Summary of SIgnificant Accounting Policies

3 Months Ended

Mar. 31, 2015

Summary of Significant Accounting Policies

Significant Accounting Policies [Text Block]

NOTE 2.Summary of Significant Accounting Policies

Basis of Presentation

The accompanying Unaudited Condensed Consolidated Financial Statements include the accounts of DigitalGlobe, Inc. and its wholly owned subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. These Unaudited Condensed Consolidated Financial Statementshave been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”). Certain prior year amounts have been reclassified to conform to the current year presentation.

These Unaudited Condensed Consolidated Financial Statements should be read in conjunction with the Company’s annual audited consolidated financial statements and notes thereto included in the Company’s most recent Annual Report on Form 10-K filed with the U.S. Securities and Exchange Commission (“SEC”). In our opinion, all adjustments of a normal recurring nature that are necessary for a fair statement of the accompanying Unaudited Condensed Consolidated Financial Statements have been included. The December 31, 2014 Condensed Consolidated Balance Sheet was derived from audited financial statements, but does not include all disclosures required in the annual financial statements prepared in accordance with U.S. GAAP. The results of operations for the three month period ended March 31, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015 or for any future period.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in these Unaudited Condensed Consolidated Financial Statements and accompanying notes. Due to the inherent uncertainties in making estimates, actual results could differ materially from those estimates.

Recent Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-09,Revenue from Contracts with Customers (Topic 606)(“ASU 2014-09”), which supersedes nearly all existing revenue recognition guidance under U.S. GAAP. ASU 2014-09 provides for a single five-step model to be applied to all revenue contracts with customers and significantly expands disclosure requirements. ASU 2014-09 permits two methods of adoption: retrospectively to each prior reporting period presented or retrospectively with the cumulative effect of initially applying the new standard recognized at the date of initial application.

The new standard is effective beginning on January 1, 2017 for the Company and early adoption is not permitted.  The Company continues to evaluate the impact of ASU 2014-09 and available adoption methods on our consolidated financial statements.

In April 2015, the FASB issued ASU 2015-03,Simplifying the Presentation of Debt Issuance Costs (“ASU 2015-03”), which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the associated debt liability.  The new standard is effective beginning on January 1, 2016 for the Company and early adoption is permitted for financial statements not previously issued.  The Company continues to evaluate the impact of ASU 2015-03 and available adoption methods on our consolidated financial statements.