1.	DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Bel Fuse Inc. and subsidiaries ("Bel," the "Company," "we," "us," and "our") design, manufacture and sell a broad array of products that power, protect and connect electronic circuits. These products are used in the networking, telecommunication, high-speed data transmission, commercial aerospace, military, broadcasting, transportation and consumer electronic industries around the world. We manage our operations by product group through our reportable operating segments, Cinch Connectivity Solutions, Power Solutions and Protection and Magnetic Solutions, in addition to a Corporate segment.

All amounts included in the tables to these notes to consolidated financial statements, except per share amounts, are in thousands.

Principles of Consolidation

- The consolidated financial statements include all of the accounts of the Company and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.

Reclassifications

- During the

fourth

quarter of

2019,

the Company changed its financial statement presentation of research and development costs. These costs were previously included within cost of sales and were a factor in arriving at gross profit. Research and development costs in the amount of

$26.9

million and

$29.5

million have been reclassified from cost of sales to a separate line item below gross profit in the accompanying statements of operations for the years ended

December 31, 2019

and

2018,

respectively. Also during the

fourth

quarter of

2019,

the Company changed its financial statement presentation related to gain/loss on foreign currency exchange. These gains/losses were previously included within selling, general and administrative expense. Gains on foreign currency exchange in the amount of

$0.1

million and

$2.7

million have been reclassified from selling, general and administrative expense and are now included within other (expense) income, net on the accompanying statements of operations for the years ended

December 31, 2019

and

2018,

respectively. These changes in presentation are consistent with that of our peers.

Use of Estimates

- The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America ("U.S. GAAP") requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and related disclosure of contingent assets and liabilities. On an on-going basis, we evaluate our estimates, including but

not

limited to those related to product returns, provisions for bad debt, inventories, goodwill, intangible assets, investments, Supplemental Executive Retirement Plan ("SERP") expense, income taxes, contingencies, litigation and the impact related to tax reform. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are

not

readily apparent from other sources. Actual results

may

differ from these estimates under different assumptions or conditions.

Cash Equivalents

- Cash equivalents include short-term investments in money market funds and certificates of deposit with an original maturity of

three

months or less when purchased. Accounts at each U.S. institution are insured by the Federal Deposit Insurance Corporation ("FDIC") up to

$250,000.

Some of our balances are in excess of the FDIC insured limit.

Allowance for Doubtful Accounts

- We maintain an allowance for doubtful accounts for estimated losses from the inability of our customers to make required payments. We determine our allowance by both specific identification of customer accounts where appropriate and the application of historical loss experience to non-specific accounts.

Effects of Foreign Currency

– In non-U.S. locations that are

not

considered highly inflationary, we translate the non-equity components of our foreign balance sheets at the end of period exchange rates with translation adjustments accumulated within stockholders' equity on our consolidated balance sheets. We translate the statements of operations at the average exchange rates during the applicable period. In connection with foreign currency denominated transactions, including multi-currency intercompany payable and receivable transactions and loans, the Company incurred net realized and unrealized currency exchange gains of

$0.1

million and

$2.7

million for the years ended

December 31, 2019

and

2018

, respectively, which were included in other (expense) income, net on the consolidated statements of operations.

Concentration of Credit Risk

- Financial instruments which potentially subject us to concentrations of credit risk consist principally of accounts receivable and temporary cash investments. We grant credit to customers that are primarily original equipment manufacturers and to subcontractors of original equipment manufacturers based on an evaluation of the customer's financial condition, without requiring collateral. Exposure to losses on receivables is principally dependent on each customer's financial condition. We control our exposure to credit risk through credit approvals, credit limits and monitoring procedures and establish allowances for anticipated losses. See Note

12,

"Segments," for disclosures regarding significant customers.

We place temporary cash investments with quality financial institutions and commercial issuers of short-term paper and, by policy, limit the amount of credit exposure in any

one

financial instrument.

Inventories

- Inventories are stated at the lower of weighted-average cost or market. Costs related to inventories include raw materials, direct labor and manufacturing overhead which are included in cost of sales on the consolidated statements of operations. The Company utilizes the average cost method in determining amounts to be removed from inventory.

