| Schedule of New Accounting Pronouncements and Changes in Accounting Principles |
New Accounting Standards Presented in the table below are new accounting standards that were adopted by the Company in 2019: | | | | | | | | | | Standard | | Description | | Date of Adoption | | Application | | Effect on the Consolidated Financial Statements | Accounting for Leases
| | Updated the accounting and disclosure guidance for leasing arrangements. Under this guidance, a lessee is required to recognize the following for all leases, excluding short-term leases, at the commencement date: (i) a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and (ii) a right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. A package of optional transition practical expedients allows an entity not to reassess under the new guidance: (i) whether any expired or existing contracts as of the adoption date are or contain leases; (ii) lease classification; and (iii) initial direct costs. Additional, optional transition practical expedients are available which allow an entity not to evaluate expired or existing land easements as of the adoption date if the easements were not previously accounted for as leases; and to apply the new lease standard at the adoption date and recognize a cumulative-effect adjustment in the opening balance of retained earnings in the period of adoption. | | January 1, 2019 | | Modified retrospective
| | See Note 19—Leases. | Targeted Improvements to Accounting for Hedging Activities
| | Updated the accounting and disclosure guidance for hedging activities, allowing for more financial and nonfinancial hedging strategies to be eligible for hedge accounting. Under this guidance, a qualitative effectiveness assessment is permitted for certain hedges if an entity can reasonably support an expectation of high effectiveness throughout the term of the hedge, provided that an initial quantitative test establishes that the hedge relationship is highly effective. Also, for cash flow hedges determined to be highly effective, all changes in the fair value of the hedging instrument will be recorded in other comprehensive income, with a subsequent reclassification to earnings when the hedged item impacts earnings. | | January 1, 2019 | | Modified retrospective for adjustments related to the measurement of ineffectiveness for cash flow hedges; prospective for the updated presentation and disclosure requirements. | | The adoption did not have a material impact on the Consolidated Financial Statements.
| Inclusion of the Secured Overnight Financing Rate (“SOFR”) Overnight Index Swap (“OIS”) Rate as a Benchmark Interest Rate for Hedge Accounting Purposes | | Designated the OIS rate based on SOFR as an eligible U.S. benchmark interest rate for the purposes of applying hedge accounting. | | January 1, 2019 | | Prospective
| | The adoption did not have a material impact on the Consolidated Financial Statements. |
Presented in the table below are recently issued accounting standards that have not yet been adopted by the Company as of December 31, 2019: | | | | | | | | | | Standard | | Description | | Date of Adoption | | Application | | Estimated Effect on the Consolidated Financial Statements | Measurement of Credit Losses on Financial Instruments | | Updated the accounting guidance on reporting credit losses for financial assets held at amortized cost basis and available-for-sale debt securities. Under this guidance, expected credit losses are required to be measured based on historical experience, current conditions and reasonable and supportable forecasts that affect the collectability of the reported amount of financial assets. Also, this guidance requires that credit losses on available-for-sale debt securities be presented as an allowance rather than as a direct write-down. | | January 1, 2020; early adoption permitted | | Modified retrospective | | The standard will not have a material impact on the Consolidated Financial Statements. | Changes to the Disclosure Requirements for Fair Value Measurement | | Updated the disclosure requirements for fair value measurement. The guidance removes the requirements to disclose transfers between Level 1 and Level 2 measurements, the timing of transfers between levels, and the valuation processes for Level 3 measurements. Disclosure of transfers into and out of Level 3 measurements will be required. The guidance adds disclosure requirements for the change in unrealized gains and losses in other comprehensive income for recurring Level 3 measurements, as well as the range and weighted average of significant unobservable inputs used to develop Level 3 measurements. | | January 1, 2020; early adoption permitted | | Prospective for added disclosures and for the narrative description of measurement uncertainty; retrospective for all other amendments. | | The standard will not have a material impact on the Consolidated Financial Statements.
| Simplifying the Accounting for Income Taxes | | Simplified the accounting for income taxes by removing certain exceptions and by adding certain requirements. The guidance removes exceptions related to the incremental approach for intraperiod tax allocation, the requirement to recognize a deferred tax liability for changes in ownership of a foreign subsidiary or equity method investment, and the general methodology for calculating income taxes in an interim period when the year-to-date loss exceeds the anticipated loss. The guidance adds requirements to reflect changes to tax laws or rates in the annual effective tax rate computation in the interim period in which the changes were enacted, to recognize franchise or other similar taxes that are partially based on income as an income-based tax and any incremental amounts as non-income-based tax, and to evaluate when a step up in the tax basis of goodwill should be considered part of the business combination in which the book goodwill was originally recognized and when it should be considered a separate transaction. | | January 1, 2021; early adoption permitted | | Modified retrospective for amendments related to changes in ownership of a foreign subsidiary or equity method investment; Modified retrospective or retrospective for amendments related to taxes partially based on income; Prospective for all other amendments. | | The Company is evaluating any impact on its Consolidated Financial Statements, as well as the timing of adoption. |
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