Accounting Pronouncements

12 Months Ended

Dec. 31, 2025

Accounting Standards Update and Change in Accounting Principle [Abstract]

Accounting Pronouncements

Accounting Pronouncements

In December 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2023-09 (ASU 2023-09), Income Taxes (Topic 740): Improvements to Income Tax Disclosures. This standard requires issuers to further disaggregate income tax disclosures related to the income tax rate reconciliation and income taxes paid by federal, state, foreign, and any individual jurisdictions where the reconciling items or income taxes paid quantitatively exceed 5 percent of the total amount disclosed. Issuers are also required to disclose income (or loss) from continuing operations before income tax expense disaggregated between domestic and foreign and income tax expense (or benefit) from continuing operations disaggregated by federal, state, and foreign jurisdictions. ASU 2023-09 is effective for annual reporting periods beginning after December 15, 2024. The Company adopted this standard for the year-ended December 31, 2025. See Note 6 to the Consolidated Financial Statements.

In November 2024, the FASB issued Accounting Standards Update No. 2024-03 (ASU 2024-03), Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This standard requires issuers to disclose the amounts of purchases of inventory, employee compensation, depreciation, and intangible asset amortization included in each relevant expense line item within continuing operations on the income statement. For any amounts remaining in these relevant expense line items beyond those required to be disclosed, issuers are required to disclose a qualitative description of what is included within the remaining amounts. Issuers are also required to disclose the total selling expenses recognized in continuing operations and, on an annual basis, the issuer's definition of selling expenses. ASU 2024-03 is effective prospectively for annual reporting periods beginning after December 15, 2026 and interim periods beginning after December 15, 2027, with early adoption permitted. The Company expects to adopt this standard for its reporting period beginning January 1, 2027.

In September 2025, the FASB issued Accounting Standards Update No. 2025-06 (ASU 2025-06), Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. This standard amends the existing guidance to remove all references to prescriptive and sequential software development project stages. Under this standard, issuers are required to begin capitalization of eligible software development costs when management has authorized and committed to funding the software project, and it is probable the project will be completed and the software will be used to perform the function intended. In evaluating whether it is probable the project will be completed; issuers are required to consider whether there is significant uncertainty associated with the development activities of the software. ASU 2025-06 is effective prospectively for annual reporting periods beginning after December 15, 2027, and for interim periods within those periods, with early adoption permitted. The Company currently expects to adopt this standard for its reporting period beginning January 1, 2028.

In December 2025, the FASB issued Accounting Standards Update No. 2025-10 (ASU 2025-10), Government Grants (Topic 832): Accounting for Government Grants Received by Business Entities. This standard amends the accounting and disclosure requirements for a government grant received by a business entity. The amendments in this Update require that a government grant received by issuers should not be recognized until it is probable that the business entity will comply with the conditions attached to the grant and the grant will be received, and the business entity meets the recognition guidance for a grant related to an asset or a grant related to income. Issuers will also be required to disclose the nature of the government grant received, the accounting policies used to account for the grant, and significant terms and conditions of the grant, consistent with current disclosure requirements. ASU 2025-10 is effective prospectively for annual reporting periods beginning after December 15, 2028, and for interim periods within those periods, with early adoption permitted. The Company is evaluating the impact of this standard, and at this time, does not anticipate it will have a material impact on the Company's Consolidated Financial Statements and disclosures.

In December 2025, the FASB issued Accounting Standards Update No. 2025-11 (ASU 2025-11), Interim Reporting (Topic 270): Narrow-Scope Improvements. This standard clarifies current interim disclosure requirements and the applicability of Topic 270. Issuers are also required to disclose events since the end of the last annual reporting period that have a material impact on their business operations. ASU 2025-11 is effective prospectively for annual reporting periods beginning after December 15, 2027, and for interim periods within those periods, with early adoption permitted. The Company is evaluating the impact of this standard, and at this time, does not anticipate it will have a material impact on the Company's Consolidated Financial Statements and disclosures.