XML 39 R27.htm IDEA: XBRL DOCUMENT v3.10.0.1
Significant Accounting Policies (Policies)
9 Months Ended
Dec. 31, 2018
Accounting Policies [Abstract]  
New Accounting Pronouncements, Policy [Policy Text Block]
Recent
ly
Adopted
Accounting Pronouncements
 
In
May 2014,
the Financial Accounting Standards Board (FASB) issued ASU
2014
-
09,
Revenue from Contracts with Customers
, and created Topic
606
(ASC
606
), requiring an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASC
606
replaced most existing revenue recognition guidance in GAAP and is effective for fiscal years, and interim periods within those fiscal years, beginning after
December 15, 2017.
 
Effective
April 1, 2018,
the Company adopted the standard using the modified retrospective transition method. Results for reporting periods beginning after
April 1, 2018
are presented according to ASU
2014
-
09
while prior period amounts have
not
been adjusted and continue to be reported in accordance with the Company’s historic accounting policies. The Company applied the standard to all open contracts at the date of the initial application. The main area impacted by ASU
2014
-
09
includes the recognition of revenue with the Company’s Ground Equipment Sales segment transitioning from percentage of completion to point in time for its government contracts which is included in the product sales revenue stream. Additionally, certain repair service revenues which were previously recorded at a point-in-time upon completion of service are now recognized over-time. Due to the short-term nature of these contracts, over-time recognition does
not
result in a material difference from point-in-time recognition. The Company calculated the transition adjustment based on the open contracts at
April 1, 2018
and concluded that there was an immaterial impact due to the adoption of ASC
606
and thus has
not
recorded an adjustment.
 
In
January 2016,
the FASB issued ASU
2016
-
01,
Recognition and Measurement of Financial Assets and Financial Liabilities
, that amends the guidance on the classification and measurement of financial instruments (Subtopic
825
-
10
). ASU
2016
-
01
became effective in fiscal years beginning after
December 15, 2017,
including interim periods therein. ASU
2016
-
01
removes equity securities from the scope of Accounting Standards Codification (“ASC”) Topic
320
and creates ASC Topic
321,
Investments – Equity Securities
. Under the new guidance, all equity securities with readily determinable fair values are measured at fair value on the statement of financial position, with changes in fair value recorded through earnings. The update eliminates the option to record changes in the fair value of equity securities through other comprehensive income. Transitional guidance provided that entities with unrealized gains or losses on available for sale (“AFS”) equity securities were required to reclassify those amounts to beginning retained earnings in the year of adoption. The Company adopted the guidance within ASU
2016
-
01
as of
April 1, 2018.
As a result, the Company reclassified the beginning amount of accumulated other comprehensive income related to AFS securities to accumulated deficit and all changes in fair values of these securities are reflected in the Company’s consolidated statement of income (loss) for the period.
 
In
August 2016,
the FASB issued ASU
2016
-
15,
Statement of Cash Flows (Topic
230
): Classification of Certain Cash Receipts and Cash Payments
. ASU
2016
-
15
clarifies how cash receipts and cash payments in certain transactions are presented and classified in the statement of cash flows. The effective date of this update is for fiscal years, and interim periods within those fiscal years, beginning after
December 15, 2017,
with early adoption permitted. The update requires retrospective application to all periods presented but
may
be applied prospectively if retrospective application is impracticable. The Company adopted the guidance within ASU
2016
-
15
as of
April 1, 2018.
In addition, the Company elected the cumulative-earnings approach to account for distributions received from equity method investments. Under this approach, distributions are presumed to be returns on investment and classified as operating cash inflows. However, if the cumulative distributions received, less distributions received in prior periods that were determined to be returns of investment, exceed the entity’s cumulative equity in earnings, such excess is a return of capital and should be classified as cash inflows from investing activities. The adoption of this standard did
not
have a material impact on the Company’s consolidated financial statements.
 
