XML 69 R26.htm IDEA: XBRL DOCUMENT v3.20.1
Significant Accounting Policies (Policies)
3 Months Ended
Mar. 31, 2020
Accounting Policies [Abstract]  
Basis of Accounting, Policy [Policy Text Block]
Basis of Presentation
 
The accompanying unaudited condensed consolidated financial statements and notes included in this Quarterly Report on Form
10
-Q have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) and should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form
10
-K for the year ended
December 31, 2019.
Certain information and note disclosures normally included in financial statements prepared in accordance with Generally Accepted Accounting Principles in the United States of America (“GAAP”) have been condensed or omitted pursuant to the rules and regulations of the SEC. The Company believes the disclosures made are adequate to make the information presented
not
misleading.
 
On
March 27, 2020,
the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was enacted in response to the COVID-
19
pandemic. The CARES Act provides for certain Federal income tax relief including the accelerated receipt of refundable Federal Alternative Minimum Tax (“AMT”) credits. This will result in the accelerated receipt by the Company of Federal AMT credits in the amount of
$2,155.
The CARES Act is
not
expected to have a material effect on the Company’s income tax provision or payments.
 
The Company consolidates the financial results of the AQ-JV based on its determination that, for accounting purposes, it holds a controlling financial interest in the joint venture and is the primary beneficiary of this variable interest entity. The Company has accounted for and reported QHL’s
fifty
percent ownership interest in the joint venture as a noncontrolling interest.
 
In the opinion of management, the unaudited condensed consolidated financial statements contain all normal, recurring adjustments necessary to present fairly the consolidated financial position, comprehensive income, stockholders’ equity and cash flows for all periods presented. Comprehensive income for the
three
-month period ended
March 31, 2020,
is
not
necessarily indicative of comprehensive income which might be expected for the entire year or any other interim periods. The balance sheet at
December 31, 2019
has been derived from the audited financial statements as of that date but does
not
include all information and notes required by GAAP for complete financial statements. Certain reclassifications have been made to the prior year financial statements to conform to the current year presentation.
Use of Estimates, Policy [Policy Text Block]
Use of Estimates
 
The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the Company’s consolidated financial statements and the accompanying notes, including estimates of operating revenues, probable losses and expenses. Actual results could differ materially from those estimates.
New Accounting Pronouncements, Policy [Policy Text Block]
Recently Adopted Accounting Pronouncements
 
Effective
January 1, 2020,
the Company adopted Accounting Standards Update (“ASU”)
No.
2018
-
13,
Fair Value Measurement (Topic
820
), Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement
” (“ASU
2018
-
13”
) on a retrospective basis. ASU
2018
-
13
eliminates the requirement to disclose (i) the amount and reasons for transfers between Level
1
and Level
2
of the fair value hierarchy; (ii) the policy for timing of transfers between levels; and (iii) the valuation processes for Level
3
fair value measurements. The new guidance also requires the disclosure of (i) changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level
3
fair value measurements held at the end of the reporting period; and (ii) the range and weighted average of significant unobservable inputs used to develop Level
3
fair value measurements. The Company did
not
have any financial assets and liabilities measured at Level
3
and had
no
transfers between Level
1
and Level
2
in the
first
quarter of
2020.
Therefore, adoption of ASU
2018
-
13
had
no
effect on the Company’s financial statements and related disclosures.
 
Effective
January 1, 2020,
the Company adopted ASU
2018
-
15
Intangibles – Goodwill and Other – Internal-Use Software (Subtopic
350
-
40
), Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract
” (“ASU
2018
-
15”
) on a prospective basis. ASU
2018
-
15
aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with those incurred to develop or obtain internal-use software, including hosting arrangements that include an internal-use software license. The Company did
not
incur any implementation costs associated with hosting arrangements that are service contracts in the
first
quarter of
2020.
Therefore, adoption of ASU
2018
-
15
had
no
effect on the Company’s financial statements and related disclosures.
 
Accounting Pronouncements
Issued
Not
Yet Adopted
 
In
June 2016,
the Financial Accounting Standards Board (“FASB”) issued ASU
No.
2016
-
13,
“Financial Instruments – Credit Losses (Topic
326
), Measurement of Credit Losses on Financial Instruments”
(“ASU
2016
-
13”
). The amendments in ASU
2016
-
13,
and subsequent amendments, introduce a forward-looking approach, based on expected losses, to estimate credit losses on certain types of financial instruments, including trade receivables. ASU
2016
-
13
is effective for the Company’s
2023
fiscal year and early adoption is permitted. Adoption on a modified-retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption is required. The Company is evaluating the effect ASU
2016
-
13
and subsequent updates will have on its financial statements and related disclosures.
 
In
August 2018,
the FASB issued ASU
No.
2018
-
14,
Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic
715
-
20
), Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans
” (“ASU
2018
-
14”
). The amendments in ASU
2018
-
14
are intended to improve the effectiveness of disclosures in the notes to the financial statements about employer-sponsored defined benefit plans. The new guidance eliminates, among other items, the requirement to disclose the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year. Expanded disclosures required under ASU
2018
-
14
include an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. ASU
2018
-
14
is effective for fiscal years beginning after
December 15, 2020
and early adoption is permitted. Adoption on a retrospective basis to all periods presented is required. The Company is evaluating the effect ASU
2018
-
14
will have on its disclosures.
 
In
December 2019,
the FASB issued ASU
No.
2019
-
12,
Income Taxes (Topic
740
), Simplifying the Accounting for Income Taxes
” (“ASU
2019
-
12”
). The amendments in ASU
2019
-
12
remove certain exceptions to the general principals of Topic
740
and improve and simplify other areas of Topic
740.
ASU
2019
-
12
is effective for fiscal years beginning after
December 15, 2020
and early adoption is permitted. Adoption is to be applied on a retrospective, modified-retrospective or prospective basis based on the specific amendment in the update. The Company is evaluating the effect ASU
2019
-
12
will have on its financial statements and related disclosures and doesn’t currently expect the effect to be material.
 
In
March 2020,
the FASB issued ASU
No.
2020
-
04,
Reference Rate Reform (Topic
848
), Facilitation of the Effects of Reference Rate Reform on Financial Reporting
” (“ASU
2020
-
04”
). The amendments in ASU
2020
-
04
provide optional guidance for a limited period of time to ease the potential burden in accounting for reference rate reform on financial reporting. The amendments apply only to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. Optional expedients for cash flow hedging relationships affected by reference rate reform are offered if certain criteria are met. The amendments in ASU
2020
-
04
are effective as of
March 12, 2020
through
December 31, 2022.
An entity
may
elect to apply the amendments in ASU
2020
-
04
to eligible hedging relationships existing as of the beginning of the interim period that includes
March 12, 2020
and to new eligible hedging relationships entered into after the beginning of the interim period that includes
March 12, 2020.
The Company is evaluating ASU
2020
-
04
and considering the possible adoption of certain expedients offered.