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`2. Summary of Significant Accounting Principles
`
`Basis ofPresentation and Principles ofConsolidation
`
`The accompanying consolidated financial statements have been prepared in accordance with
`U.S. generally accepted accounting principles (“GAAP”) and include all adjustments, which
`comprise only normal and recurring adjustments, necessary for the fair presentation of the
`Company’s consolidated financial position for the periods presented.
`
`The accompanying consolidated financial statements include the accounts of Aegerion
`Pharmaceuticals, Inc. and its wholly-owned subsidiaries. All intercompany balances and
`transactions have been eliminated in consolidation. The Company operates in one segment,
`pharmaceuticals.
`
`Use ofEstimates
`
`The preparation of financial statements in conformity with GAAP requires management to
`make estimates and assumptions that affect the amounts reported in the financial statements and
`accompanying notes. Significant estimates in these consolidated financial statements have been
`made in connection with the calculation of net product sales, inventories, certain accruals related to
`contingencies and the Company ’s research and development expenses, stock-based compensation,
`initial valuation of the issuance of convertible notes, valuation procedures for the fair value of
`intangible assets, tangible assets and goodwill fiom the acquisition of MYALEPT, usefirl lives of
`acquired intangibles and the provision for or benefit from income taxes. Actual results could dififer
`from those estimates. Changes in estimates are reflected in reported results in the period in which
`they become known.
`
`Cash and Cash Equivalents
`
`Cash and cash equivalents consist of highly liquid instruments purchased with an original
`maturity of three months or less at the date of purchase. As of December 31, 2015 and
`December 31, 2014, the Company held $64.5 million and $375.9 million in cash and cash
`equivalents, respectively, consisting of cash and money market fiands.
`
`Restricted Cash
`
`On October 30, 2015, the Company notified Silicon Valley Bank that it had breached one or
`more covenants under the Loan and Security Agreement and it is currently in default. On
`November 9, 2015, the Company and Silicon Valley Bank entered into a Forbearance Agreement
`(the “Forbearance Agreement”), pursuant to which Silicon Valley Bank has agreed not to take any
`action as a result of such default, including an agreement to waive the increase in the per annum
`interest rate under the loan fiom 3.0% to 8.0% until December 7, 2015, subject to certain
`conditions, including the deposit of cash into one or more accounts at Silicon Valley Bank to
`collateralize balances related to the outstanding obligations due to Silicon Valley Bank. These
`amounts are restricted for all uses until the fi,1ll and final payment of all obligations, as determined
`by Silicon Valley Bank in its sole and exclusive discretion. On December 7, 2015, the Company
`and Silicon Valley Bank entered into an amendment (the “First Amendment”) to the Forbearance
`Agreement, pursuant to which Silicon Valley Bank has agreed to extend the forbearance period
`relating to the Company ’s default under the Loan and Security Agreement through January 7,
`2016. On January 7, 2016, the Company and Silicon Valley Bank entered into a second
`amendment (the “Second Amendment”) to the Forbearance Agreement, as amended, pursuant to
`which Silicon Valley Bank has agreed to extend the forbearance period relating to the Company’s
`default under the Loan and Security Agreement through June 30, 2016. Pursuant to the terms of the
`Second Amendment, the Company and Silicon Valley Bank agreed to terminate the Revolving
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`Line. On February 26, 2016, the Company and Silicon Valley Bank entered into a third
`amendment (the “Third Amendment”) to the Forbearance Agreement, as amended, pursuant to
`which Silicon Valley Bank has agreed to forbear exercising its rights that will arise under the Loan
`and Security Agreement as a result of the Company’s failure to deliver an unqualified opinion
`(without a going concern explanatory paragraph) of its independent auditors with its annual
`financial statements for the fiscal year ended December 3 1, 2015. Amounts deposited with Silicon
`Valley Bank to collateralize balances related to outstanding obligations under the Loan and
`Security Agreement have been presented as restricted cash as of December 31, 2015 on the
`consolidated balance sheet. See Note 10 for fiirther discussion.
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`Inventories and Cost ofProduct Sales
`
`Inventories are stated at the lower of cost or market price with cost determined on a first—in,
`first-out basis. Inventories are reviewed periodically to identify slow-moving or obsolete inventory
`based on sales activity, both projected and historical, as well as product shelf-life. In evaluating the
`recoverability of inventories produced, the Company considers the probability that revenue will be
`obtained from the future sale of the related inventory. The Company writes down inventory
`quantities in excess of expected requirements. Expired inventory is disposed of and the related
`costs are recognized as cost of product sales in the consolidated statement of operations.
