What changed in this filing

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Item 1. Financial Statements

2021-03-12 compared with 2020-12-11 · 90 added, 80 removed, 341 unchanged (33% of the section changed)

4 unchanged sentences

Three Months Ended

October 31, Six Months Ended

January 31, Nine Months Ended

2021 2020 2021 2020

3 unchanged sentences

Operating expenses 6,030 7,350 18,593 19,875

Operating earnings (loss) ( 11 ) ( 39 ) ( 287 ) 737

Operating loss ( 376 ) ( 2,072 ) ( 663 ) ( 1,335 )

Pension expense ( 288 ) ( 113 ) ( 865 ) ( 339 )

1 unchanged sentence

Interest expense ( 105 ) ( 150 ) ( 310 ) ( 452 )

Earnings (loss) before income taxes ( 362 ) ( 158 ) ( 949 ) 507

Loss before income taxes ( 718 ) ( 2,251 ) ( 1,667 ) ( 1,744 )

Income tax expense (benefit) ( 813 ) ( 350 ) ( 989 ) 1,822

Net loss ( 165 ) ( 2,161 ) ( 773 ) ( 1,665 )

Net earnings (loss) 95 ( 1,901 ) ( 678 ) ( 3,566 )

Net earnings attributable to the noncontrolling interest 14 17 19 59

Net loss attributable to Kewaunee Scientific Corporation $ ( 180 ) $ ( 2,178 ) $ ( 778 ) $ ( 1,707 )

Net loss per share attributable to Kewaunee Scientific Corporation stockholders

Net earnings (loss) attributable to Kewaunee Scientific Corporation $ 81 $ ( 1,918 ) $ ( 697 ) $ ( 3,625 )

Net earnings (loss) per share attributable to Kewaunee Scientific Corporation stockholders

Basic $ 0.03 $ ( 0.70 ) $ ( 0.25 ) $ ( 1.32 )

5 unchanged sentences

Kewaunee Scientific Corporation

Condensed Consolidated Statements of Comprehensive Income

Condensed Consolidated Statements of Comprehensive Income and (Loss)

($ in thousands)

Three Months Ended

October 31, Six Months Ended October 31,

January 31, Nine Months Ended January 31,

2021 2020 2021 2020

Net loss $ ( 165 ) $ ( 2,161 ) $ ( 773 ) $ ( 1,665 )

Net earnings (loss) $ 95 $ ( 1,901 ) $ ( 678 ) $ ( 3,566 )

Other comprehensive income (loss), net of tax:

2 unchanged sentences

Other comprehensive income (loss) 31 ( 26 ) ( 17 ) ( 8 )

Comprehensive loss, net of tax ( 200 ) ( 2,338 ) ( 821 ) ( 1,647 )

Comprehensive income (loss), net of tax 126 ( 1,927 ) ( 695 ) ( 3,574 )

Comprehensive income attributable to the noncontrolling interest 14 17 19 59

Comprehensive loss attributable to Kewaunee Scientific Corporation $ ( 215 ) $ ( 2,355 ) $ ( 826 ) $ ( 1,689 )

Comprehensive income (loss) attributable to Kewaunee Scientific Corporation $ 112 $ ( 1,944 ) $ ( 714 ) $ ( 3,633 )

See accompanying notes to condensed consolidated financial statements.

11 unchanged sentences

Net loss attributable to Kewaunee Scientific Corporation — — — ( 598 ) — ( 598 )

Other comprehensive income — — — — ( 13 ) ( 13 )

Other comprehensive loss — — — — ( 13 ) ( 13 )

Stock based compensation 20 78 — — — 98

1 unchanged sentence

Net loss attributable to Kewaunee Scientific Corporation $ — $ — $ — $ ( 180 ) $ — $ ( 180 )

Other comprehensive income — — — — ( 35 ) ( 35 )

Other comprehensive loss — — — — ( 35 ) ( 35 )

Stock based compensation — 143 — — — 143

Balance at October 31, 2020 $ 6,905 $ 3,581 $ ( 53 ) $ 37,043 $ ( 9,646 ) $ 37,830

Net earnings attributable to Kewaunee Scientific Corporation $ — $ — $ — $ 81 $ — $ 81

Other comprehensive income — — — — 31 31

Stock based compensation 10 103 — — — 113

Balance at January 31, 2021 $ 6,915 $ 3,684 $ ( 53 ) $ 37,124 $ ( 9,615 ) $ 38,055

See accompanying notes to condensed consolidated financial statements.

