Note 2 - Recent Accounting Pronouncements and Accounting Changes	3 Months Ended
Jun. 30, 2017
Notes to Financial Statements
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	2. Recent Accounting Pronouncements and Accounting Changes In May 2014, Financial Accounting Standards Board, or FASB, issued a new standard on the recognition of revenue from contracts with customers, which includes a single set of rules and criteria for revenue recognition to be used across all industries. The revenue standard’s core principle is built on the contract between a vendor and a customer for the provision of goods and services. It attempts to depict the exchange of rights and obligations between the parties in the pattern of revenue recognition based on the consideration to which the vendor is entitled. To accomplish this objective, the standard requires five basic steps: identify the contract with the customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when or as the entity satisfies a performance obligation. For public companies, this standard is effective for annual reporting periods beginning after December 15, 2017, including interim periods during the annual period. Early adoption is permitted for annual periods commencing after December 15, 2016. Two different transition methods are available: full retrospective method and a modified retrospective approach. We are currently evaluating the potential impact of this standard on our financial position and results of operations, as well as our selected transition method. Based on our preliminary assessment, we believe the new standard will not have a material impact on our financial position and results of operations, as our revenue is primarily generated from the sale of finished, tangible products to customers. Sales predominantly contain a single delivery element and revenue is recognized at a single point in time when ownership, risks, and rewards transfer. We do not expect to change the manner or timing of recognizing revenue on a majority of our revenue transactions. In July 2015, FASB issued an amendment to modify the inventory measurement guidance in Topic 330, Inventory , for inventory that is measured using the methods other than last-in, first -out, or LIFO, and the retail inventory method. It requires that an entity measure inventory within the scope of this update at the lower of cost and net realizable value. It eliminated the guidance in Topic 330 that required a reporting entity measuring inventory at the lower of cost or market to consider the replacement cost of inventory and the net realizable value of inventory less an approximately normal profit margin along with net realizable value in determining the market value. We have adopted this standard on a prospective basis in the first quarter of fiscal 2018. The effect on our consolidated financial statements was not material. In January 2016, FASB issued authoritative guidance that modifies how entities measure equity investments and present changes in the fair value of financial liabilities. Under the new guidance, entities will have to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income unless the investments qualify for the new practicality exception. A practicality exception will apply to those equity investments that do not have a readily determinable fair value and do not qualify for the practical expedient to estimate fair value under Accounting Standards Codification, Fair Value Measurements , or ASC 820, and as such these investments may be measured at cost. This guidance is effective for financial statements issued for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years. We are currently evaluating the impact of this standard on our consolidated financial statements. In February 2016, FASB issued amended guidance for lease arrangements, which requires lessees to recognize the following for all leases with terms longer than 12 months: a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, or ROU asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The amendment is effective for financial statements issued for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the impact of this amended guidance on our consolidated financial statements. In March 2016, FASB issued amended guidance which simplifies several aspects of the accounting for employee share-based payment awards, including forfeitures, excess tax benefits or deficiencies and classification on the statement of cash flows. The guidance is effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. Under this guidance, entities are permitted to make an accounting policy election to either estimate forfeitures on shared-based payment awards or to recognize forfeitures as they occur. We have adopted this guidance during the three months ended June 30, 2017 and have elected to recognize forfeitures as they occur. The effect of the adoption related to forfeitures was an increase to additional paid-in capital of $60,000, an increase to deferred tax assets of $21,000 and a decrease to retained earnings of $39,000. In addition, the new guidance requires us to record all of the tax effects related to share-based payments through our consolidated statement of operations. Accordingly, on a prospective basis, we recorded excess tax benefits of $545,000 in the three months ended June 30, 2017. Further, the guidance requires all tax-related cash flows resulting from share-based payments be reported as operating activities on the statement of cash flows. We have elected to apply the change in cash flow classification on a prospective basis. The presentation requirement related to employee taxes paid through withholding shares did not impact the statements of cash flows because such cash flows had historically been presented as financing activities . Taxes withheld on net exercises of stock options during June 30, 2017 and 2016 were $490,000 and $0, respectively, and were included in cash flows from financing activities in our consolidated statements of cash flows for the three months ended June 30, 2017 and 2016. The adoption had no other material impact on our consolidated financial statements. In August 2016, FASB issued amended guidance that provides clarification on cash flow classification related to eight specific issues, including debt prepayment or debt extinguishment costs, contingent consideration payments made after a business combination, distributions received from equity method investees and proceeds from the settlement of insurance claims. The guidance will be effective for fiscal years beginning after December 15, 2017, including interim reporting periods within those fiscal years. Early adoption is permitted. The amended guidance should be applied retrospectively to all periods presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. We do not expect this change to have a significant impact on our consolidated financial statements. In October 2016, FASB issued amended guidance which requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. This eliminates the current exception for all intra-entity transfers of an asset other than inventory that requires deferral of the tax effects until the asset is sold to a third party or otherwise recovered through use. The guidance will be effective for fiscal years beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. Early adoption is permitted in the first interim period only. The amendments should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. As early adoption is permitted, we elected to early adopt this standard in the first quarter of fiscal 2018. In accordance with the guidance that required adjustments to reflect the cumulative effect, we recorded a reduction in retained earnings and an increase in income tax payable of $1.1 million during the three months ended June 30, 2017. In January 2017, FASB issued amended guidance which narrows the existing definition of a business and provides a framework for evaluating whether a transaction should be accounted for as an acquisition (or disposal) of assets or a business. The definition of a business affects areas of accounting such as acquisitions, disposals and goodwill. The revised definition of a business under this guidance is expected to reduce the number of transactions that are accounted for as business combinations. The guidance is effective on a prospective basis for fiscal years beginning after December 15, 2017, and interim periods within those fiscal years, with early adoption permitted. The impact on our consolidated financial statements will depend on the facts and circumstances of any specific future transactions.

