Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2018

Basis of Accounting, Policy [Policy Text Block]

Principles of Consolidation and Basis of

Presentation

The consolidated financial statements, which are prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), include our wholly owned and controlled subsidiaries and affiliates. All significant intercompany transactions and balances have been eliminated in consolidation. The Company presents noncontrolling interest within the equity section of its consolidated balance sheets. The Company presents the amount of consolidated net income that is attributable to NHC and the noncontrolling interest in its consolidated statements of operations.

Variable interest entities (“VIEs”) in which we have an interest have been consolidated when we have been identified as the primary beneficiary. Investments in ventures in which we have the ability to exercise significant influence but do

not

have control over are accounted for using the equity method. Equity method investments are initially recorded at cost and subsequently are adjusted for our share of the venture’s earnings or losses and cash distributions. Our most significant equity method investment is a

75.1%

noncontrolling ownership interest in Caris, a business that specializes in hospice care services. Investments in entities in which we lack the ability to exercise significant influence are included in the consolidated financial statements at cost unless there has been a decline in the market value of our investment that is deemed to be other than temporary.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and could cause our reported net income to vary significantly from period to period.

Revenue Recognition, Policy [Policy Text Block]

Net Patient Revenues and Accounts Receivable

Net patient revenues are derived from services rendered to patients for skilled and intermediate nursing, rehabilitation therapy, assisted living and independent living, and home health care services. Net patient revenue is reported at the amount that reflects the consideration to which the Company expects to be entitled in exchange for providing patient services. These amounts are due from patients, governmental programs, and other

third

-party payors, and include variable consideration for retroactive revenue adjustments due to settlement of audits, reviews, and investigations.

The Company recognizes revenue as its performance obligations are completed. Routine services are treated as a single performance obligation satisfied over time as services are rendered. These routine services represent a bundle of services that are

not

capable of being distinct. The performance obligations are satisfied over time as the patient simultaneously receives and consumes the benefits of the healthcare services provided. Additionally, there

may

be ancillary services which are

not

included in the daily rates for routine services, but instead are treated as separate performance obligations satisfied at a point in time when those services are rendered.

The Company determines the transaction price based on established billing rates reduced by contractual adjustments provided to

third

party payors. Contractual adjustments are based on contractual agreements and historical experience. The Company considers the patient's ability and intent to pay the amount of consideration upon admission. Subsequent changes resulting from a patient’s ability to pay are recorded as bad debt expense, which is included as a component of other operating expenses in the consolidated statements of operations. Bad debt expense was

$1,524,000,

$1,895,000,

and

$2,539,000

for years ended

December 31, 2018,

2017,

and

2016,

respectively. As of

December 31, 2018

and

2017,

the Company has recorded allowance for doubtful accounts of

$4,610,000

and

$5,041,000,

respectively, as our best estimate of probable losses inherent in the accounts receivable balance.

Revenue Recognition for Alternative Revenue Programs, Policy [Policy Text Block]

Other Revenues

As discussed in Note

other revenues include revenues from the provision of insurance services, management and accounting services to other long–term care providers, and rental income. Our insurance revenues consist of premiums that are generally paid in advance and then amortized into income over the policy period. We charge for management services based on a percentage of net revenues. We charge for accounting services based on a monthly fee or a fixed fee per bed of the long–term care center under contract. We record other revenues as the performance obligations are satisfied based on the terms of our contractual arrangements.

We recognize rental income based on the terms of our operating leases. Under certain of our leases, we receive contingent rent, which is based on the increase in revenues of a lessee over a base year. We recognize contingent rent annually or monthly, as applicable, when, based on the actual revenue of the lessee is earned.

Segment Reporting, Policy [Policy Text Block]

Segment

Reporting

In accordance with the provisions of Accounting Standards Codification “ASC”

280,

Segment Reporting

, the Company is required to report financial and descriptive information about its reportable operating segments. The Company has

two

reportable operating segments: (

) inpatient services, which includes the operation of skilled nursing facilities, assisted and independent living facilities, and

one

behavioral health hospital, and (

) homecare services. The Company also reports an “all other” category that includes revenues from rental income, management and accounting services fees, insurance services, and costs of the corporate officer. See Note

for further disclosure of the Company’s operating segments.

