Recently Issued and Adopted Accounting Standards

12 Months Ended

Dec. 31, 2021

Accounting Standards Update and Change in Accounting Principle [Abstract]

Recently Issued and Adopted Accounting Standards

3.Recently Issued and Adopted Accounting Standards

Accounting Pronouncements Adopted in 2021

Accounting Standards Update (“ASU”) 2020-04 - Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“ASU 2020-04”). On March 12, 2020, the FASB issued ASU 2020-04 and related amendments to ease the potential burden in accounting for reference rate reform. The amendments in ASU 2020-04 are elective and apply to all entities that have contracts, hedging relationships, and other transactions that reference the London Inter-bank Offer Rate (“LIBOR”) or another reference rate expected to be discontinued due to reference rate reform. The new guidance provides the following optional expedients:

•Simplify accounting analyses for contract modifications.

•Allow hedging relationships to continue without de-designation if there are qualifying changes in the critical terms of an existing hedging relationship due to reference rate reform.

•Allow a change in the systematic and rational method used to recognize in earnings the components excluded from the assessment of hedge effectiveness.

•Allow a change in the designated benchmark interest rate to a different eligible benchmark interest rate in a fair value hedging relationship.

•Allow the shortcut method for a fair value hedging relationship to continue for the remainder of the hedging relationship.

•Simplify the assessment of hedge effectiveness and provide temporary optional expedients for cash flow hedging relationships affected by reference rate reform.

•Allow a one-time election to sell or transfer debt securities classified as held to maturity that reference a rate affected by reference rate reform and that are classified as held to maturity before January 1, 2020.

The amendments are effective for all entities from the beginning of an interim period that includes the issuance date of the ASU. An entity may elect to apply the amendments prospectively through December 31, 2022. The Company adopted ASU 2020-04 and related amendments on December 31, 2021, and the adoption of this guidance did not have a material impact on the Company's consolidated balance sheets, statements of income, and cash flows.