Stock Additional

17 unchanged sentences

Balance at October 31, 2019 $ 6,884 $ 3,226 $ ( 53 ) $ 40,800 $ ( 6,389 ) $ 44,468

Net loss attributable to Kewaunee Scientific Corporation $ — $ — $ — $ ( 1,918 ) $ — $ ( 1,918 )

Other comprehensive income (loss) — — — — $ ( 26 ) ( 26 )

Stock options exercised, 2,300 shares

1 ( 1 ) — — — —

Stock based compensation — 125 — — — 125

Balance at January 31, 2020 $ 6,885 $ 3,350 $ ( 53 ) $ 38,882 $ ( 6,415 ) $ 42,649

See accompanying notes to condensed consolidated financial statements.

2 unchanged sentences

($ and shares in thousands, except per share amounts)

October 31, 2020 April 30, 2020

January 31, 2021 April 30, 2020

Current Assets:

51 unchanged sentences

($ in thousands)

Six Months Ended

Nine Months Ended

Cash flows from operating activities:

Net loss $ ( 678 ) $ ( 3,566 )

Adjustments to reconcile net loss to net cash (used in) provided by operating activities:

Adjustments to reconcile net loss to net cash provided by operating activities:

Depreciation 2,005 1,927

9 unchanged sentences

Other, net 61 ( 546 )

Net cash (used in) provided by operating activities ( 516 ) 4,496

Net cash provided by operating activities 3,107 4,611

Cash flows from investing activities:

8 unchanged sentences

Net proceeds from exercise of stock options ( 31 ) ( 14 )

Net cash provided by (used in) financing activities 2,792 ( 5,174 )

Net cash used in financing activities ( 379 ) ( 8,156 )

Effect of exchange rate changes on cash, cash equivalents and restricted cash 104 ( 177 )

15 unchanged sentences

Cash and cash equivalents consist of cash on hand and highly liquid investments with original maturities of three months or less.

During the periods ended October 31, 2020 and April 30, 2020, the Company had cash deposits in excess of FDIC insured limits.

During the periods ended January 31, 2021 and April 30, 2020, the Company had cash deposits in excess of FDIC insured limits.

The Company has not experienced any losses from such deposits.

2 unchanged sentences

The reconciliation between the condensed consolidated balance sheet and the condensed consolidated statement of cash flows is as follows:

October 31, 2020 April 30, 2020

January 31, 2021 April 30, 2020

Cash and cash equivalents $ 5,563 $ 4,365

7 unchanged sentences

Disaggregated Revenue

A summary of net sales transferred to customers over time and at a point in time for the periods ended October 31, 2020 and October 31, 2019 is as follows (in thousands):

Three Months Ended October 31, 2020 Three Months Ended October 31, 2019

A summary of net sales transferred to customers over time and at a point in time for the periods ended January 31, 2021 and January 31, 2020 is as follows (in thousands):

Three Months Ended January 31, 2021 Three Months Ended January 31, 2020

Domestic International Total Domestic International Total

2 unchanged sentences

$ 25,066 $ 8,273 $ 33,339 $ 26,699 $ 7,526 $ 34,225

Six Months Ended October 31, 2020 Six Months Ended October 31, 2019

Nine Months Ended January 31, 2021 Nine Months Ended January 31, 2020

Domestic International Total Domestic International Total

3 unchanged sentences

Contract Balances

The closing and opening balances of contract assets arising from contracts with customers which were recorded as unbilled receivables were $ 8,650,000 at October 31, 2020 and $ 6,131,000 at April 30, 2020.

The closing and opening balances of contract liabilities arising from contracts with customers were $ 2,768,000 at October 31, 2020 and $ 2,508,000 at April 30, 2020.

The closing and opening balances of contract assets arising from contracts with customers which were recorded as unbilled receivables were $ 8,539,000 at January 31, 2021 and $ 6,131,000 at April 30, 2020.

The closing and opening balances of contract liabilities arising from contracts with customers were $ 3,642,000 at January 31, 2021 and $ 2,508,000 at April 30, 2020.

The timing of revenue recognition, billings and cash collections results in accounts receivable, unbilled receivables, and deferred revenue which are disclosed in the condensed consolidated balance sheets and in the notes to the condensed consolidated financial statements.

In general, the Company receives payments from customers based on a billing schedule established in its contracts.

