Note 7 - Accounting for Share-based Payment Arrangement Compensation

3 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

7)

  Accounting for Share-based Payment Arrangement Compensation

We account for share-based payment arrangements in accordance with Financial Accounting Standards Board Accounting Standards Codification, or FASB ASC,

718,

Compensation – Stock Compensation

. During the

first

three

months of

2017,

there were no significant changes to the structure of our stock-based award plans. Pre-tax compensation expense related to stock options and performance unit awards recorded in the

first

three

months of

2017

and

2016

was

$149,000

and

$290,000,

respectively. See Note

11

to our consolidated financial statements in our

2016

Annual Report on Form

10

-K for a detailed description of stock-based awards.

In the

first

quarter of

2017,

we prospectively applied the provisions of Accounting Standards Update No.

2016

-

09,

“Compensation - Stock Compensation: Improvements to Employee Share-Based Payment Accounting” which simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences. The adoption of this standard resulted in a

$95,000

decrease to our provision for income taxes in the

first

quarter of

2017

as the actual increase in our stock price exceeded the grant-date fair value of the quarter’s exercised options and vested performance unit awards. Previously, this excess tax benefit would have been recognized in additional paid-in capital. With our prospective adoption of the standard, we recorded no adjustments to our consolidated financial statements as of and for the year ended

December

31,

2016.