2016 Q1 Form 10-Q Financial Statement

#000093652816000057 Filed on May 03, 2016

View on sec.gov

Income Statement

Concept 2016 Q1 2015 Q1
Revenue $135.1M $132.6M
YoY Change 1.83% 0.21%
Cost Of Revenue
YoY Change
Gross Profit
YoY Change
Gross Profit Margin
Selling, General & Admin
YoY Change
% of Gross Profit
Research & Development
YoY Change
% of Gross Profit
Depreciation & Amortization $8.200M $5.300M
YoY Change 54.72% 140.91%
% of Gross Profit
Operating Expenses
YoY Change
Operating Profit
YoY Change
Interest Expense $28.74M $28.75M
YoY Change -0.04% -9.35%
% of Operating Profit
Other Income/Expense, Net
YoY Change
Pretax Income $63.22M $62.82M
YoY Change 0.64% 4.41%
Income Tax $21.50M $22.46M
% Of Pretax Income 34.01% 35.75%
Net Earnings $41.72M $40.36M
YoY Change 3.37% 4.41%
Net Earnings / Revenue 30.89% 30.43%
Basic Earnings Per Share $0.45 $0.42
Diluted Earnings Per Share $0.45 $0.42
COMMON SHARES
Basic Shares Outstanding 91.78M shares 96.37M shares
Diluted Shares Outstanding 92.15M shares 96.73M shares

Balance Sheet

Concept 2016 Q1 2015 Q1
SHORT-TERM ASSETS
Cash & Short-Term Investments
YoY Change
Cash & Equivalents $276.1M $675.1M
Short-Term Investments
Other Short-Term Assets
YoY Change
Inventory
Prepaid Expenses
Receivables
Other Receivables
Total Short-Term Assets
YoY Change
LONG-TERM ASSETS
Property, Plant & Equipment $299.1M $264.1M
YoY Change 13.28% 15.48%
Goodwill $291.5M
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets
YoY Change
Total Long-Term Assets
YoY Change
TOTAL ASSETS
Total Short-Term Assets
Total Long-Term Assets
Total Assets $14.67B $14.61B
YoY Change 0.41% 1.72%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable
YoY Change
Accrued Expenses $161.0M $102.0M
YoY Change 57.84% 10.87%
Deferred Revenue
YoY Change
Short-Term Debt
YoY Change
Long-Term Debt Due
YoY Change
Total Short-Term Liabilities $161.0M $102.0M
YoY Change 57.84% 10.87%
LONG-TERM LIABILITIES
Long-Term Debt $0.00 $0.00
YoY Change
Other Long-Term Liabilities $24.00M $18.00M
YoY Change 33.33% 5.88%
Total Long-Term Liabilities $24.00M $18.00M
YoY Change 33.33% 5.88%
TOTAL LIABILITIES
Total Short-Term Liabilities $161.0M $102.0M
Total Long-Term Liabilities $24.00M $18.00M
Total Liabilities $12.71B $12.64B
YoY Change 0.52% 2.09%
SHAREHOLDERS EQUITY
Retained Earnings $881.8M $772.5M
YoY Change 14.15% 18.31%
Common Stock $1.785B $1.775B
YoY Change 0.61% 0.27%
Preferred Stock
YoY Change
Treasury Stock (at cost) $696.3M $602.5M
YoY Change 15.57% 33.11%
Treasury Stock Shares 42.82M shares 38.53M shares
Shareholders Equity $1.962B $1.968B
YoY Change
Total Liabilities & Shareholders Equity $14.67B $14.61B
YoY Change 0.41% 1.72%

