Summary of Significant Accounting Policies

Nature of Operations. Orbital ATK, Inc. (the "Company") is an aerospace and defense systems company and supplier of related products to the U.S. Government, allied nations and prime contractors. The Company is headquartered in Dulles, Virginia and has operating locations throughout the United States. The Company was incorporated in Delaware in 1990.

On February 9, 2015, the Company completed a tax-free spin-off of and distribution of its former Sporting Group to its stockholders (the "Distribution") as a new public company called Vista Outdoor Inc. ("Vista Outdoor"). Immediately following the Distribution, the Company combined with Orbital Sciences Corporation ("Orbital") through the merger of a Company subsidiary with Orbital (the "Merger"). These transactions are discussed in greater detail in Note 5. Following the Distribution and Merger, the Company changed its name from Alliant Techsystems Inc. to Orbital ATK, Inc.

As a result of the Distribution, the Sporting Group is reported as a discontinued operation for all prior periods presented. The Company used the acquisition method to account for the Merger; accordingly, the results of Orbital are included in the Company's consolidated financial statements since the date of the Merger.

Basis of Presentation. The consolidated financial statements of the Company include all majority-owned affiliates. Intercompany transactions and accounts have been eliminated. The business formerly comprising Sporting Group is presented as discontinued operations - See Note 5.

Fiscal Year. The Company changed its fiscal year from the period beginning on April 1 and ending on March 31 to the period beginning on January 1 and ending on December 31, beginning January 1, 2016. As a result, the current fiscal period is a nine-month transition period ended on December 31, 2015. In these consolidated statements, including the notes thereto, the current period financial results ended December 31, 2015 are for a nine-month period. Audited results for the twelve months ended March 31, 2015 and 2014 are both for twelve-month periods. In addition, the Company's consolidated statements of comprehensive income (loss) and consolidated statements of cash flows include unaudited comparative amounts for the nine-month period ended December 28, 2014. All references herein to a fiscal year prior to December 31, 2015 refer to the twelve months ended March 31 of such year.

Use of Estimates. The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect amounts reported therein. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may differ from those estimates.

Restatement of Previously Issued Consolidated Financial Statements. In this Amended Transition Report on Form 10-K/A, the Company restated its consolidated financial statements for the nine-month transition period ended December 31, 2015 ("2015 transition period"), fiscal year ended March 31, 2015 ("fiscal 2015"), fiscal year ended March 31, 2014 ("fiscal 2014"), the quarters in the 2015 transition period and fiscal 2015 to correct errors in prior periods primarily related to (i) errors identified in estimating contract costs at completion on a certain long-term contract accounted for under the percentage of completion revenue recognition method causing a forward loss provision to not be identified timely and recorded in prior periods; (ii) correcting the Company’s accounting policy for measurement of forward loss provisions; and (iii) certain other immaterial misstatements. In the consolidated financial statements, the impacts of the restatement for fiscal 2013 are reflected in this Amendment as an adjustment to the beginning retained earnings for fiscal 2014.

See Note 2-"Restatement," for additional information regarding the errors identified in this Amended Transition Report and the restatement adjustments made to the Consolidated Financial Statements. These newly identified errors further restate the unaudited periods that were restated in the Company's Transition Report on Form 10-K for the nine month period ending December 31, 2015, previously filed on March 15, 2016 ("Original Filing").

In the Original Filing, certain financial information for the quarters ended July 5, 2015 and October 4, 2015 was restated. The restated financial information related to the following errors: (i) acquisition adjustments - corrections resulting from the application of purchase accounting with respect to certain long-term contracts, which are accounted for under the percentage-of-completion method that should be based on the estimate of remaining effort on such contracts at the acquisition date instead of the inception-to-date progress of each contract. These errors further resulted in reporting the settlement gain on the CRS1 contract as a discrete component of income from continuing operations and (ii) accounting review and analysis adjustments - corrections resulting from the reconciliation and analysis of certain accounts.

Revenue Recognition. The Company's sales come primarily from contracts with agencies of the U.S. Government and its prime contractors and subcontractors. The various U.S. Government customers, including the U.S. Navy, U.S. Army, NASA, and the U.S. Air Force, make independent purchasing decisions. Consequently, each agency is regarded as a separate customer.

