amounts billed to Juniper by its vendors. The proportional performance method is used for fixed-price contracts because reasonably dependable estimates of the revenues and costs applicable to various stages of a contract can be made, based on historical experience and the terms set forth in the contract, and are indicative of the level of benefit provided to Juniper’s clients. In the event of a termination, fixed-price contracts generally provide for payment for services rendered up to the termination date. Service revenues also include reimbursements, which include reimbursement for travel and other out-of-pocket expenses, outside consultants, and other reimbursable expenses. Royalty revenues, based on sales by licensees, are recorded as revenues when those sales are made by the licensees. In November 2016, the Company received a one-time payment of $11.0 million in exchange for which Allergan will no longer be required to make future royalty payments due to Juniper. The Company maintains accounts receivable allowances for estimated losses resulting from disputed amounts or the inability of Juniper’s customers to make required payments. Juniper identifies specific collection issues and establishes an accounts receivable allowance based on its historical collection experience, review of client accounts, current trends, and credit policy. If the financial condition of Juniper’s customers were to deteriorate or disputes were to arise regarding the services provided, resulting in an impairment of their ability or intent to make payment, additional allowances may be required. A failure to estimate accurately the accounts receivable allowances and ensure that payments are received on a timely basis could have a material adverse effect on Juniper’s business, financial condition, and results of operations. Juniper collects value added tax from its customers for revenues generated out of the United Kingdom for which the customer is not tax exempt and remits such taxes to the appropriate governmental authorities. Juniper presents its value added tax on a net basis; therefore, these taxes are excluded from revenues. Deferred Revenue The Company’s deferred revenue balance consists of the following at December 31, 2016 and 2015 (in thousands):
As of December 31,
2016
2015
Product revenues
$
4,647
$
2,854
Service revenues
385
543
Regional Growth Fund
592
1,480
Total
$
5,624
$
4,877
Amounts invoiced but not yet earned on product revenues are recorded as deferred revenue until the Company receives sell through information from Merck KGaA indicating the product has been sold through or otherwise disposed of. Amounts invoiced but not yet earned on service revenue are deferred until such time as performance is rendered or the obligation to perform the service is completed for service revenues. As part of the acquisition of Juniper Pharma Services, Juniper assumed a $2.5 million obligation under a grant arrangement with the Regional Growth Fund on behalf of the Secretary of State for Business, Innovation, and Skills in the United Kingdom. Juniper Pharma Services used this grant to fund the building of its second facility, which includes analytical labs, office space, and a manufacturing facility. As a part of the arrangement, Juniper Pharma Services is required to create and maintain certain full-time equivalent personnel levels through October 2017. As of December 31, 2016, the Company is in compliance with the covenants of the arrangement. The income from the Regional Growth Fund will be recognized in the other income line of the consolidated statement of operations on a decelerated basis through September 30, 2017. Research and Development Costs Research and development consist of consultants, material costs, salaries and other personnel related expenses including stock-based compensation of employees and non-employees primarily engaged in research and development activities and materials used and other overhead expenses incurred. All research and development costs are expensed as incurred. Research and development costs that are paid in advance of performance are capitalized as prepaid expenses until incurred. Clinical trial expenses include expenses associated with clinical research organizations. The invoicing from clinical research organizations for services rendered can lag several months. Juniper accrues the cost of services rendered in connection with clinical research organizations activities based on its estimate of costs incurred. Juniper maintains regular communication with its clinical research organizations to assess the reasonableness of its estimates. In March 2015, the Company entered into an exclusive patent license agreement with The General Hospital Corporation, d/b/a Massachusetts General Hospital, pursuant to which Juniper has licensed the exclusive worldwide rights to Massachusetts General Hospital patent rights in a novel intra-vaginal ring (IVR) technology for delivery of one or more pharmaceutical dosages and release rates in a single segmented ring. The Company is leveraging the technology to advance JNP-0101, JNP-0201 and JNP-0301. In August 2016, the Company announced that the Phase 2b clinical trial evaluating COL-1077, 10% lidocaine bioadhesive vaginal gel, for the reduction of pain intensity in women undergoing an endometrial biopsy with tenaculum placement did not achieve its primary and secondary endpoints. The safety and pharmacokinetic (PK) profiles of COL-1077 were consistent with what has been observed in prior clinical trials of the lidocaine bioadhesive vaginal gel. Based on this study outcome the Company discontinued further development of COL-1077, with resources reallocated to its preclinical programs. Stock-based compensation Juniper follows the fair value recognition provisions of ASC 718, Stock Compensation Topic Equity – Equity Based Payments to Nonemployees Juniper recorded stock-based compensation expense of $1.2 million, $1.8 million and $0.6 million for the years ended December 31, 2016, 2015 and 2014, respectively. Total stock-based compensation expense was recorded to cost of revenues and operating expenses based upon the functional responsibilities of the individuals holding the respective awards as follows (in thousands):
Years Ended December 31,
2016
2015
2014
Cost of revenues
$
199
$
79
$
44
Sales and marketing
50
38
28
Research and development
73
1,126
2
General and administrative
879
507
533
Total stock-based compensation
$
1,201
$
1,750
$
607
