Recently Adopted Accounting Standards
In December 2023, the FASB issued
ASU 2023-09, Improvements to Income Tax Disclosures, in response to requests from
investors, lenders, creditors and other allocators of capital for enhanced income tax disclosures to support capital allocation decisions. The ASU requires enhanced disclosures primarily related to existing rate reconciliation and income
taxes paid information to help investors better assess how the Company’s operations and related tax risks and tax planning and operational opportunities affect the Company’s tax rate and prospects for future cash flows. The ASU 2023-09
improves the transparency of income tax disclosures. The amendments in this ASU are effective for the Company for annual periods beginning after December 15, 2024, and should be applied on a prospective basis. The Company adopted ASU
2023-09 on December 31, 2025 and applied the new disclosure requirements. See Note 11 for additional information.
Accounting Standards Issued Not Yet Adopted
In November 2024, the FASB issued ASU
2024-03, Income Statement-Reporting Comprehensive Income-Expense
Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses, that addresses longstanding investor requests for more information of expenses included in the expense captions presented on the face of the income statement. The ASU
will require a tabular disclosure that disaggregates certain income statement expenses including employee compensation, depreciation and intangible asset amortization. In January 2025, the FASB issued ASU 2025-01, Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic
220-40): Clarifying the Effective Date, which revises the effective date of ASU 2024-03. The ASU will become effective in the annual reporting periods beginning after December 15, 2026, and early adoption is permitted. Aside from complying with the new disclosure
requirements, the adoption is not expected to have a material impact on the consolidated financial statements.
In December 2025, the FASB issued ASU
2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements, which clarifies the guidance in
Topic 270 to improve the consistency of interim financial reporting. The ASU provides a comprehensive list of required interim disclosures and introduces a disclosure principle requiring entities to disclose events since the end of the last
annual reporting period that have a material impact on the entity. ASU 2025-11 is effective for fiscal years beginning after December 15, 2027, including interim periods within those fiscal years, with early adoption permitted. Aside from
complying with the new disclosure requirements, the adoption is not expected to have a material impact on the consolidated financial statements.