Accounting Pronouncements - Recently Adopted
In December 2023, the FASB issued Accounting Standards Update No. 2023-09 (“ASU 2023-09”), Income Taxes (Topic 740): Improvements to Income Tax Disclosures, which is intended to improve the transparency of income tax disclosures. This guidance is effective for annual periods beginning after December 15, 2024. The Company adopted this standard on January 1, 2025, and elected the retrospective method of transition to ensure comparability across all periods presented. The adoption resulted in the expanded presentation of our effective tax rate reconciliation and the disaggregation of income taxes paid in our financial statement footnotes. The retrospective application of these disclosure requirements had no impact on our consolidated financial position, results of operations, or cash flows for any period presented. Comparative 2024 and 2023 data in Note 12: Income Taxes have been recast.
In November 2024, the FASB issued Accounting Standards Update No. 2024-04 (“ASU 2024-04”), Debt-Debt with Conversion and Other Options: Induced Conversions of Convertible Debt Instruments, which clarifies the requirements for determining whether certain settlements of convertible debt instruments should be accounted for as an induced conversion or extinguishments of convertible debt. ASU 2024-04 is effective for annual reporting periods beginning after December 15, 2025, and interim periods within those annual periods. The Company elected to early adopt ASU 2024-04 in the current fiscal year, which did not have a material impact on the Consolidated Financial Statements and related disclosures.
Accounting Pronouncements - Not Yet Adopted
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, which requires additional disclosures in the Notes to Consolidated Financial Statements, disaggregating specific expense categories for relevant income statement captions and additional disclosures of the Company's total amount of selling expenses. This guidance is effective for annual periods beginning after December 15, 2026 and interim periods beginning after December 15, 2027, with early adoption permitted. While the standard will require additional disclosures related to the Company’s income statement, the standard is not expected to have any material impact on the Company’s consolidated operating results, financial condition, or cash flows. The Company is currently evaluating the impact of the adoption of this guidance on the related disclosures.
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, which modernizes the recognition and disclosure framework for internal-use software costs, removing all references to “development stages” and introducing a more judgement-based approach. This guidance is effective for annual periods beginning after December 15, 2027, and interim periods within those annual reporting periods. This ASU is applicable to the Company’s fiscal year beginning January 1, 2028, with early application permitted. The transition method may be prospective, modified, or retrospective. The Company is currently evaluating the impact of the adoption of this guidance on the Company’s consolidated financial statements and disclosures.