Unbilled receivables represent amounts earned which have not yet been billed in accordance with contractually stated billing terms.

Unbilled receivables represent amounts earned which have not yet been billed in accordance with contractually stated billing terms and are included in receivables on the condensed consolidated balance sheets.

Receivables are recorded when the right to consideration becomes unconditional and the Company has a right to invoice the customer.

1 unchanged sentence

Deferred revenue is recognized as revenue as (or when) the Company performs under the contract.

Approximately 100 % of the contract liability balances at April 30, 2020 and October 31, 2020 are expected to be recognized as revenue during the respective succeeding 12 months.

Approximately 100 % of the contract liability balances at April 30, 2020 and January 31, 2021 are expected to be recognized as revenue during the respective succeeding 12 months.

The Company measures inventory using the first-in, first-out ("FIFO") method at the lower of cost or net realizable value.

Inventories consisted of the following (in thousands):

October 31, 2020 April 30, 2020

January 31, 2021 April 30, 2020

Finished products $ 2,712 $ 2,455

2 unchanged sentences

$ 15,615 $ 15,330

The Company’s International subsidiaries’ inventories were $ 1,925,000 at October 31, 2020 and $ 2,136,000 at April 30, 2020 and are included in the above tables.

The Company’s International subsidiaries’ inventories were $ 1,915,000 at January 31, 2021 and $ 2,136,000 at April 30, 2020 and are included in the above tables.

Fair Value of Financial Instruments

1 unchanged sentence

The carrying value of these assets and liabilities approximates their fair value.

The following tables summarize the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of October 31, 2020 and April 30, 2020 (in thousands):

October 31, 2020

The following tables summarize the Company’s fair value hierarchy for its financial assets and liabilities measured at fair value on a recurring basis as of January 31, 2021 and April 30, 2020 (in thousands):

January 31, 2021

Financial Assets Level 1 Level 2 Total

27 unchanged sentences

Long-term Debt and Other Credit Arrangements

At October 31, 2020, advances of $ 7.6 million were outstanding under the Company’s revolving credit facility, compared to advances of $ 4.7 million outstanding as of April 30, 2020.

The Company had standby letters of credit outstanding of $ 512,000 at October 31, 2020, unchanged from April 30, 2020.

Amounts available under the revolving credit facility were $ 8.3 million and $ 8.7 million at October 31, 2020 and April 30, 2020, respectively.

At January 31, 2021, advances of $ 4.5 million were outstanding under the Company’s revolving credit facility, compared to advances of $ 4.7 million outstanding as of April 30, 2020.

The Company had standby letters of credit outstanding of $ 512,000 at January 31, 2021, unchanged from April 30, 2020.

Amounts available under the revolving credit facility were $ 8.6 million and $ 8.7 million at January 31, 2021 and April 30, 2020, respectively.

At April 30, 2020, the Company was not in compliance with all of the financial covenants under the revolving credit facility.

On July 20, 2020, the Company entered into an amendment to the Loan Agreement and Line of Credit which effected changes in certain financial covenants set forth in the Loan Agreement and included a waiver of the non-compliance described above.

This amendment did not change the amount of availability provided by the Company's Line of Credit.

At October 31, 2020, the Company was in compliance with all the financial covenants under its revolving credit facility.

On July 20, 2020, the Company entered into an amendment which effected changes in certain financial covenants and included a waiver of the non-compliance.

On January 28, 2021, the Company entered into another amendment which effected changes (i) extending the maturity date under the Credit Agreement and Revolving Note from February 1, 2021 to May 3, 2021;

(ii) establishing a minimum EBITDA covenant for the fiscal quarter ending April 30, 2021 of $ 1,000,000 , determined for the four-quarter period then ending;

and (iii) revising the covenant regarding delivery of financial projections to the Bank to, among other things, provide projections for the next succeeding fiscal year.

These amendments did not change the amount of availability under the revolving credit facility.

At January 31, 2021, the Company was in compliance with all the financial covenants under its revolving credit facility.

In accordance with ASC 842, "ASU No.

2 unchanged sentences

and internationally and a financing lease for a truck in the U.S.

At October 31, 2020 and April 30, 2020, right-of-use assets totaled $ 9,157,000 and $ 9,312,000 , respectively.

Operating cash paid to settle lease liabilities was $ 848,000 and $ 668,000 for the six months ended October 31, 2020 and October 31, 2019, respectively .

