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Recent Accounting Standards (Notes)
12 Months Ended
Dec. 31, 2018
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]  
Recent Accounting Standards
Recent Accounting Standards
Accounting pronouncements not listed below were assessed and determined to be not applicable or are expected to have minimal impact on our Consolidated Financial Statements.
Revenue Recognition
See Notes 1 and 2 for further discussion on the adoption of ASC 606.
Employee Benefits
In August 2018, the Financial Accounting Standards Board (the "FASB") issued amended guidance that modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans by removing disclosures that are no longer considered cost beneficial, clarifying requirements for certain disclosures, and adding disclosure requirements identified as relevant. The amended guidance is effective December 31, 2020, with early adoption permitted. We early adopted this amended guidance prospectively as of the quarter ended December 31, 2018. The adoption of this amended guidance did not have a significant impact on our Consolidated Financial Statements.
Derivatives and Hedging
In August 2017, the FASB issued amended guidance on hedge accounting which expands an entity’s ability to hedge non-financial and financial risk components and aligns the recognition and presentation of the effects of the hedging instrument and the hedged item in the financial statements. The new guidance also eliminates the requirement to separately measure and report hedge ineffectiveness. This amended guidance is effective beginning January 1, 2019, with early adoption permitted. We early adopted this amended guidance prospectively as of the quarter ended December 31, 2018, and applied the adoption as of January 1, 2018, as required. The adoption of this amended guidance did not have a significant impact on our Consolidated Financial Statements.
Financial Instrument Credit Losses
In June 2016, the FASB issued amended guidance on the accounting for credit losses on certain types of financial instruments, including trade receivables. The new model uses a forward-looking expected loss method, as opposed to the incurred loss method in current U.S. GAAP, which will generally result in earlier recognition of allowances for losses. This amended guidance is effective beginning January 1, 2020, with early adoption permitted as early as January 1, 2019. We are currently assessing the impact the adoption of the amended guidance will have on our Consolidated Financial Statements.
Leases
In February 2016, the FASB issued amended guidance on lease accounting which requires an entity to recognize a right-of-use asset and a corresponding lease liability on its balance sheet for virtually all of its leases with a term of more than 12 months, including those classified as operating leases. Both the asset and liability will initially be measured at the present value of the future minimum lease payments, with the asset being subject to adjustments such as initial direct costs. Consistent with current U.S. GAAP, the presentation of expenses and cash flows will depend primarily on the classification of the lease as either a finance or an operating lease. The new standard also requires additional quantitative and qualitative disclosures regarding the amount, timing and uncertainty of cash flows arising from leases in order to provide additional information about the nature of an organization’s leasing activities. This amended guidance, which is effective beginning January 1, 2019, requires modified retrospective application, and allows for the application of the new guidance at the adoption date. We have made significant progress in implementing the system upgrades required to adopt the leasing standard, and are currently in the process of establishing appropriate controls and procedures surrounding the new guidance. As an accounting policy, we have elected not to apply the recognition requirements to short-term leases, not to separate non-lease components from lease components, and have elected the package of practical expedients as it relates to reassessment of existing leases as granted by the FASB. We do not expect the adoption of this amended guidance to have a significant impact on our Consolidated Statements of Operations, but will result in an estimated right-of-use asset and lease liability between $1,300.0 to $1,600.0 each on our Consolidated Balance Sheet effective January 1, 2019.
Fair Value Measurements
In January 2016, the FASB issued amended guidance that updates the fair value presentation requirements for certain financial instruments. Equity investments with readily determinable fair values, other than those accounted for using the equity method of accounting, will be measured at fair value with changes recorded through current earnings rather than other comprehensive income. This amended guidance was effective January 1, 2018. The adoption of this amended guidance did not have a significant impact on our Consolidated Financial Statements.