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Summary of Significant Accounting Policies | 12 Months Ended
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Dec. 31, 2018
Summary of Significant Accounting Policies [Abstract] |
Summary of Significant Accounting Policies | 1. Summary of Significant Accounting Policies ﻿ (a) Basis of Presentation ﻿ The accompanying consolidated financial statements have been prepared in compliance with generally accepted accounting principles in the United States (“GAAP”) as codified in the Financial Accounting Standards Board’s (“FASB”) Accounting Standards Codification (“ASC”). ﻿ (b) Principles of Consolidation ﻿ The consolidated financial statements include the accounts of Tutor Perini Corporation and its wholly owned subsidiaries (the “Company”). The Company occasionally forms joint ventures with unrelated third parties for the execution of single contracts or projects. The Company assesses its joint ventures at inception to determine if they meet the qualifications of a variable interest entity (“VIE”) in accordance with ASC 810, Consolidation (“ASC 810”). If a joint venture is a VIE and the Company is the primary beneficiary, the joint venture is fully consolidated (See Note 13 below). For construction joint ventures that do not need to be consolidated, the Company accounts for its interest in the joint ventures using the proportionate consolidation method, whereby the Company’s proportionate share of the joint ventures’ assets, liabilities, revenue and cost of operations are included in the appropriate classifications in the Company’s consolidated financial statements. Intercompany balances and transactions have been eliminated. ﻿ (c) Use of Estimates ﻿ The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect reported amounts. These estimates are based on information available through the date of the issuance of the financial statements; therefore, actual results could differ from those estimates. (d) Revenue Recognition ﻿ Implementation of New Revenue Recognition Guidance ﻿ In May 2014, the FASB issued Accounting Standards Update (“ASU”) 2014-09, Revenue from Contracts with Customers (Topic 606), as amended by subsequent ASUs (collectively, “ASC 606”) which amends the existing accounting standards for revenue recognition and establishes principles for recognizing revenue upon the transfer of promised goods or services to customers based on the expected consideration to be received in exchange for those goods or services. The Company adopted this ASU effective January 1, 2018 using the modified retrospective transition method. The Company recognized the cumulative effect of initially applying the new revenue standard to all contracts not yet completed or substantially completed as of January 1, 2018 as an immaterial reduction to beginning retained earnings. The impact of adoption on the Company’s opening balance sheet was primarily related to the deferral of costs incurred to fulfill certain contracts that were previously recorded in income in the period incurred, but under the new standard are capitalized and amortized over the period of contract performance. The prior year comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods; however, certain balances have been reclassified to conform to the current year presentation. ﻿ The effect of the changes made to the Company’s consolidated January 1, 2018 balance sheet for the adoption of ASC 606 were as follows: ﻿ ﻿
﻿ |  |  |  |  |  |  |  |
﻿ |  |
﻿BALANCE SHEET | Balance as of |  | Adjustments due to |  | Balance as of
﻿(in thousands) | December 31, 2017(a) |  | ASC 606 |  | January 1, 2018
﻿ASSETS |  |  |  |  |  |  |  |
﻿Accounts receivable(b) | $ | 1,801,656 |  | $ | (535,939) |  | $ | 1,265,717
﻿Retainage receivable(b) |  | — |  |  | 535,939 |  |  | 535,939
﻿Other current assets |  | 89,316 |  |  | 32,773 |  |  | 122,089
﻿ |  |  |  |  |  |  |  |
﻿LIABILITIES |  |  |  |  |  |  |  |
﻿Accounts payable(b) | $ | 961,791 |  | $ | (261,820) |  | $ | 699,971
﻿Retainage payable(b) |  | — |  |  | 261,820 |  |  | 261,820
﻿Billings in excess of costs and estimated earnings |  | 456,869 |  |  | 39,785 |  |  | 496,654
﻿Deferred income taxes |  | 108,504 |  |  | (1,537) |  |  | 106,967
﻿ |  |  |  |  |  |  |  |
﻿EQUITY |  |  |  |  |  |  |  |
﻿Retained earnings | $ | 622,007 |  | $ | (3,762) |  | $ | 618,245
﻿Noncontrolling interests |  | (8,495) |  |  | (1,714) |  |  | (10,209)
_____________________________________________________________________________________________________________ ﻿
| (a) |  | Balances as previously reported on the Company’s Annual Report on Form 10-K for the year ended December 31, 2017.
| (b) |  | Prior to the adoption of ASC 606, retainage receivable and payable balances were included within accounts receivable and accounts payable, respectively.