`
`Cost ofproduct sales includes the cost of inventory sold, manufacturing and supply chain
`costs, product shipping and handling costs, charges for excess and obsolete inventory, amortization
`of acquired intangibles, as well as royalties payable to The Trustees of the University of
`Pennsylvania (“UPenn”) related to the sale of lomitapide and royalties payable to Amgen,
`Rockefeller University and Bristol-Myers Squibb (“BMS”) related to the sale of metreleptin.
`
`Prepaid Manufacturing Costs
`
`Cash advances paid by the Company prior to receipt of the inventory are recorded as prepaid
`manufacturing costs. The cash advances are subject to forfeiture if the Company terminates the
`scheduled production. The Company expects the carrying value of the prepaid manufacturing costs
`to be fully realized.
`
`Property and Equipment
`
`Property and equipment are stated at cost and depreciated using the straight-line method over
`the estimated usefiil lives of the respective assets as presented in the table below. Maintenance and
`repair costs are charged to expense as incurred.
`
`Computer and office equipment
`Office fiimiture and equipment
`
`3 - 5 years
`3 -7 years
`Shorter of asset’s usefiil life or
`
`Leasehold improvements
`
`remaining term of lease
`
`Deferred Financing Costs
`
`Deferred financing costs include costs directly attributable to the Company’s offerings of its
`equity securities and its debt financings. Costs attributable to equity oiferings are charged against
`the proceeds of the olfering once completed. Costs attributable to debt financings are deferred and
`recorded as a reduction of the reported debt balance, and amortized over the term of the financing
`using the effective interest rate method. A portion of the deferred financing costs incurred in
`connection with the Company ’s convertible notes was deemed to relate to the equity component
`and was allocated to additional paid in capital.
`
`Long-Lived Assets
`
`Long-lived assets to be held and used are reviewed for impainnent when events or changes in
`circumstances indicate that the carrying amount of such assets may not be recoverable.
`Determination of recoverability is based on an estimate of undiscounted future cash flows resulting
`from the use of the asset and its eventual disposition. In the event that such cash flows are not
`expected to be sufficient to recover the carrying amount of the assets, the assets are written down to
`their estimated fair values. Long-lived assets to be disposed are reported at the lower of the carrying
`amount or fair value less cost to sell.
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`Revenue Recognition
`
`The Company applies the revenue recognition guidance in accordance with Financial
`Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Subtopic 605-
`15, Revenue Recognition—Products. The Company recognizes revenue from product sales when
`there is persuasive evidence that an arrangement exists, title to product and associated risk of loss
`has passed to the customer, the price is fixed or determinable, collectability is reasonably assured
`and the Company has no fiarther performance obligations.
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`Lomitapide
`
`In the U.S., IUXTAPID is only available for distribution through a specialty pharmacy, and is
`shipped directly to the patient. JUXTAPID is not available in retail pharmacies. Prior authorization
`and confirmation of coverage level by the patient’s private insurance plan or government payer are
`currently prerequisites to the shipment ofproduct to a patient in the U.S. Revenue from sales in the
`U.S. covered by the patient’s private insurance plan or government payer is recognized once the
`product has been received by the patient. For uninsured amounts billed directly to the patient,
`revenue is recognized at the time of cash receipt as collectability is not reasonably assured at the
`time the product is received by the patient. To the extent amounts are billed in advance of delivery
`to the patient, the Company defers revenue until the product has been received by the patient.
`
`The Company also records revenue on sales in Brazil and other countries where lomitapide is
`available on a named patient basis, and typically paid for by a government authority or institution.
`In many cases, these sales are facilitated through a third-party distributor that takes title to the
`product upon acceptance. Because of factors such as the pricing of lomitapide, the limited number
`ofpatients, the short period from product sale to delivery to the end-customer and the limited
`contractual return rights, these distributors typically only hold inventory to supply specific orders
`for the product. The Company generally recognizes revenue for sales under these named patient
`programs once the product is shipped through to the government authority or institution. In the
`event the payer’s creditworthiness has not been established, the Company recognizes revenue on a
`cash basis if all other revenue recognition criteria have been met.