Cashflow Statement

Concept 2016 Q1 2015 Q1
OPERATING ACTIVITIES
Net Income $41.72M $40.36M
YoY Change 3.37% 4.41%
Depreciation, Depletion And Amortization $8.200M $5.300M
YoY Change 54.72% 140.91%
Cash From Operating Activities $67.40M $40.70M
YoY Change 65.6% 62.15%
INVESTING ACTIVITIES
Capital Expenditures -$17.00M -$14.90M
YoY Change 14.09% 41.9%
Acquisitions
YoY Change
Other Investing Activities $20.20M $59.20M
YoY Change -65.88% -120.2%
Cash From Investing Activities $3.100M $44.40M
YoY Change -93.02% -114.63%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -100.5M 47.20M
YoY Change -312.92% -158.42%
NET CHANGE
Cash From Operating Activities 67.40M 40.70M
Cash From Investing Activities 3.100M 44.40M
Cash From Financing Activities -100.5M 47.20M
Net Change In Cash -30.00M 132.3M
YoY Change -122.68% -136.84%
FREE CASH FLOW
Cash From Operating Activities $67.40M $40.70M
Capital Expenditures -$17.00M -$14.90M
Free Cash Flow $84.40M $55.60M
YoY Change 51.8% 56.18%

Facts In Submission

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OtherComprehensiveIncomeDerivativesQualifyingAsHedgesTaxPortionAttributableToParent
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us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Tax
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us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Tax
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us-gaap Payments To Acquire Available For Sale Securities
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us-gaap Payments To Acquire Federal Reserve Stock
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100000000 USD
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us-gaap Proceeds From Sale Of Property Held For Sale
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us-gaap Proceeds From Sale Of Property Held For Sale
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us-gaap Proceeds From Stock Options Exercised
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us-gaap Provision For Loan And Lease Losses
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us-gaap Provision For Loan And Lease Losses
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us-gaap Stock Issued During Period Value Restricted Stock Award Net Of Forfeitures
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492000 USD
us-gaap Stock Issued During Period Value Stock Options Exercised
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us-gaap Stock Option Plan Expense
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us-gaap Stock Option Plan Expense
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CY2016Q1 us-gaap Stockholders Equity
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us-gaap Treasury Stock Acquired Average Cost Per Share
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us-gaap Treasury Stock Value Acquired Cost Method
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us-gaap Weighted Average Number Of Diluted Shares Outstanding
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WeightedAverageNumberOfDilutedSharesOutstanding
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us-gaap Weighted Average Number Of Diluted Shares Outstanding
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us-gaap Weighted Average Number Of Shares Outstanding Basic
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CY2015Q3 wfsl Available For Sale Securities Yield
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0.0197
CY2016Q1 wfsl Available For Sale Securities Yield
AvailableForSaleSecuritiesYield
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CY2015Q3 wfsl Discount On Acquired Loans
DiscountOnAcquiredLoans
30095000 USD
CY2016Q1 wfsl Discount On Acquired Loans
DiscountOnAcquiredLoans
21120000 USD
CY2015 wfsl Fdic Indemnification Asset Amortization
FdicIndemnificationAssetAmortization
18588000 USD
wfsl Fdic Indemnification Asset Amortization
FdicIndemnificationAssetAmortization
773000 USD
CY2015 wfsl Fdic Indemnification Asset Discount Accretion
FdicIndemnificationAssetDiscountAccretion
518000 USD
wfsl Fdic Indemnification Asset Discount Accretion
FdicIndemnificationAssetDiscountAccretion
131000 USD
