Company Information and Significant Accounting Policies

The accompanying unaudited consolidated financial statements of Choice Hotels International, Inc. and subsidiaries (together the "Company") have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). These unaudited consolidated financial statements include all adjustments that are necessary, in the opinion of management, to fairly present our financial position and results of operations. Except as otherwise disclosed, all adjustments are of a normal recurring nature.

Certain information and footnote disclosures normally included in financial statements presented in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been omitted. The Company believes the disclosures made are adequate to make the information presented not misleading.

The consolidated financial statements should be read in conjunction with the consolidated financial statements for the year ended December 31, 2013 and notes thereto included in the Company’s Form 10-K, filed with the SEC on March 3, 2014 (the "10-K") as well as the information provided below under the heading "Revision to Prior Annual Financial Statements and Restatement of Prior Interim Financial Statements". The Company intends to amend its 10-K as soon as administratively practical to revise its previously issued audited financial statements and amend its report on internal control over financial reporting. Interim results are not necessarily indicative of the entire year results. All inter-company transactions and balances between Choice Hotels International, Inc. and its subsidiaries have been eliminated in consolidation.

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Revision to Prior Annual Financial Statements and Restatement of Prior Interim Financial Statements

In connection with the preparation of the consolidated financial statements for the second quarter of 2014, the Company reviewed its accounting policies and practices, including the historical practice of reporting royalty and certain marketing and reservation fees one month in arrears as compared to when the gross room revenues (on which the fees are based) are earned by the Company's franchisees. The Company previously determined that the impact of the revenue recognition timing related to these revenues on its annual financial statements was not material and therefore reported these revenues one month in arrears despite the fact that these fees meet the definition of being earned and realizable in the same period that the underlying gross room revenues are earned by its franchisees. However, during the current period, the Company reassessed the impact of reporting these revenues one month in arrears on interim periods and determined that this revenue recognition practice, which was not in accordance with GAAP, was material to interim periods due to the seasonality of the Company's business. As a result, the Company has corrected its revenue recognition method to recognize royalty and certain marketing and reservation system fees as revenue in the same period as the gross room revenues are earned by its franchisees.

In accordance with Accounting Standards Codification ("ASC") 250 (SEC's Staff Accounting Bulletin 99, "Materiality"), the Company assessed the materiality of the misapplication of GAAP and concluded that the restatement of revenues was not material to any of its previously issued annual financial statements but was material to certain interim periods. In accordance with the accounting guidance in ASC 250 (SEC Staff Accounting Bulletin No. 108, "Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements"), the Company will restate its previously issued interim financial statements for the periods ended March 31, 2014 and 2013 and September 30, 2013 and 2012 through the filing of amended quarterly filings on Form 10-Q and has restated the interim financial periods for June 30, 2013 in this interim financial report. In addition, the Company will revise its previously issued audited financial statements for the years ended December 31, 2011, 2012, and 2013 to correct the presentation of revenues and amend its report on internal control over financial reporting.

The following tables present the effect of this and other immaterial errors for the financial statement line items impacted in the affected periods included within this interim financial report. In addition, these amounts have been adjusted to reflect the Company's discontinued operations reported in the first quarter of 2014.

Consolidated Statements of Income



	Three Months Ended June 30, 2013										Six Months Ended June 30, 2013
	As Previously Reported		Discontinued Operations			Adjustment			As Restated		As Previously Reported		Discontinued Operations			Adjustment			As Restated
	(in thousands, except per share amounts)
Royalty fees	$	68,379	$	—		$	4,259		$	72,638	$	118,115	$	—		$	10,631		$	128,746
Marketing and reservation revenues	99,645		—			4,427			104,072		176,085		—			10,310			186,395
Hotel operations	1,334		(1,334		)	—			—		2,290		(2,290		)	—			—
Total revenues	183,578		(1,334		)	8,686			190,930		320,450		(2,290		)	20,941			339,101