In
November 2016,
the FASB issued ASU
2016
-
18,
Statement of Cash Flows (Topic
230
): Restricted Cash
. ASU
2016
-
18
requires that the statement of cash flows explain the changes in the combined total of restricted and unrestricted cash balance. Amounts generally described as restricted cash or restricted cash equivalents will be combined with unrestricted cash and cash equivalents when reconciling the beginning and end of period balances on the statement of cash flows. Further, the ASU requires a reconciliation of balances from the statement of cash flows to the balance sheet in situations in which the balance sheet includes more than
one
-line item of cash, cash equivalents, and restricted cash. Companies also must disclose the nature of the restrictions. ASU
2016
-
18
became effective for financial statements issued for fiscal years beginning after
December 15, 2017.
The Company adopted the guidance within ASU
2016
-
18
as of
April 1, 2018.
The impact of ASU
2016
-
18
on the Company’s financial statements was as follows: (
1
) changes in restricted cash balances are
no
longer shown in the statements of cash flows as previously presented in investing activities, as these balances are now included in the beginning and ending cash balances in the statements of cash flows; and (
2
) included within Note
4
is a reconciliation between cash balances presented on the balance sheets with the amounts presented in the statements of cash flows. The Company continued to hold restricted cash as of
December 31, 2018.
 
In
January 2017,
the FASB issued ASU
2017
-
01,
Clarifying the Definition of a Business (Topic
805
)
.
This ASU clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The guidance is effective for fiscal years that begin after
December 15, 2017
and is to be applied prospectively. The Company adopted the guidance within ASU
2017
-
01
as of
April 1, 2018.
The adoption of this standard did
not
have a material impact on the Company’s consolidated financial statements.
 
In
May 2017,
the FASB issued ASU
2017
-
09,
Compensation – Stock Compensation (Topic
718
): Scope of Modification Accounting
, which provides guidance on determining which changes to the terms and conditions of share-based payment awards require an entity to apply modification accounting. The Company adopted the guidance within ASU
2017
-
01
as of
April 1, 2018.
The adoption of this standard did
not
have a material impact on the Company’s consolidated financial statements.
 
In
August 2017,
the FASB issued ASU
2017
-
12
Derivatives and Hedging (Topic
815
): Targeted Improvements to Accounting for Hedging Activities
, which provides guidance on hedge accounting for both financial and commodity risks. The provisions in this standard create more transparency around how economic results are presented, both on the face of the financial statements and in the footnotes, for investors and analysts. The standard became effective for public companies for fiscal years beginning after
December 15, 2018.
The Company adopted the guidance early as permitted and designated both interest rate swaps as effective hedging arrangements as of
August 1, 2018.
As a result, all changes in the fair value of the derivatives subsequent to
August 1, 2018
are now reflected in the accumulated other comprehensive loss.
 
In
February 2018,
the FASB amended the
Financial Instruments Topic
of the Accounting Standards Codification. The amendments clarify certain aspects of the guidance issued in ASU
2016
-
01,
including the measurement of equity securities without a readily determinable fair value, forward contracts and purchased options and presentation of certain fair value option liabilities. Public business entities with fiscal years beginning between
December 15, 2017,
and
June 15, 2018,
are
not
required to adopt these amendments until the interim period beginning after
June 15, 2018.
The Company adopted the new standards as of
December 31, 2018.
Adoption of these amendments did
not
have a material impact on the Company’s consolidated financial statements.
 
Recently Issued Accounting Pronouncements
 
In
February 2016,
the FASB issued ASU
2016
-
02,
Leases (Topic
842
)
as amended by multiple standards updates. The new standard provides that a lessee should recognize the assets and the liabilities that arise from leases, including operating leases. Under the new requirements, a lessee will recognize in the statement of financial position a liability to make lease payments (the lease liability) and the right-of-use asset representing the right to the underlying asset for the lease term. For leases with a term of
twelve
months or less, the lessee is permitted to make an accounting policy election by class of underlying asset
not
to recognize lease assets and lease liabilities.
 
