NYCB 2017 Annual Report

94 2017, including interim periods within those fiscal years. Except for the early application guidance for liabilities at fair value in accordance with the fair value option for financial instruments, and certain fair value of financial instruments disclosures, early adoption of the ASU is not permitted. An entity should apply the amendments by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption. The amendments related to equity securities without readily determinable fair values (including disclosure requirements) should be applied prospectively to equity investments that exist as of the date of adoption of ASU No. 2016-01. The Company plans to adopt ASU No. 2016-01 as of January 1, 2018. Upon initial adoption, an immaterial amount of unrealized losses related to the in-scope equity securities will be reclassified from other comprehensive income to retained earnings. In May 2014, the FASB issued ASU No. 2014- 09, “Revenue from Contracts with Customers,” which requires an entity to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The provisions ASU No. 2014-09 and related amendments are effective for annual reporting periods beginning after December 15, 2017, and interim reporting periods within that annual period, with early adoption permitted for annual reporting periods beginning after December 15, 2016, and interim reporting periods within that annual period. The Company will adopt ASU No. 2014- 09 and its amendments which established ASC Topic 606, “Revenue from Contr acts with Customers” on January 1, 2018. In summary, the core principle of ASC Topic 606 is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The Company’s revenue streams that are covered by ASC Topic 606 are primarily fees earned in connection with performing services for our customers such as investment advisor fees, wire transfer fees, and bounced check fees. Such fees are either satisfied over time if the service is performed over a period of time (as with investment advisor fees or safe deposit box rental fees), or satisfied at a point in time (as with wire transfer fees and bounced check fees). The Company recognizes fees for services performed over time over the time period to which the fees relate. The Company recognizes fees earned at a point in time on the day the fee is earned. The Company will adopt ASU No. 2014-09 using the modified retrospective approach which includes presenting the cumulative effect of initial application, if any, along with supplementary disclosures. The Company will not record a cumulative effect adjustment upon adoption of ASU No. 2014-09. NOTE 3: RECLASSIFICATIONS OUT OF ACCUMULATED OTHER COMPREHENSIVE LOSS (in thousands) For the Twelve Months Ended December 31, 2017 Details about Accumulated Other Comprehensive Loss Amount Reclassified from Accumulated Other Comprehensive Loss (1) Affected Line Item in the Consolidated Statements of Operations and Comprehensive Income (Loss) Unrealized gains on available-for-sale securities $ 2,988 Net gain on sales of securities (1,245) Income tax expense $ 1,743 Net gain on sales of securities, net of tax Amortization of defined benefit pension plan items: Past service liability $ 249 Included in the computation of net periodic (credit) expense (2) Actuarial losses (8,484) Included in the computation of net periodic (credit) expense (2) (8,235) Total before tax 3,432 Tax benefit $(4,803) Amortization of defined benefit pension plan items, net of tax Total reclassifications for the period $(3,060) (1) Amounts in parentheses indicate expense items. (2) See Note 12, “Employee Benefits,” for additional information.