Summary
Targa Resources Corp. (TRC) filed this Form 8-K on May 23, 2016, to provide investors with updated financial information related to its 2015 Form 10-K. The primary purpose of this filing is to reflect changes in segment reporting and the retrospective adoption of accounting standard ASU 2015-03 concerning debt issuance costs. These adjustments are intended to enhance comparability for investors when evaluating historical financial performance against current and future periods.
Key Highlights
- 1Targa Resources is restating prior period financial information within its 2015 Form 10-K to align with a revised segment reporting structure for 2016.
- 2The company's reportable segments have been adjusted, with the Gathering and Processing division now comprising Field Gathering and Processing and Coastal Gathering and Processing.
- 3The Logistics and Marketing division (Downstream Business) is now presented as Logistics Assets and Marketing and Distribution.
- 4Targa Resources is retrospectively applying ASU 2015-03, which simplifies the presentation of debt issuance costs.
- 5Debt issuance costs, excluding those related to revolving credit facilities, will now be presented as a direct deduction from the carrying amount of debt on the balance sheet.
- 6This filing provides recast financial information to improve comparability for investors across periods.
- 7The information in this 8-K does not include events or developments after February 29, 2016, and investors should refer to more recent filings like the Form 10-Q for the period ending March 31, 2016.
Frequently Asked Questions
Targa Resources is filing this 8-K to provide updated financial information in its 2015 Form 10-K to reflect changes in how it reports its business segments starting in 2016 and to apply a new accounting standard (ASU 2015-03) related to debt issuance costs retrospectively. This aims to make it easier for investors to compare historical financial data.
The company has refined its segment reporting. The 'Gathering and Processing' division is now split into 'Field Gathering and Processing' and 'Coastal Gathering and Processing'. The 'Logistics and Marketing' division is now presented as 'Logistics Assets' and 'Marketing and Distribution'.
ASU 2015-03 requires that debt issuance costs (for debt other than revolving credit facilities) be presented as a direct reduction from the carrying amount of the debt on the balance sheet, similar to how debt discounts are shown. This change is being applied retrospectively to prior periods presented in the 2015 Form 10-K.
No, this 8-K specifically updates historical information from the 2015 Form 10-K and does not include events or developments that occurred after February 29, 2016. For more current financial information, investors should consult Targa Resources' Form 10-Q for the period ending March 31, 2016, and subsequent SEC filings.