At January 31, 2021 and April 30, 2020, right-of-use assets totaled $ 9,715,000 and $ 9,312,000 , respectively.

Operating cash paid to settle lease liabilities was $ 1,299,000 and $ 1,154,000 for the nine months ended January 31, 2021 and January 31, 2020, respectively.

The Company’s leases have remaining lease terms of up to 10 years.

In addition, some of the leases may include options to extend the leases for up to 5 years or options to terminate the leases within 1 year.

Operating lease expense was $ 683,000 for the three months ended October 31, 2020, inclusive of period cost for short-term leases, not included in lease liabilities, of $ 245,000 .

Operating lease expense was $ 1,315,000 for the six months ended October 31, 2020, inclusive of period cost for short-term leases, not included in lease liabilities, of $ 467,000 .

Operating lease expense was $ 576,000 for the three months ended October 31, 2019, inclusive of period cost for short-term leases, not included in lease liabilities of $ 222,000 , and $ 1,125,000 for the six months ended October 31, 2019, inclusive of period cost for short-term leases, not included in lease liabilities, of $ 457,000 .

At October 31, 2020, the weighted average remaining lease term for the capitalized operating leases was 6.9 years and the weighted average discount rate was 4.1 %.

For the finance lease, the remaining lease term was 4.8 years and the discount rate was 10.0 %.

As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate

based on the information available at commencement date in determining the present value of those lease payments.

Operating lease expenses were $ 718,000 and $ 645,000 for the three months ended January 31, 2021 and 2020, respectively, inclusive of period cost for short-term leases, not included in lease liabilities, of $ 267,000 and $ 215,000 , respectively.

Operating lease expenses were $ 2,032,000 and $ 1,770,000 for the nine months ended January 31, 2021 and 2020, respectively, inclusive of period cost for short-term leases, not included in lease liabilities, of $ 733,000 and $ 673,000 , respectively.

At January 31, 2021, the weighted average remaining lease term for the capitalized operating leases was 6.1 years and the weighted average discount rate was 4.1 %.

For the financing lease, the remaining lease term was 4.6 years and the discount rate was 10.0 %.

As most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of those lease payments.

The Company uses the implicit rate when readily determinable.

Future minimum lease payments under non-cancelable leases as of October 31, 2020 were as follows:

Future minimum lease payments under non-cancelable leases as of January 31, 2021 were as follows:

Operating Financing

6 unchanged sentences

Total Minimum Lease Payments $ 11,371 $ 148

$ 10,776 $ 156

Imputed Interest ( 1,742 ) ( 30 )

Total $ 9,629 $ 118

1 Excludes future minimum payments for leases which have not yet commenced as of October 31, 2020.

As of October 31, 2020, the Company has entered into leases that have not yet commenced with future minimum lease payments of $ 981,000 that are not yet reflected on the condensed consolidated balance sheets.

These operating leases will commence in fiscal year 2021 with lease terms of 5 years.

Earnings Per Share

1 unchanged sentence

Diluted earnings per share reflects the assumed exercise of outstanding options and the conversion of restricted stock units (“RSUs”) under the Company’s various stock compensation plans, except when RSUs and options have an antidilutive effect.

There were 116,575 and 85,205 antidilutive RSUs and options outstanding at October 31, 2020 and October 31, 2019, respectively.

There were 83,910 and 95,906 antidilutive RSUs and options outstanding at January 31, 2021 and January 31, 2020, respectively.

The following is a reconciliation of basic to diluted weighted average common shares outstanding (in thousands):

Three Months Ended October 31, Six Months Ended October 31,

Three Months Ended January 31, Nine Months Ended January 31,

2021 2020 2021 2020

10 unchanged sentences

The recognized expense is based upon the vesting period for service criteria and estimated attainment of the performance criteria at the end of the three-year period, based on the ratio of cumulative days of service to total days over the three-year period.

The Company recorded share-based compensation expense during the three and six months ended October 31, 2020 of $ 141,000 and $ 200,000 , respectively, with the remaining estimated share-based compensation expense of $ 990,000 to be recorded over the remaining vesting periods.

The Company recorded share-based compensation expense during the three and six months ended October 31, 2019 of $ 41,000 and $ 82,000 , respectively.

An income tax benefit of $ 197,000 and an income tax expense of $ 2,003,000 were recorded for the three months ended October 31, 2020 and 2019, respectively.

An income tax benefit of $ 176,000 and an income tax expense of $ 2,172,000 were recorded for the six months ended October 31, 2020 and 2019, respectively.