CY2014Q3 wfsl Fdic Loss Share Receivable
FdicLossShareReceivable
36860000 USD
CY2015Q3 wfsl Fdic Loss Share Receivable
FdicLossShareReceivable
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CY2016Q1 wfsl Fdic Loss Share Receivable
FdicLossShareReceivable
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CY2016Q1 us-gaap Weighted Average Number Of Shares Outstanding Basic
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us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
92385367 shares
CY2016Q1 wfsl Acquired Loans Subjectto General Allowance
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24101000 USD
CY2015 wfsl Additionsdeletionsto Fdic Indemnification Asset
AdditionsdeletionstoFDICIndemnificationAsset
1795000 USD
wfsl Additionsdeletionsto Fdic Indemnification Asset
AdditionsdeletionstoFDICIndemnificationAsset
0 USD
wfsl Amortization Accretion Of Fees Discounts Premiums And Intangible Assets Net
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10566000 USD
wfsl Amortization Accretion Of Fees Discounts Premiums And Intangible Assets Net
AmortizationAccretionOfFeesDiscountsPremiumsAndIntangibleAssetsNet
11082000 USD
CY2015Q1 wfsl Financing Receivable Allowance For Credit Losses Charge Offs Net Of Recoveries
FinancingReceivableAllowanceForCreditLossesChargeOffsNetOfRecoveries
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CY2016Q1 wfsl Financing Receivable Allowance For Credit Losses Charge Offs Net Of Recoveries
FinancingReceivableAllowanceForCreditLossesChargeOffsNetOfRecoveries
-3518000 USD
CY2015Q1 wfsl Financing Receivable Allowance For Credit Losses Provision And Transfers
FinancingReceivableAllowanceForCreditLossesProvisionAndTransfers
-3500000 USD
wfsl Financing Receivable Allowance For Credit Losses Provision And Transfers
FinancingReceivableAllowanceForCreditLossesProvisionAndTransfers
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CY2016Q1 wfsl Financing Receivable Allowance For Credit Losses Provision And Transfers
FinancingReceivableAllowanceForCreditLossesProvisionAndTransfers
-1500000 USD
wfsl Financing Receivable Allowance For Credit Losses Provision And Transfers
FinancingReceivableAllowanceForCreditLossesProvisionAndTransfers
-1500000 USD
CY2015Q1 wfsl Financing Receivable Modifications Number Of Contracts That Subsequently Defaulted
FinancingReceivableModificationsNumberOfContractsThatSubsequentlyDefaulted
4 contract
wfsl Financing Receivable Modifications Number Of Contracts That Subsequently Defaulted
FinancingReceivableModificationsNumberOfContractsThatSubsequentlyDefaulted
10 contract
CY2016Q1 wfsl Financing Receivable Modifications Number Of Contracts That Subsequently Defaulted
FinancingReceivableModificationsNumberOfContractsThatSubsequentlyDefaulted
8 contract
wfsl Financing Receivable Modifications Number Of Contracts That Subsequently Defaulted
FinancingReceivableModificationsNumberOfContractsThatSubsequentlyDefaulted
10 contract
CY2015Q1 wfsl Financing Receivable Modifications Recorded Investment During Period
FinancingReceivableModificationsRecordedInvestmentDuringPeriod
605000 USD
wfsl Financing Receivable Modifications Recorded Investment During Period
FinancingReceivableModificationsRecordedInvestmentDuringPeriod
1626000 USD
CY2016Q1 wfsl Financing Receivable Modifications Recorded Investment During Period
FinancingReceivableModificationsRecordedInvestmentDuringPeriod
1169000 USD
wfsl Financing Receivable Modifications Recorded Investment During Period
FinancingReceivableModificationsRecordedInvestmentDuringPeriod
1393000 USD
CY2015Q3 wfsl Financing Receivable Ratioof Total Past Due Loansto Total Loans Receivable Netof Charge Offsand Loansin Process Current
FinancingReceivableRatioofTotalPastDueLoanstoTotalLoansReceivableNetofChargeOffsandLoansinProcessCurrent
0.9912
CY2016Q1 wfsl Financing Receivable Ratioof Total Past Due Loansto Total Loans Receivable Netof Charge Offsand Loansin Process Current
FinancingReceivableRatioofTotalPastDueLoanstoTotalLoansReceivableNetofChargeOffsandLoansinProcessCurrent
0.9910
CY2015Q3 wfsl Financing Receivable Ratioof Total Past Due Loansto Total Loans Receivable Netof Charge Offsand Loansin Process Past Due