Revenue Recognition

– On

January 1, 2018,

the Company adopted ASC

606

using the modified retrospective method applied to those contracts which were

not

completed as of

January 1, 2018.

The adoption of ASC

606

represents a change in accounting principle that more closely aligns revenue recognition with the transfer of control of the Company's goods and services and provides financial statement readers with enhanced disclosures related to the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers.

In accordance with ASC

606,

revenue is recognized when a customer obtains control of promised goods or services. The amount of revenue recognized reflects the consideration to which the Company expects to be entitled to receive in exchange for these goods and services.

Taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction, that are collected by the Company from a customer, are excluded from revenue.

Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are included in cost of sales.

Product Warranties

– Warranties vary by product line and are competitive for the markets in which the Company operates. Warranties generally extend for

one

three

years from the date of sale, providing customers with assurance that the related product will function as intended. The Company reviews its warranty liability quarterly based on an analysis of actual expenses and failure rates accompanied with estimated future costs and projected failure rate trends. Factors taken into consideration when evaluating our warranty reserve are (i) historical claims for each product, (ii) volume increases, (iii) life of warranty, (iv) historical warranty repair costs and (v) other factors. To the extent that actual experience differs from our estimate, the provision for product warranties will be adjusted in future periods. Actual warranty repair costs are charged against the reserve balance as incurred. See Note

11,

"Accrued Expenses."

Product Returns

– We estimate product returns, including product exchanges under warranty, based on historical experience. In general, the Company is

not

contractually obligated to accept returns except for defective product or in instances where the product does

not

meet the Company's product specifications. However, the Company

may

permit its customers to return product for other reasons. In certain instances, the Company would generally require a significant cancellation penalty payment by the customer. The Company estimates such returns, where applicable, based upon management's evaluation of historical experience, market acceptance of products produced and known negotiations with customers. Such estimates are deducted from sales and provided for at the time revenue is recognized. Distribution customers often receive what is referred to as "ship and debit" arrangements, whereby Bel will invoice them at an agreed upon unit price upon shipment of product and a price reduction

may

be granted if the market price of the product declines after shipment. Distributors

may

also be entitled to special pricing discount credits, and certain customers are entitled to return allowances based on previous sales volumes. Bel deducts estimates for anticipated credits, refunds and returns from sales each quarter based on historical experience.

Goodwill and Identifiable Intangible Assets

– Goodwill represents the excess of the aggregate of the following (

) consideration transferred, (

) the fair value of any noncontrolling interest in the acquiree and, (

) if the business combination is achieved in stages, the acquisition-date fair value of our previously held equity interest in the acquiree over the net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed.

Identifiable intangible assets consist primarily of patents, licenses, trademarks, trade names, customer lists and relationships, non-compete agreements and technology-based intangibles and other contractual agreements. We amortize finite lived identifiable intangible assets over the shorter of their stated or statutory duration or their estimated useful lives, ranging from

years, on a straight-line basis to their estimated residual values and periodically review them for impairment. Total identifiable intangible assets comprise

15.4%

and

14.1%

2019

and

2018

, respectively, of our consolidated total assets.

We use the acquisition method of accounting for all business combinations and do

not

amortize goodwill or intangible assets with indefinite useful lives. Goodwill and intangible assets with indefinite useful lives are tested for possible impairment annually during the

fourth

quarter of each fiscal year or more frequently if events or changes in circumstances indicate that the asset might be impaired.

Impairment and Disposal of Long-Lived Assets

– For definite-lived intangible assets, such as customer relationships, contracts, intellectual property, and for other long-lived assets, such as property, plant and equipment, whenever impairment indicators are present, we perform a review for impairment. We calculate the undiscounted value of the projected cash flows associated with the asset, or asset group, and compare this estimated amount to the carrying amount. If the carrying amount is found to be greater, we record an impairment loss for the excess of book value over the fair value. In addition, in all cases of an impairment review, we re-evaluate the remaining useful lives of the assets and modify them, as appropriate.

For indefinite-lived intangible assets, such as trademarks and trade names, each year and whenever impairment indicators are present, we determine the fair value of the asset and record an impairment loss for the excess of book value over the fair value, if any. In addition, in all cases of an impairment review we re-evaluate whether continuing to characterize the asset as indefinite-lived is appropriate. See Note

"Goodwill and Other Intangible Assets," for additional details.