`
`The Company records distribution and other fees paid to its distributors as a reduction of
`revenue, unless the Company receives an identifiable and separate benefit for the consideration and
`the Company can reasonably estimate the fair value of the benefit received. If both conditions are
`met, the Company records the consideration paid to the distributor as an operating expense. At this
`time, neither condition has been met and therefore, the fees paid to the Company’s distributors are
`recorded as a reduction to revenue. The Company records revenue net of estimated discounts and
`rebates, including those provided to Medicare, Medicaid, Tricare and other govemment programs
`in the U.S. and other countries. Allowances are recorded as a reduction of revenue at the time
`
`revenues from product sales are recognized. Allowances for government rebates and discounts are
`established based on the actual payer information, which is reasonably estimable at the time of
`delivery. These allowances are adjusted to reflect known changes in the factors that may impact
`such allowances in the quarter those changes are known.
`
`The Company also provides financial support to a 501 (c)(3) organization, which assists
`patients in the U.S. in accessing treatment for HoFH. This organization assists HoFH patients
`according to eligibility criteria defined independently by the organization. The Company records
`donations made to the 501(c)(3) organization as selling, general and administrative expense. Any
`payments received from the 501(c)(3) organization on behalf of a patient, who is taking lomitapide
`for the treatment of HoFH are recorded as a reduction of selling, general and administrative expense
`rather than as revenue. Effective January 2015, the Company also offers a branded co-pay
`assistance program for certain patients in the U.S. with HoFH who are on JUXTAPID therapy. The
`branded co-pay assistance program assists commercially insured patients who have coverage for
`JUXTAPID, and is intended to reduce each participating patient’s portion of the financial
`responsibility for JUXTAPID’s purchase price up to a specified dollar amount of assistance. The
`Company records revenue net of amounts paid under the branded specific co-pay assistance
`program for each patient.
`
`Metreleptin
`
`In the U.S., MYALEPT is only available through an exclusive third-party distributor that
`takes title to the product upon shipment. MYALEPT is not available in retail pharmacies. The
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`distributor may only contractually acquire up to 21 business days worth of inventory. The
`Company recognizes revenue for these sales once the product is received by the patient as it is
`currently unable to reasonably estimate the rebates owed to certain govemment payers at the time
`of receipt by the distributor. Prior authorization and confirmation of coverage level by the patient’s
`private insurance plan or government payer are currently prerequisites to the shipment ofproduct to
`a patient in the U.S.
`
`The Company records distribution and other fees paid to its distributor as a reduction of
`revenue, unless the Company receives an identifiable and separate benefit for the consideration and
`the Company can reasonably estimate the fair value of the benefit received. If both conditions are
`met, the Company records the consideration paid to the distributor as an operating expense. At this
`time, neither condition has been met and therefore, these fees paid to the
`
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`distributor of MYALEPT are recorded as reduction to revenue. The Company records revenue from
`sales of MYALEPT net of estimated discounts and rebates, including those provided to Medicare
`and Medicaid in the U.S. Allowances for government rebates and discounts are established based
`on the actual payer information, which is reasonably estimable at the time of delivery. These
`allowances are adjusted to reflect known changes in the factors that may impact such allowances in
`the quarter those changes are known.
`
`The Company also ofi°ers co-pay assistance for patients in the U.S. with GL who are on
`MYALEPT therapy. The co-pay assistance program assists commercially insured patients who have
`coverage for MYALEPT, and is intended to reduce each participating patient’s portion of the
`financial responsibility for MYALEPT’s purchase price up to a specified dollar amount of
`assistance. The Company records revenue net of amounts paid under the MYALEPT co-pay
`assistance program for each patient.
`
`Business Combinations
`
`The Company evaluates acquisitions of assets and other similar transactions to assess
`whether or not each such transaction should be accounted for as a business combination by
`assessing whether or not the Company has acquired inputs and processes that have the ability to
`create outputs. If the Company determines that an acquisition qualifies as a business, the Company
`assigns the value of consideration transferred in such business combination to the appropriate
`accounts on the Company ’s consolidated balance sheet based on their fair value as of the elfective
`date of the transaction. Transaction costs associated with business combinations are expensed as
`incurred.