The effective tax rates were 54.4 % and 1,267.7 % for the three months ended October 31, 2020 and 2019, respectively.

The effective tax rates were 18.5 % and 428.4 % for the six months ended October 31, 2020 and 2019, respectively.

The change in the effective tax rate for the three and six-month periods is primarily due to the revocation of the Company's indefinite reinvestment of foreign unremitted earnings position (discussed below) and the impact of foreign operations which are taxed at different rates than the U.S.

The Company recorded share-based compensation expense during the three and nine months ended January 31, 2021 of $ 129,000 and $ 344,000 , respectively, with the remaining estimated share-based compensation expense of $ 805,000 to be recorded over the remaining vesting periods.

The Company recorded share-based compensation expense during the three and nine

months ended January 31, 2020 of $ 126,000 and $ 208,000 , respectively.

Directors' fees paid with shares of common stock in lieu of cash in accordance with Director compensation guidelines were $ 41,000 for each of the nine month periods ended January 31, 2021 and January 31, 2020 and were included in the share-based compensation on the condensed consolidated statements of cash flows.

Income tax benefits of $ 813,000 and $ 350,000 were recorded for the three months ended January 31, 2021 and 2020, respectively.

An income tax benefit of $ 989,000 and an income tax expense of $ 1,822,000 were recorded for the nine months ended January 31, 2021 and 2020, respectively.

The effective tax rates were 113.2 % and 15.5 % for the three months ended

January 31, 2021 and 2020, respectively.

The effective tax rates were 59.3 % and 104.5 % for the nine months ended January 31, 2021 and 2020, respectively.

The change in the effective tax rate for the three and nine-month periods is primarily due to the revocation of the Company's indefinite reinvestment of foreign unremitted earnings position (discussed below) and the impact of foreign operations which are taxed at different rates than the U.S.

tax rate of 21%.

In addition, the change in the effective tax rates for the three and six months ended October 31, 2020 was impacted by the recording of a Domestic income tax benefit as a result of the Company's current Domestic net loss position.

In addition, the change in the effective tax rates for the three and nine months ended January 31, 2021 was impacted by the recording of a Domestic income tax benefit as a result of the Company's current Domestic net loss position.

This loss is permitted to be carried back and used to offset Domestic taxable income incurred in previous tax filing periods as allowed by the Coronavirus Aid, Relief and Economic Security Act ("CARES Act").

The Company’s income tax receivable increased due to the Domestic income tax benefits afforded by the CARES Act to carryback the current Domestic loss and generate an income tax refund.

The income tax receivable also includes Domestic income tax benefits attributable to a carryback claim for an applied Research and Development tax credit for the year ended April 30, 2018, as well as the taxable loss generated during the year ended April 30, 2020.

The Company recorded income tax receivables of $ 4,205,000 and $ 2,717,000 as of January 31, 2021 and April 30, 2020, respectively, which includes Domestic income tax benefits attributable to the carryback claims for the applied Research and Development tax credit for the year ended April 30, 2018, the taxable losses generated during the year ended April 30, 2020 and the nine months ended January 31, 2021.

In August 2019, the Company revoked its indefinite reinvestment of foreign unremitted earnings position in compliance with ASC 740 "Income Taxes" and terminated its indefinite reinvestment of unremitted earnings assertion for the Singapore, China, and Kewaunee Labway India Pvt.

international subsidiaries.

The Company recognized a tax withholding expense, imposed by the India Income Tax Department in accordance with international tax treaties between the U.S.

The Company recognized a tax withholding expense, for the dividends paid to the US and Singapore shareholders, imposed by the India Income Tax Department in accordance with international tax treaties between India and the U.S.

and Singapore governments, at a rate of 10.0 % and 15.0 %, respectively.

The Company recognized a withholding tax expense of $ 92,000 and $ 80,000 for the three and six months ended October 31, 2020, respectively, related to the unremitted earnings of the subsidiaries listed above.

The Company recognized a withholding tax expense of $ 2,083,000 for the three and six months ended October 31, 2019 related to the unremitted earnings of the subsidiaries listed above.

The Company recognized a withholding tax expense of $ 18,000 and $ 99,000 for the three and nine months ended January 31, 2021, respectively, related to the unremitted earnings of the subsidiaries listed above.

The Company recognized a withholding tax expense of $ 50,000 and $ 2,214,000 for the three and nine months ended January 31, 2020 related to the unremitted earnings position of the subsidiaries listed above.

