New Accounting Pronouncements

12 Months Ended

Dec. 31, 2015

New Accounting Pronouncements

New Accounting Pronouncements

(2) New Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update No. 2014-09 (“ASU 2014-09”), “Revenue from Contracts with Customers,” which stipulates that an entity should recognize revenue to depict 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.  To achieve this core principle, an entity should apply the following steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract(s); (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract(s); and (5) recognize revenue when (or as) the entity satisfies a performance obligation.  The new guidance will be effective for the Company beginning January 1, 2018, with early adoption permitted for annual periods beginning after December 15, 2016.  The Company is currently evaluating the impact of the adoption of ASU 2014-09 on the Company’s Consolidated Financial Statements.

In August 2014, the FASB issued Accounting Standards Update No. 2014-15 (“ASU 2014-15”), “Disclosure of Uncertainties About an Entity’s Ability to Continue as a Going Concern.” ASU 2014-15 requires management to perform interim and annual assessments of an entity’s ability to continue as a going concern for a period of one year after the date the financial statements are issued and provides guidance on determining when and how to disclose going concern uncertainties in the financial statements. Certain disclosures will be required if conditions give rise to substantial doubt about an entity’s ability to continue as a going concern. ASU 2014-15 applies to all entities and is effectivefor the Company beginning January 1, 2017, with early adoption permitted. The Company does not expect that the adoption of this standard will have a material effect on the Company’s Consolidated Financial Statements.

In August 2015, the FASB issued Accounting Standards Update No. 2015-17 (“ASU 2015-17”), “Balance Sheet Classification of Deferred Taxes,” which no longer requires separate disclosure of current and noncurrent deferred income tax assets and liabilities.  ASU 2015-17 is effective for fiscal years beginning after December 15, 2017, with early adoption permitted.  Because the Company believes it simplifies the presentation of deferred income taxes, it adopted ASU 2015-17 retrospectively in 2015.  As a result, $434 of current deferred tax assets that were included in prepaid expenses and other current assets at December 31, 2014 have been reclassified to deferred tax liabilities, net on the Company’s Consolidated Balance Sheets.