Depreciation

- Property, plant and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization are calculated primarily using the straight-line method over the estimated useful life of the asset. The estimated useful lives primarily range f

rom

years for buildings and leasehold improvements, and from

ars for machinery and equipment.

Income Taxes

- We account for income taxes under the asset and liability method, which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the consolidated financial statements. Under this method, deferred tax assets and liabilities are determined based on the differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period that includes the enactment date. See Note

“Income Taxes”.

We record net deferred tax assets to the extent we believe these assets will more-likely-than-

not

be realized. In making such determination, we consider all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax planning strategies and recent financial operations. We have established valuation allowances for deferred tax assets that are

not

likely to be realized. In the event we were to determine that we would be able to realize our deferred income tax assets in the future in excess of our net recorded amount, we would adjust the valuation allowance, which would reduce the provision for income taxes.

We establish liabilities for tax contingencies when, despite the belief that our tax return positions are fully supported, it is more likely than

not

that certain positions

may

be challenged and

may

not

be fully sustained. The tax contingency liabilities are analyzed on a quarterly basis and adjusted based upon changes in facts and circumstances, such as the conclusion of federal and state audits, expiration of the statute of limitations for the assessment of tax, case law and emerging legislation. Our effective tax rate includes the effect of tax contingency liabilities and changes to the liabilities as considered appropriate by management.

(Loss) Earnings per Share

– We utilize the

two

-class method to report our (loss) earnings per share. The

two

-class method is a (loss) earnings allocation formula that determines (loss) earnings per share for each class of common stock according to dividends declared and participation rights in undistributed (losses) earnings. The Company's Certificate of Incorporation, as amended, states that Class B common shares are entitled to dividends at least

greater than dividends paid to Class A common shares, resulting in the

two

-class method of computing (loss) earnings per share. In computing (loss) earnings per share, the Company has allocated dividends declared to Class A and Class B based on amounts actually declared for each class of stock and

more of the undistributed (losses) earnings have been allocated to Class B shares than to the Class A shares on a per share basis. Basic (loss) earnings per common share are computed by dividing net (loss) earnings by the weighted-average number of common shares outstanding during the period. Diluted (loss) earnings per common share, for each class of common stock, are computed by dividing net (loss) earnings by the weighted-average number of common shares and potential common shares outstanding during the period. There were

potential common shares outstanding during the years ended

December 31, 2019

and

2018

which would have had a dilutive effect on (loss) earnings per share.

The (loss) earnings and weighted average shares outstanding used in the computation of basic and diluted (loss) earnings per share are as follows:

	Year Ended December 31,
	2019			2018
Numerator:
Net (loss) earnings	$	(8,743	)	$	20,709
Less dividends declared:
Class A		518			522
Class B		2,834			2,796
Undistributed (loss) earnings	$	(12,095	)	$	17,391

Undistributed (loss) earnings allocation - basic and diluted:
Class A undistributed (loss) earnings	$	(2,049	)	$	2,999
Class B undistributed (loss) earnings		(10,046	)		14,392
Total undistributed (loss) earnings	$	(12,095	)	$	17,391

Net (loss) earnings allocation - basic and diluted:
Class A net (loss) earnings	$	(1,531	)	$	3,521
Class B net (loss) earnings		(7,212	)		17,188
Net (loss) earnings	$	(8,743	)	$	20,709

Denominator:
Weighted average shares outstanding:
Class A - basic and diluted		2,167			2,175
Class B - basic and diluted		10,117			9,939

Net (loss) earnings per share:
Class A - basic and diluted	$	(0.71	)	$	1.62
Class B - basic and diluted	$	(0.71	)	$	1.73

Research and Development ("R&D")

- Our engineering groups are strategically located around the world to facilitate communication with and access to customers' engineering personnel. This collaborative approach enables partnerships with customers for technical development efforts. On occasion, we execute non-disclosure agreements with our customers to help develop proprietary, next generation products destined for rapid deployment. R&D costs are expensed as incurred, and are shown as a separate line within operating expenses on the consolidated statements of operations. Generally, R&D is performed internally for the benefit of the Company. R&D costs include salaries, building maintenance and utilities, rents, materials, administration costs and miscellaneous other items. R&D expenses for the years ended

December 31, 2019

and

2018

amounted to

$26.9

million and

$29.5

million, respectively.

