A Fresh Perspective On
Calculation Relationships
December 2016
The contents of this presentation are confidential. Copyright © 2016 Workiva.
Presenter
Darek Paulukovich
Team Manager of Professional Services
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Agenda
•
Guidance on calculation relationships
•
Refreshed look through common examples
•
Understand Wdesk visual indicators
Guidance on Calculation Relationships
•
•
Basic criteria EDGAR Filer Manual (EFM) rules
◦
6.15.2—line item(s) along with net/total
◦
6.14.5—line items in the same presentation group
◦
6.14.3—line items within the same period context
SEC Office of Structured Disclosure (OSD) FAQ
◦
E.27—conditions for when calculations are required (New 01/26/2016)
Guidance on Calculation Relationships
•
Basic criteria EDGAR Filer Manual (EFM) rules
◦
6.15.2—minimum of two concepts, one of which being the net/total
◦
6.14.5—line items must be in the same XBRL outline presentation
◦
6.14.3—line items must have identical dates/date ranges
(required context represents current reporting period only)
•
SEC Office of Structured Disclosure (OSD) FAQ
◦
E.27—walks through a five step condition test focusing on one line item at a time
Guidance on Calculation Relationships
EFM 6.15.2 example
"A balance sheet shows assets as the sum of current and non-current assets, as of the date
falling at the end of the period of the Required Context. Two relationships are required."
Guidance on Calculation Relationships
EFM 6.15.2 example
"A balance sheet shows assets as the sum of current and non-current assets, as of the date
falling at the end of the period of the Required Context. Two relationships are required."
2016-12-31
In Thousands
Assets, Current
Debit
+
558,962
Assets, Noncurrent
Debit
+
822,987
Assets
Debit
Asserted Value
1,381,949
1,381,949
Guidance on Calculation Relationships
EFM 6.15.2 example
"A balance sheet shows assets as the sum of current and non-current assets, as of the date
falling at the end of the period of the Required Context. Two relationships are required."
2016-12-31
Assets, Current
Parent
Assets
In Thousands
Assets, Current
Debit
+
558,962
Assets, Noncurrent
Debit
+
822,987
Assets
Debit
Asserted Value
Relationship
one
1,381,949
1,381,949
Guidance on Calculation Relationships
EFM 6.15.2 example
"A balance sheet shows assets as the sum of current and non-current assets, as of the date
falling at the end of the period of the Required Context. Two relationships are required."
2016-12-31
Assets, Current
Assets, Current
Debit
+
558,962
Assets, Noncurrent
Debit
+
822,987
Assets
Debit
Asserted Value
Relationship
one
Assets, Noncurrent
In Thousands
1,381,949
Parent
Assets
1,381,949
Relationship
two
Guidance on Calculation Relationships
EFM 6.15.2 example
"A balance sheet shows assets as the sum of current and non-current assets, as of the date
falling at the end of the period of the Required Context. Two relationships are required."
2016-12-31
Assets, Current
In Thousands
Assets, Current
Debit
+
558,962
Assets, Noncurrent
Debit
+
822,987
Assets
Debit
Asserted Value
Assets, Noncurrent
1,381,949
1,381,949
Defining one calculation in Wdesk may create multiple relationships
iXBRL Illustrates Relationships Best
Refreshed Look Through Common Examples
Total Stockholders' Equity on the Balance Sheet
2016-12-31
December 31,
2016
Class A common stock
$
Class B common stock
Credit
+
Credit
+
8,700
(125)
Credit
+
(125)
600
Credit
+
600
11,975
Credit
Class B
Common
Stock
[Member]
2,500
300
300
Additional paid-in capital
8,700
Accumulated other comprehensive income (loss)
Retained earnings (accumulated deficit)
Total stockholders' equity
2,500
In Thousands
Class A
Common
Stock
[Member]
$
11,975
9,175
Previous interpretation:
• This is one calculation relationship
• It is optional because of the inconsistencies created by dimensional components
Refreshed Look Through Common Examples
Total Stockholders' Equity on the Balance Sheet
2016-12-31
December 31,
2016
Class A common stock
$
Class B common stock
Allowed but not required
(Best practice is to define)
+
Credit
+
8,700
Required relationship 1
(125)
Credit
+
(125)
Required relationship 2
600
Credit
+
600
Required relationship 3
11,975
Credit
8,700
Accumulated other comprehensive income (loss)
Retained earnings (accumulated deficit)
$
Class B
Common
Stock
[Member]
Credit
300
Additional paid-in capital
Total stockholders' equity
2,500
In Thousands
Class A
Common
Stock
[Member]
11,975
9,175
Clarified guidance:
• There are four calculation relationships in consideration