Selling, general and administrative	30,180		—			(449		)	29,731		57,096		—			(697		)	56,399
Depreciation and amortization	2,520		(132		)	—			2,388		4,695		(266		)	—			4,429
Marketing and reservation expenses	99,645		—			4,427			104,072		176,085		—			10,310			186,395
Hotel operations	911		(911		)	—			—		1,786		(1,786		)	—			—
Total operating expenses	133,256		(1,043		)	3,978			136,191		239,662		(2,052		)	9,613			247,223

Operating income	50,322		(291		)	4,708			54,739		80,788		(238		)	11,328			91,878

Income from continuing operations before income taxes	40,087		(291		)	4,708			44,504		60,996		(238		)	11,328			72,086
Income taxes	11,853		(108		)	1,135			12,880		17,239		(88		)	3,535			20,686
Income from continuing operations, net of income taxes	28,234		(183		)	3,573			31,624		43,757		(150		)	7,793			51,400

Basic earnings per share, continuing operations	$	0.48	$	—		$	0.06		$	0.54	$	0.75	$	—		$	0.13		$	0.88
Diluted earnings per share, continuing operations	$	0.48	$	—		$	0.06		$	0.54	$	0.74	$	—		$	0.14		$	0.88



	Six Months Ended June 30, 2013
	As Previously Reported			Adjustment			As Restated
Consolidated Statement of Cash Flows	(in thousands)
Net income	$	43,757		$	7,793		$	51,550
Provision for bad debts, net	1,420			333			1,753
Non-cash stock compensation and other charges	5,581			(15		)	5,566
Deferred income taxes	4,169			4,067			8,236
Change in assets and liabilities
Receivables	(21,156		)	(19,193		)	(40,349		)
Advances to/from marketing and reservation activities, net	(2,945		)	8,576			5,631
Income taxes payable/receivable	1,729			(531		)	1,198
Net cash provided by operating activities	28,957			1,030			29,987
Investment in property and equipment	(21,005		)	(1,030		)	(22,035		)
Net cash used in investing activities	(20,605		)	(1,030		)	(21,635		)



	As of December 31, 2013
	As Previously Reported			Adjustment			As Revised
Consolidated Balance Sheet	(in thousands)
Receivables	$	53,521		$	28,864		$	82,385
Deferred income taxes	7,220			19,464			26,684
Total current assets	258,646			48,328			306,974
Property and equipment, at cost, net	66,092			1,760			67,852
Advances, marketing and reservation activities	19,127			(13,283		)	5,844
Deferred income taxes	20,282			(20,282		)	—
Total assets	539,899			16,523			556,422
Deferred income taxes	—			5,149			5,149
Total liabilities	1,004,144			5,149			1,009,293
Retained earnings	341,649			11,374			353,023
Total shareholders' deficit	(464,245		)	11,374			(452,871		)

The following tables present the effect of this and other immaterial errors for the financial statement line items impacted in the Company's quarterly reports on Form 10-Q which will be amended for the interim periods ended March 31, 2014 and September 30, 2013 and corresponding prior year periods. These amended reports will be filed with the SEC as soon as administratively possible. In addition, these amounts have been adjusted to reflect the Company's discontinued operations reported in the first quarter of 2014.

Consolidated Statements of Income



	Three Months Ended March 31, 2014						Three Months Ended March 31, 2013
	As Previously Reported		Adjustment		As Restated		As Previously Reported		Adjustment			As Restated
	(in thousands, except per share amounts)
Royalty fees	$	51,681	$	6,859	$	58,540	$	49,736	$	6,372		$	56,108
Marketing and reservation revenues	84,012		5,594		89,606		76,440		5,883			82,323
Total revenues	147,283		12,453		159,736		135,916		12,255			148,171

Selling, general and administrative	26,463		217		26,680		26,916		(248		)	26,668
Depreciation and amortization	2,122		156		2,278		2,041		—			2,041
Marketing and reservation expenses	84,012		5,594		89,606		76,440		5,883			82,323
Total operating expenses	112,597		5,967		118,564		105,397		5,635			111,032

Operating income	34,686		6,486		41,172		30,519		6,620			37,139

Income from continuing operations before income taxes	25,042		6,486		31,528		20,962		6,620			27,582
Income taxes	7,711		2,348		10,059		5,406		2,400			7,806
Income from continuing operations, net of income taxes	17,331		4,138		21,469		15,556		4,220			19,776