﻿ In accordance with the new revenue standard requirements, the disclosure of the impacts of adoption on the Consolidated Statement of Income and Consolidated Balance Sheet were as follows: ﻿ ﻿
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﻿ |  | Year Ended December 31, 2018
﻿ |  |  |  | Balance Without |  |
﻿STATEMENT OF INCOME |  |  |  | Adoption of |  | Effect of
﻿(in thousands) |  | As Reported |  | ASC 606 |  | Change
﻿REVENUE |  | $ | 4,454,662 |  | $ | 4,458,668 |  | $ | (4,006)
﻿COST OF OPERATIONS |  |  | (4,000,209) |  |  | (4,003,959) |  |  | 3,750
﻿GROSS PROFIT |  |  | 454,453 |  |  | 454,709 |  |  | (256)
﻿General and administrative expenses |  |  | (262,577) |  |  | (262,577) |  |  | —
﻿INCOME FROM CONSTRUCTION OPERATIONS |  |  | 191,876 |  |  | 192,132 |  |  | (256)
﻿Other income, net |  |  | 4,256 |  |  | 4,256 |  |  | —
﻿Interest expense |  |  | (63,519) |  |  | (63,519) |  |  | —
﻿INCOME BEFORE INCOME TAXES |  |  | 132,613 |  |  | 132,869 |  |  | (256)
﻿Income tax (expense) benefit |  |  | (34,832) |  |  | (34,939) |  |  | 107
﻿NET INCOME |  |  | 97,781 |  |  | 97,930 |  |  | (149)
﻿LESS: NET INCOME ATTRIBUTABLE TO NONCONTROLLING INTERESTS |  |  | 14,345 |  |  | 14,212 |  |  | 133
﻿NET INCOME ATTRIBUTABLE TO TUTOR PERINI CORPORATION |  | $ | 83,436 |  | $ | 83,718 |  | $ | (282)
﻿ ﻿
﻿ |  |  |  |  |  |  |  |  |
﻿ |  |  |  |  |  |  |  |  |
﻿ |  | As of December 31, 2018
﻿ |  |  |  | Balance Without |  |
﻿BALANCE SHEET |  |  |  | Adoption of |  | Effect of
﻿(in thousands) |  | As Reported |  | ASC 606 |  | Change
﻿ASSETS |  |  |  |  |  |  |  |  |
﻿Accounts receivable(a) |  | $ | 1,261,072 |  | $ | 1,735,414 |  | $ | (474,342)
﻿Retainage receivable(a) |  |  | 478,744 |  |  | — |  |  | 478,744
﻿Costs and estimated earnings in excess of billings |  |  | 1,142,295 |  |  | 1,148,216 |  |  | (5,921)
﻿Other current assets |  |  | 115,527 |  |  | 79,004 |  |  | 36,523
﻿ |  |  |  |  |  |  |  |  |
﻿LIABILITIES |  |  |  |  |  |  |  |  |
﻿Accounts payable(a) |  | $ | 621,728 |  | $ | 833,684 |  | $ | (211,956)
﻿Retainage payable(a) |  |  | 211,956 |  |  | — |  |  | 211,956
﻿Billings in excess of costs and estimated earnings |  |  | 573,190 |  |  | 530,918 |  |  | 42,272
﻿Accrued expenses and other current liabilities |  |  | 174,325 |  |  | 174,824 |  |  | (499)
﻿Deferred income taxes |  |  | 105,521 |  |  | 106,665 |  |  | (1,144)
﻿ |  |  |  |  |  |  |  |  |
﻿EQUITY |  |  |  |  |  |  |  |  |
﻿Retained earnings |  | $ | 701,681 |  | $ | 705,725 |  | $ | (4,044)
﻿Noncontrolling interests |  |  | (21,288) |  |  | (19,707) |  |  | (1,581)
_____________________________________________________________________________________________________________ ﻿
| (a) |  | Prior to the adoption of ASC 606, retainage receivable and payable balances were included within accounts receivable and payable, respectively.
