Recently Issued Accounting Pronouncements

6 Months Ended

Jun. 30, 2018

Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

Note 4 – Recently Issued Accounting Pronouncements

Financial Accounting Standards Board ("FASB") Standards adopted during 2018

Standard	Summary of guidance		Effects on financial statements
ASU 2014-09, Revenue from Contracts with Customers (Topic 606)		Outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance.		Since the guidance does not apply to revenue associated with financial instruments, including loans and securities, and other contractual rights or obligations within the scope of ASC 860, Transfers and Servicing, the adoption of this standard on a modified retrospective basis on January 1, 2018 did not have a material impact on our consolidated financial statements.
Issued May 2014
ASU 2017-09, Compensation—Stock Compensation (Topic 718) Scope of Modification Accounting		Provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic 718.		The adoption of this standard had no impact on our consolidated financial statements since there were no modifications. This ASU required prospective adoption, therefore, any future award changes will be evaluated under the amended guidance.
Issued May 2017
ASU 2016-15, Statement of Cash Flows (Topic 230) – Classification of Certain Cash Receipts and Cash Payments		Provides guidance on the disclosure and classification of certain items within the statement of cash flows, including beneficial interests obtained in a securitization of financial assets, debt prepayment or extinguishment costs, and distributions received from equity-method investees.		The retrospective adoption of this standard did not have a material impact on our consolidated financial statements.  We chose the cumulative earnings approach for distributions received from equity method investees, which did not result in any changes in the way we account for such distributions.
Issued August 2016
ASU 2016-16, Income Taxes (Topic 740) – Intra-Entity Transfers of Assets Other Than Inventory		Requires that an entity recognize the income tax consequences of intra-entity transfers of assets other than inventory at the time of the transfer instead of deferring the tax consequences until the asset has been sold to an outside party, as current GAAP requires.		The modified retrospective adoption of this standard did not have a material impact on our consolidated financial statements.
Issued October 2016
ASU 2017-01, Business Combinations (Topic 805) – Clarifying the Definition of a Business		This ASU results in most real estate acquisitions no longer being considered business combinations and instead being accounted for as asset acquisitions.		The adoption of this standard did not have a material impact on our consolidated financial statements. This ASU required prospective adoption, therefore, any future acquisitions will be evaluated under the amended guidance.
Issued January 2017
ASU 2017-05, Other Income – Gains and Losses from the De-recognition of Nonfinancial Assets		Requires that all entities account for the de-recognition of a business in accordance with ASC 810, including instances in which the business is considered in substance real estate.		The retrospective adoption of this standard did not have a material impact on our consolidated financial statements.
Issued February 2017
ASU 2016-18, Statement of Cash Flows (Topic 230) - Restricted Cash		Requires that restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows.		The adoption of this standard on a retrospective basis resulted in reclassifying restricted cash out of investing activities and now is included within cash and cash equivalents on the consolidated statement of cash flows. The following table shows the impact of the adoption of this guidance.
Issued November 2016

(In Thousands)	Six Months Ended June 30, 2017
As previously reported under GAAP applicable at the time
Cash and cash equivalents at beginning of the period	$	59,566
Net increase in cash and cash equivalents		4,365
Cash and cash equivalents at end of the period	$	63,931
As currently reported under ASU 2016-18
Cash and cash equivalents and restricted cash at beginning of the period	$	79,756
Net increase in cash and cash equivalents and restricted cash		1,738
Cash and cash equivalents and restricted cash at end of the period	$	81,494

FASB Standards issued, but not yet adopted

Standard	Summary of guidance		Effects on financial statements
ASU 2016-13, Financial Instruments—Credit Losses (Topic 326) – Measurement of Credit Losses on Financial Instruments		Requires the use of an “expected loss” credit model for estimating future credit losses of certain financial instruments instead of the “incurred loss” credit model that existing GAAP currently requires.		Required effective date: Annual reporting periods, and interim periods therein, beginning after December 15, 2019. Early adoption is permitted for periods beginning after December 15, 2018.
Issued June 2016		The “expected loss” model requires the consideration of possible credit losses over the life of an instrument compared to only estimating credit losses upon the occurrence of a discrete loss event in accordance with the current “incurred loss” methodology.		The Company is evaluating the impact ASU 2016-13 will have on our consolidated financial statements.
ASU 2017-11, Earnings Per Share (Topic 260); Distinguishing Liabilities from Equity (Topic 480); Derivatives and Hedging (Topic 815)—Accounting for Certain Financial Instruments with Down Round Features		Provides guidance which changes the classification analysis of certain equity-linked financial instruments (or embedded features) with down round features.		Required effective date: Annual reporting periods, and interim periods therein, beginning after December 15, 2018. Early adoption is permitted.
Issued July 2017		When determining whether certain financial instruments should be classified as liabilities or equity instruments, a down round feature no longer precludes equity classification when assessing whether the instrument is indexed to an entity's own stock.		This standard currently would not have an impact on our consolidated financial statements. None of our issued equity or debt (in particular our convertible notes), contain down round features.
ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities		Provides guidance on simplifying the accounting and presentation for hedging activities.		This standard currently would not have an impact on our consolidated financial statements. We do not apply hedge accounting to any of our derivative instruments.
Issued August 2017