Basic earnings per share, continuing operations	$	0.30	$	0.07	$	0.37	$	0.27	$	0.07		$	0.34
Diluted earnings per share, continuing operations	$	0.29	$	0.07	$	0.36	$	0.26	$	0.08		$	0.34



	Three Months Ended March 31, 2014								Three Months Ended March 31, 2013
Consolidated Statements of Cash Flow	As Previously Reported			Adjustment		As Restated			As Previously Reported			Adjustment			As Restated
	(in thousands)
Net cash provided by operating activities	$	5,264		$	—	$	5,264		$	145		$	450		$	595
Investment in property and equipment	(3,015		)	—		(3,015		)	(13,645		)	(450		)	(14,095		)
Net cash provided (used) by investing activities	1,027			—		1,027			(12,087		)	(450		)	(12,537		)



	As of March 31, 2014
	As Previously Reported			Adjustment			As Restated
Consolidated Balance Sheet	(in thousands)
Receivables	$	59,241		$	40,906		$	100,147
Deferred income taxes	7,220			21,202			28,422
Total current assets	277,714			62,108			339,822
Property and equipment, at cost, net	56,664			1,604			58,268
Advances, marketing and reservation activities	18,856			(18,696		)	160
Deferred income taxes	20,321			(20,321		)	—
Total assets	554,900			24,695			579,595
Deferred income taxes	—			9,196			9,196
Total liabilities	1,009,533			9,196			1,018,729
Retained earnings	349,458			15,511			364,969
Total shareholders' deficit	(454,633		)	15,499			(439,134		)

Consolidated Statements of Income



	Three Months Ended September 30, 2013										Nine Months Ended September 30, 2013
	As Previously Reported		Discontinued Operations			Adjustment			As Restated		As Previously Reported		Discontinued Operations			Adjustment			As Restated
	(in thousands, except per share amounts)
Royalty fees	$	83,107	$	—		$	(3,647	)	$	79,460	$	201,222	$	—		$	6,984		$	208,206
Marketing and reservation revenues	126,296		—			(1,487		)	124,809		302,381		—			8,823			311,204
Hotel operations	1,310		(1,310		)	—			—		3,600		(3,600		)	—			—
Total revenues	223,162		(1,310		)	(5,134		)	216,718		543,612		(3,600		)	15,807			555,819

Selling, general and administrative	26,982		—			(573		)	26,409		84,078		—			(1,270		)	82,808
Depreciation and amortization	2,379		(127		)	20			2,272		7,074		(393		)	20			6,701
Marketing and reservation expenses	126,296		—			(1,487		)	124,809		302,381		—			8,823			311,204
Hotel operations	956		(956		)	—			—		2,742		(2,742		)	—			—
Total operating expenses	156,613		(1,083		)	(2,040		)	153,490		396,275		(3,135		)	7,573			400,713

Operating income	66,549		(227		)	(3,094		)	63,228		147,337		(465		)	8,234			155,106

Income from continuing operations before income taxes	57,592		(227		)	(3,094		)	54,271		118,588		(465		)	8,234			126,357
Income taxes	16,080		(84		)	(298		)	15,698		33,319		(172		)	3,237			36,384
Income from continuing operations, net of income taxes	41,512		(143		)	(2,796		)	38,573		85,269		(293		)	4,997			89,973

Basic earnings per share, continuing operations	$	0.71	$	—		$	(0.05	)	$	0.66	$	1.46	$	—		$	0.08		$	1.54
Diluted earnings per share, continuing operations	$	0.70	(0.01		)	$	(0.04	)	$	0.65	$	1.45	$	—		$	0.08		$	1.53