As of December 31, 2016, total unamortized share-based compensation cost related to non-vested stock options was $3.3 million, which is expected to be recognized on a straight-line basis over a weighted average period of 2.83 years. Cash received from option exercises was $0.1 million and $33,000 during the years ending December 31, 2015 and 2014, respectively. No options were exercised in the year ended December 31, 2016. Juniper granted 657,500, 387,000 and 312,000 stock options to employees during the years ended December 31, 2016, 2015 and 2014, respectively. The Company records stock-based compensation expense for stock options granted to non-employees based on the fair value of the stock options, which is re-measured over the graded vesting term resulting in periodic adjustments to stock-based compensation expense. During 2016, no stock options were granted by the Company to non-employees. The stock-based compensation expense recorded for non-employees is primarily reflected in the research and development line of the statement of operations. The 240,000 non-employee options reflected in the research and development line are re-measured on a quarterly basis from the date of grant. The remaining 3,000 non-employee options are reflected in the general and administrative line and will be re-measured over a 2.75 year period from the date of grant. The Company recorded a reduction of stock-based compensation expense for non-employees of $0.1 million in the year ended December 31, 2016, as a result of impacts of changes in the fair value. Stock-based compensation recorded for non-employees was $1.1 million in the year ended December 31, 2015. There was no stock-based compensation expense recorded for non-employees in the year ended December 31, 2014. No tax benefit has been recognized due to the net tax losses during the periods presented. The Company uses the Black-Scholes option pricing model to determine the estimated fair value for stock-based awards. Option-pricing models require the input of various subjective assumptions, including the option’s expected life and the price volatility of the underlying stock. The weighted-average fair value of the options granted to employees during the years ended December 31, 2016, 2015 and 2014 was $4.66, $4.38 and $4.27, respectively based on the following assumptions:
Years Ended December 31,
2016
2015
2014
Risk free interest rate
0.85%-1.45%
0.87%-1.20%
0.93%-1.64%
Expected term
4.75 years
4.56-4.75 years
4.75 years
Dividend yield
—
—
—
Expected volatility
55.23%-79.29%
76.86%-83.09%
78.27%-81.36%
The weighted-average fair value of the options granted to non-employees during the year ended December 31, 2015 was $4.52 based on the following assumptions:
2015
Risk free interest rate
1.47%-1.54%
Expected term
7 years
Dividend yield
—
Expected volatility
82.88%-83.09%
Juniper’s estimated expected stock price volatility is based on its own historical volatility. Juniper’s expected term of options granted in the years ended December 31, 2016, 2015 and 2014 was derived from the simplified method for employee grants and the contractual term is used for non-employee grants. The risk-free rate for the expected term of the option is based on the U.S. Treasury yield curve in effect at the time of grant. Net Income (Loss) Per Common Share The calculation of basic and diluted income (loss) per common and common equivalent share is as follows (in thousands except for per share data):
Years Ended December 31,
2016
2015
2014
Basic net income (loss) per common share
Net income (loss)
$
5,951
$
(1,496
)
$
4,656
Less: Preferred stock dividends
(28
)
(28
)
(28
)
Net income (loss) applicable to common stock
$
5,923
$
(1,524
)
$
4,628
Basic weighted average number of common shares outstanding
10,795
10,774
10,992
Basic net income (loss) per common share
$
0.55
$
(0.14
)
$
0.42
Diluted net income (loss) per common share
Net income (loss) applicable to common stock
$
5,923
$
(1,524
)
$
4,628
Add: Preferred stock dividends
28
—
28
Less: Fair value of stock warrants for dilutive warrants
—
—
(379
)
Net income (loss) applicable to dilutive common stock
$
5,951
$
(1,524
)
$
4,277
Basic weighted average number of common shares outstanding
10,795
10,774
10,992
Effect of dilutive securities
Dilutive preferred share conversions
83
Dilutive stock awards
13
—
15
96
—
15
Diluted weighted average number of common shares outstanding
10,891
10,774
11,007
Diluted net income (loss) per common share
$
0.55
$
(0.14
)
$
0.39
Basic income (loss) per common share is computed by dividing the net income (loss), less preferred dividends by the weighted-average number of shares of common stock outstanding during a period. The diluted income (loss) per common share calculation gives effect to dilutive options, warrants, convertible notes, convertible preferred stock, and other potential dilutive common stock including selected restricted shares of common stock outstanding during the period. Diluted income (loss) per common share is based on the treasury stock method and includes the effect from potential issuance of common stock, such as shares issuable pursuant to the exercise of stock options, assuming the exercise of all in-the-money stock options. Common share equivalents have been excluded where their inclusion would be anti-dilutive. Shares to be issued upon the exercise of the outstanding options and warrants, convertible preferred stock and selected restricted shares of common stock excluded from the income per share calculation amounted to 1,658,234, 1,087,308 and 1,692,180 for the years ended December 31, 2016, 2015 and 2014, respectively, because the awards were anti-dilutive. Recent Accounting Pronouncements In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment . The standard simplifies the accounting for goodwill impairment by removing Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. The ASU is effective for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019, and should be applied on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The adoption of this standard is not expected to have a material impact on the consolidated financial statements and related disclosures. In March 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”). The standard is intended to simplify several areas of accounting for share-based compensation arrangements, including the income tax impact, classification of awards as either equity or liabilities and classification on the statement of cash flows. ASU 2016-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016, and early adoption is permitted. The Company is currently evaluating the method and impact that the adoption will have on its consolidated financial statements and related disclosures. In February 2016 |