• Only one relationship is optional, the dimensional component
• Three are required calculation relationships
Refreshed Look Through Common Examples
Assets and Liabilities Acquired
Net tangible assets
Intangible assets:
December 31,
2016
33,400
$
Customer relationships
Trademarks
In-process research and development
Goodwill
Restructuring liability
Net assets acquired and liabilities assumed
150,600
$
45,600
6,590
402,300
(29,800)
608,690
2016-12-31
In Thousands
Debit +
Debit +
Credit
Debit
‑
150,600
45,600
6,590
402,300
29,800
608,690
405,900
Clarified guidance:
• There are three required calculation relationships
• Two additional per SEC recommended best practice
Trademarks
[Member]
In Process
Research and
Development
[Member]
33,400
Debit +
Debit +
Customer
Relationships
[Member]
Refreshed Look Through Common Examples
Assets and Liabilities Acquired
Net tangible assets
Intangible assets:
December 19,
2016
33,400
$
Customer relationships
Trademarks
In-process research and development
Goodwill
Restructuring liability
Net assets acquired and liabilities assumed
150,600
$
45,600
6,590
402,300
(29,800)
608,690
2016-12-19
In Thousands
Debit +
Customer
Relationships
[Member]
Trademarks
[Member]
150,600
45,600
33,400
Debit +
Debit +
Debit +
Credit
Debit
‑
In Process
Research and
Development
[Member]
6,590
402,300
29,800
608,690
405,900
Clarified guidance:
• Calculations required for "Required Context", current reporting period
• Calculation is optional outside of required context (i.e. specific event date)
• SEC Recommended best practice is to define calculations wherever possible
Refreshed Look Through Common Examples
Liability Fair Value
Level 1
Level 2
Total Fair
Value
Level 3
Derivative liabilities:
Commodity
$
100
Interest rate
Total liabilities
$
—
$
100
800
$
300
$
1,100
200
$
—
$
200
1,100
300
$
1,400
Previous interpretation:
• This does not meet the requirement of "two or
more line items with a total"
• It is optional because no dimension contain any
consistent calculation
All facts, contributors and totals, are in separate dimensions:
Commodity Interest
Rate
Contract
Contract
[Member] [Member]
Derivative Liability
Credit
Financial Liabilities
Fair Value Disclosure
Credit
+
1,100
1,400
Level 1
[Member]
300
Level 1
Level 1
[Member] [Member]
Commodity Interest
Rate
Contract
Contract
[Member] [Member]
100
100
Level 2
[Member]
—
Level 2
Level 2
[Member] [Member]
Commodity Interest
Rate
Contract
Contract
[Member] [Member]
800
1,100
Level 3
[Member]
300
Level 3
Level 3
[Member] [Member]
Commodity Interest
Rate
Contract
Contract
[Member] [Member]
200
200
—
Refreshed Look Through Common Examples
Liability Fair Value
Level 1
Level 2
Level 3
Total Fair
Value
Derivative liabilities:
Commodity
$
Interest rate
Total liabilities
100
$
—
$
100
800
$
300
$
1,100
200
$
—
$
200
1,100
300
$
1,400
Clarified guidance:
• This is two concepts with one being the total and
a relationship exists
• Required calculation does not have to result in a
consistent "footing" calculation
No calculation operation to perform in the Calculation Report:
Report Note
A calculation was defined for "FinancialLiabilitiesFairValueDisclosure", but no assertions were performed.
Understanding Wdesk Visual Indicators
•
Green and yellow (previously red) dotted underlines
•
Calculation report design and function
•
Green, red and yellow highlights in the Calculation Report
Green Dotted Underlines
Indicates the defined calculation foots mathematically in the document table
Yellow (Previously Red) Dotted Underlines
•
Indicates inconsistencies are resulting from the defined calculation in the
document table
•
Does NOT always represent errors
•
Further evaluation is necessary to determine if there is an error or a valid
inconsistency
Calculation Report Design and Function
•
A visual aid for investigating and verifying calculation inconsistencies
•
Not meant for verifying completeness
•
Not meant for evaluating whether or not a relationship should be
defined
•
Displays the XBRL facts for all calculation relationships defined in the
filing, and whether or not the XBRL facts create inconsistencies
Green Highlights in the Calculation Report
Indicates the defined calculation relationships are footing mathematically
1/1/2016 - 12/31/2016
1/1/2016 - 12/31/2016
In Thousands
In Thousands
Sales Revenue, Goods, Net
credit +
66,592
Cost of Goods Sold
debit
+
6,940
Sales Revenue, Services, Net
credit +
26,332
Cost of Services
debit
+
3,324
Revenue, Net
credit
92,924
Cost of Goods and Services Sold
debit
92,924
Asserted Value
Asserted Value
10,264
10,264
Yellow and Red Highlights in the Calculation Report
