Accounting Standards Update

Summary of Guidance

Financial Statement Impact

Improvements to Income Tax Disclosures

Issued December 2023

•Eliminates, amends and adds certain disclosure requirements for income taxes.

•In particular, requires the disaggregation of certain existing disclosures, including a) the effective tax rate reconciliation to be broken out into specific categories; b) income taxes paid and income tax expense to be broken out between federal, state and foreign; and c) income before income tax to be broken out between domestic and foreign.

•Effective for annual periods beginning January 1, 2025, with early adoption permitted.

•The new guidance should be applied prospectively, with a retrospective option.

•While the adoption of this guidance will result in changes to existing disclosures, it will not have any impact on our financial position or results of operations.

Disaggregation of Income Statement Expenses

Issued November 2024

•Requires certain expense captions presented on the face of the income statement to be disaggregated into specific categories in the notes to the financial statements, including a) employee compensation; b) depreciation; and c) intangible asset amortization. A description of the amounts that are not separately disaggregated should be disclosed.

•Also requires disclosure of the total amount of selling expenses and the entity's definition of selling expenses.

•Effective for annual periods beginning January 1, 2027, and interim periods beginning January 1, 2028, with early adoption permitted.

•The new guidance should be applied prospectively, with a retrospective option.

•While the adoption of this guidance will result in changes to existing disclosures, it will not have any impact on our financial position or results of operations.