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Accounting Standards | 12 Months Ended
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Dec. 31, 2018
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] |
Accounting Standards | (3) Accounting Standards Recently Adopted Pension Accounting Standard In March 2017, an accounting standards update was issued which provides additional guidance on the presentation of net benefit cost in the statement of operations. Employers are to present the service cost component of net periodic benefit cost in the same consolidated results of operations line item as other employee compensation costs arising from services rendered during the period. This new standards update was effective for annual reporting periods in first quarter 2018 and must be applied retrospectively. We adopted this standards update in first quarter 2018. The adoption did not impact our consolidated results of operations, financial position, cash flows or disclosures. We had no service cost recorded prior to 2018 due to the implementation of our post retirement benefit plan at the end of 2017. In 2018, our service cost is recorded in general and administrative expense. Modification of Share – Based Awards In May 2017, an accounting standards update was issued which clarifies what constitutes a modification of a share-based award. This standards update was intended to provide clarity and reduce both diversity in practice and cost and complexity to a change to the terms or conditions of a share-based payment award. We adopted this standards update in first quarter 2018. The adoption of this standard did not have a material impact on our consolidated results of operations, financial position, cash flows or disclosures. Revenue Recognition Standard In May 2014, an accounting standards update was issued that superseded the existing revenue recognition requirements. This standard included a five-step revenue recognition model to depict the transfer of goods or services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. Among other things, the standard also eliminated industry-specific revenue guidance, required enhanced disclosures about revenue, provided guidance for transactions that were not previously addressed comprehensively and improved guidance for multiple-element arrangements. This standard was effective for us in first quarter 2018 and we adopted the new standards update using the modified retrospective method to all open contracts as of January 1, 2018. Our implementation of this standard did not result in a cumulative-effect adjustment on date of adoption; however, our financial statement presentation related to revenue received from certain gas processing contracts changed. Based on previous accounting guidance, certain of our gas processing contracts were reported in revenue at the net price (net of processing costs) we receive. Upon adoption of this accounting standards update, these contracts are now reported as a gross price received at a delivery point and separate transportation, marketing and processing expense. The impact of adoption of the new revenue recognition standard on our current period results is as follows (in thousands):
| Year Ended December 31, 2018
As Reported |  |  | Previous Revenue Recognition Method |  |  |  |  |  |  |  |
| $ |  |  |  | $ Per mcfe |  |  |  | $ |  |  |  | $ Per mcfe |  |  |  | Increase |  |  |  | $ Per mcfe
Revenues: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Natural gas, NGLs and oil sales | $ | 2,851,077 |  |  | $ | 3.55 |  |  | $ | 2,678,278 |  |  | $ | 3.33 |  |  | $ | 172,799 |  |  | $ | 0.22
Costs and expenses: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Transportation, gathering, processing and compression | $ | 1,117,816 |  |  | $ | 1.39 |  |  | $ | 945,017 |  |  | $ | 1.17 |  |  | $ | 172,799 |  |  | $ | 0.22
Net loss | $ | (1,746,481 | ) |  |  |  |  |  | $ | (1,746,481 | ) |  |  |  |  |  | $ | — |  |  |  |
Changes to natural gas, NGLs and oil sales and transportation, gathering, processing, and compression expenses is due to the conclusion that we represent the role of principal in certain gas processing and marketing agreements with a midstream entity in accordance with the new accounting standard. This represents a change from our previous conclusion utilizing the principal versus agent indication that we acted as the agent in that agreement. As a result, we were required to modify our presentation to present revenue on a gross basis for amounts expected to be received from third-party customers through the marketing process, with expenses incurred prior to control of the products transferring to the midstream entity at the tailgate of the plant presented as transportation, gathering, processing and compression expense. Goodwill Standard In January 2017, an accounting standards update was issued that eliminates the requirements to calculate the implied fair value of goodwill to measure any goodwill impairment charge. Instead, entities are to record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value. This standard is effective for annual periods beginning after December 15, 2019 and should be applied on a prospective basis. Early adoption was permitted for any goodwill impairment tests performed in first quarter 2017 or later. We elected to adopt this accounting standards update in first quarter 2017. The adoption did not have a significant impact on our consolidated results of operations, financial position, cash flows or disclosures at adoption; however, this standard did change our policy for our annual goodwill impairment assessment by eliminating the requirement to calculate the implied fair value of goodwill. Inventory Standard In July 2015, an accounting standards update was issued that requires an entity to measure inventory at the lower of cost or net realizable value. This excludes inventory measured using LIFO or the retail inventory method. This standard was effective for us in first quarter 2017 and was applied prospectively. Adoption of this standard did not have an impact on our consolidated results of operations, financial position or cash flows. Classification in the Statement of Cash