`
`Fair Value ofPurchased Tangible Assets, Intangibles and In-process Research and
`Development Assets in Business Combinations
`
`The present-value models used to estimate the fair values ofpurchased tangible assets,
`intangibles and in-process research and development assets incorporate significant assumptions,
`include, but are not limited to: assumptions regarding the probability of obtaining marketing
`approval and/or achieving relevant development milestones for a drug candidate; estimates
`regarding the timing of and the expected costs to develop a drug candidate; estimates of future cash
`flows from potential product sales; and the appropriate discount and tax rates.
`
`The Company records the fair value of purchased intangible assets with definite useful lives
`as of the transaction date of a business combination. Purchased intangible assets with definite
`usefirl lives are amortized to their estimated residual values over their estimated usefial lives and
`
`reviewed for impairment if certain events occur. Impairment testing and assessments of remaining
`useful lives are also performed when a triggering event occurs that could indicate a potential
`impairment. Such test first entails comparison of the carrying value of the intangible asset to the
`undiscounted cash flows expected fiom that asset. If impairment is indicated by this test, the
`intangible asset is written down by the amount, if any, by which the discounted cash flows
`expected from the intangible asset exceeds its carrying value.
`
`The Company records the fair value of in-process research and development assets as of the
`transaction date of a business combination. Each of these assets is accounted for as an indefinite-
`
`lived intangible asset and is maintained on the Company’s consolidated balance sheet until either
`the project underlying it is completed or the asset becomes impaired. If the asset becomes impaired
`or is abandoned, the carrying value of the related intangible asset is written down to its fair value,
`and an impairment charge is recorded in the period in which the impairment occurs. If a project is
`completed, the carrying value of the related intangible asset is amortized as a part of cost of product
`revenues over the remaining estimated life of the asset beginning in the period in which the project
`is completed. In-process research and development assets are tested for impairment on an annual
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`basis as of October 31, and more fiequently if indicators are present or changes in circumstances
`suggest that impairment may exist.
`
`The Company records the fair value of purchased tangible assets as of the transaction date of
`a business combination. These tangible assets are accounted for as either inventory or clinical and
`compassionate use materials, which are classified as other assets on the Company’s consolidated
`balance sheet. Inventory is maintained on the Company ’s consolidated balance sheet until the
`inventory is sold, donated as part of the Company’s compassionate use program, used for clinical
`development, or determined to be in excess of expected requirements. Inventory that is sold or
`determined to be in excess of expected requirements is recognized as cost of product sales in the
`consolidated statement of operations, inventory that is donated as part of the Company’s
`compassionate use program is recognized as a selling,
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`general and administrative expense in the consolidated statement of operations, and inventory used
`for clinical development is recognized as research and development expense in the consolidated
`statement of operations. Other assets are maintained on the Company ’s consolidated balance sheet
`until these assets are consumed. If the asset becomes impaired or is abandoned, the carrying value is
`written down to its fair value, and an impairment charge is recorded in the period in which the
`impairment occurs.
`
`Goodwill
`
`The difference between the purchase price and the fair Value of assets acquired and liabilities
`assumed in a business combination is allocated to goodwill. Goodwill is evaluated for impairment
`on an annual basis as of October 31, and more frequently if indicators are present or changes in
`circumstances suggest that impairment may exist.
`
`Concentration ofCredit Risk
`
`The Company’s financial instruments that are exposed to credit risks consist primarily of
`cash, cash equivalents, restricted cash and accounts receivable. The Company maintains its cash,
`cash equivalents and restricted cash in bank accounts, which, at times, exceed federally insured
`limits. The Company has not experienced any credit losses in these accounts and does not believe
`it is exposed to any significant credit risk on these fiinds.
`
`The Company is subject to credit risk from its accounts receivable related to its product sales
`of lomitapide and metreleptin. The majority of the Company’s accounts receivable arises fiom
`product sales in the U.S. For accounts receivable that have arisen from named patient sales outside
`of the U.S., the payment terms are predetermined and the Company evaluates the creditworthiness
`of each customer or distributor on a regular basis. The Company periodically assesses the financial
`strength of the holders of its accounts receivable to establish allowances for anticipated losses, if
`necessary. The Company does not recognize revenue for uninsured amounts billed directly to a
`patient until the time of cash receipt as collectability is not reasonably assured at the time the
`product is received. To date, the Company has not incurred any credit losses.
`
`Research and Development Expenses
`
`Research and development expenses are charged to expense as incurred. Research and
`development expenses comprise costs incurred in performing research and development activities,
`including personnel-related costs, stock-based compensation, facilities-related overhead, clinical
`trial costs, costs to support certain medical affairs activities, manufacturing costs for clinical and
`pre-clinical materials as well as other contracted services, license fees, and other external costs.