﻿ The adoption of ASC 606 had no impact on the cash flows provided by operating activities in the Company’s Consolidated Statement of Cash Flows. ﻿ Revenue Recognition Policy ﻿ The Company derives revenue from long-term construction contracts with public and private customers primarily in the United States and its territories and in certain other international locations. The Company’s construction contracts are generally each accounted for as a single unit of account (i.e., as a single performance obligation). ﻿ Throughout the execution of construction contracts, the Company and its affiliated entities recognize revenue with the continuous transfer of control to the customer. The customer typically controls the asset under construction by either contractual termination clauses or by the Company’s rights to payment for work already performed on the asset under construction that does not have an alternative use for the Company. ﻿ Because control transfers over time, revenue is recognized to the extent of progress towards completion of the performance obligations. The selection of the method to measure progress towards completion requires judgment and is based on the nature of the products or services provided. The Company generally uses the cost-to-cost method for its contracts, which measures progress towards completion for each performance obligation based on the ratio of costs incurred to date to the total estimated costs at completion for the respective performance obligation. Incurred cost represents work performed, which corresponds with, and thereby best depicts, the transfer of control to the customer. Revenue, including estimated fees or profits, is recorded proportionately as costs are incurred. Cost of operations includes labor, materials, subcontractor costs, and other direct and indirect costs, including depreciation and amortization. ﻿ Due to the nature of the work required to be performed on many of the Company’s performance obligations, estimating total revenue and cost at completion is complex, subject to many variables and requires significant judgment. Assumptions as to the occurrence of future events and the likelihood and amount of variable consideration, including the impact of change orders, claims, contract disputes and the achievement of contractual performance criteria, and award or other incentive fees are made during the contract performance period. The Company estimates variable consideration at the most likely amount it expects to receive. The Company includes estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. Estimates of variable consideration and determination of whether to include estimated amounts in the transaction price are based largely on an assessment of anticipated performance and all information (historical, current and forecasted) that is reasonably available to management. ﻿ Changes in Estimates on Construction Contracts ﻿ The Company’s estimates of contract revenue and cost are highly detailed and many factors change during a contract performance period that result in a change to contract profitability. These factors include, but are not limited to, differing site conditions; availability of skilled contract labor; performance of major material suppliers and subcontractors; on-going subcontractor negotiations and buyout provisions; unusual weather conditions; changes in the timing of scheduled work; change orders; accuracy of the original bid estimate; changes in estimated labor productivity and costs based on experience to date; achievement of incentive-based income targets; and the expected, or actual, resolution terms for claims. The factors that cause changes in estimates vary depending on the maturation of the project within its lifecycle. For example, in the ramp-up phase, these factors typically consist of revisions in anticipated project costs and during the peak and closeout phases, these factors include the impact of change orders and claims, as well as additional revisions in remaining anticipated project costs. Generally, if the contract is at an early stage of completion, the current period impact is smaller than if the same change in estimate is made to the contract at a later stage of completion. Management evaluates changes in estimates on a contract by contract basis and discloses significant changes, if material, in the Notes to the Consolidated Financial Statements. The cumulative catch-up method is used to account for revisions in estimates. (e) Depreciation of Property and Equipment and Amortization of Long-Lived Intangible Assets ﻿ Property and equipment and long-lived intangible assets are generally depreciated or amortized on a straight-line