Recent Accounting Pronouncements

12 Months Ended

Sep. 30, 2018

Accounting Changes And Error Corrections [Abstract]

Recent Accounting Pronouncements

3. Recent Accounting Pronouncements

Income Taxes

In February 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-02, Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. This guidance provides the option to reclassify the stranded tax effects caused by the newly enacted US Tax Cuts and Jobs Act (“2017 Tax Act”) from accumulated other comprehensive income to retained earnings. The Company early adopted this guidance in the first quarter of fiscal 2018, which impacted the Company’s consolidated statements of changes in stockholders’ equity by decreasing Accumulated Deficit and increasing Accumulated Other Comprehensive Loss by $3,466.

Revenue Recognition

In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers, which was further updated in March and April 2016. The updated accounting guidance clarifies the principles for recognizing revenue and provides a single, contract-based revenue recognition model in order to create greater comparability for financial statement users across industries and jurisdictions. The core principle of the revenue model is that an entity recognizes revenue to depict the transfer of promised goods or services to clients in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company will adopt the guidance in the first quarter of fiscal 2019 and will use the modified retrospective approach transition method to all contracts as of the date of initial application. The cumulative adoption impact is not material.  The Company continues to assess the disclosure requirements and controls.

Intra-Entity Transfers of Assets Other ThanInventory

In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. This guidance requires that an entity recognizes the income tax consequences of anintra- entity transfer of an asset other than inventory when the transfer occurs. The Company will adopt the guidance in the first quarter of fiscal 2019. The Company currently does not expect the adoption of ASU 2016-16 to have a material impact on its consolidated financialstatements.  

Hedging Activities

In August 2017, the FASB issued ASU No. 2017-12, Targeted Improvements to Accounting for Hedging Activities which amends and simplifies existing guidance to allow companies to more accurately present the economic effects of risk management activities in the financial statements. The amendments in this ASU are effective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. For cash flow and net investment hedges as of the adoption date, the guidance requires a modified retrospective approach. The amended presentation and disclosure guidance is required only prospectively. The Company will adopt the guidance in the first quarter of fiscal 2019.  The Company currently does not expect the adoption of ASU 2017-12 to have a material impact on its consolidated financial statements.

Leases

In February 2016, the FASB issued ASU No. 2016-02, Leases. The updated accounting guidance requireslessees to recognize all leases on their balance sheet as a right-of-use asset and a lease liability with the exceptionof short-term leases. For income statement purposes, the criteria for recognition, measurement and presentationof expense is largely similar to previous guidance, but without the requirement to use bright-line tests inthe determination of lease classification. The updated accounting guidance for a lessor is largely unchangedfrom previous guidance but has been updated to align with certain changes to the lessee model and the newrevenue recognition standard. The updated accounting guidance is effective for the Company as of October 1, 2019and early adoption is permitted. In July 2018, the FASB issued ASU No. 2018-11, Leases: Targeted Improvements, which allows entities the option to adopt this standard prospectively with a cumulative-effect adjustment to opening equity and include required disclosures for prior period. The Company is currently evaluating the impact the updated accounting guidance will have on its consolidated financial statements and anticipates adopting the standard prospectively, in accordance with ASU No. 2018-11.

Fair Value Measurement

In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement which modifies the disclosures on fair value measurements by removing the requirement to disclose the amount and reason for transfers between Level 1 and Level 2 of the fair value hierarchy and the policy for timing of such transfers.  The ASU expands the disclosure requirements for Level 3 fair value measurements, primarily focused on changes in unrealized gains and losses included in other comprehensive income. For public entities, the standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019.  Early adoption is permitted for any removed or modified disclosures and adoption of the additional disclosures can be delayed until the effective date. The Company does not currently expect the adoption of ASU 2018-13 to have a material impact on its consolidated financial statements.