Sales by customer were as follows:



	Percentage of Sales
	Nine Months Ended December 31, 2015		Years Ended
	Nine Months Ended December 31, 2015		March 31, 2015		March 31, 2014
	As Restated		As Restated		As Restated
Sales to:
U.S. Army	15	%	26	%	32	%
U.S. Navy	11		15		17
NASA	23		13		14
U.S. Air Force	4		7		7
Other U.S. Government customers	17		14		14
Total U.S. Government customers	70		75		84
Commercial and foreign customers	30		25		16
Total	100	%	100	%	100	%

Long-term Contracts—Substantially all of the Company's sales are accounted for as long-term contracts. Sales under long-term contracts are accounted for under the percentage-of-completion method and include cost-plus and fixed-price contracts. Sales under cost-plus contracts are recognized as costs are incurred. Sales under fixed-price contracts are either recognized as the actual cost of work performed relates to the estimate at completion ("cost-to-cost") or based on results achieved, which usually coincides with customer acceptance ("units-of-delivery"). The majority of the Company's total revenue is accounted for using the cost-to-cost method of accounting.

Profits expected to be realized on contracts are based on management's estimates of total contract sales value and costs at completion. Estimated amounts for contract changes, including scope and claims, are included in contract sales only when realization is estimated to be probable. Assumptions used for recording sales and earnings are adjusted in the period of change to reflect revisions in contract value and estimated costs. In the period in which it is determined that a loss will be incurred on a contract, the entire amount of the estimated loss, based on gross profit along with general and administrative costs, is charged to cost of sales. Changes in estimates of contract sales, costs or profits are recognized using the cumulative catch-up method of accounting. The cumulative effect of a change in estimate is recognized in the period a change in estimate occurs. The effect of the changes on future periods of contract performance is recognized as if the revised estimate had been used since contract inception or, in the case of contracts acquired in business combinations, from the date of acquisition.

Changes in contract estimates occur for a variety of reasons including changes in contract scope, unforeseen changes in contract cost estimates due to unanticipated cost growth or risks affecting contract costs and/or the resolution of contract risks at lower costs than anticipated, as well as changes in contract overhead costs over the performance period. Changes in estimates could have a material effect on the Company's consolidated financial position or annual results of operations. Aggregate net changes in contract estimates recognized using the cumulative catch-up method of accounting increased operating income by approximately $38,000 (as restated) in the 2015 transition period, approximately $92,000 (as restated) in fiscal 2015, and approximately $83,000 in fiscal 2014 (excluding the incremental loss on the Lake City Contract in 2014 that is disclosed separately). The aggregate net changes in contract estimates are reflective of the correction in accounting policy for determining a forward loss and any other resulting impact from the errors being corrected in the Restatement (see section above "Restatement of Previously issued Consolidated Financial Statements"). The adjustments recorded during the 2015 transition period were primarily driven by higher profit expectations in the Propulsion Systems and Aerospace Structures divisions. The adjustments recorded during fiscal 2015 were primarily driven by higher profit expectations in the Defense Electronic, Armament Systems, Missile Products, Propulsion Systems and Small Caliber Systems divisions. The adjustments recorded during fiscal 2014 were primarily driven by higher profit expectations in the Small Caliber Systems division and for programs in the Propulsion Systems division. Estimated costs to complete on loss contracts at December 31, 2015 and March 31, 2015 are $1,392,218 and $1,505,084, respectively.

Contracts may contain provisions to earn incentive and award fees if specified targets are achieved as well as penalty provisions related to performance. Incentive and award fees and penalties that can be reasonably estimated and are probable are recorded over the performance period of the contract. Incentive and award fees that cannot be reasonably estimated are recorded when awarded.

Other —Sales not recognized under the long-term contract method are recognized when persuasive evidence of an arrangement exists, the product has been delivered and legal title and all risks of ownership have been transferred, written contract and sales terms are complete, customer acceptance has occurred, and payment is reasonably assured. Sales are reduced for allowances and price discounts.

Operating Expenses. Research and development, selling and general and administrative costs are expensed in the year incurred. Research and development costs include costs incurred for experimentation and design testing. Selling costs include bid and proposal efforts related to products and services. Costs that are incurred pursuant to contractual arrangements are recorded over the period that revenue is recognized, consistent with the Company's contract accounting policy.