The standard is effective for fiscal years beginning after
December 15, 2018,
including interim periods within such fiscal year, with early adoption permitted. Topic
842
permits
two
transition methods: (
1
) a modified retrospective transition method requiring retrospective adjustment of each comparative presented with an adjusting entry at the beginning of the earliest comparative period presented and (
2
) a modified retrospective approach with
no
restatement of prior periods and an adjusting entry as of the effective date. Under both transition methods, entities
may
elect certain transition practical expedients that would be required to be applied to all leases. We expect to elect the package of
three
practical expedients to permit an entity to a)
not
reassess whether expired or existing contracts contain leases, b)
not
reassess lease classification for existing or expired leases and c)
not
consider whether previously capitalized initial direct costs would be appropriate under the new standard.
 
The Company will adopt the standard in the fiscal year beginning
April 1, 2019
and expects to adopt using the modified retrospective transition method that does
not
require retrospective adjustment of the comparative periods. The Company has engaged
third
party advisors to assist with the implementation. The Company is currently in the process of reviewing existing leases to determine the impact of the adoption of the standard on its consolidated financial statements. We expect to complete the project during the
fourth
quarter. The Company does
not
expect the standard to have a material effect on its statement of operations or statement of cash flows.
 
In
June 2016,
the FASB issued ASU
2016
-
13,
Financial Instruments—Credit Losses (Topic
326
): Measurement of Credit Losses on Financial Instruments
. This standard significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are
not
measured at fair value through net income, including trade receivables. The standard requires an entity to estimate its lifetime “expected credit loss” for such assets at inception, and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. For public business entities that are U.S. Securities and Exchange Commission (SEC) filers, the amendments in this update are effective for fiscal years beginning after
December 15, 2019,
including interim periods within those fiscal years. Early adoption is permitted for annual periods beginning after
December 15, 2018,
and interim periods therein. The Company is currently evaluating the impact of the adoption of the standard on its consolidated financial statements and disclosures.
 
In
January 2017,
the FASB issued ASU
2017
-
04,
Intangibles – Goodwill and Other (Topic
350
): Simplifying the Test for Goodwill Impairment
. This ASU simplifies how an entity is required to test goodwill for impairment by eliminating Step Two from the goodwill impairment test. Step Two measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. Under this standard, an entity will recognize an impairment charge for the amount by which the carrying value of a reporting unit exceeds its fair value. The standard is effective for any interim goodwill impairment tests in fiscal years beginning after
December 15, 2019
and is to be applied prospectively. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after
January 1, 2017.
The Company is currently evaluating the effects that the adoption of this ASU will have on its consolidated financial statements.
 
In
August 2018,
the FASB amended the
Fair Value Measurement (Topic
820
): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement
Topic
of the Accounting Standards Codification. The amendment is effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after
December 15, 2019.
The amendment includes different transition requirements based on the disclosure topic. Changes to disclosure requirements for unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level
3
fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other required disclosure changes should be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted upon issuance of this update. An entity is permitted to early adopt any removed or modified disclosures upon issuance of the update and delay adoption of the additional disclosures until their effective date. The Company is currently evaluating but has
not
yet concluded how the new standard will impact the consolidated financial statements.
 
In
August 2018,
the FASB amended the
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 Topic
of the Accounting Standards Codification. The amendment is effective for public business entities for fiscal years beginning after
December 15, 2019,
and interim periods within those fiscal years. For all other entities, the amendments in this update are effective for annual reporting periods beginning after
December 15, 2020,
and interim periods within annual periods beginning after
December 15, 2021.
Early adoption of the amendments in the update is permitted, including adoption in any interim period, for all entities. The amendments in the update should be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The Company is currently evaluating but has
not
yet concluded how the new standard will impact the consolidated financial statements.
 
In
October 2018,
the FASB updated the
Consolidation (Topic
810
): Targeted Improvements to Related Party Guidance for Variable Interest Entities
of the Accounting Standards Codification. The amendments in this update affect reporting entities that are required to determine whether they should consolidate a legal entity under the guidance within the Variable Interest Entities Subsections of Subtopic
810
-
10,
Consolidation—Overall. Indirect interests held through related parties in common control arrangements should be considered on a proportional basis for determining whether fees paid to decision makers and service providers are variable interests. The amendments in this update are effective for fiscal years beginning after
December 15, 2019,
and interim periods within those fiscal years. The Company is currently evaluating but has
not
yet concluded how the new standard will impact the consolidated financial statements.