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Recent Accounting Pronouncements
 9 Months Ended
Sep. 30, 2024
Accounting Policies [Abstract]  
Recent Accounting Pronouncements

Note 2 - Recent Accounting Pronouncements

 

In November 2021, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2021-10, "Government Assistance (Topic 832), Disclosures by Business Entities about Government Assistance", which requires business entities to provide disclosures on material government assistance transactions for annual reporting periods. The disclosures include information around (1) the nature of the assistance, (2) the related accounting policies used to account for government assistance, (3) the effect of government assistance on the entity’s financial statements, and (4) any significant terms and conditions of the agreements, including commitments and contingencies. The Company prospectively applied the guidance in conjunction with the agreement with United States entered into during the first quarter of 2024.

 

In the three and nine months ended September 30, 2024, the Company received $35.5 million and $45.5 million, respectively, in funding related to this program and recorded the funding as a current liability on the Consolidated Balance Sheets and as investing within the Consolidated Cash Flows. There was $5.8 million in capital spending in the third quarter of 2024 related to assets associated with government-funded projects. The Company will apply the guidance within "International Accounting Standards ("IAS") 20 - Accounting for Government Grants and Disclosure of Government Assistance" and will record the funding received as a reduction to property, plant and equipment at the completion of the project, as the primary conditions for receipt of these funds are to build-out new assets to support increased artillery shell production for the United States Army. In October 2024, the Company received an additional $7.0 million in government funding.

There are no other current ASUs issued, but not adopted, that are expected to have a material impact on the Company.