	Three Months Ended September 30, 2012										Nine Months Ended September 30, 2012
	As Previously Filed		Discontinued Operations			Adjustment			As Restated		As Previously Filed		Discontinued Operations			Adjustment		As Restated
	(in thousands, except per share amounts)
Royalty fees	$	80,845	$	—		$	(2,807	)	$	78,038	$	194,762	$	—		$	8,225	$	202,987
Marketing and reservation revenues	119,062		—			(1,097		)	117,965		284,624		—			9,721		294,345
Hotel operations	1,238		(1,238		)	—			—		3,440		(3,440		)	—		—
Total revenues	210,413		(1,238		)	(3,904		)	205,271		513,203		(3,440		)	17,946		527,709

Selling, general and administrative	23,170		—			(98		)	23,072		72,073		—			249		72,322
Depreciation and amortization	1,995		(135		)	—			1,860		5,989		(401		)	—		5,588
Marketing and reservation expenses	119,062		—			(1,097		)	117,965		284,624		—			9,721		294,345
Hotel operations	933		(933		)	—			—		2,609		(2,609		)	—		—
Total operating expenses	145,160		(1,068		)	(1,195		)	142,897		365,295		(3,010		)	9,970		372,255

Operating income	65,253		(170		)	(2,709		)	62,374		147,908		(430		)	7,976		155,454

Income from continuing operations before income taxes	55,668		(170		)	(2,709		)	52,789		133,840		(430		)	7,976		141,386
Income taxes	11,291		(63		)	(1,076		)	10,152		37,604		(160		)	3,303		40,747
Income from continuing operations, net of income taxes	44,377		(107		)	(1,633		)	42,637		96,236		(270		)	4,673		100,639

Basic earnings per share, continuing operations	$	0.77	$	—		$	(0.03	)	$	0.74	$	1.66	$	(0.01	)	$	0.08	$	1.73
Diluted earnings per share, continuing operations	$	0.76	$	—		$	(0.03	)	$	0.73	$	1.65	$	—		$	0.08	$	1.73



	Nine Months Ended September 30, 2013
Consolidated Statement of Cash Flows	As Previously Filed			Adjustment			As Restated
	(in thousands)
Net cash provided by operating activities	$	105,009		$	1,480		$	106,489
Investment in property and equipment	(26,442		)	(1,480		)	(27,922		)
Net cash used in investing activities	(28,350		)	(1,480		)	(29,830		)



	As of September 30, 2013									As of December 31, 2012
	As Previously Reported			Adjustment			As Restated			As Previously Reported			Adjustment			As Revised
Consolidated Balance Sheets	(in thousands)
Receivables	$	62,605		$	40,282		$	102,887		$	52,270		$	27,729		$	79,999
Income taxes receivable	—			—			—			2,732			(531		)	2,201
Deferred income taxes	4,136			23,231			27,367			4,136			22,062			26,198
Total current assets	258,267			63,513			321,780			233,470			49,260			282,730
Property and equipment, at cost, net	65,540			1,460			67,000			51,651			—			51,651
Advances, marketing and reservation activities	32,564			(18,494		)	14,070			42,179			(12,712		)	29,467
Deferred income taxes	19,496			(19,496		)	—			15,418			(15,418		)	—
Total assets	555,709			26,983			582,692			510,772			21,130			531,902
Deferred income taxes	—			11,722			11,722			—			10,864			10,864
Total liabilities	1,040,433			11,722			1,052,155			1,059,676			10,864			1,070,540
Retained earnings	325,005			15,264			340,269			272,260			10,266			282,526
Total shareholders' deficit	(484,724		)	15,261			(469,463		)	(548,904		)	10,266			(538,638		)

The following tables present the effect of this and other immaterial errors for the financial statement line items impacted for the years ended December 31, 2011, 2012, and 2013 which will be revised prospectively in future annual filings. In addition, these amounts have been adjusted to reflect the Company's discontinued operations reported in the first quarter of 2014.

Consolidated Statements of Income



	Year Ended December 31, 2013										Year Ended December 31, 2012
	As Previously Reported		Discontinued Operations			Adjustment			As Revised		As Previously Reported		Discontinued Operations			Adjustment			As Revised
	(in thousands, except per share amounts)
Royalty fees	$	267,229	$	—		$	583		$	267,812	$	260,782	$	—		$	898		$	261,680
Marketing and reservation revenues	403,099		—			4,534			407,633		384,784		—			4,894			389,678
Hotel operations	4,774		(4,774		)	—			—		4,573		(4,573		)	—			—
Total revenues	724,307		(4,774		)	5,117			724,650		691,509		(4,573		)	5,792			692,728

Selling, general and administrative	113,567		—			(1,854		)	111,713		101,852		—			27			101,879
Depreciation and amortization	9,469		(526		)	113			9,056		8,226		(535		)	—			7,691
Marketing and reservation expenses	403,099		—			4,534			407,633		384,784		—			4,894			389,678
Hotel operations	3,678		(3,678		)	—			—		3,505		(3,505		)	—			—
Total operating expenses	529,813		(4,204		)	2,793			528,402		498,367		(4,040		)	4,921			499,248

Operating income	194,494		(570		)	2,324			196,248		193,142		(533		)	871			193,480

Income from continuing operations before income taxes	156,918		(570		)	2,324			158,672		169,168		(533		)	871			169,506
Income taxes	44,317		(211		)	1,216			45,322		48,481		(198		)	(55		)	48,228
Income from continuing operations, net of income taxes	112,601		(359		)	1,108			113,350		120,687		(335		)	926			121,278

Basic earnings per share, continuing operations	$	1.92	$	—		$	0.02		$	1.94	$	2.08	$	—		$	0.01		$	2.09
Diluted earnings per share, continuing operations	$	1.91	$	(0.01	)	$	0.02		$	1.92	$	2.07	$	(0.01	)	$	0.02		$	2.08



	Year Ended December 31, 2011
	As Previously Reported		Discontinued Operations			Adjustment		As Revised
	(in thousands, except per share amounts)
Royalty fees	$	245,426	$	—		$	1,049	$	246,475
Marketing and reservation revenues	349,036		—			5,116		354,152
Hotel operations	4,356		(4,356		)	—		—
Total revenues	638,793		(4,356		)	6,165		640,602

Selling, general and administrative	106,404		—			32		106,436
Depreciation and amortization	8,024		(527		)	—		7,497
Marketing and reservation expenses	349,036		—			5,116		354,152
Hotel operations	3,466		(3,466		)	—		—
Total operating expenses	466,930		(3,993		)	5,148		468,085

Operating income	171,863		(363		)	1,017		172,517

Income from continuing operations before income taxes	158,057		(363		)	1,017		158,711
Income taxes	47,661		(135		)	352		47,878
Income from continuing operations, net of income taxes	110,396		(228		)	665		110,833

Basic earnings per share, continuing operations	$	1.86	$	(0.01	)	$	0.01	$	1.86
Diluted earnings per share, continuing operations	$	1.85	$	(0.01	)	$	0.02	$	1.86



	Year Ended Ended December 31, 2013
	As Previously Reported			Adjustment			As Revised
Consolidated Statement of Cash Flows	(in thousands)
Net cash provided by operating activities	$	152,040		$	1,873		$	153,913
Investment in property and equipment	(31,524		)	(1,873		)	(33,397		)
Net cash used in investing activities	(27,549		)	(1,873		)	(29,422		)

Discontinued Operations

In the first quarter of 2014, the Company's management approved a plan to dispose of the three Company owned Mainstay Suites hotels. As a result, the Company has reported the operations related to these three hotels as discontinued operations in this Quarterly Report on Form 10-Q. The Company's results of operations for the comparative prior year periods have also been restated to account for these operations as discontinued. For additional information regarding discontinued operations, see Note 17, Discontinued Operations.

Cash and Cash Equivalents

The Company considers all highly liquid investments purchased with a maturity of three months or less at the date of purchase to be cash equivalents. As of June 30, 2014 and December 31, 2013, $3.3 million and $5.0 million, respectively, of book overdrafts representing outstanding checks in excess of funds on deposit are included in accounts payable in the accompanying consolidated balance sheets.

The Company maintains cash balances in domestic banks, which at times, may exceed the limits of amounts insured by the Federal Deposit Insurance Corporation. In addition, as of June 30, 2014, the Company maintains cash balances of $172.5 million in international banks which do not provide deposit insurance.

