Note 2 - New Accounting Pronouncements

3 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Description of New Accounting Pronouncements Not yet Adopted [Text Block]

Note

2.

New Accounting Pronouncements

Recently Adopted

In

February 2016,

the FASB issued ASU

2016

-

02

(“ASU

2016

-

02”

),

Leases (Topic

842

)

. This standard established a right-of-use model that requires all lessees to recognize right-of-use assets and liabilities on their balance sheet that arise from leases with terms longer than

12

months as well as provide disclosures with respect to certain qualitative and quantitative information related to their leasing arrangements.

The FASB has subsequently issued the following amendments to ASU

2016

-

02,

which have the same effective date and transition date of

January 1, 2019,

and which we collectively refer to as the new leasing standards:

● ASU No. 2018 - 01, Leases (Topic 842 ): Land Easement Practical Expedient for Transition to Topic 842, which permits an entity to elect an optional transition practical expedient to not evaluate under Topic 842 land easements that exist or expired prior to adoption of Topic 842 and that were not previously accounted for as leases under the prior standard, ASC 840, Leases .

● ASU No. 2018 - 10, Codification Improvements to Topic 842, Leases , which amends certain narrow aspects of the guidance issued in ASU 2016 - 02.

● ASU No. 2018 - 11, Leases (Topic 842 ): Targeted Improvements , which allows for a transition approach to initially apply ASU 2016 - 02 at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption as well as an additional practical expedient for lessors to not separate non-lease components from the associated lease component.

● ASU No. 2018 - 20, Narrow-Scope Improvements for Lessors , which contains certain narrow scope improvements to the guidance issued in ASU 2016 - 02.

● ASU No. 2019 - 01, Leases (Topic 842 ): Codification Improvements .

We adopted the new leasing standards on

January 1, 2019,

using a modified retrospective transition approach to be applied to leases existing as of, or entered into after,

January 1, 2019

and did

not

adjust comparative periods. We also elected the package of practical expedients permitted under this standard, which among other things, allowed us to carry forward the lease classification for our existing leases. In preparation for the adoption of this standard and to enable preparation of the required financial information, we implemented new internal controls and processes.

The adoption of this standard impacted our

2019

opening consolidated balance sheet as we recorded operating lease liabilities of

$15.3

million and ROU lease assets of

$13.5

million, which equals the lease liabilities net of deferred rent and lease incentives previously recorded on our balance sheet under the old guidance. The adoption of this standard did

not

have an impact on our consolidated statements of operations or cash flows.

Recently Issued

In

August 2018,

the FASB issued ASU

2018

-

13

(“ASU

2018

-

13”

),

Fair Value Measurement - Disclosure Framework (Topic

820

): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement

. The updated guidance improves the disclosure requirements on fair value measurements. ASU

2018

-

13

is effective for fiscal years, and interim periods within those fiscal years, beginning after

December 15, 2019.

Early adoption is permitted for any removed or modified disclosures. We are currently assessing the timing of adopting the updated provisions and the impact of the updated provisions on our consolidated financial statements.

In

June 2016,

the FASB issued ASU

2016

-

13,

Financial Instruments - Credit Losses (Topic

326

): Measurement of Credit Losses on Financial Instruments

. In

November 2018,

the FASB issued ASU

2018

-

19,

Codification Improvements to Topic

326,

Financial Instruments-Credit Losses

and in

April 2019,

the FASB issued ASU

2019

-

04,

Codification Improvements to Topic

326,

Financial Instruments—Credit Losses,

Topic

815,

Derivatives and Hedging, and

Topic

825,

Financial

Instruments

, which amend the scope and transition requirements of ASU

2016

-

13.

The standard requires a financial asset (or a group of financial assets) measured at amortized cost basis to be presented at the net amount expected to be collected. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions and reasonable and supportable forecasts that affect the collectability of the reported amount. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after

December 15, 2019.

We are currently evaluating the impact this guidance will have on our consolidated financial statements.