XML 29 R19.htm IDEA: XBRL DOCUMENT v3.8.0.1
Significant Accounting Policies (Policies)
9 Months Ended
Sep. 30, 2017
Accounting Policies [Abstract]  
New Accounting Pronouncements, Policy [Policy Text Block]
Recent Accounting Pronouncements
 
In
May 2014,
the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU)
No.
2014
-
09,
Revenue from Contracts with Customers
, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. This standard will replace most existing revenue recognition guidance when it becomes effective. The standard permits the use of either the full retrospective or modified retrospective transition methods. The Company expects to adopt the standard in the
first
quarter of
2018
using the modified retrospective transition method. The Company has identified its primary revenue streams, completed a preliminary review of a representative sample of contracts with its customers and is in the process of evaluating the impact of this ASU on its revenue streams and accounting policies. Based on the procedures completed to date, the Company expects that for a significant portion of its business, the recognition of revenue under the updated standard will occur at a point in time, which is consistent with current practice. The Company has identified certain revenue streams for which the recognition of revenue
may
occur over time, which is a change from current practice. These revenue streams include certain customer stocking commitments. Additionally, the Company has identified certain revenue streams for which the recognition of revenue
may
be deferred, which is also a change from current practice. These revenue streams include certain tooling sales. The Company does
not
expect that the impact of these changes in the timing of revenue recognition for these items to be significant to the financial statements. The Company is also in the process of updating its internal controls and drafting the expanded disclosures as required by this ASU.
The Company does
not
expect significant changes to its systems or internal controls. As the Company continues thr
ough the adoption process, it is possible that these preliminary conclusions
may
change.
 
In
February 2016,
the FASB issued ASU
No.
 
2016
-
02,
Leases.
The guidance in this ASU supersedes the leasing guidance in Topic
840,
Leases
. Under the new guidance, lessees are required to recognize lease assets and lease liabilities on the balance sheet for those leases previously classified as operating leases. The amendments in ASU
No.
 
2016
-
02
are effective for annual reporting periods beginning after
December 
15,
2018,
including interim periods within that reporting period with early adoption permitted. The Company is evaluating the impact of adopting this ASU on its consolidated financial position and results of operations.
 
In
March 2016,
the FASB issued ASU
No.
2016
-
09,
Improvements to Employee Share Based Payment Accounting
. This ASU simplifies several aspects of the accounting for share-based payment transactions, including income tax consequences, classification of awards, forfeitures and classification on the statement of cash flows. The Company adopted this ASU on
January 1, 2017.
As the Company has
not
had a significant amount of forfeitures historically, under the provisions of this ASU the Company has elected to account for forfeitures as they occur, rather than estimate expected forfeitures. The impact of adopting this update to the Company’s Consolidated Financial Statements will depend on market factors and the timing and intrinsic value of future share-based compensation award vests and exercises. Subsequent to adoption, the Company notes the potential for volatility in its effective tax rate as any windfall or shortfall tax benefits related to its share-based compensation plans will be recorded directly to income tax expense in the Condensed Consolidated Statement of Income.
Revisions Policy [Policy Text Block]
Revisions
 
Certain revisions have been made to the
2016
Condensed Consolidated Statement of Cash Flows to conform to the current year presentation relating to a reserve for uncertain tax positions and to cash paid for capital expenditures. The reclassification of a reserve for uncertain tax positions resulted in an increase to the change in refundable income taxes of
$315,000
and a decrease to the change in accrued expenses of
$315,000.
A change in presentation of cash paid for capital expenditures resulted in a decrease of
$311,000
in both the change in accounts payable and in additions to property, plant and equipment, net. These revisions had
no
impact on previously reported net income and are deemed immaterial to the previously issued financial statements.