TRGP · 10-Q · 2026Q2 · Full report

Recent Accounting Pronouncements

Targa Resources Corp. · 2026-08-06 · Importance 22 · Surprise 42

The FASB issued ASU 2024-03, requiring public companies to provide expanded interim and annual disaggregation of income-statement expenses, effective for fiscal years beginning after December 15, 2026 and interim periods beginning after December 15, 2027. Targa expects to provide the annual disclosures in its 2027 Form 10-K and interim disclosures beginning with the quarter ended March 31, 2028; the company expects the impact to be limited to footnote disclosures. ASU 2025-06 on internal-use software applies after December 15, 2027, and ASU 2025-10 on government grants applies after December 15, 2028; Targa is evaluating both and expects adoption in 2028 and 2029, respectively.

Key facts

• Recently issued accounting pronouncement ASU 2024-03 (Disaggregation of Income Statement Expenses) effective for fiscal years beginning after December 15, 2026; we expect to disclose required information for fiscal years beginning in 2027 Form 10-K and interim periods beginning in quarter ending March 31, 2028; impact limited to disclosure source
• Recently issued accounting pronouncement ASU 2025-06 (Internal-Use Software) effective for fiscal years beginning after December 15, 2027; we expect to apply for interim periods beginning March 31, 2028 and fiscal years beginning 2028 source
• Recently issued accounting pronouncement ASU 2025-10 (Government Grants) effective for fiscal years beginning after December 15, 2028; we expect to apply for interim periods beginning March 31, 2029 and fiscal years beginning 2029 source
• Contingent consideration liability fair value as of June 30, 2026: $8.2 million (Level 3). source
• Contingent consideration liability carrying/fair value as of December 31, 2025: $0.3 million (Level 3). source