Standard | Description | Effective Date | Effect on the Financial Statements or Other Significant Matters | |||
Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers | The standard will replace existing revenue recognition standards and significantly expand the disclosure requirements for revenue arrangements. It may be adopted either retrospectively or on a modified retrospective basis to new contracts and existing contracts with remaining performance obligations as of the effective date. | January 1, 2018; early adoption date is no earlier than the annual period beginning after December 15, 2016 | The Company is currently evaluating the alternative methods of adoption (full retrospective or modified retrospective), and the effect on its Consolidated Financial Statements and related disclosures. The Company plans to adopt this ASU on January 1, 2018. | |||
ASU 2015-11, Simplifying the Measurement of Inventory | The standard requires companies to measure inventory at the lower of cost and net realizable value, thereby simplifying the current guidance under which an entity must measure inventory at the lower of cost or market. This ASU will not apply to inventories measured by either the last-in first-out (LIFO) method or retail inventory method. | January 1, 2017 | The Company plans to adopt this ASU on January 1, 2017. Given that the majority (approximately 87% of the September 30, 2016 inventory balance) of the Company's inventory is measured using LIFO, it is not expected that the adoption of these provisions will have a material effect on its Consolidated Financial Statements. | |||
ASU 2016-02, Leases (Topic 842) | The standard requires lessees to put most leases on their balance sheet but recognize expenses in their statement of operations in a manner similar to current accounting guidance. The new standard also eliminates the current guidance related to real estate specific provisions. | January 1, 2019; early adoption is permitted | The Company is currently evaluating the impact the ASU will have on its Consolidated Financial Statements and related disclosures. The Company plans to adopt this ASU on January 1, 2019. | |||
ASU 2016-09, Compensation-Stock Compensation (Topic 718) | The standard was issued as part of the Financial Accounting Standards Board's simplification initiative. The areas for simplification involve several aspects of the accounting for share-based payment transactions, including income tax consequences, award classification as either equity or liabilities, and classification on the statement of cash flows. | January 1, 2017; early adoption is permitted | The Company adopted this ASU on January 1, 2016. The adoption did not materially impact the financial statements or related disclosures. | |||
ASU 2016-13, Financial Instruments-Credit Losses (Topic 326) | The standard will replace the currently required incurred loss impairment methodology with guidance that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to be considered in making credit loss estimates. | January 1, 2020; early adoption for fiscal years beginning after December 15, 2018 | The Company is currently evaluating the impact the ASU will have on its Consolidated Financial Statements and related disclosures. The Company plans to adopt this ASU on January 1, 2020. | |||
ASU 2016-15, Statement of Cash Flows (Topic 230) | The standard addresses eight specific cash flow issues and is intended to reduce diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. | January 1, 2018; early adoption is permitted | The Company is currently evaluating the impact the ASU will have on its Consolidated Financial Statements and related disclosures. The Company plans to adopt this ASU on January 1, 2018. |