FinancingReceivableRatioofTotalPastDueLoanstoTotalLoansReceivableNetofChargeOffsandLoansinProcessPastDue
0.0088
CY2016Q1 wfsl Financing Receivable Ratioof Total Past Due Loansto Total Loans Receivable Netof Charge Offsand Loansin Process Past Due
FinancingReceivableRatioofTotalPastDueLoanstoTotalLoansReceivableNetofChargeOffsandLoansinProcessPastDue
0.0090
wfsl Financing Receivables Percentof Troubled Debt Restructuring Classifiedas Performing
FinancingReceivablesPercentofTroubledDebtRestructuringClassifiedasPerforming
0.953
wfsl Gain Losson Real Estate Heldforsale
GainLossonRealEstateHeldforsale
12338000 USD
wfsl Gain Losson Real Estate Heldforsale
GainLossonRealEstateHeldforsale
6629000 USD
CY2015Q3 wfsl Goodwill And Intangible Assets Net
GoodwillAndIntangibleAssetsNet
299358000 USD
CY2016Q1 wfsl Goodwill And Intangible Assets Net
GoodwillAndIntangibleAssetsNet
298113000 USD
CY2015Q3 wfsl Gross Unrealized Gains On Investments
GrossUnrealizedGainsOnInvestments
38674000 USD
CY2016Q1 wfsl Gross Unrealized Gains On Investments
GrossUnrealizedGainsOnInvestments
36945000 USD
CY2015Q3 wfsl Gross Unrealized Losses On Investments
GrossUnrealizedLossesOnInvestments
29357000 USD
CY2016Q1 wfsl Gross Unrealized Losses On Investments
GrossUnrealizedLossesOnInvestments
19013000 USD
wfsl Increase Decrease In Fdic Indemnification Asset
IncreaseDecreaseInFdicIndemnificationAsset
-738000 USD
wfsl Loan Modification Basis Point Reduction Minimum
LoanModificationBasisPointReductionMinimum
0.01
CY2015Q3 wfsl Loans And Leases Receivable Charges To Allowance Loans In Process And Deferred Fees
LoansAndLeasesReceivableChargesToAllowanceLoansInProcessAndDeferredFees
652636000 USD
CY2016Q1 wfsl Loans And Leases Receivable Charges To Allowance Loans In Process And Deferred Fees
LoansAndLeasesReceivableChargesToAllowanceLoansInProcessAndDeferredFees
761351000 USD
wfsl Loans Originated Net Of Principal Collections
LoansOriginatedNetOfPrincipalCollections
-78301000 USD
wfsl Loans Originated Net Of Principal Collections
LoansOriginatedNetOfPrincipalCollections
-321573000 USD
wfsl Increase Decrease In Fdic Indemnification Asset
IncreaseDecreaseInFdicIndemnificationAsset
2153000 USD
CY2015Q1 wfsl Investment Income And Other
InvestmentIncomeAndOther
5213000 USD
wfsl Investment Income And Other
InvestmentIncomeAndOther
11029000 USD
CY2016Q1 wfsl Investment Income And Other
InvestmentIncomeAndOther
5006000 USD
wfsl Investment Income And Other
InvestmentIncomeAndOther
10280000 USD
wfsl Loan Modification Basis Point Reduction Maximum
LoanModificationBasisPointReductionMaximum
0.02
CY2015Q3 wfsl Loans And Leases Receivable Ratio Of Loan Type To All Loans
LoansAndLeasesReceivableRatioOfLoanTypeToAllLoans
1
CY2016Q1 wfsl Loans And Leases Receivable Ratio Of Loan Type To All Loans
LoansAndLeasesReceivableRatioOfLoanTypeToAllLoans
1
CY2015Q3 wfsl Loans And Leases Receivable Ratio Of Total Past Due Loans To Total Loans Receivable Net Of Charge Offs And Loans In Process
LoansAndLeasesReceivableRatioOfTotalPastDueLoansToTotalLoansReceivableNetOfChargeOffsAndLoansInProcess
0.0088
CY2016Q1 wfsl Loans And Leases Receivable Ratio Of Total Past Due Loans To Total Loans Receivable Net Of Charge Offs And Loans In Process
LoansAndLeasesReceivableRatioOfTotalPastDueLoansToTotalLoansReceivableNetOfChargeOffsAndLoansInProcess
0.0090
CY2015Q3 wfsl Loans And Leases Receivable Ratio Of Type Of Nonperforming Loans To All Nonperforming Loans
LoansAndLeasesReceivableRatioOfTypeOfNonperformingLoansToAllNonperformingLoans
1
CY2016Q1 wfsl Loans And Leases Receivable Ratio Of Type Of Nonperforming Loans To All Nonperforming Loans
LoansAndLeasesReceivableRatioOfTypeOfNonperformingLoansToAllNonperformingLoans
1
CY2015Q3 wfsl Loans Receivable Netof Charge Offsand Loansin Process
LoansReceivableNetofChargeOffsandLoansinProcess
9346474000 USD
CY2016Q1 wfsl Loans Receivable Netof Charge Offsand Loansin Process
LoansReceivableNetofChargeOffsandLoansinProcess
9715006000 USD
CY2016Q1 wfsl Loansand Leases Receivable Allowancefor Credit Lossesand Reservefor Unfunded Commitments
LoansandLeasesReceivableAllowanceforCreditLossesandReserveforUnfundedCommitments
113004000 USD