`Nonrefiindable advance payments for goods and services that will be used in fi.1ture research and
`development activities are expensed when the activity has been performed or when the goods have
`been received rather than when the payment is made in accordance with the provisions of ASC
`730, Research and Development.
`
`Income Taxes
`
`The Company accounts for income taxes using an asset and liability approach in accordance
`with applicable guidance prescribed by ASC 740, Income Taxes. ASC 740 requires that the
`deferred tax consequences of temporary differences between the amounts recorded in the
`Company’s consolidated financial statements and the amounts included in the Company’s federal,
`state and foreign income tax retums to be recognized in the balance sheet. As the Company ’s
`income tax retums are not due and filed until after the completion of the Company ’s annual
`financial reporting requirements, the amounts recorded for the current period reflect estimates for
`the tax-based activity for the period. In addition, estimates are often required with respect to,
`O
`among other things, the appropriate state incogre tfzrsxfiates to use in the various states that we and
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`our subsidiaries are required to file, the potential utilization of operating loss carry-forwards and
`valuation allowances required, if any, for tax assets that may not be realizable in the fiature.
`
`The Company makes judgments regarding the realizability of its deferred tax assets. The
`balance sheet carrying value of its deferred tax assets is based on whether the Company believes it
`is more likely than not that the Company will generate sufficient fiature taxable income to realize
`these deferred tax assets after consideration of all available evidence. The Company regularly
`reviews its deferred tax assets for recoverability considering historical profitability, projected future
`taxable income, the expected timing of the reversals of existing temporary differences and tax
`planning strategies.
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`In assessing the need for a valuation allowance, the Company considers both positive and negative
`evidence related to the likelihood of realization of the deferred tax assets. The weight given to the
`positive and negative evidence is commensurate with the extent to which the evidence may be
`objectively verified. As such, it is generally difficult for positive evidence regarding projected
`future taxable income exclusive of reversing taxable temporary differences to outweigh objective
`negative evidence of recent financial reporting losses. Generally, cumulative loss in recent years is
`a significant piece of negative evidence that is diflicult to overcome in determining that a
`valuation allowance is not needed.
`
`The Company accounts for uncertain tax positions in accordance with the provisions of ASC
`740. When uncertain tax positions exist, the Company recognizes the tax benefit of tax positions to
`the extent that the benefit will more likely than not be realized. The determination as to whether
`the tax benefit will more likely than not be realized is based upon the technical merits of the tax
`position as well as consideration of the available facts and circumstances. As of December 31, 2015
`and 2014, the Company does not have any uncertain tax positions.
`
`Stock-Based Compensation
`
`The Company accounts for its stock-based compensation to employees in accordance with
`ASC 718, Compensation—Stock Compensation and to non-employees in accordance with ASC
`505-50, Equity Based Payments to Non-Employees. For service-based awards, compensation
`expense is recognized using the ratable method over the requisite service period, which is typically
`the vesting period. For awards that vest or begin vesting upon achievement of a performance
`condition, the Company recognizes compensation expense when achievement of the performance
`condition is deemed probable using an accelerated attribution model over the implicit service
`period. Certain of the Company ’s awards that contain performance conditions also require the
`Company to estimate the number of awards that will vest, which the Company estimates when the
`performance condition is deemed probable of achievement. For awards that vest upon the
`achievement of a market condition, the Company recognizes compensation expense over the
`derived service period. For equity awards that have previously been modified, any incremental
`increase in the fair value over the original award has been recorded as compensation expense on the
`date of the modification for vested awards or over the remaining service period for unvested
`awards. See Note 13 for fiirther information about the Company’s stock option plans.
`
`Comprehensive Loss
`
`Comprehensive loss combines net loss and other comprehensive items. Other comprehensive
`items represent certain amounts that are reported as components of stockholders’ equity in the
`accompanying consolidated balance sheet, including currency translation adjustments and
`unrealized gains and losses on available-for-sale investments.
`
`Segment Information
`
`The Company currently operates in one business segment focusing on the development and
`commercialization of its lead products. The Company is not organized by market and is managed
`and operated as one business. A single management team reports to the chief operating decision
`maker who comprehensively manages the entire business. The Company does not operate any
`separate lines of business or separate business entities with respect to its products. Accordingly, the
`Company does not accumulate discrete financial information with respect to separate service lines
`and does not have separately reportable segments. The Company’s long-lived assets in regions
`other than the United States are immaterial.