•
All inconsistencies are highlighted in either yellow or red
•
Together they represent the total number of inconsistency warnings in
the project validation results
•
Occurs when the XBRL value of the total fact does not match the sum of
the calculated XBRL value for the defined calculation
Yellow Highlights in the Calculation Report
When one or more of the contributing facts are missing in the dimension
2016-12-31
December 31,
2016
Class A common stock
$
Class B common stock
Credit
+
Credit
+
8,700
(125)
Credit
+
(125)
600
Credit
+
600
11,975
Credit
Class B
Common
Stock
[Member]
2,500
300
300
Additional paid-in capital
8,700
Accumulated other comprehensive income (loss)
Retained earnings (accumulated deficit)
Total stockholders' equity
2,500
In Thousands
Class A
Common
Stock
[Member]
$
11,975
9,175
Verify as correct
Yellow Highlights in the Calculation Report
When there are multiple total usages with only partial contributors
Consolidation Items [Axis]
Consolidation,
Eliminations [Member]
Consolidation Items [Axis]
Reportable Legal Entities
[Member]
Legal Entity [Axis]
Guarantor Subsidiaries
[Member]
Consolidation Items [Axis]
Reportable Legal Entities
[Member]
Legal Entity [Axis]
Parent Company
[Member]
1/1/2016 - 12/31/2016
1/1/2016 - 12/31/2016
1/1/2016 - 12/31/2016
1/1/2016 - 12/31/2016
In Thousands
In Thousands
In Thousands
In Thousands
Interest Income (Expense), Nonoperating, Net
credit +
(4,602)
Other Nonoperating Income (Expense)
credit +
(1,605)
Nonoperating Income (Expense)
credit
Asserted Value
0
1,478
(6,080)
(6,207)
0
1,434
(6,882)
(6,207)
0
1,478
(6,080)
Red Highlights in the Calculation Report
When all contributing facts are present but the calculated total does not
agree with the XBRL value of the total fact
•
Missing/extra contributor in calculation
•
Incorrect accuracy
•
Wrong fact value sign
•
Expanded calculation scenarios
•
Rounding (may not be an error)
Red Highlights in the Calculation Report
Wrong fact value sign (reverse)
•
Accumulated depreciation should be a positive fact value
12/31/2016
12/31/2015
In Thousands
In Thousands
Property, Plant and Equipment, Gross
debit
+
607,447
605,101
Accumulated Depreciation, Depletion and Amortization,
Property, Plant, and Equipment
credit
-
(366,013)
(394,599)
Property, Plant and Equipment, Net
debit
208,434
210,499
1,006,460
999,700
Asserted Value
Red Highlights in the Calculation Report
Expanded calculation scenario
•
Remove less encompassing calculation on Income Statement
•
Variance due to eliminating line item "Income (Loss) from Subsidiaries, Net of Tax" reported
in guarantor note
Consolidation Items
[Axis]
Reportable Legal
Entities [Member]
Legal Entity [Axis]
Guarantor Subsidiaries
[Member]
Consolidation Items
[Axis]
Consolidation,
Eliminations [Member]
Income (Loss) from Continuing Operations before
Income Taxes, Noncontrolling Interest
credit +
Income Tax Expense (Benefit)
debit
Net Income (Loss) Attributable to Parent
credit
Asserted Value
-
Consolidation Items
[Axis]
Reportable Legal
Entities [Member]
Legal Entity [Axis]
Parent Company
[Member]
1/1/2016 - 12/31/2016
1/1/2016 - 12/31/2016
1/1/2016 - 12/31/2016
1/1/2016 - 12/31/2016
In Thousands
In Thousands
In Thousands
In Thousands
68,237
1,566
(18)
0
6,349
61,906
(420)
1,986
66,671
(4,690)
7,787
63,574
66,671
(18)
6,769
59,920
Red Highlights in the Calculation Report
Rounding (may not be an error)
1/1/2016 -
1/1/2016 -
12/31/2016
12/31/2016
Income (Loss) from Continuing Operations, Per Diluted Share
+
.74
.42
Income (Loss) from Discontinued Operations and Disposal of Discontinued
Operations, Net of Tax, Per Diluted Share
+
(.09)
.01
Earnings Per Share, Diluted
.65
.44
Asserted Value
.65
.43
Review Steps and Tips
•
Evaluate all concepts within each XBRL subsection
◦
Do not rely solely on visual yellow dotted lines in document tables
◦
Focus on relationships between XBRL concepts, not only reported values
•
Resolve all duplicate calculations validation messages
•
Review remaining inconsistency messages in Calculation Report
◦
Calculation requirement is not governed by its consistency
◦
Investigate all inconsistencies (both yellow and red)
▪
•
Resolve as many red errors as possible
Verify as correct valid inconsistencies
• Are you concerned about your axis usage or the number of
extended axis?
• Have you wondered if your XBRL data is current with the 2016
Taxonomy?
• Are you concerned about getting a Dear CFO letter in regards to
your XBRL?
Email [email protected] for a detailed overview.
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