Fair Value Measurements

- We utilize the accounting guidance for fair value measurements and disclosures for all financial assets and liabilities and nonfinancial assets and liabilities that are recognized or disclosed at fair value in the consolidated financial statements on a recurring basis or on a nonrecurring basis during the reporting period. The fair value is an exit price, representing the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants based upon the best use of the asset or liability at the measurement date. The Company utilizes market data or assumptions that market participants would use in pricing the asset or liability. We classify our fair value measurements based on the lowest level of input included in the established

three

-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers are defined as follows:

Level

- Observable inputs such as quoted market prices in active markets

Level

- Inputs other than quoted prices in active markets that are either directly or indirectly observable

Level

- Unobservable inputs about which little or

market data exists, therefore requiring an entity to develop its own assumptions

For financial instruments such as cash and cash equivalents, accounts receivable, accounts payable and accrued expenses, the carrying amount approximates fair value because of the short maturities of such instruments. See Note

"Fair Value Measurements," for additional disclosures related to fair value measurements.

Recently Issued Accounting Standards

Recently Adopted Accounting Standards

February 2016,

the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”)

2016

02,

Leases (Topic

842

) (“ASU

2016

02”

)

, to provide a new comprehensive model for lease accounting. Under this guidance, lessees and lessors should apply a “right-of-use” model in accounting for all leases (including subleases) and eliminate the concept of operating leases and off-balance sheet leases. Recognition, measurement and presentation of expenses will depend on classification as a finance or operating lease. Similar modifications have been made to lessor accounting in-line with revenue recognition guidance. This guidance was effective for annual periods and interim periods within those annual periods beginning after

December 15, 2018.

The amendments also require certain quantitative and qualitative disclosures about leasing arrangements.

The Company adopted ASU

2016

02,

as amended, effective

January 1, 2019

using the modified retrospective approach. In connection with the adoption, we elected to utilize the Comparatives Under

840

Option whereby the Company will continue to present prior period financial statements and disclosures under ASC

840.

In addition, we elected the transition package of

three

practical expedients permitted within the standard, which eliminates the requirements to reassess prior conclusions about lease identification, lease classification and initial direct costs. Further, we elected a short-term lease exception policy, permitting us to

not

apply the recognition requirements of this standard to short-term leases (i.e. leases with terms of

months or less) and an accounting policy to account for lease and non-lease components as a single component for certain classes of assets. We implemented a new lease system to facilitate the requirements of the new standard and completed the necessary changes to our accounting policies, processes, disclosures and internal control over financial reporting.

Adoption of the new standard resulted in the recording of right-of-use assets in the amount of

$20.7

million and lease liabilities related to our operating leases in the amount of

$21.0

million on our consolidated balance sheet as of

January 1, 2019.

The standard did

not

materially affect the Company’s consolidated net earnings or have any impact on cash flows. See Note

16,

Leases

, for Topic

842

disclosures in connection with the adoption of ASU

2016

02.

February 2018,

the FASB issued ASU

2018

02,

Income Statement – Reporting Comprehensive Income (Topic

220

): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income

. This guidance allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the U.S. Tax Cuts and Jobs Act, which was enacted on

December 22, 2017.

This guidance is effective for all entities for fiscal years beginning after

December 15, 2018,

and interim periods within those fiscal years and should be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S. federal corporate income tax rate in the U.S. Tax Cuts and Jobs Act is recognized. This guidance was adopted by the Company effective

January 1, 2019.

In accordance with this guidance, the Company reclassified

$0.5

million of stranded tax effects from accumulated other comprehensive income to retained earnings within the equity section of the consolidated balance sheet as of

January 1, 2019.

The adoption of this guidance did

not

have a material impact on the Company’s consolidated financial statements.