The Company has a deferred tax liability of $ 647,000 and $ 785,000 for the withholding tax related to Kewaunee Labway India Pvt.

as of October 31, 2020 and April 30, 2020, respectively.

as of January 31, 2021 and April 30, 2020, respectively.

The Company recorded all deferred tax assets and liabilities related to its outside basis differences in its foreign subsidiaries consistent with ASC 740.

6 unchanged sentences

no further benefits have been, or will be, earned under the plans, subsequent to the amendment date, and no additional participants will be added to the plans.

There were no Company contributions paid to the plans during the three and six months ended October 31, 2020 and 2019.

The Company currently expects to contribute $ 30,000 to the plans during the remainder of the fiscal year.

The Company assumed an expected long-term rate of return of 7.75 % for the periods ended October 31, 2020 and October 31, 2019.

The Company contributed $ 30,000 to the plans during the three and nine months ended January 31, 2021.

There were no Company contributions paid to the plans during the three and nine months ended January 31, 2020.

The Company assumed an expected long-term rate of return of 7.75 % for the periods ended January 31, 2021 and January 31, 2020.

Pension expense consisted of the following (in thousands):

Three Months Ended October 31, 2020 Three Months Ended October 31, 2019

Three Months Ended January 31, 2021 Three Months Ended January 31, 2020

Service cost $ 0 $ 0

3 unchanged sentences

Net periodic pension expense $ 288 $ 113

Six Months Ended October 31, 2020 Six Months Ended October 31, 2019

Nine Months Ended January 31, 2021 Nine Months Ended January 31, 2020

Service cost $ 0 $ 0

11 unchanged sentences

Certain corporate expenses shown below have not been allocated to the business segments.

The following tables provide financial information by business segments for the periods ended October 31, 2020 and 2019 (in thousands):

The following tables provide financial information by business segments for the periods ended January 31, 2021 and 2020 (in thousands):

Operations International

1 unchanged sentence

Eliminations Total

Three months ended October 31, 2020

Three months ended January 31, 2021

Revenues from external customers $ 25,066 $ 8,273 $ — $ 33,339

1 unchanged sentence

Earnings (loss) before income taxes $ 206 $ 689 $ ( 1,613 ) $ ( 718 )

Three months ended October 31, 2019

Three months ended January 31, 2020

Revenues from external customers $ 26,699 $ 7,526 $ — $ 34,225

4 unchanged sentences

Eliminations Total

Six months ended October 31, 2020

Nine months ended January 31, 2021

Revenues from external customers $ 83,896 $ 24,866 $ — $ 108,762

1 unchanged sentence

Earnings (loss) before income taxes $ 1,794 $ 1,610 $ ( 5,071 ) $ ( 1,667 )

Six months ended October 31, 2019

Nine months ended January 31, 2020

Revenues from external customers $ 87,570 $ 25,713 $ — $ 113,283

2 unchanged sentences

Reclassifications

The Company reclassified certain amounts in the condensed consolidated balance sheet for the period ended April 30, 2020 and the condensed consolidated statements of cash flows for the six-month period ended October 31, 2019 to conform to the current period presentation.

The Company reclassified certain amounts in the condensed consolidated balance sheet for the period ended April 30, 2020 and the condensed consolidated statements of cash flows for the nine-month period ended January 31, 2021 to conform to the current period presentation.

New Accounting Standards

19 unchanged sentences

Simplifying the Accounting for Income Taxes." This update simplifies the accounting for income taxes through certain targeted improvements to various subtopics within Topic 740.

The amendments in this update are effective for fiscal years and interim periods beginning after December 15, 2020.

The amendments in this update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2020.

The Company expects to adopt this guidance when effective and is currently evaluating the effect that the updated standard will have on its consolidated financial statements and related disclosures.

1 unchanged sentence

Facilitation of the Effects of Reference Rate Reform on Financial Reporting" ("ASU 2020-04").

This guidance provides practical expedients for contract modifications and certain hedging relationships associated with the expected market transition from the LIBOR and other interbank offered rates to alternative reference rates.

This guidance provides practical expedients for contract modifications and certain hedging relationships associated with the expected market transition from London Interbank Offered Rate ("LIBOR") and other interbank offered rates to alternative reference rates.

The ASU can be adopted after its issuance date through December 31, 2022.

1 unchanged sentence

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements