Recently issued accounting standards

In November 2015, the Financial Accounting Standards Board ("FASB") issued new guidance in Topic 740, Income Taxes, which seeks to simplify the presentation of deferred income taxes. The amendments in this update require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. For public business entities, the amendments in this update are effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Earlier application is permitted as of the beginning of an interim or annual reporting period. The amendments in this update may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. The Company has early-adopted this standard as of December 31, 2015, and has applied its provisions retrospectively. The adoption of this standard resulted in the reclassification of deferred income taxes from the current liabilities "Deferred income taxes" to the noncurrent liabilities "Deferred income taxes" within the consolidated balance sheets.

The changes to the line items in the consolidated balance sheets as of the previously reported interim periods, as if this standard had been adopted in first-quarter 2015, are presented below:



(in thousands)	September 30, 2015			June 30, 2015			March 31, 2015			December 31, 2014
Noncurrent assets:
Decrease in deferred income taxes	$	(68,069	)	$	(45,089	)	$	—		$	—
Decrease in total assets	(68,069		)	(45,089		)	—			—
Current liabilities:
Decrease in deferred income taxes	$	(68,069	)	$	(45,089	)	$	(73,753	)	$	(71,191	)
Decrease in total current liabilities	(68,069		)	(45,089		)	(73,753		)	(71,191		)
Noncurrent liabilities:
Increase in deferred income taxes	$	—		$	—		$	73,753		$	71,191
Decrease in total liabilities	(68,069		)	(45,089		)	—			—

See Note 7 for additional discussion of the December 31, 2014 consolidated balance sheet presentation reclassification.

In July 2015, the FASB issued new guidance in Topic 330, Inventory, which seeks to simplify the measurement of inventory. The amendments in this update apply to inventory that is measured using all methods excluding last-in, first-out and the retail inventory method. The main substantive provision of this guidance is for an entity to change the subsequent measurement of inventory, within the scope of this guidance, from LCM to the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. The amendments in this update are effective for annual reporting periods beginning after December 15, 2016, including interim periods within those fiscal years and should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements upon adoption of this standard.

In April 2015, the FASB issued new guidance in Subtopic 835-30, Interest-Imputation of Interest, which seeks to simplify the presentation of debt issuance costs. These amendments require that debt issuance costs related to a recognized debt liability be presented in an entity's balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this guidance. Entities should apply the amendments on a retrospective basis, wherein the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the new guidance. The Company has early-adopted this standard as of September 30, 2015, and has applied its provisions retrospectively. The adoption of this standard resulted in the reclassification of (i) the unamortized debt issuance costs related to the Company's senior unsecured notes from noncurrent assets "Debt issuance costs, net" to noncurrent liabilities "Long-term debt, net" and (ii) the unamortized debt issuance costs related to the Company's Senior Secured Credit Facility from noncurrent assets "Debt issuance costs, net" to noncurrent assets "Other assets, net" within the consolidated balance sheets. See Notes 2.k and 5.h for additional discussion of debt issuance costs.

The changes to the line items in the consolidated balance sheets as of the previously reported interim periods, as if this standard had been adopted in first-quarter 2015, are presented below:



(in thousands)	June 30, 2015			March 31, 2015			December 31, 2014
Noncurrent assets:
Decrease in debt issuance costs, net	$	(26,158	)	$	(33,513	)	$	(28,463	)
Increase in other assets, net	6,068			6,873			6,615
Decrease in total assets	(20,090		)	(26,640		)	(21,848		)
Noncurrent liabilities:
Decrease in long-term debt, net	$	(20,090	)	$	(26,640	)	$	(21,848	)
Decrease in total liabilities	(20,090		)	(26,640		)	(21,848		)

In May 2014, the FASB issued a comprehensive new revenue recognition standard that supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, and industry-specific guidance in Subtopic 932-605, Extractive Activities—Oil and Gas—Revenue Recognition. The core principle of the new guidance is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for transferring those goods or services. The new standard also requires significantly expanded disclosure regarding the qualitative and quantitative information of an entity's nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. The standard creates a five-step model that requires companies to exercise judgment when considering the terms of a contract and all relevant facts and circumstances. The standard allows for several transition methods: (a) a full retrospective adoption in which the standard is applied to all of the periods presented, or (b) a modified retrospective adoption in which the standard is applied only to the most current period presented in the financial statements, including additional disclosures of the standard's application impact to individual financial statement line items. This standard is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements upon adoption of this standard.