basis over their estimated useful lives ranging from three to forty years. ﻿ (f) Recoverability of Long-Lived Assets ﻿ Long-lived assets are reviewed for impairment whenever circumstances indicate that the future cash flows generated by the assets might be less than the assets’ net carrying value. In such circumstances, an impairment loss will be recognized by the amount the assets’ net carrying value exceeds their fair value. ﻿ (g) Recoverability of Goodwill ﻿ The Company tests goodwill for impairment annually as of October 1 for each reporting unit and between annual tests if events occur or circumstances change which suggest that goodwill should be reevaluated. Such events or circumstances include significant changes in legal factors and business climate, recent losses at a reporting unit, and industry trends, among other factors. The Civil, Building and Specialty Contractors segments each represent a reporting unit. The Company performs its annual quantitative impairment assessment during the fourth quarter of each year using a weighted-average of an income and a market approach. The income approach is based on estimated present value of future cash flows for each reporting unit. The market approach is based on assumptions about how market data relates to each reporting unit. The weighting of these two approaches is based on their individual correlation to the economics of each reporting unit. The quantitative assessment performed in 2018 resulted in an estimated fair value for each of the Company’s reporting units that exceeded their respective net book values; therefore, no impairment charge was necessary for 2018. ﻿ (h) Recoverability of Non-Amortizable Trade Names ﻿ Certain trade names have an estimated indefinite life and are not amortized to earnings, but instead are reviewed for impairment annually, or more often if events occur or circumstances change which suggest that the non-amortizable trade names should be reevaluated. The Company performs its annual quantitative impairment assessment during the fourth quarter of each year using an income approach (relief from royalty method). The quantitative assessment performed in 2018 resulted in an estimated fair value for the non-amortizable trade names that exceeded their respective net book values; therefore, no impairment charge was necessary for 2018. ﻿ (i) Income Taxes ﻿ Deferred income tax assets and liabilities are recognized for the effects of temporary differences between the financial statement carrying amounts and the income tax basis of assets and liabilities using tax rates expected to be in effect when such differences reverse. Income tax positions must meet a more-likely-than-not threshold to be recognized. The Company recognizes interest and penalties related to uncertain tax positions as a component of the income tax provision. ﻿ (j) Earnings Per Common Share (EPS) ﻿ Basic EPS and diluted EPS are calculated by dividing net income attributable to Tutor Perini Corporation by the following: for basic EPS, the weighted-average number of common shares outstanding during the period; and for diluted EPS, the sum of the weighted-average number of both outstanding common shares and potentially dilutive securities, which for the Company can include restricted stock units, unexercised stock options and the Convertible Notes, as defined in Note 7. In accordance with ASC 260, Earnings Per Share, the settlement of the principal amount of the Convertible Notes has no impact on diluted EPS because the Company has the intent and ability to settle the principal amount in cash. The Company calculates the effect of the potentially dilutive restricted stock units and stock options using the treasury stock method. ﻿ ﻿
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﻿ | Year Ended December 31,
﻿(in thousands, except per common share data) | 2018 |  | 2017 |  | 2016
﻿Net income attributable to Tutor Perini Corporation | $ | 83,436 |  | $ | 148,382 |  | $ | 95,822
﻿ |  |  |  |  |  |  |  |
﻿Weighted-average common shares outstanding, basic |  | 49,952 |  |  | 49,647 |  |  | 49,150
﻿Effect of dilutive restricted stock units and stock options |  | 349 |  |  | 1,112 |  |  | 714
﻿Weighted-average common shares outstanding, diluted |  | 50,301 |  |  | 50,759 |  |  | 49,864
﻿ |  |  |  |  |  |  |  |
﻿Net income attributable to Tutor Perini Corporation per common share: |  |  |  |  |  |  |  |
﻿Basic | $ | 1.67 |  | $ | 2.99 |  | $ | 1.95
﻿Diluted | $ | 1.66 |  | $ | 2.92 |  | $ | 1.92
﻿Anti-dilutive securities not included above |  | 2,670 |  |  | 798 |  |  | 1,132
﻿ (k) Cash, Cash Equivalents and Restricted Cash ﻿ The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Balance Sheets to the amounts shown in the Consolidated Statements of Cash Flows: ﻿ ﻿ ﻿