CY2016Q1 wfsl Loansand Leases Receivable Allowancefor Credit Lossesand Reservefor Unfunded Commitments Percentof Gross Loans
LoansandLeasesReceivableAllowanceforCreditLossesandReserveforUnfundedCommitmentsPercentofGrossLoans
0.0110
wfsl Loansand Leases Receivable Impaired Nonperforming Nonaccrual Interest Income Recognized
LoansandLeasesReceivableImpairedNonperformingNonaccrualInterestIncomeRecognized
3219000000 USD
wfsl Non Covered Real Estate Acquired Through Foreclosure
NonCoveredRealEstateAcquiredThroughForeclosure
19927000 USD
wfsl Non Covered Real Estate Acquired Through Foreclosure
NonCoveredRealEstateAcquiredThroughForeclosure
10535000 USD
wfsl Premises And Equipment Purchased And Reo Improvements
PremisesAndEquipmentPurchasedAndReoImprovements
16897000 USD
wfsl Premises And Equipment Purchased And Reo Improvements
PremisesAndEquipmentPurchasedAndReoImprovements
34248000 USD
CY2015Q1 wfsl Product Delivery Expense
ProductDeliveryExpense
5420000 USD
wfsl Product Delivery Expense
ProductDeliveryExpense
11047000 USD
CY2016Q1 wfsl Product Delivery Expense
ProductDeliveryExpense
4294000 USD
wfsl Product Delivery Expense
ProductDeliveryExpense
9817000 USD
CY2015Q3 wfsl Savings And Demand Accounts And Repurchase Agreements With Customers
SavingsAndDemandAccountsAndRepurchaseAgreementsWithCustomers
10631703000 USD
CY2016Q1 wfsl Savings And Demand Accounts And Repurchase Agreements With Customers
SavingsAndDemandAccountsAndRepurchaseAgreementsWithCustomers
10543384000 USD
CY2016Q1 wfsl Single Family Residential Loans As Percentage Of Restructured Loans
SingleFamilyResidentialLoansAsPercentageOfRestructuredLoans
0.864
wfsl Term Of Contractual Due Dates Of Substantially All Mortgage Backed Securities
TermOfContractualDueDatesOfSubstantiallyAllMortgageBackedSecurities
P10Y
CY2015Q3 wfsl Transaction Deposits
TransactionDeposits
5820878000 USD
CY2016Q1 wfsl Transaction Deposits
TransactionDeposits
5876244000 USD
CY2015Q3 wfsl Yield
Yield
0.0246
CY2016Q1 wfsl Yield
Yield
0.0258
us-gaap Description Of New Accounting Pronouncements Not Yet Adopted
DescriptionOfNewAccountingPronouncementsNotYetAdopted
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;text-decoration:underline;">New Accounting Pronouncements</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In March 2016, the FASB issued ASU 2016-09, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Compensation-Stock Compensation- Improvements to Employee Share-Based Payment Accounting</font><font style="font-family:inherit;font-size:10pt;">, which involves several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. Under the guidance, income tax benefits and deficiencies are to be recognized as income tax expense or benefit in the income statement and the tax effects of exercised or vested awards should be treated as discrete items in the reporting period in which they occur. An entity should also recognize excess tax benefits regardless of whether the benefit reduces taxes payable in the current period. Excess tax benefits should be classified along with other income tax cash flows as an operating activity. In regards to forfeitures, the entity may make an entity-wide accounting policy election to either estimate the number of awards that are expected to vest or account for forfeitures when they occur. This ASU is effective for fiscal years beginning after December 15, 2016 including interim periods within that reporting period, however early adoption is permitted. The Company is currently evaluating the guidance to determine its adoption method and does not expect this guidance to have a material impact on its consolidated financial statements.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In February 2016, the FASB issued ASU 2016-02, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Leases (Topic 842)</font><font style="font-family:inherit;font-size:10pt;">. The amendments require lessees to recognize a lease liability, which is a lessee's obligation to make lease payments arising from a lease, and a right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. The guidance also simplifies the accounting for sale and leaseback transactions. The amendments are effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early application is permitted upon issuance. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The Company is currently evaluating the provisions of this ASU to determine the potential impact the new standard will have on the Company's consolidated financial statements.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In January 2016, the FASB issued ASU 2016-01, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Recognition and Measurement of Financial Assets and Financial Liabilities</font><font style="font-family:inherit;font-size:10pt;">, to require all equity investments to be measured at fair value with changes in the fair value recognized through net income (other than those accounted for under equity method of accounting or those that result in consolidation of the investee). The amendments in this ASU also require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option for financial instruments. This ASU is effective for fiscal years beginning after December 15, 2017 including interim periods within that reporting period. The Company does not expect this guidance to have a material impact on its consolidated financial statements.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In September 2015, the FASB issued ASU 2015-16, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Simplifying the Accounting for Measurement-Period Adjustments</font><font style="font-family:inherit;font-size:10pt;">. the amendments in ASU 2015-16 require that the acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amount is determined. The acquirer is required to also record, in the same period&#8217;s financial statements, the effect on earnings as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. In addition, an entity is required to present separately on the face of the income statement or disclose in the notes to the financial statements the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. The amendments in ASU 2015-16 are effective for years beginning after December 15, 2015. Early adoption is permitted for reporting periods for which financial statements have not been issued. The Company does not expect this guidance to have a material impact on its consolidated financial statements.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In April 2015, the FASB issued ASU 2015-05, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Customer&#8217;s Accounting for Fees Paid in Cloud Computing Arrangement</font><font style="font-family:inherit;font-size:10pt;">. The ASU was issued to clarify a customer's accounting for fees paid in a cloud computing arrangement. The amendments provide guidance to customers in determining whether a cloud computing arrangement includes a software license that should be accounted for as internal-use software. If the arrangement does not contain a software license, it would be accounted for as a service contract. The guidance in this ASU are effective for interim and annual periods beginning after December 15, 2015 and can be adopted either (1) prospectively to all arrangements entered into or materially modified after the effective date or (2) retrospectively. The Company does not expect this guidance to have a material impact on its consolidated financial statements.</font></div><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">In May 2014, the FASB issued ASU 2014-09, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Revenue from Contracts with Customers</font><font style="font-family:inherit;font-size:10pt;">. The guidance in this update supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition, and most industry-specific guidance throughout the industry topics of the codification. For public companies, this update was to be effective for interim and annual periods beginning after December 15, 2016. However, in August 2015, the FASB issued ASU 2015-14, which delayed the effective date of ASU 2014-09 by one year and permits companies to voluntarily adopt the new standard as of the original effective date. The Company does not expect this guidance to have a material impact on its consolidated financial statements.</font></div></div>

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