Other Operating Expenses Policy [Policy Text Block]

Other Operating Expenses

Other operating expenses include the costs of care and services that we provide to the residents of our facilities and the costs of maintaining our facilities. Our primary patient care costs include drugs, medical supplies, purchased professional services, food, professional insurance and licensing fees. The primary facility costs include utilities and property insurance.

Selling, General and Administrative Expenses, Policy [Policy Text Block]

General and Administrative Costs

With the Company being a healthcare provider, the majority of our expenses are "cost of revenue" items. Costs that could be classified as "general and administrative" by the Company would include its corporate office costs, excluding stock-based compensation, which were

$28.7

million,

$29.8

million, and

$28.8

million for the years ended

December 31, 2018,

2017,

and

2016,

respectively.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash and Cash Equivalents

Cash equivalents include highly liquid investments with an original maturity of

three

months or less when purchased.

Cash and Restricted Cash and Cash Equivalents and Restricted Marketable Securities [Policy Text Block]

Restricted Cash

and Cash Equivalents and Restricted Marketable Securities

Restricted cash and cash equivalents and restricted marketable securities primarily represent assets that are held by our wholly–owned limited purpose insurance companies for workers' compensation and professional liability claims.

Marketable Securities, Policy [Policy Text Block]

Investments in Marketable Securities and Restricted Marketable Securities

January 1, 2018,

the Company adopted Accounting Standards Update

No.

2016

01,

which requires the change in fair value of many equity investments to be recognized in net income. See Recently Adopted Accounting Guidance below for further discussion. Our investments in marketable equity securities are carried at fair value with the changes in unrealized gains and losses recognized in our results of operations at each measurement date subsequent to

January 1, 2018.

Our investments in marketable debt securities are classified as available for sale securities and carried at fair value with the unrealized gains and losses recognized through accumulated other comprehensive income at each measurement date. If any adjustment to fair value on our available for sale securities reflects a significant decline in the value of the security, we consider all available evidence to evaluate the extent to which the decline is "other than temporary". Credit losses are identified when we do

not

expect to receive cash flows sufficient to recover the amortized cost basis of a security. In the event of a credit loss, only the amount associated with the credit loss is recognized in earnings, with the amount of loss relating to other factors recorded as a separate component of stockholders’ equity.

Inventory, Policy [Policy Text Block]

Inventories

Inventories consist generally of food and supplies and are valued at the lower of cost or market, with cost determined on a first–in, first–out (FIFO) basis.

Finance, Loans and Leases Receivable, Policy [Policy Text Block]

Mortgage and Other Notes Receivable

In accordance with ASC Topic

310,

Receivables

, NHC evaluates the carrying values of its mortgage and other notes receivable on an instrument by instrument basis. On a quarterly basis, NHC reviews its notes receivable for recoverability when events or circumstances, including the non–receipt of contractual principal and interest payments, significant deteriorations of the financial condition of the borrower and significant adverse changes in general economic conditions, indicate that the carrying amount of the note receivable

may

not

be recoverable. If necessary, impairment is measured as the amount by which the carrying amount exceeds the discounted cash flows expected to be received under the note receivable or, if foreclosure is probable, the fair value of the collateral securing the note receivable.

Property, Plant and Equipment, Policy [Policy Text Block]

Pro

perty and Equipment

Property and equipment are recorded at cost. Depreciation is provided by the straight–line method over the expected useful lives of the assets estimated as follows: buildings and improvements,

20–

years and equipment and furniture,

3–

years. Leasehold improvements are amortized over periods that do

not

exceed the non–cancelable respective lease terms using the straight–line method.

Expenditures for repairs and maintenance are charged to expense as incurred. Betterments, which significantly extend the useful life, are capitalized. We remove the costs and related allowances for accumulated depreciation or amortization from the accounts for properties sold or retired, and any resulting gains or losses are included in income.

In accordance with ASC Topic

360,

Property, Plant, and Equipment

, we evaluate the recoverability of the carrying values of our properties on a property by property basis. We review our properties for recoverability when events or circumstances, including significant physical changes in the property, significant adverse changes in general economic conditions, and significant deteriorations of the underlying cash flows of the property, indicate that the carrying amount of the property

may

not

be recoverable. The need to recognize impairment is based on estimated future undiscounted cash flows from a property over the remaining useful life compared to the carrying value of that property. If recognition of impairment is necessary, it is measured as the amount by which the carrying amount of the property exceeds the estimated fair value of the property.

Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block]

Goodwill

The Company accounts for goodwill under ASC Topic

350,

Intangibles – Goodwill and Other

. Under the provisions of this guidance, goodwill and intangible assets with indefinite useful lives are

not

amortized but are subject to impairment tests based on their estimated fair value. Unamortized goodwill is continually reviewed for impairment in accordance with ASC Topic

350.

The Company performs its annual impairment assessment on the

first

day of the

fourth

quarter.

The following table represents activity in goodwill by segment as of and for the year ended

December 31, 2018 (

in thousands

	Year Ended December 31, 2018
	Inpatient Services		Homecare		All Other		Total
January 1, 2016	$	-	$	17,600	$	-	$	17,600
Additions		-		-		-		-
December 31, 2016		-		17,600		-		17,600
Additions		-		-		-		-
December 31, 2017		-		17,600		-		17,600
Additions		3,395		-		-		3,395
December 31, 2018	$	3,395	$	17,600	$	-	$	20,995

See Note

Non-operating income

for further detail describing the goodwill addition in

2018.

Liability Reserve Estimate, Policy [Policy Text Block]

Accrued Risk Reserves

We are principally self–insured for risks related to employee health insurance and utilize wholly–owned limited purpose insurance companies for workers’ compensation and professional liability claims. Accrued risk reserves primarily represent the accrual for risks associated with employee health insurance, workers’ compensation and professional liability claims. The accrued risk reserves include a liability for unpaid reported claims and estimates for incurred but unreported claims. Our policy with respect to a significant portion of our workers’ compensation and professional and general liability claims is to use an actuary to assist management in estimating our exposure for claims obligation (for both asserted and unasserted claims). Our health insurance reserve is based on our known claims incurred and an estimate of incurred but unreported claims determined by our analysis of historical claims paid. We reassess our accrued risk reserves on a quarterly basis, with changes in estimated losses being recorded in the consolidated statements of operations in the period

first

identified.

Other Current Liabilities [Policy Text Block]

Other Current Liabilities

Other current liabilities primarily represent accruals for current federal and state income taxes, real estate taxes and other current liabilities.

Continuing Care Contracts and Refundable Entrance Fees, Policy [Policy Text Block]

Continuing Care Contracts and Refundable Entrance Fees

We have

one

continuing care retirement center (“CCRC”) within our operations. Residents at this retirement center

may

enter into continuing care contracts with us. The contract provides that

10%

of the resident entry fee becomes non–refundable upon occupancy, and the remaining refundable portion of the entry fee is calculated using the lessor of the price at which the apartment is re–assigned or

90%

of the original entry fee, plus

40%

of any appreciation if the apartment exceeds the original resident’s entry fee.

Non-refundable fees are included as a component of the transaction price and are amortized into revenue over the actuarially determined remaining life of the resident, which is the expected period of occupancy by the resident. We pay the refundable portion of our entry fees to residents when they relocate from our community and the apartment is re-occupied. Refundable entrance fees are

not

included as part of the transaction price and are classified as non-current liabilities in the Company's consolidated balance sheets. The balances of refundable entrance fees as of

December 31, 2018

and

December

31,

2017

were

$8,078,000

and

$8,827,000,

respectively.

Obligation to Provide Future Services

We annually estimate the present value of the net cost of future services and the use of facilities to be provided to the current CCRC residents and compare that amount with the balance of non–refundable deferred revenue from entrance fees received. If the present value of the net cost of future services exceeds the related anticipated revenues, a liability is recorded (obligation to provide future services) with a corresponding charge to income. At

December 31, 2018

and

2017,

we have recorded a future service obligation in the amounts of

$2,172,000

and

$2,887,000,

respectively.

