Get Started for Free Contexxia identifies hard-to-find pieces of information in SEC filings. No more highlighters, no more redlining, no more poring over huge documents. ATHENAHEALTH INC (1131096) 10-Q published on Nov 09, 2018 at 4:27 pm
Reporting Period: Sep 29, 2018
On October 22, 2018, we sold a portion of an equity investment for $10.0 million in cash, representing a realized pre-tax gain of $8.9 million. As a result of the observable price change, our remaining holdings of this equity investment have been remeasured to $7.7 million, representing an unrealized pre-tax gain of $6.9 million. Both the realized and unrealized pre-tax gains will be recorded in Other income (expense) within the three months ended December 31, 2018.
In August 2018, the Financial Accounting Standards Board issued new accounting guidance to address implementation costs in cloud computing arrangements (hosting arrangements). The new standard requires customers in a hosting arrangement that is a service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to capitalize as an asset and which to expense as incurred. The capitalized implementation costs are to be amortized over the term of the hosting arrangement and be presented in the same line item in the statement of income as the fees associated with the hosting element of the arrangement. The new standard requires the capitalized implementation costs to be presented within the same balance sheet line item as any associated prepaid hosting arrangement fees. Further, the classification of payments for capitalized implementation costs are required to be presented in the same manner as payments of fees for the service component of the hosting arrangement within the statement of cash flows. The new standard is effective for interim and annual periods beginning after December 15, 2019, however, early adoption is permitted. We are evaluating the impact of this accounting standard on our financial statements and related disclosures.
There have been no material changes to the Company’s market risk during the first nine months of 2018. For a discussion of the Company’s exposure to market risk, refer to the Company’s market risk disclosures set forth in Part II, Item 7A, “Quantitative and Qualitative Disclosures About Market Risk” of the 2017 Annual Report on Form 10-K.
On November 1, 2018, our Board of Directors appointed David C. Young as the Principal Accounting Officer of the Company. The appointment was effective November 8, 2018. Mr. Young replaces Marc Levine who will remain the Chief Financial Officer, Principal Executive Officer and Principal Financial Officer of the Company.
Mr. Young, 40, has been the Company’s Vice President and Corporate Controller since May 2016. Previously, Mr. Young served as Corporate Controller at Wyless Inc., or Wyless, from April 2015 until May 2016. Prior to joining Wyless, Mr. Young served as Assistant Corporate Controller at Sapient Corporation, or Sapient, from May 2012 until April 2015. Before his promotion to Assistant Corporate Controller, Mr. Young held various financial roles at Sapient from August 2006 until May 2012.
There are no arrangements or understandings between Mr. Young and any other person pursuant to which he was appointed as the principal accounting officer of the Company. Mr. Young has no familial relationships with any executive officer or director of the Company and there have been no transactions in which the Company has participated and in which Mr. Young had a direct or indirect material interest that would be required to be disclosed under Item 404(a) of Regulation S-K.