Flows In August 2016, an accounting standards update was issued that clarifies how entities classify certain cash receipts and cash payments on the statement of cash flows. The guidance was effective for us in first quarter 2018 and should be applied retrospectively with early adoption permitted. We adopted this new standard in fourth quarter 2017 on a retrospective basis. Adoption of this standard did not have an impact on our consolidated cash flow statement presentation. Definition of a Business In January 2017, an accounting standards update was issued which clarifies the definition of a business. This new standard was effective for us in first quarter 2018 with early adoption permitted. We adopted this new standard in fourth quarter 2017. Adoption of this standard did not have a significant impact on our consolidated results of operations, financial position, cash flows or disclosures. Share-Based Payment Awards In March 2016, an accounting standards update was issued that simplifies several aspects of the accounting for share-based payment award transactions. We adopted this accounting standards update in fourth quarter 2016 which required us to reflect any adjustments as of January 1, 2016, the beginning of the annual period that included the interim period of adoption. As a result of this adoption, all cash payments for withheld shares made to taxing authorities on the employee’s behalf are presented in the financing section instead of the operating activities section of the statement of cash flows. The change in the statement of cash flows was not material for the year ended December 31, 2016. We recorded a cumulative-effect adjustment to retained earnings and reduced our deferred tax liability for $101.1 million for previously unrecognized tax benefits due to our NOL position. Adoption of this new standards update resulted in the recognition of an excess tax deficiency in our provision for income taxes rather than paid-in capital of $2.1 million for the year ended December 31, 2016. Not Yet Adopted Lease Accounting Standard In February 2016, an accounting standards update was issued that requires an entity to recognize a right-of-use asset and lease liability for all leases with terms of more than twelve months. Classification of leases as either a finance or operating lease will determine the recognition, measurement and presentation of expenses. This accounting standards update also requires certain quantitative and qualitative disclosures about leasing arrangements. This standard does not apply to leases to explore for or use minerals, oil or natural gas resources, including the right to explore for those natural resources and rights to use the land in which those natural resources are contained. We have evaluated each of our lease arrangements and have enhanced our systems to track and calculate additional information necessary for adoption of this standard. We have identified and documented changes to processes and controls to ensure all impacts of the new standard are effectively addressed. We are evaluating the provisions of this accounting standards update and finalizing the impact it will have on our consolidated results of operations, financial position and financial disclosures. While we have yet to finalize the impact this standards update will have on our consolidated financial statements, the adoption will increase our recorded assets and liabilities related to our leases. We will adopt this new standards update in first quarter 2019 using a modified retrospective approach and will recognize a right of use asset and lease liability on the adoption date. We are applying the following practical expedients as provided in the standards update:
| • | an election to not apply the recognition requirements in the new standards update to short-term leases (a lease that at commencement date has a lease term of 12 months or less and does not contain a purchase option); and |
| • | a package of practical expedients to not reassess whether a contract contains a lease, lease classification and initial direct costs; and |
| • | a practical expedient to not reassess certain land easements in existence prior to January 1, 2019. |
We have not yet determined the extent of the adjustments that will be required upon implementation of this new standards update. Financial Instruments – Credit Losses In June 2016, an accounting standards update was issued that changes the impairment model for trade receivables, net investments in leases, debt securities, loans and certain other instruments. The standards update requires the use of a forward-looking “expected loss” model as opposed to the current “incurred loss” model. This standards update is effective for us in first quarter 2020 and will be adopted on a modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the adoption period. Early adoption is permitted starting January 2019. We are evaluating the provisions of this accounting standards update and assessing the impact, if any, it may have on our consolidated results of operations, financial position and financial disclosures. Fair Value Measurement In August 2018, an accounting standards update was issued which provides additional disclosure requirements for fair value measurements. This new standards update eliminates the requirement to disclose transfers between Level 1 and Level 2 of the fair value hierarchy and provides for additional disclosures for Level 3 fair value measurements. This new standards update is effective for us in first quarter 2020 and will be adopted on a prospective or retrospective basis depending on the changes that apply. We are evaluating the provisions of this standards update and assessing the impact, if any, it may have on our financial disclosures.

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- Definition The entire disclosure of changes in accounting principles, including adoption of new accounting pronouncements, that describes the new methods, amount and effects on financial statement line items. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -URI http://asc.fasb.org/topic&trid=2122394 + Details
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