Note 3 - Impact of Recently Issued Accounting Pronouncements

12 Months Ended

Dec. 31, 2015

Notes to Financial Statements

New Accounting Pronouncements and Changes in Accounting Principles [Text Block]

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3)

Impact of Recently Issued Accounting Pronouncements

Simplifying Balance Sheet Classification of Deferred Taxes

In November 2015 the FASB issued ASU 2015-07, which requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. This standard is effective for fiscal years beginning after December 15, 2016, including interim periods within that reporting period, and may be applied on a retrospective or prospective basis. The Company has elected to apply this new guidance early, as of December 31, 2015, on a retrospective basis to all periods presented. This change in accounting principle results in all deferred tax liabilities and assets being classified as noncurrent on the Company’s consolidated balance sheet. The reason for the change is to simplify the Company’s presentation of deferred income tax balances. The retrospective effects of the accounting change on the Company’s 2014 consolidated balance sheet is a reclassification of current deferred tax assets and current deferred tax liabilities to noncurrent, resulting in a net increase of $3,323 in noncurrent deferred tax assets and a net decrease of $296 in noncurrent deferred tax liabilities. The retrospective effects of the accounting change on the Company’s working capital for 2014, 2013, 2012, and 2011 presented in Item 6 selected financial data is a reclassification of current deferred tax assets and current deferred tax liabilities to noncurrent, resulting in a net decrease in working capital of $3,619, $2,776, $1,469, and $62, respectively.

Simplifying the Presentation of Debt Issuance Costs

In April 2015, the FASB issued ASU 2015-03 which requires that debt issuance costs related to a recognized debt liability be presented on the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts, rather than be presented as an asset. In August 2015, the FASB issued ASU 2015-15,

which amends the previously issued standard, to allow debt issuance costs related to a line-of-credit arrangement to continue to be reported as an asset. This standard is effective for fiscal years beginning after December 15, 2015, including interim periods within that reporting period, and must be applied on a retrospective basis. This pronouncement did not have a material impact on the Company’s financial position or results of operations.

Simplifying the Measurement of Inventory

In July 2015, the FASB issued ASU 2015-11 which requires that inventory be measured at the lower of cost and net realizable value, which eliminates the other two options that currently exist for market, replacement cost and net realizable value less an approximately normal profit margin. This standard is effective for fiscal years beginning after December 15, 2016, including interim periods within that reporting period. The Company is currently evaluating the new guidance to determine the impact, if any, it will have on its consolidated financial statements.

Revenue from Contracts with Customers

In May 2014, the FASB issued ASU 2014-09 that introduces a new five-step revenue recognition model in which an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU also requires disclosures sufficient to enable users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers, including qualitative and quantitative disclosures about contracts with customers, significant judgments and changes in judgments, and assets recognized

from the costs to obtain or fulfill a contract. This standard is effective for fiscal years beginning after December 15, 2017, including interim periods within that reporting period. The Company is currently evaluating the new guidance

to determine the impact, if any, it will have on its consolidated financial statements.

Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity

In April 2014, the FASB issued ASU 2014-08, which includes amendments that change the requirements for reporting discontinued operations and require additional disclosures about discontinued operations. Under the new guidance, only disposals representing a strategic shift in operations - that is, a major effect on the organization's operations and financial results - should be presented as discontinued operations. Additionally, the ASU requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income and expenses of discontinued operations. This update was effective in the first quarter of 2015. This pronouncement did not have an impact on the Company’s financial position or results of operations.