New Accounting Pronouncements AdoptedIn December 2023, the FASB issued ASU 2023-09 Income Taxes (“Topic 740”): Improvements to Income Tax
Disclosures Topic 740. The new guidance is intended to enhance the transparency of income tax disclosures, primarily
related to rate reconciliation and income taxes paid information. This guidance is effective for fiscal years beginning after
December 15, 2024. The guidance is effective on a prospective basis, though retrospective application is permitted. The
Company adopted ASU 2023-09 on a prospective basis for the fiscal year ended December 31, 2025, which modified our
annual disclosures but did not have a material impact on the Company’s Consolidated Financial Statements.
New Accounting Pronouncements to be Adopted
In November 2024, the FASB issued ASU 2024-03, Income Statement (Subtopic 220-40): Reporting Comprehensive
Income—Expense Disaggregation Disclosures, which enhances certain disclosure requirements related to expenses
(including purchases of inventory, employee compensation, depreciation, amortization, and depletion) in commonly
presented expense captions (such as cost of sales, selling, general and administrative expenses, and research and
development). This guidance is effective for the Company for annual periods beginning after December 15, 2026, and
interim reporting periods beginning after December 15, 2027. Early adoption is permitted. This ASU will only affect our
disclosures and will not change the expense captions the Company presents on its Consolidated Statements of
Comprehensive Income.
In July 2025, the FASB issued ASU 2025-05, Financial Instruments-Credit Losses (Topic 326). This guidance
contains amendments that provide decision-useful information to investors and other financial statement users while
reducing the time and effort necessary to analyze and estimate credit losses for current accounts receivable and current
contract assets. The amendments will be effective for annual reporting periods beginning after December 15, 2025, and
interim reporting periods within those annual reporting periods. Early adoption is permitted in both interim and annual
reporting periods in which financial statements have not yet been issued or made available for issuance. The Company is
evaluating the impact the new standard will have on its consolidated financial statements.
In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other - Internal-Use Software
(Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software, which is intended to increase the
operability of the recognition guidance considering different methods of software development. The amendments remove
all references to prescriptive and sequential software development stages (referred to as “project stages”) throughout
Subtopic 350-40, and instead specify an entity is required to start capitalizing software costs when both of the following
occur: (1) management has authorized and committed to funding the software project and (2) it is probable that the project
will be completed and the software will be used to perform the function intended (referred to as the “probable-to complete
recognition threshold”). The amendments will be effective for annual reporting periods beginning after December 15, 2027,
and interim reporting periods within those annual reporting periods. The Company is evaluating the impact the new
standard will have on its consolidated financial statements.
In December 2025, the FASB issued ASU 2025-11, Interim Reporting: Narrow-Scope Improvements, which improves
clarity for interim financial reporting requirements under the existing guidance by creating a comprehensive list of interim
disclosure requirements, clarifying scope and applicability, along with adding a principle to disclose all material events that
have occurred since the most recently filed Form 10-K. The amendments will be effective for interim reporting periods
beginning after December 15, 2027. Early adoption is permitted. The Company is evaluating the impact the new standard
will have on its consolidated financial statements and related disclosures.