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﻿ | As of December 31,
﻿(in thousands) | 2018 |  | 2017
﻿Cash and cash equivalents available for general corporate purposes | $ | 51,749 |  | $ | 94,713
﻿Joint venture cash and cash equivalents |  | 64,326 |  |  | 98,155
﻿Cash and cash equivalents |  | 116,075 |  |  | 192,868
﻿Restricted cash |  | 3,788 |  |  | 4,780
﻿Total cash, cash equivalents and restricted cash | $ | 119,863 |  | $ | 197,648
﻿ |  |  |  |  |
﻿ Cash equivalents include short-term, highly liquid investments with maturities of three months or less when acquired. Cash and cash equivalents, consist of amounts available for the Company’s general purposes, the Company’s proportionate share of cash held by the Company’s unconsolidated joint ventures and 100% of amounts held by the Company’s consolidated joint ventures. In both cases, cash held by joint ventures is available only for joint venture-related uses, including future distributions to joint venture partners. ﻿ Amounts included in restricted cash are primarily held as collateral to secure insurance-related contingent obligations, such as insurance claim deductibles, in lieu of letters of credit. ﻿ (l) Restricted Investments ﻿ The Company has restricted investments primarily held as collateral to secure insurance-related contingent obligations, such as insurance claim deductibles, in lieu of letters of credit. Restricted investments are comprised of investments in corporate debt securities and U.S. government agency securities that are rated A3 or better. (m) Share-Based Compensation ﻿ The Company’s long-term incentive plans allow the Company to grant share-based compensation awards in a variety of forms, including restricted and unrestricted stock units and stock options. Restricted stock units and stock options generally vest subject to service and/or performance requirements, with related compensation expense equal to the fair value of the award on the date of grant and recognized on a straight-line basis over the requisite period. ﻿ For share-based awards that have a service requirement, the Company accounts for forfeitures upon occurrence, rather than estimating the probability of forfeiture at the date of grant. Accordingly, the Company recognizes the full grant-date fair value of these awards on a straight-line basis throughout the requisite service period, reversing any expense if, and only if, there is a forfeiture. For share-based awards that have a performance-based vesting requirement, the Company evaluates the probability of achieving the performance criteria throughout the performance period, and will adjust share-based compensation expense if it estimates that the achievement of the performance criteria is not probable. Certain performance-based awards contain market condition components and are valued on the date of grant using a Monte Carlo simulation model. The fair value of such awards is expensed ratably over the performance period and is not adjusted for actual achievement. ﻿ (n) Insurance Liabilities ﻿ The Company typically utilizes third-party insurance coverage subject to varying deductible levels with aggregate caps on losses retained. The Company assumes the risk for the amount of the deductible portion of the losses and liabilities primarily associated with workers’ compensation and general liability coverage. In addition, on certain projects, the Company assumes the risk for the amount of the deductible portion of losses that arise from any subcontractor defaults. Losses are accrued based upon the Company’s estimates of the aggregate liability for claims incurred using historical experience and certain actuarial assumptions followed in the insurance industry. The estimate of insurance liability within the deductible limits includes an estimate of incurred but not reported claims based on data compiled from historical experience. ﻿ (o) Other Comprehensive Income (Loss) ﻿ ASC 220, Comprehensive Income, establishes standards for reporting and displaying comprehensive income and its components in the consolidated financial statements. The Company reports the change in pension benefit plan assets/liabilities, cumulative foreign currency translation, change in fair value of investments and change in fair value of an interest rate swap as components of accumulated other comprehensive loss (“AOCI”). ﻿ The tax effects of the components of other comprehensive income (loss) for are as follows: ﻿
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﻿ | Year Ended December 31,
﻿ | 2018 |  | 2017 |  | 2016
