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Accounting Standards Updates Note
3 Months Ended
Mar. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
Accounting Standards Update
2. Accounting Standards Update

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) ("ASU 2014-09"), which outlines a comprehensive new revenue recognition model designed to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company is required to adopt the new standard on or before January 1, 2018. The Company has a project plan guiding its assessment and implementation of this new standard, which it expects to complete in the fourth quarter of 2017.

Effective January 1, 2017, the Company adopted ASU No. 2016-09, Compensation - Stock Compensation (Topic 718). Under this standard, excess tax benefits and deficiencies are recognized as income tax benefit or expense in the consolidated statement of operations and comprehensive income, rather than in the consolidated balance sheet within additional paid-in capital. This change in accounting for excess tax benefits and deficiencies is applied prospectively. The Company elected to present retrospectively its gross excess tax benefits as cash flows from operating activities in the condensed consolidated statements of cash flows. The adoption of ASU 2016-09 did not have an impact on the opening balance of retained earnings. The Company elected to continue to estimate expected forfeitures to determine the amount of stock-based compensation expense to be recognized. In the three months ended March 31, 2017, the Company recognized net excess tax benefits of $1.1 million, which reduced the provision for income taxes and increased income from continuing operations and net income ($0.02 per diluted share). For the three months ended March 31, 2016, the Company reclassified $0.9 million gross excess tax benefits related to stock-based compensation out of cash flows from financing activities and into cash flows from operating activities.