Recently Adopted Accounting Guidance

In February 2013, the Financial Accounting Standards Board ("FASB") issued ASU No. 2013-04, "Obligations Resulting from Joint and Several Liability Arrangements for Which the Total Amount of the Obligation Is Fixed at the Reporting Date" ("ASU 2013-04"). The ASU requires entities to measure obligations resulting from joint and several liability arrangements for which the total amount of the obligation within the scope of this guidance is fixed at the reporting date, as the sum of the following: (a) The amount the reporting entity agreed to pay on the basis of its arrangement among its co-obligors and (b) any additional amount the reporting entity expects to pay on behalf of its co-obligors. Required disclosures include a description of the joint-and-several arrangement and the total outstanding amount of the obligation for all joint parties. The ASU permits entities to aggregate disclosures (as opposed to providing separate disclosures for each joint-and-several obligation). ASU 2013-04 was effective for all interim and annual periods beginning after December 15, 2013. The Company adopted this ASU on January 1, 2014 and it did not have a material impact on its financial statements.

In March 2013, the FASB issued ASU No. 2013-05, "Parent's Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity" ("ASU 2013-05"). ASU 2013-05 clarifies that when a reporting entity ceases to have a controlling financial interest in a subsidiary or group of assets that is a nonprofit activity or a business within a foreign entity, the parent is required to apply the guidance in ASC 830 "Foreign Currency Matters" Subtopic 830-30 to release any related cumulative translation adjustment into net income. Accordingly, the cumulative translation adjustment should be released into net income only if the sale or transfer results in the complete or substantially complete liquidation of the foreign entity in which the subsidiary or group of assets had resided. The provisions of ASU 2013-05 are effective prospectively for reporting periods beginning after December 15, 2013 and the Company adopted this ASU on January 1, 2014. The adoption of this ASU did not have a material impact on the Company's financial statements.

In July 2013, the FASB issued ASU No. 2013-11, "Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists" ("ASU 2013-11"). ASU 2013-11 requires an entity to present an unrecognized tax benefit as a reduction of a deferred tax asset for a net operating loss ("NOL") carryforward, or similar tax loss or tax credit carryforward, rather than as a liability when (1) the uncertain tax position would reduce the NOL or other carryforward under the tax law of the applicable jurisdiction and (2) the entity intends to use the deferred tax asset for that purpose. The ASU does not require new recurring disclosures. The provisions of ASU 2013-11 are effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2013. The Company adopted this ASU on January 1, 2014 and the adoption of this ASU did not have a material impact on its financial statements.

Future Adoption of Recently Announced Accounting Guidance

In April 2014, the FASB issued ASU No. 2014-08, "Presentation of Financial Statements and Property, Plant, and Equipment: Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity" ("ASU 2014-08"). ASU 2014-08 changes the definition of a discontinued operation to include only those disposals of components of an entity that represent a strategic shift that has (or will have) a major effect on an entity's operations and financial results. ASU 2014-08 is effective for all disposals (or classifications as held for sale) of components of an entity that occur within annual periods beginning on or after December 15, 2014, and interim periods within those years. The Company is currently evaluating what impact, if any, the adoption of this ASU will have on the presentation of its consolidated financial statements.

In May 2014, the FASB issued ASU No. 2014-09, "Revenue From Contracts with Customers" ("ASU 2014-09"), which impacts virtually all aspects of an entity's revenue recognition. ASU No. 2014-09 supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, as well as most industry-specific guidance, and significantly enhances comparability of revenue recognition practices across entities and industries by providing a principles-based, comprehensive framework for addressing revenue recognition issues. In order for a provider of promised goods or services to recognize as revenue the consideration that it expects to receive in exchange for the promised goods or services, the provider should apply the following five steps: (1) identify the contract with a customer(s); (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. ASU No. 2014-09 also specifies the accounting for some costs to obtain or fulfill a contract with a customer and provides enhanced disclosure requirements. ASU No. 2014-09 is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The guidance permits the retrospective or modified retrospective method when adopting ASU No. 2014-09. The Company is still assessing the impact that ASU No. 2014-09 will have on its financial statements and disclosures.