May 2018,

the FASB issued ASU

2018

07,

Compensation – Stock Compensation (Topic

718

): Improvements to Nonemployee Share-Based Payment Accounting

, which simplifies the accounting for share-based payments granted to nonemployees for goods and services. This guidance will better align the treatment of share-based payments to nonemployees with the requirements for such share-based payments granted to employees. This guidance is effective for all public entities for fiscal years beginning after

December 15, 2018,

including interim periods within that year. This guidance was adopted by the Company effective

January 1, 2019

and did

not

have a material impact on the Company’s consolidated financial statements.

January 2017,

the FASB issued ASU

2017

04,

Intangibles-Goodwill and Other (Topic

350

): Simplifying the Test for Goodwill Impairment

(“ASU

2017

04”

). ASU

2017

simplifies how an entity is required to test goodwill for impairment by eliminating Step

from the goodwill impairment test. Early adoption is permitted for interim and annual goodwill impairment tests performed on testing dates after

January 1, 2017.

The Company elected to early adopt ASU

2017

effective

July 1, 2019,

and accounted for the goodwill impairment charge discussed in

Note

under this guidance.

May 2014,

the FASB issued ASU

No.

2014

09,

Revenue from Contracts with Customers (Topic

606

)

("ASU

2014

09"

), which amends the existing accounting standards for revenue recognition. ASU

2014

is based on principles that govern the recognition of revenue at an amount an entity expects to be entitled when products are transferred to customers. Subsequently, the FASB issued several other updates related to revenue recognition (collectively with ASU

2014

09,

the "new revenue standards" or "ASC

606"

). We adopted the guidance under the new revenue standards effective

January 1, 2018

using the modified retrospective approach by recognizing the cumulative effect of initially applying the new standard as an increase to the opening balance of retained earnings.

Upon adoption, the new revenue standards replaced most existing revenue recognition guidance in U.S. GAAP. Based on our review of representative samples of contracts and other forms of agreements with customers globally and our evaluation of the provisions under the

five

-step model specified by the new revenue standards, the Company has implemented changes with respect to timing of revenue recognition primarily related to arrangements for which the customer takes the Company's products from a facility holding consignment inventory.

In connection with the modified retrospective application of the new revenue standards, we recorded an adjustment to increase retained earnings by

$3.4

million upon the

January 1, 2018

adoption date. Apart from this adjustment and the inclusion of additional required disclosures in Note

the adoption of the new revenue standards did

not

have a material impact on the Company's consolidated financial statements.

January 2016,

the FASB issued ASU

2016

01,

Financial Instruments-Overall (Subtopic

825

): Recognition and Measurement of Financial Assets and Financial Liabilities

. This guidance primarily affects the accounting for equity investments, financial liabilities under the fair value option, and the presentation and disclosure requirements for financial instruments. Under the new guidance, entities will be required to measure certain equity investments at fair value and recognize any changes in fair value in net earnings, unless the investments qualify for the new practicability exception. The new standard was effective for fiscal years, including interim periods within those fiscal years, beginning after

December 15, 2017.

We adopted this guidance on

January 1, 2018.

The adoption of this guidance did

not

have a material impact on the Company's consolidated financial statements.

August 2016,

the FASB issued ASU

2016

15,

Statement of Cash Flows (Topic

230

): Classification of Certain Cash Receipts and Cash Payments

. This guidance addresses diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. This accounting guidance was effective for annual reporting periods beginning after

December 31, 2018

, including interim reporting periods within those annual reporting periods, and should be applied retrospectively to all periods presented. This guidance was adopted by the Company effective

January 1, 2018

and it did

not

have any impact on the Company's consolidated statement of cash flows in the periods presented.

October 2016,

the FASB issued ASU

2016

16,

Income Taxes (Topic

740

): Intra-Entity Transfers of Assets Other Than Inventory

. Prior U.S. GAAP prohibited the recognition of current and deferred income taxes for intra-entity asset transfer until the asset has been sold to an outside party. The new guidance eliminates the exception and requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. This accounting guidance was effective for annual reporting periods beginning after

December 15, 2017,

including interim reporting periods within those annual reporting periods, and should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. This guidance was adopted by the Company effective

January 1, 2018

and it did

not

have a material impact on the Company's consolidated financial position or consolidated results of operations.