Income Tax Uncertainties, Policy [Policy Text Block]

Other Noncurrent Liabilities

Other noncurrent liabilities include reserves primarily related to various uncertain income tax positions.

Contract with Customer Liability, Policy [Policy Text Block]

Deferred Revenue

Deferred revenue includes the deferred gain on the sale of assets to National Health Corporation (“National”), as discussed in Note

18,

and entrance fees that have been and are currently being received upon reservation and occupancy in the independent living centers we operate. The non–refundable portion (

10%

) of the entrance fee is included in deferred revenue and is being recognized over the remaining life expectancies of the residents.

Income Tax, Policy [Policy Text Block]

Income Taxes

We utilize ASC Topic

740,

Income Taxes

, which requires an asset and liability approach for financial accounting and reporting for income taxes. Under this guidance, deferred tax assets and liabilities are determined based upon differences between financial reporting and tax basis of assets and liabilities and are measured using the enacted tax laws that will be in effect when the differences are expected to reverse. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. See Note

for further discussion of our accounting for income taxes.

Also, under ASC Topic

740,

Income Taxes

, tax positions are evaluated for recognition using a more–likely–than–not threshold, and those tax positions requiring recognition are measured at the largest amount of tax benefit that is greater than

percent likely of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. Liabilities for income tax matters include amounts for income taxes, applicable penalties, and interest thereon and are the result of the potential alternative interpretations of tax laws and the judgmental nature of the timing of recognition of taxable income.

Noncontrolling Interest, Policy [Policy Text Block]

Noncontrolling Interest

The noncontrolling interest in a subsidiary is presented within total equity in the Company’s consolidated balance sheets. The Company presents the noncontrolling interest and the amount of consolidated net income attributable to NHC in its consolidated statements of operations. The Company’s earnings per share is calculated based on net income attributable to NHC’s stockholders. The carrying amount of the noncontrolling interest is adjusted based on an allocation of subsidiary earnings based on ownership interest.

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

Stock

–

Based Compensation

Stock–based awards granted include stock options, restricted stock units, and stock purchased under our employee stock purchase plan. Stock–based compensation cost is measured at the grant date, based on the fair value of the awards, and is recognized as expense over the requisite service period only for those equity awards expected to vest.

The fair value of the restricted stock units is determined based on the stock price on the date of grant. We estimated the fair value of stock options and stock purchased under our employee stock purchase plan using the Black–Scholes model. This model utilizes the estimated fair value of common stock and requires that, at the date of grant, we use the expected term of the grant, the expected volatility of the price of our common stock, risk–free interest rates and expected dividend yield of our common stock. The fair value is amortized on a straight–line basis over the requisite service periods of the awards.

Comprehensive Income, Policy [Policy Text Block]

Comprehensive Income

ASC Topic

220,

Comprehensive Income,

requires that changes in the amounts of certain items, including unrealized gains and losses on restricted marketable debt securities, be shown in the consolidated financial statements as comprehensive income. We report comprehensive income in the consolidated statements of comprehensive income and also in the consolidated statements of stockholders’ equity.

Concentration Risk, Credit Risk, Policy [Policy Text Block]

Concentration of Credit Risks

Our credit risks primarily relate to cash and cash equivalents, restricted cash and cash equivalents, accounts receivable, marketable securities, restricted marketable securities and notes receivable. Cash and cash equivalents are primarily held in bank accounts and overnight investments. Restricted cash and cash equivalents is primarily invested in commercial paper and certificates of deposit with financial institutions and other interest-bearing accounts. Accounts receivable consist primarily of amounts due from patients (funded through Medicare, Medicaid, other contractual programs and through private payors) and from other health care companies for management, accounting and other services. We perform continual credit evaluations of our clients and maintain appropriate allowances for doubtful accounts on any accounts receivable proving uncollectible, and continually monitor and adjust these allowances as necessary. Marketable securities and restricted marketable securities are held primarily in accounts with brokerage institutions. Notes receivable relate primarily to secured loans with health care facilities (recorded as notes receivable in the consolidated balance sheets) as discussed in Note

11.