Recent Accounting Pronouncements and Accounting Changes

May 2014,

Financial Accounting Standards Board, or FASB, issued a new standard on the recognition of revenue from contracts with customers, which includes a single set of rules and criteria for revenue recognition to be used across all industries. The revenue standard’s core principle is built on the contract between a vendor and a customer for the provision of goods and services. It attempts to depict the exchange of rights and obligations between the parties in the pattern of revenue recognition based on the consideration to which the vendor is entitled. To accomplish this objective, the standard requires

five

basic steps: identify the contract with the customer, identify the performance obligations in the contract, determine the transaction price, allocate the transaction price to the performance obligations in the contract and recognize revenue when or as the entity satisfies a performance obligation. For public companies, this standard is effective for annual reporting periods beginning after

December 15, 2017,

including interim periods during the annual period. Early adoption is permitted for annual periods commencing after

December 15, 2016.

Two different transition methods are available: full retrospective method and a modified retrospective approach.

We are currently evaluating the potential impact of this standard on our financial position and results of operations, as well as our selected transition method.

Based on our preliminary assessment, we believe the new standard will

not

have a material impact on our financial position and results of operations, as our revenue is primarily generated from the sale of finished, tangible products to customers. Sales predominantly contain a single delivery element and revenue is recognized at a single point in time when ownership, risks, and rewards transfer. We do

not

expect to change the manner or timing of recognizing revenue on a majority of our revenue transactions.

July 2015,

FASB issued an amendment to modify the inventory measurement guidance in Topic

330,

Inventory

, for inventory that is measured using the methods other than last-in,

first

-out, or LIFO, and the retail inventory method. It requires that an entity measure inventory within the scope of this update at the lower of cost and net realizable value. It eliminated the guidance in Topic

330

that required a reporting entity measuring inventory at the lower of cost or market to consider the replacement cost of inventory and the net realizable value of inventory less an approximately normal profit margin along with net realizable value in determining the market value. We have adopted this standard on a prospective basis in the

first

quarter of fiscal

2018.

The effect on our consolidated financial statements was

not

material.

January 2016,

FASB issued authoritative guidance that modifies how entities measure equity investments and present changes in the fair value of financial liabilities. Under the new guidance, entities will have to measure equity investments that do

not

result in consolidation and are

not

accounted for under the equity method at fair value and recognize any changes in fair value in net income unless the investments qualify for the new practicality exception. A practicality exception will apply to those equity investments that do

not

have a readily determinable fair value and do

not

qualify for the practical expedient to estimate fair value under Accounting Standards Codification,

Fair Value Measurements

, or ASC

820,

and as such these investments

may

be measured at cost. This guidance is effective for financial statements issued for fiscal years beginning after

December 15, 2017,

and interim periods within those fiscal years. We are currently evaluating the impact of this standard on our consolidated financial statements.