January 2017,

the FASB issued ASU

2017

01,

Business Combinations (Topic

805

): Clarifying the Definition of a Business

("ASU

2017

01"

), to clarify 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 definition of a business affects many areas of accounting including acquisitions, disposals, goodwill and consolidation. ASU

2017

provides a framework that gives entities a basis for making reasonable judgments about whether a transaction involves an asset or a business. The Company adopted ASU

2017

January 1, 2018.

March 2017,

the FASB issued ASU

2017

07,

Compensation – Retirement Benefits (Topic

715

): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost

("ASU

2017

07"

). This guidance requires that an employer disaggregate the service cost component from the other components of net benefit cost. ASU

2017

requires employers to present the service cost component of the net periodic benefit cost in the same income statement line as other employee compensation costs arising from services rendered during the period. The other components of net benefit cost, including interest cost, expected return on plan assets, amortization of prior service costs and actuarial gains/losses, and settlement and curtailment effects, are to be presented outside of any subtotal of operating income. The guidance also specifies that the amount of costs that can be capitalized will be limited to service cost only. The Company adopted the guidance of ASU

2017

January 1, 2018

and elected to apply the practical expedient and use the amounts disclosed in Note

to the financial statements included in the Company's Annual Report on Form

-K for the year ended

December 31, 2018

as the basis for applying the retrospective application required by the standard. The amounts reclassified within the statement of operations for the year ended

December 31, 2018

were

not

material.

May 2017,

the FASB issued ASU

2017

09,

Compensation – Stock Compensation (Topic

718

): Scope of Modification Accounting ("ASU

2017

09"

)

. This update provides guidance about which changes to the terms or conditions of a share-based payment require an entity to apply modification accounting in Topic

718.

This guidance is effective for annual periods, and interim periods within those annual periods, beginning after

December 15, 2017.

The Company adopted ASU

2017

January 1, 2018,

and the guidance within this update will be applied to any future award modifications.

Accounting Standards Issued But

Not

Yet Adopted

June 2016,

the FASB issued ASU

No.

2016

13,

Financial Instruments – Credit Losses (Topic

326

): Measurement of Credit Losses on Financial Instruments (“ASU

2016

13”

as amended. The new guidance will broaden the information that an entity must consider in developing its expected credit loss estimates related to its financial instruments and adds to U.S. GAAP an impairment model that is based on expected losses rather than incurred losses. The amendment is currently effective for the Company for annual reporting periods beginning after

December 15, 2022,

with early adoption permitted. Management is currently assessing the impact of ASU

2016

13,

but it is

not

expected to have a material impact on the Company’s consolidated financial statements.

August 2018,

the FASB issued ASU

2018

13,

Fair Value Measurement (Topic

820

): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement

. The updated guidance improves the disclosure requirements on fair value measurements. The updated guidance 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. The Company is currently assessing the impact of adopting the updated provisions, but it is

not

expected to have a material impact on the Company's consolidated financial statements.

August 2018,

the FASB issued ASU

2018

14,

Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic

715

): Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans ("ASU

2018

14"

)

. This guidance removes certain disclosures that are

not

considered cost beneficial, clarifies certain required disclosures and added additional disclosures. The standard is effective for fiscal years ending after

December 15, 2020.

The amendments in ASU

2018

would need to be applied on a retrospective basis. The Company is currently assessing the impact the new guidance will have on our disclosures.

August 2018,

the FASB issued ASU

2018

15,

Intangibles – Goodwill and Other-Internal-Use Software (Subtopic

350

): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Cost

. This guidance aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. This guidance is effective for interim and annual reporting periods beginning after

December 15, 2019,

and early adoption is permitted. The Company is currently evaluating the impacts that adoption of this ASU will have on its consolidated financial statements.

December 2019,

the FASB issued ASU

2019

12,

Simplifying the Accounting for Income Taxes ("ASU

2019

12"

)

, which modifies ASC

740

to reduce complexity while maintaining or improving the usefulness of the information provided to users of financial statements. ASU

2019

is effective for the Company for interim and annual reporting periods beginning after

December 15, 2021.

The Company is currently assessing the impact of ASU

2019

12,

but it is

not

expected to have a material impact on the Company’s consolidated financial statements.