`
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`Revenues by Geographic Location
`
`The following table summarizes total net product sales from external customers by
`geographic region. Net product sales are attributed to countries based on the location of the
`customer.
`
`United States
`Brazil
`
`Other foreign countries
`
`Total net product sales
`
`2015
`
`2014
`
`2013
`
`$214,590
`14,998
`
`(in thousands)
`$143,354
`11,089
`
`$42,290
`6,019
`
`10,299
`
`3,930
`
`237
`
`$239,887
`
`$158,373
`
`$48,546
`
`Net product sales generated fiom customers outside of the U.S. and Brazil were primarily
`derived from named-patient sales in Colombia, Canada and Italy.
`
`Significant Customers
`
`For the year ended December 31, 2015, one customer accounted for 11% of the Company’s
`net product sales, and this one customer accounted for 17% of the Company’s accounts receivable
`balance. For the year ended December 31, 2014, no individual customers accounted for 10% of the
`Company’s net product sales. However, one customer accounted for 12% of the Company’s
`accounts receivable balance.
`
`Property and Equipment, Net by Location
`
`The following table summarizes property and equipment, net by location:
`
`United States
`Outside of the United States
`
`Total property and equipment, net
`
`As of December 31,
`2015
`2014
`
`(in thousands)
`$4,761
`$4,610
`132
`101
`
`$4,893
`
`$4,711
`
`Recent Accounting Pronouncements- Not Yet Adopted
`
`In May 2014, the FASB issued a comprehensive Accounting Standards Update (“ASU”)
`2014-09, Revenuefrom Contracts with Customers (“ASU 2014-09”), which amends revenue
`recognition principles and provides a single set of criteria for revenue recognition among all
`industries. The new standard provides a five step fiamework whereby revenue is recognized when
`promised goods or services are transferred to a customer at an amount that reflects the consideration
`to which the entity expects to be entitled in exchange for those goods or services. The standard also
`requires enhanced disclosures pertaining to revenue recognition in both interim and annual
`periods. The standard is effective for interim and annual periods beginning afier December 15,
`2016 and allows for adoption using a full retrospective method, or a modified retrospective
`method. In August 2015, the FASB issued ASU 2015-14, Revenuefrom Contracts with Customers
`(Topic 606): Deferral of the Eflective Date, which defers the effective date of ASU 2014-09 by one
`year, but permits entities to adopt one year earlier if they choose (i.e., the original effective date). As
`such, ASU 2014-09 will be effective for interim and annual reporting periods ending after
`December 15, 2017. The Company is currently assessing the method of adoption and the expected
`impact the new standard has on its financial position and results of operations.
`
`In August 2014, the FASB issued ASU 2014-15, Presentation ofFinancial Statements-
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`Going Concern, which provides guidance about management’s responsibility to evaluate whether
`there is substantial doubt about an entity’s ability to continue as a going concern within one year
`from the date the financial statements are issued for each reporting period. This new accounting
`guidance is effective for interim and annual periods ending after December 15, 2016. Early
`adoption is permitted. The Company does not expect the new guidance to have a significant effect
`on its consolidated financial statements, but may require fiirther disclosure in its financial
`statements once adopted.
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`In July 2015, the FASB issued ASU 2015-11, Inventory (Topic 330): Simplifying the
`Measurement ofInventory. ASU 2015-11 requires that for entities that measure inventory using the
`first-in, first-out method, inventory should be measured at the lower of cost and net realizable
`value. ASU 2015-11 defines net realizable value as the estimated selling prices in the ordinary
`course of business, less reasonably predictable costs of completion, disposal and transportation.
`ASU 2015-11 is effective for fiscal years beginning after December 15, 2016, and interim periods
`within those fiscal years, and early adoption is permitted. The Company is currently in the process
`of evaluating the impact of adoption of ASU No. 2015-1 1 on its consolidated financial statements
`and related disclosures.
`
`In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805):
`Simplifying the Accountingfor Measurement-Period Adjustments. ASU 2015-16 requires that an
`acquirer recognize adjustments to provisional amounts that are identified during the measurement
`period in the reporting period in which the adjustment amounts are determined