Environmental Remediation and Compliance. Costs associated with environmental compliance, restoration, and preventing future contamination that are estimable and probable are accrued and expensed, or capitalized as appropriate. Expected remediation, restoration, and monitoring costs relating to an existing condition caused by past operations, and which do not contribute to current or future revenue generation, are accrued and expensed in the period that such costs become estimable. Liabilities are recognized for remedial and resource restoration activities when they are probable and the cost can be reasonably estimated. The Company expects that a portion of its environmental remediation costs will be recoverable under U.S. Government contracts and has recorded a receivable equal to the present value of the amounts the Company expects to recover.

The Company's engineering, financial, and legal specialists estimate, based on current law and existing technologies, the cost of each environmental liability. Such estimates are based primarily upon the estimated cost of investigation and remediation required and the likelihood that other potentially responsible parties ("PRPs") will be able to fulfill their commitments at the sites where the Company may be jointly and severally liable. The Company's estimates for environmental obligations are dependent on, and affected by, the nature and extent of historical information and physical data relating to a contaminated site, the complexity of the site, methods of remediation available, the technology that will be required, the outcome of discussions with regulatory agencies and other PRPs at multi-party sites, the number and financial viability of other PRPs, changes in environmental laws and regulations, future technological developments, and the timing of expenditures; accordingly, the Company periodically evaluates and revises such estimates based on expenditures against established reserves and the availability of additional information.

Cash Equivalents. Cash equivalents are all highly liquid cash investments purchased with original maturities of 3 months or less.

Marketable Securities. Investments in a common collective trust that primarily invests in fixed income securities are classified as available-for-sale securities and are recorded at fair value within other current assets and deferred charges and other noncurrent assets on the consolidated balance sheet. Unrealized gains and losses are recorded in other comprehensive (loss) income ("OCI"). When such investments are sold, the unrealized gains or losses are reversed from OCI and recognized in the consolidated income statement.

Net Inventories. Inventories are stated at the lower of cost or market. Inventoried costs relating to contracts in progress are stated at actual production costs, including factory overhead, initial tooling, and other related costs incurred to date, reduced by amounts associated with recognized sales. Recorded amounts for raw materials, work in process and finished goods are generally determined using the average cost method.

Net inventories consisted of the following:



	December 31, 2015		March 31, 2015
	As Restated
Raw materials	$	88,365	$	69,112
Work/contracts in process	124,315		126,038
Finished goods	532		964
Net inventories	$	213,212	$	196,114

Progress payments received from customers relating to the uncompleted portions of contracts are offset against unbilled receivable balances or applicable inventories. Any remaining progress payment balances are classified as contract advances.

Changes in allowances for excess and obsolete inventory were as follows (as restated):



Balance, March 31, 2014	$	13,257
Expense	993
Write-offs	652
Other adjustments	2,110
Balance, March 31, 2015	17,012
Expense	3,082
Other adjustments	3,613
Balance, December 31, 2015	$	23,707

Accounting for Goodwill and Identifiable Intangible Assets.

Goodwill—The Company tests goodwill for impairment on January 1 or upon the occurrence of events or changes in circumstances that indicate that the asset might be impaired. The Company determined that the reporting units for its goodwill impairment review are its operating segments, or components of an operating segment, that constitute a business for which discrete financial information is available, and for which segment management regularly reviews the operating results.

The impairment test is performed using a two-step process. In the first step, the Company estimates the fair value of each reporting unit and compares it to the carrying value of the reporting unit, including goodwill. If the carrying amount of a reporting unit is higher than its fair value, an indication of goodwill impairment exists and the second step is performed in order to determine the amount of the goodwill impairment. In the second step, the Company determines the implied fair value of the reporting unit's goodwill which it determines by allocating the estimated fair value of the reporting unit in a manner similar to a purchase price allocation. The implied fair value is compared to the carrying amount and if the carrying amount of the reporting unit's goodwill exceeds the implied fair value of its goodwill, an impairment loss is recognized for the excess.

Identifiable Intangible Assets—The Company's primary identifiable intangible assets consist of contract backlog intangible assets recorded as part of the Orbital merger transaction, discussed in Note 5. Identifiable intangible assets with finite lives are amortized and evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. Identifiable intangibles with indefinite lives are not amortized and are tested for impairment annually on January 1, or more frequently if events warrant.