At any point in time we have funds in our operating accounts and restricted cash accounts that are with

third

party financial institutions. These balances in the U.S.

may

exceed the Federal Deposit Insurance Corporation (FDIC) insurance limits. While we monitor the cash balances in our operating accounts, these cash and restricted cash balances could be impacted if the underlying financial institutions fail or could be subject to other adverse conditions in the financial markets.

Our financial instruments, principally our notes receivable, are subject to the possibility of loss of the carrying values as a result of the failure of other parties to perform according to their contractual obligations. We obtain various collateral and other protective rights, and continually monitor these rights in order to reduce such possibilities of loss. We evaluate the need to provide reserves for potential losses on our financial instruments based on management's periodic review of the portfolio on an instrument by instrument basis. See Note

for additional information on the notes receivable.

New Accounting Pronouncements, Policy [Policy Text Block]

Recently Adopted Accounting Guidance

May 2014,

the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”)

No.

2014–09

“Revenue from Contracts with Customers,” also known as the “New Revenue Standard.” This update is the result of a collaborative effort by the FASB and the International Accounting Standards Board to simplify revenue recognition guidance, remove inconsistencies in the application of revenue recognition, and to improve comparability of revenue recognition practices across entities, industries, jurisdictions, and capital markets. The core principle of the guidance is 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 receive for those goods or services. The New Revenue Standard is applied through the following

five

-step process:

Identify the contract(s) with a customer.

Identify the performance obligation in the contract.

Determine the transaction price.

Allocate the transaction price to the performance obligations in the contract.

Recognize revenue when (or as) the entity satisfies a performance obligation.

For a public entity, this update is effective for annual reporting periods beginning after

December 15, 2017,

including interim periods within that reporting period by applying either the full retrospective method or the cumulative catch-up transition method.

January 1, 2018,

the Company adopted the provisions of ASU

No.

2014

09,

as amended, using the full retrospective method, which requires us to restate each prior reporting period presented. The most significant impact to NHC relates to the recording of revenue for patients that have individual copayment responsibilities and are eligible for both Medicare and Medicaid benefits (also known as dual eligible patients). As such with these patients, net patient revenues will only include the amounts expected to be collected from the patients in accordance with ASU

No.

2014

09.

Under the prior accounting guidance, we recorded the price stated in the contract as net patient revenue, and the amounts

not

collected from our patients were recorded as bad debts in other operating expenses. The adoption of ASU

No.

2014

has

impact on the Company’s accounts receivable as it was historically recorded net of allowance for doubtful accounts and contractual adjustments. The following tables present the effect on the consolidated statements of operations for the years ended

December 31, 2017

and

2016

for the accounting change that was retrospectively adopted on

January 1, 2018:

Consolidated

Statements of

perations

(

in thousands

)

	Year Ended December 31, 2017
	As Previously Reported		Effect of Accounting Change			As Adjusted

Net patient revenues	$	919,843	$	(3,101	)	$	916,742
Net operating revenues		966,996		(3,101	)		963,895
Other operating expenses		252,934		(3,101	)		249,833
Total costs and expenses		912,886		(3,101	)		909,785
Net income		55,682		–			55,682

	Year Ended December 31, 2016
	As Previously Reported		Effect of Accounting Change			As Adjusted

Net patient revenues	$	880,724	$	(3,058	)	$	877,666
Net operating revenues		926,638		(3,058	)		923,580
Other operating expenses		233,833		(3,058	)		230,775
Total costs and expenses		866,096		(3,058	)		863,038
Net income		50,538		–			50,538

January 2016,

the FASB issued ASU

No.

2016–01,

“Financial Instruments – Recognition and Measurement of Financial Assets and Financial Liabilities (Topic

825

).” ASU

No.

2016–01

revises the classification and measurement of investments in certain equity investments and the presentation of certain fair value changes for certain financial liabilities measured at fair value. ASU

No.

2016–01

requires the change in fair value of many equity investments to be recognized in net income. On

January 1, 2018,

the Company adopted the provisions of ASU

No.

2016

using the modified retrospective method as required by the standard. The adoption of ASU

No.