February 2016,

FASB issued amended guidance for lease arrangements, which requires lessees to recognize the following for all leases with terms longer than

months: a lease liability, which is a lessee’s obligation to make lease payments arising from a lease, measured on a discounted basis; and a right-of-use asset, or ROU asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. The amendment is effective for financial statements issued for fiscal years beginning after

December 15, 2018,

and interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the impact of this amended guidance on our consolidated financial statements.

March 2016,

FASB issued amended guidance which simplifies several aspects of the accounting for employee share-based payment awards, including forfeitures, excess tax benefits or deficiencies and classification on the statement of cash flows. The guidance is effective for financial statements issued for fiscal years beginning after

December 15, 2016,

and interim periods within those fiscal years. Under this guidance, entities are permitted to make an accounting policy election to either estimate forfeitures on shared-based payment awards or to recognize forfeitures as they occur. We have adopted this guidance during the

three

months ended

June 30, 2017

and have elected to recognize forfeitures as they occur. The effect of the adoption related to forfeitures was an increase to additional paid-in capital of

$60,000,

an increase to deferred tax assets of

$21,000

and a decrease to retained earnings of

$39,000.

In addition, the new guidance requires us to record all of the tax effects related to share-based payments through our consolidated statement of operations. Accordingly, on a prospective basis, we recorded excess tax benefits of

$545,000

in the

three

months ended

June 30, 2017.

Further, the guidance requires all tax-related cash flows resulting from share-based payments be reported as operating activities on the statement of cash flows. We have elected to apply the change in cash flow classification on a prospective basis. The presentation requirement related to employee taxes paid through withholding shares did

not

impact the statements of cash flows because such cash flows had historically been presented as financing activities

. Taxes withheld on net exercises of stock options during

June 30, 2017

and

2016

were

$490,000

and

$0,

respectively, and were included in cash flows from financing activities in our consolidated statements of cash flows for the

three

months ended

June 30, 2017

and

2016.

The adoption had

other material impact on our consolidated financial statements.

August 2016,

FASB issued amended guidance that provides clarification on cash flow classification related to

eight

specific issues, including debt prepayment or debt extinguishment costs, contingent consideration payments made after a business combination, distributions received from equity method investees and proceeds from the settlement of insurance claims. The guidance will be effective for fiscal years beginning after

December 15, 2017,

including interim reporting periods within those fiscal years. Early adoption is permitted. The amended guidance should be applied retrospectively to all periods presented. If it is impracticable to apply the amendments retrospectively for some of the issues, the amendments for those issues would be applied prospectively as of the earliest date practicable. We do

not

expect this change to have a significant impact on our consolidated financial statements.

October 2016,

FASB issued amended guidance which requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. This eliminates the current exception for all intra-entity transfers of an asset other than inventory that requires deferral of the tax effects until the asset is sold to a

third

party or otherwise recovered through use. The guidance will be effective for fiscal years beginning after

December 15, 2017,

including interim reporting periods within those annual reporting periods. Early adoption is permitted in the

first

interim period only. The amendments should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. As early adoption is permitted, we elected to early adopt this standard in the

first

quarter of fiscal

2018.

In accordance with the guidance that required adjustments to reflect the cumulative effect, we recorded a reduction in retained earnings and an increase in income tax payable of

$1.1

million during the

three

months ended

June 30, 2017.

January 2017,

FASB issued amended guidance which narrows the existing definition of a business and provides a framework for evaluating whether a transaction should be accounted for as an acquisition (or disposal) of assets or a business. The definition of a business affects areas of accounting such as acquisitions, disposals and goodwill. The revised definition of a business under this guidance is expected to reduce the number of transactions that are accounted for as business combinations. The guidance is effective on a prospective basis for fiscal years beginning after

December 15, 2017,

and interim periods within those fiscal years, with early adoption permitted. The impact on our consolidated financial statements will depend on the facts and circumstances of any specific future transactions.