Treasury Stock. Under the Company’s share repurchase program, the Company can repurchase common stock to be held in treasury. Treasury stock is accounted for using the cost method. Shares held in treasury may be reissued to satisfy (i) the payment of performance awards, total stockholder return performance awards ("TSR awards") and restricted stock units, (ii) the grant of restricted stock and (iii) the exercise of stock options. When treasury stock is reissued, the value is determined using a weighted-average basis.

Stock-based Compensation. The Company's stock-based compensation plans, which are described more fully in Note 15, provide for the grant of various types of stock-based incentive awards, including performance awards, TSR awards, restricted stock, and options to purchase common stock. The types and mix of stock-based incentive awards are evaluated on an ongoing basis and may vary based on the Company's overall strategy regarding compensation, including consideration of the impact of expensing stock awards on the Company's results of operations.

Performance awards are valued at the fair value of the Company stock at the grant date and expense is recognized based on the number of shares expected to vest under the terms of the award under which they are granted. The Company uses an integrated Monte Carlo simulation model to determine the fair value of the TSR awards and the calculated fair value is recognized in income over the vesting period. Restricted stock issued vests over periods ranging from 1 to 3 years and is valued based on the market value of the Company stock on the grant date. The estimated grant date fair value of stock options is recognized in income on a straight-line basis over the requisite service period, generally one to three years. The estimated fair value of each option is calculated using the Black-Scholes option-pricing model. See Note 15 for further details.

Income Taxes. Provisions for federal, state and foreign income taxes are calculated based on reported pre-tax earnings and current tax law. Such provisions differ from the amounts currently receivable or payable because certain items of income and expense are recognized in different time periods for financial reporting purposes than for income tax purposes. Significant judgment is required in determining income taxes and evaluating tax positions. The Company periodically assesses its liabilities and contingencies for all periods that are currently open to examination or have not been effectively settled based on the most current available information. Where it is not more likely than not that the Company's tax position will be sustained, the Company records the entire resulting tax liability and when it is more likely than not of being sustained, the Company records its best estimate of the resulting tax liability. Any applicable interest and penalties related to those positions are also recorded in the consolidated financial statements. To the extent the Company's assessment of the tax outcome of these matters changes, such change in estimate will impact income taxes in the period of the change. It is the Company's policy to record any interest and penalties related to income taxes as part of the income taxes for financial reporting purposes. Deferred tax assets related to carryforwards are reduced by a valuation allowance when it is not more likely than not that the amount will be realized before expiration of the carryforward period. As part of this analysis the Company takes into the account the amount and character of the income to determine if the carryforwards will be realized. Significant estimates and judgments are required for this analysis. Changes in the amounts of valuation allowance are recorded in tax expense in the period when the change occurs.

Derivative Instruments and Hedging Activities. From time to time, the Company uses derivative instruments, consisting mainly of commodity forward contracts to hedge forecasted purchases of certain commodities, foreign currency exchange contracts to hedge forecasted transactions denominated in a foreign currency and interest rate swaps to manage interest rate risk on debt. The Company does not hold or issue derivatives for trading purposes. At the inception of each derivative instrument, the Company documents the relationship between the derivative instrument and the hedged item, as well as its risk-management objectives and strategy for undertaking the hedge transaction. The Company assesses, both at the derivative's inception and on an ongoing basis, whether the derivative instrument is highly effective in offsetting changes in the fair value of the hedged item. Derivatives are recognized on the balance sheet at fair value. The effective portion of changes in fair value of derivatives designated as cash flow hedges are recorded to accumulated OCI and recognized in earnings in the same account in which the hedged item is recognized when the hedged item impacts earnings, and the cash flows from the effective portion of cash flow hedges are classified in the same section of the cash flows as the hedged item. The ineffective portion of derivatives designated as cash flow hedges and changes in fair value of derivative instruments not designated in a qualifying hedging relationship are reflected in current earnings, and the cash flows from the ineffective portion of cash flow hedges are classified as investing activities. The Company's current derivatives are designated as cash flow hedges. See Note 4 for further details.