﻿(in thousands) | Before-Tax Amount |  | Tax (Expense) Benefit |  | Net-of-Tax Amount |  | Before-Tax Amount |  | Tax (Expense) Benefit |  | Net-of-Tax Amount |  | Before-Tax Amount |  | Tax Benefit |  | Net-of-Tax Amount
﻿Other comprehensive income (loss): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿Defined benefit pension plan adjustments | $ | 1,079 |  | $ | (308) |  | $ | 771 |  | $ | 2,416 |  | $ | (992) |  | $ | 1,424 |  | $ | (4,452) |  | $ | 1,829 |  | $ | (2,623)
﻿Foreign currency translation adjustment |  | (4,067) |  |  | 1,122 |  |  | (2,945) |  |  | 2,159 |  |  | (886) |  |  | 1,273 |  |  | (439) |  |  | 178 |  |  | (261)
﻿Unrealized gain (loss) in fair value of investments |  | (1,005) |  |  | 227 |  |  | (778) |  |  | (4) |  |  | 2 |  |  | (2) |  |  | (576) |  |  | 236 |  |  | (340)
﻿Unrealized gain (loss) in fair value of interest rate swap |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (45) |  |  | 21 |  |  | (24)
﻿Total other comprehensive income (loss) | $ | (3,993) |  | $ | 1,041 |  | $ | (2,952) |  | $ | 4,571 |  | $ | (1,876) |  | $ | 2,695 |  | $ | (5,512) |  | $ | 2,264 |  | $ | (3,248)
﻿Less: Other comprehensive income (loss) attributable to noncontrolling interests(a) |  | (221) |  |  | — |  |  | (221) |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | —
﻿Total other comprehensive income (loss) attributable to Tutor Perini Corporation | $ | (3,772) |  | $ | 1,041 |  | $ | (2,731) |  | $ | 4,571 |  | $ | (1,876) |  | $ | 2,695 |  | $ | (5,512) |  | $ | 2,264 |  | $ | (3,248)
| (a) |  | The only component of other comprehensive loss attributable to noncontrolling interests is foreign currency translation.
﻿ The changes in AOCI balances by component (after tax) attributable to Tutor Perini Corporation are as follows: ﻿
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﻿ |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿(in thousands) | Defined Benefit Pension Plan |  | Foreign Currency Translation |  | Unrealized Gain (Loss) in Fair Value of Investments |  | Unrealized Gain (Loss) in Fair Value of Interest Rate Swap |  | Accumulated Other Comprehensive Income (Loss)
﻿Attributable to Tutor Perini Corporation: |  |  |  |  |  |  |  |  |  |  |  |  |  |
﻿Balance as of December 31, 2015 | $ | (38,242) |  | $ | (4,603) |  | $ | 656 |  | $ | 24 |  | $ | (42,165)
﻿Other comprehensive loss before reclassifications |  | (3,722) |  |  | (261) |  |  | (340) |  |  | (24) |  |  | (4,347)
﻿Amounts reclassified from AOCI |  | 1,099 |  |  | — |  |  | — |  |  | — |  |  | 1,099
﻿Balance as of December 31, 2016 | $ | (40,865) |  | $ | (4,864) |  | $ | 316 |  | $ | — |  | $ | (45,413)
﻿Other comprehensive income (loss) before reclassifications |  | 306 |  |  | 1,273 |  |  | (2) |  |  | — |  |  | 1,577
﻿Amounts reclassified from AOCI |  | 1,118 |  |  | — |  |  | — |  |  | — |  |  | 1,118
﻿Balance as of December 31, 2017 | $ | (39,441) |  | $ | (3,591) |  | $ | 314 |  | $ | — |  | $ | (42,718)
﻿Other comprehensive loss before reclassifications |  | (695) |  |  | (2,724) |  |  | (835) |  |  | — |  |  | (4,254)
﻿Amounts reclassified from AOCI |  | 1,466 |  |  | — |  |  | 57 |  |  | — |  |  | 1,523
﻿Balance as of December 31, 2018 | $ | (38,670) |  | $ | (6,315) |  | $ | (464) |  | $ | — |  | $ | (45,449)
﻿ (p) Recent Accounting Pronouncements ﻿ In addition to the implementation of ASC 606 as discussed in 1(d), new accounting pronouncements implemented by the Company during the year ended December 31, 2018 are discussed below. ﻿ In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which requires restricted cash to be included with cash and cash equivalent balances in the statement of cash flows. The Company retrospectively adopted this ASU on January 1, 2018. The adoption of this ASU resulted in an increase of net cash used in investing activities of $45.7 million for the year ended December 31, 2017 and a decrease of net cash used in investing activities of $4.7 million for the year ended December 31, 2016. ﻿ In January 2017, the FASB issued ASU 2017-04, Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”). This ASU simplifies the calculation of goodwill impairment by eliminating Step 2 of the impairment test prescribed by ASC 350, Intangibles—Goodwill and Other. Step 2 requires companies to calculate the implied fair value of their goodwill by estimating the fair value of their assets, other than goodwill, and liabilities, including unrecognized assets and liabilities, following the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. The calculated net fair value of the assets would then be compared to the fair value of the reporting unit to determine the implied fair value of goodwill, and to the extent that the