New Accounting Pronouncements

6 Months Ended

Jun. 30, 2015

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

New Accounting Pronouncements

New Accounting Pronouncements

ASU 2015-03

In April 2015, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2015-03 (“ASU 2015-03”), “Interest—Imputation of Interest (Subtopic 835-30).” The amendments in ASU 2015-03 simplify the presentation of debt issuance costs by requiring them to be presented as a deduction from the corresponding debt liability. Recognition and measurement guidance for debt issuance costs are not affected by the amendments in this update. ASU 2015-03 is effective for the Company for annual reporting periods beginning after December 15, 2015, and for interim periods within those annual periods. Early adoption is permitted. Once adopted, the Company will apply the new guidance retrospectively to all prior periods presented in the financial statements. Upon transition, it is required to comply with applicable disclosures for a change in accounting principle. These disclosures include the nature of and reason for the change in accounting principle; the transition method; a description of prior-period information that has been retrospectively adjusted; and the effect of the change on financial statement line items. The Company is currently evaluating the impact of adoption on its consolidated financial statements.

ASU 2015-02

In February 2015, the FASB issued ASU No. 2015-02 (“ASU 2015-02”), “Consolidation (Topic 810): Amendments to the Consolidation Analysis.” ASU 2015-02 changes the analysis that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. ASU 2015-02 is effective for fiscal years, and for interim periods within those years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the impact of adoption on its consolidated financial statements.

ASU 2014-09

In May 2014, the FASB issued ASU No. 2014-09 (“ASU 2014-09”), “Revenue from Contracts with Customers (Topic 606).” The amendments in ASU 2014-09 provide guidance on revenue recognition and supersede the revenue recognition requirements in Topic 605, “Revenue Recognition,” most industry-specific guidance and some cost guidance included in Subtopic 605-35, “Revenue Recognition—Construction-Type and Production-Type Contracts.” The core principle of ASU 2014-09 is that a company will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In doing so, companies will need to use more judgment and make more estimates than is required under the current guidance. These judgments may include identifying performance obligations in the contract; estimating the amount of variable consideration to be included in the transaction price; and allocating the transaction price to each separate performance obligation. ASU 2014-09 is effective for the Company for annual reporting periods beginning after December 15, 2016, and for interim periods within those annual periods. At that time, the Company may adopt the full retrospective approach or the modified retrospective approach. On April 1, 2015, the FASB voted in favor of a one-year deferral of the effective date to December 15, 2017. Also, the FASB will permit public companies to adopt the amendment as of the original effective date. The Company is currently evaluating the method of adoption of this guidance and the impact on its consolidated financial statements.