2016

resulted in a

$68,073,000

reclassification of net unrealized gains from accumulated other comprehensive income (“AOCI”) to the opening balance of retained earnings. For the year ended

December 31, 2018,

the Company recognized a gain of

$1,138,000

in our consolidated statement of operations related to the change in fair value of our marketable equity securities. The adoption of ASU

No.

2016

increases the volatility of other income due to the market fluctuation of our marketable equity securities.

August 2016,

the FASB issued ASU

No.

2016

15,

“Clarification on Classification of Certain Cash Receipts and Cash Payments on the Statements of Cash Flows.” ASU

No.

2016

was issued to create consistency in the classification of

eight

specific cash flow items and provides an accounting policy election for classifying distributions received from equity method investments. Such equity method investment distributions are now classified using a

) cumulative earnings approach, or

) nature of distribution approach. On

January 1, 2018,

the Company adopted the provisions of ASU

No.

2016

and this standard did

not

have a material impact on our consolidated financial statements.

May 2017,

the FASB issued ASU

No.

2017

09,

“Compensation – Stock Compensation (Topic

718

): Scope of Modification Accounting.” ASU

No.

2017

amends the scope of modification accounting for share-based payment arrangements. The ASU provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting under Accounting Standards Codification ("ASC")

718.

January 1, 2018,

the Company adopted the provisions of ASU

No.

2017

and this standard did

not

have a material impact on our consolidated financial statements.

February 2018,

the FASB issued ASU

No.

2018

02,

“Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” ASU

No.

2018

permits a company to reclassify disproportionate tax effects in accumulated other comprehensive income caused by the Tax Cuts and Jobs Act of

2017

to retained earnings. The FASB refers to these amounts as “stranded tax effects.” On

January 1, 2018,

the Company early adopted the provisions of ASU

No.

2018

02.

The adoption of this standard resulted in an adjustment of accumulated other comprehensive income, with a corresponding adjustment to the opening balance of retained earnings in the amount of

$128,000,

related to the stranded tax effects of the unrealized losses in our restricted marketable debt securities.

Recent Accounting Guidance

Not

Yet Adopted

February 2016,

the FASB issued ASU

No.

2016

02,

"Leases (Topic

842

)." The objective of this update is to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. This ASU is effective for fiscal years beginning after

December 15, 2018,

including interim periods within those annual periods and is to be applied utilizing a modified retrospective approach. We anticipate this standard will have a material impact on our consolidated financial statements and will result in an increase in total assets and total liabilities.

The Company adopted the standard as of

January 1, 2019,

electing the transition method that allows it to apply the standard as of the adoption date and record a cumulative adjustment in retained earnings, if applicable. The Company has elected the package of practical expedients permitted under the transition guidance within the new guidance, which among other things, permits the Company to

not

reassess under the new standard its prior conclusions about lease identification and lease classification. In addition, the new standard provides practical expedients for an entity’s ongoing accounting that the Company anticipates making, such as (

) the election for certain classes of underlying assets to

not

separate non-lease components from lease components and (

) the election for short-term lease recognition exemption for all leases that qualify.

While substantially complete, the Company is still in the process of finalizing its evaluation of the effect of Topic

842

on the Company’s financial statements and disclosures. The Company will finalize its accounting assessment and quantitative impact of the adoption during the

first

quarter of fiscal year

2019.

The Company will continue to monitor industry activities and any additional guidance provided by regulators, standards setters, or the accounting profession, and adjust the Company’s assessment and implementation plans accordingly. Additionally, we are currently evaluating the impact this standard will have on our policies and procedures and internal control framework.

June 2016,

the FASB issued ASU

No.

2016

13,

"Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments." ASU

No.

2016

replaces the current incurred loss impairment methodology for credit losses with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This ASU is effective for fiscal years beginning after

December 15, 2019,

including interim periods within those annual periods, with early adoption permitted for fiscal years beginning after

December 15, 2018.

We are currently evaluation the impact this standard will have on our policies and procedures and internal control framework.

Reclassification, Policy [Policy Text Block]

Prior Period Classifications

Certain amounts in prior periods have been reclassified to conform with current period presentation.