Earnings Per Share Data. Basic earnings per share ("EPS") is computed based upon the weighted-average number of common shares outstanding for each period. Diluted EPS is computed based on the weighted-average number of common shares and common equivalent shares outstanding for each period. Common equivalent shares represent the effect of stock-based awards (see Note 15) and contingently issuable shares related to the Company's Convertible Senior Subordinated Notes (see Note 10) during each period presented, which, if exercised, earned, or converted, would have a dilutive effect on earnings per share.

Weighted-average shares outstanding were determined as follows:



	Nine Months Ended December 31, 2015	Years Ended
In thousands	Nine Months Ended December 31, 2015	March 31, 2015	March 31, 2014
Basic	59,358	35,469	31,671
Dilutive effect of stock-based awards	557	377	376
Dilutive effect of contingently issuable shares	—	294	676
Diluted	59,915	36,140	32,723
Anti-dilutive stock options excluded from the calculation of diluted earnings per share	91	73	45

Accumulated Other Comprehensive Income (Loss) ("AOCI"). Changes in AOCI, net of income taxes, were as follows:



	Nine Months Ended December 31, 2015											Year Ended March 31, 2015
	Derivatives			Pension and Other Post- retirement Benefits			Available-for-sale Securities		Total			Derivatives			Pension and Other Post- retirement Benefits			Available-for-sale Securities		Cumulative Translation Adjustment			Total
Beginning of period unrealized gain (loss) in AOCI	$	(2,073	)	$	(846,645	)	$	1,070	$	(847,648	)	$	(5,022	)	$	(675,114	)	$	832	$	(1,505	)	$	(680,809	)
Net decrease in fair value of derivatives	(5,654		)	—			—		(5,654		)	(8,097		)	—			—		—			(8,097		)
Net losses reclassified from AOCI, offsetting the price paid to suppliers ⁽¹⁾	4,668			—			—		4,668			11,046			—			—		—			11,046
Net losses reclassified from AOCI, due to ineffectiveness ⁽¹⁾	—			—			—		—			—			—			—		—			—
Net actuarial losses reclassified from AOCI ⁽²⁾	—			70,550			—		70,550			—			13,841			—		—			13,841
Prior service costs reclassified from AOCI ⁽²⁾	—			(13,004		)	—		(13,004		)	—			(18,906		)	—		—			(18,906		)
Valuation adjustment for pension and postretirement benefit plans ⁽²⁾	—			4,805			—		4,805			—			(224,389		)	—		—			(224,389		)
Net change in cumulative translation adjustment	—			—			—		—			—			—			—		(36,796		)	(36,796		)
Other	—			—			375		375			—			—			238		—			238
Distribution of Sporting ⁽³⁾	—			—			—		—			—			57,923			—		38,301			96,224
End of period unrealized gain (loss) in AOCI	$	(3,059	)	$	(784,294	)	$	1,445	$	(785,908	)	$	(2,073	)	$	(846,645	)	$	1,070	$	—		$	(847,648	)

_________________________________________


(1)	Amounts related to derivative instruments that were reclassified from AOCI and recorded as a component of cost of sales or interest expense for each period presented.


(2)	Amounts related to pension and other postretirement benefits that were reclassified from AOCI and recorded as a component of net periodic benefit cost for each period presented (Note 11).


(3)	Amounts related to Sporting Group prior to the Distribution (Note 5).

There was no ineffectiveness recognized in earnings for these contracts during any fiscal year presented. The Company expects that any unrealized gains and losses will be realized and reported in cost of sales as the cost of the commodities is included in cost of sales. Estimated and actual gains or losses will change as market prices change.

Fair Value of Non-financial Instruments. The carrying amounts of receivables, inventory, accounts payable, accrued liabilities and other current assets and liabilities, approximate fair values due to the short maturity of these instruments. See Note 3 for additional disclosure regarding fair value of financial instruments.

New Accounting Pronouncements. In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") 2016-02, Leases (Topic 842), which requires leasees to recognize lease assets and lease liabilities for those leases classified as operating leases under previous generally accepted accounting principles in the United States ("U.S. GAAP"). The new standard is effective for annual reporting periods beginning after December 15, 2018 with early adoption permitted. The Company currently is evaluating the potential changes from this ASU to its future financial reporting and disclosures.

