Small print.
Wide open.

Table of Contents

Anthropic, PBC
Notes to Consolidated Financial Statements
(Continued)

2023-07”),  which  requires  disclosure  of  incremental  segment  information  on  an  annual  and  interim  basis, 
primarily through enhanced disclosures of segment expenses. This guidance is effective for the annual periods 
beginning  after  December  15,  2023,  and  for  interim  periods  beginning  after  December  15,  2024  with  early 
adoption permitted. The Company adopted ASU 2023-07, effective on January 1, 2024, applying the guidance 
on a retrospective basis. Refer to Note 14 for further information.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax 
Disclosures  (“ASU  2023-09”).  ASU  2023-09  requires  disaggregated  information  about  a  reporting  entity’s 
effective  tax  rate  reconciliation  as  well  as  information  on  income  taxes  paid.  The  updates  in  this  ASU  are 
effective  for  annual  periods  beginning  after  December  15,  2024.  Early  adoption  is  permitted.  The  Company 
adopted ASU 2023-09, effective on January 1, 2025, applying guidance on a prospective basis. Refer to Note 11 
for further information.

In July 2025, the FASB issued ASU 2025-05, Financial Instruments—Credit Losses (Topic 326): Measurement 
of  Credit  Losses  for  Accounts  Receivable  and  Contract  Assets (“ASU  2025-05”).  ASU  2025-05  provides  all 
entities with a practical expedient when estimating expected credit losses for current accounts receivable and 
current contract assets arising from transactions accounted for under ASC 606. All entities may elect a practical 
expedient that assumes that current conditions as of the balance sheet date do not change for the remaining life 
of  the  asset.  The  amendments  in  this  ASU  will  be  effective  for  annual  reporting  periods  beginning  after 
December  15,  2025,  and  interim  reporting  periods  within  those  annual  reporting  periods.  Early  adoption  is 
permitted in both interim and annual reporting periods in which financial statements have not yet been issued 
or made available for issuance. The Company early adopted ASU 2025-05, effective January 1, 2025, electing 
the practical expedient and applying the guidance prospectively. This ASU did not have a significant impact to 
the Company’s consolidated financial statements.

In September 2025, the FASB issued ASU 2025-06, Intangibles—Goodwill and Other—Internal-Use Software 
(Subtopic  350-40):  Targeted  Improvements  to  the  Accounting  for  Internal-Use  Software (“ASU  2025-06”). 
ASU 2025-06 modernizes the guidance for costs incurred in connection with internal-use software by removing 
references to prescriptive development stages. Under ASU 2025-06, an entity may begin capitalizing internal-
use  software  costs  when  (a)  management,  with  the  relevant  authority,  implicitly  or  explicitly  authorizes  and 
commits to funding a computer software project and (b) it is probable that the project will be completed and the 
software will be used to perform the function intended (the “probable-to-complete recognition threshold”). ASU 
2025-06  is  effective  for  annual  reporting  periods  beginning  after  December  15,  2027,  and  interim  periods 
within  those  annual  reporting  periods;  early  adoption  is  permitted.  The  ASU  may  be  adopted  prospectively, 
retrospectively,  or  via  a  modified  prospective  transition.  The  Company  early  adopted  ASU  2025-06,  effective 
January 1, 2025, applying the guidance on a prospective basis. This ASU did not have a significant impact to the 
Company’s consolidated financial statements.

Recently Issued Accounting Pronouncements Not Yet Adopted

In November 2024, the FASB issued ASU 2024-03, Disaggregation of Income Statement Expenses (Subtopic 
220-40) (“ASU 2024-03”), and in January 2025, the FASB issued ASU 2025-01, Income Statement-Reporting 
Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40): Clarifying the Effective Date 
(“ASU 2025-01”). ASU 2024-03 requires enhanced disclosure in the notes to the financial statements regarding 
the  disaggregation  of  certain  costs  and  expenses.  ASU  2024-03,  as  clarified  by  ASU  2025-01,  is  effective  for 
annual  reporting  periods  beginning  after  December  15,  2026,  and  interim  reporting  periods  within  annual 
reporting  periods  beginning  after  December  15,  2027.  Early  adoption  is  permitted.  Upon  adoption,  the 
guidance can be applied either prospectively or retrospectively. The Company is currently evaluating the impact 
of the new standard on the Company’s consolidated financial statements.

There  are  other  new  accounting  pronouncements  issued  by  the  FASB  that  the  Company  has  adopted  or  will 
adopt, as applicable, and the Company does not believe any of these accounting pronouncements have had, or 
will have, a material impact on its consolidated financial statements or disclosures.

F-25