carrying value of goodwill was less than the implied fair value, a loss would be recognized. Under ASU 2017-04, however, goodwill is impaired when the calculated fair value of a reporting unit is less than its carrying value, and the impairment charge will equal that difference (i.e., impairment will be calculated at the reporting unit level and there will be no need to estimate the fair value of individual assets and liabilities). This guidance will be effective for any goodwill impairment tests performed in fiscal years beginning after December 15, 2019; however, early adoption is permitted for tests performed on testing dates after January 1, 2017. The Company adopted this ASU on October 1, 2018. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. ﻿ In May 2017, the FASB issued ASU 2017-09, Compensation—Stock Compensation (Topic 718): Scope of Modification Accounting. This ASU clarifies the scope of modification accounting under Topic 718 with respect to changes to the terms or conditions of a share-based payment award. Under this new guidance, modification accounting would not apply if a change to an award does not affect the total current fair value, vesting conditions or the classification of the award. The Company adopted this ASU effective January 1, 2018. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. ﻿ In February 2018, the FASB issued ASU 2018-02, Income Statement—Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from the Accumulated Other Comprehensive Income. This ASU gives entities the option to reclassify to retained earnings tax effects related to items in accumulated other comprehensive income that the FASB refers to as having been stranded in accumulated other comprehensive income as a result of tax reform. Entities can apply the provisions of this ASU either in the period of adoption or retrospectively. The guidance is effective for interim and annual reporting periods beginning after December 15, 2018, with early adoption permitted. The Company adopted this ASU effective October 1, 2018 and elected to not reclassify the income tax effects of the tax reform from accumulated other comprehensive income to retained earnings. In March 2018, the FASB issued ASU 2018-05, Income Taxes (Topic 740): Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 (“ASU 2018-05”). This ASU provides guidance for companies that may not have completed their accounting for the income tax effects of the Tax Cut and Jobs Act of 2017 (the “Tax Act”) in the period of enactment. Staff Accounting Bulletin (“SAB”) No. 118 provides for a provisional one year measurement period to finalize the accounting for certain income tax effects related to the Tax Act and requires disclosure of the reasons for incomplete accounting. The Company applied the guidance provided in SAB No. 118 in 2017 and adopted this ASU effective January 1, 2018. The adoption of this ASU did not have a material impact on the Company’s consolidated financial statements. ﻿ The following new accounting pronouncement will be implemented in 2019. ﻿ In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), as amended and supplemented by subsequent ASUs (collectively, “ASU 2016-02”). ASU 2016-02 amends the existing guidance in ASC 840, Leases. This ASU requires, among other things, the recognition of lease right-of-use assets and lease liabilities by lessees for those leases currently classified as operating leases. ASU 2016-02 allows companies to adopt the new standard by applying either a modified retrospective method to the beginning of the earliest period presented in the financial statements or an optional transition method to initially apply the standard on January 1, 2019 and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The Company will adopt the standard using the optional transition method. The Company has implemented changes to certain business processes, systems and internal controls to support adoption of the new standard and the related disclosure requirements, including the implementation of a third-party leasing software solution. Based on the Company’s evaluation of ASU 2016-02, the Company expects the adoption to result in an increase of approximately $40 million to $50 million to its assets and liabilities on the consolidated balance sheets with an immaterial impact to its consolidated statements of income or cash flows.

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- Definition The entire disclosure for all significant accounting policies of the reporting entity. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -URI http://asc.fasb.org/topic&trid=2122369 + Details
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