In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes, which requires all deferred income tax assets and liabilities to be classified as noncurrent on the balance sheet. The new standard is effective for annual reporting periods beginning after December 15, 2016 with early adoption permitted. The Company has elected to early adopt this requirement prospectively in the current period, and accordingly, prior periods were not retrospectively adjusted.

In September 2015, the FASB issued ASU 2015-16, Simplifying the Accounting for Measurement-Period Adjustments, which eliminates the requirement to restate prior period financial statements for measurement period adjustments in purchase accounting. The new standard requires that the cumulative impact of a measurement period adjustment (including the impact on prior periods) be recognized in the reporting period in which the adjustment is identified. This new standard is effective for interim and annual reporting periods beginning after December 15, 2015, with early adoption permitted. The Company has elected to early adopt this new standard as of December 31, 2015. See Note 5.

In May 2015, the FASB issued ASU 2015-07, Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent), which removes the requirement to categorize within the fair value hierarchy all investments for which fair value is measured using the net asset value per share practical expedient. Such investments should be disclosed separate from the fair value hierarchy. This ASU will be effective retrospectively for the Company for interim and annual periods beginning after December 15, 2015. The adoption of this new standard is not expected to have an impact on the Company's consolidated financial statements but will impact certain disclosures. The Company adopted this ASU on a retrospective basis during the Company's first quarter ended April 3, 2016 and the retrospective application of the ASU is being reflected in this amended filing. The new standard removed the fair value hierarchy disclosure for the Company's investment in marketable securities.

In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs. and in August 2015, the FASB issued ASU 2015-15, “Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements.” These ASUs more closely align the treatment of debt issuance costs with debt discounts and premiums and requires debt issuance costs related to be presented as a direct deduction from the carrying amount of the related debt. The amendments in these ASUs are effective for financial statements issued for fiscal years beginning after December 15, 2015 and interim periods within those fiscal years. The adoption of these new standards will impact the presentation of the net debt issuance costs included in Note 10. The Company adopted this ASU on a retrospective basis during the Company's first quarter ended April 3, 2016 and the retrospective application of the ASU is being reflected in this amended filing. This resulted in a reclassification of debt issuance costs related to the Company's notes of $14,000 from "Other noncurrent assets" to "Long-term debt, net of current portion" in the Company's consolidated balance sheets as of December 31, 2015 and reclassification of $17,000 from "Other noncurrent assets" to "Long-term debt, net of current portion" in the Company's consolidated balance sheets as of March 31, 2015.

In February 2015, the FASB issued ASU 2015-02, Amendments to the Consolidation Analysis, which simplifies the consolidation evaluation process by placing more emphasis on risk of loss when determining a controlling financial interest. This new standard is effective for interim and annual periods beginning after December 15, 2015. The Company adopted this ASU during the Company's first quarter ended April 3, 2016 and the adoption did not have a material impact on the Company's consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09 Revenue from Contracts with Customers (Topic 606) which will replace numerous requirements in U.S. GAAP, including industry-specific requirements, and provide companies with a single revenue recognition model for recognizing revenue from contracts with customers. The core principle of the new standard is that a company should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. Under the new standard, the Company expects to continue using the cost-to-cost percentage of completion method to recognize revenue for most of its long-term contracts. The two permitted transition methods under the new standard are the full retrospective method, in which case the standard would be applied to each prior reporting period presented, or the modified retrospective method, in which case the cumulative effect of applying the standard would be recognized at the date of initial application. The Company has not yet selected a transition method. The Company currently is evaluating the potential changes from this ASU to its future financial reporting and disclosures. In July 2015, the FASB approved the deferral of the new standard's effective date by one year. The new standard now will be effective for annual reporting periods beginning after December 15, 2017. The FASB will permit companies to adopt the new standard early, but not before the original effective date of annual reporting periods beginning after December 15, 2016.

In April 2014, the FASB issued ASU 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity. The ASU changed the criteria for reporting discontinued operations to be a disposal of a component of an entity that represents a strategic shift with major effects on operations and financial results. The ASU also requires additional disclosures about discontinued operations and disposals of components of an entity that do not qualify for discontinued operations. The Company adopted this standard for the 2015 transition period, and it did not have a material impact on the Company’s consolidated financial statements.

Other new pronouncements issued but not effective for the Company until after December 31, 2015 are not expected to have a material impact on the Company's continuing financial position, results of operations or liquidity.