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Note 4 - New Accounting Pronouncements
 12 Months Ended
Dec. 31, 2019
Notes to Financial Statements  
Accounting Standards Update and Change in Accounting Principle [Text Block]
4
. 
New Accounting Pronouncements
 
 
In
February 2016,
the FASB issued authoritative guidance on leases. The new authoritative guidance requires the recognition of assets and liabilities arising from lease transactions on the balance sheet and additional disclosures about the amount, timing and uncertainty of cash flows from leases. Accordingly, a lessee recognizes a lease asset for its right to use the underlying asset and a lease liability for the corresponding lease obligation. The Company determines if an arrangement is a lease, or contains a lease, at the inception of the arrangement. On the commencement date, leases are evaluated for classification, and assets and liabilities are recognized based on the present value of lease payments over the lease term. The Company uses the incremental borrowing rate based on the information available at commencement in determining the present value of lease payments. Operating lease expense is generally recognized on a straight-line basis over the lease term. The Company adopted this authoritative guidance using the modified retrospective method during
first
quarter of fiscal
2019
and resulted in the recognition of right-of-use assets of approximately
$2.3
million and lease liabilities for operating leases of approximately
$2.3
million on
January 1, 2019,
the beginning of fiscal
2019.
The Company elected the practical expedients to
not
separate lease and non-lease components within lease transactions, and
not
to record on the balance sheet leases with a term of
12
months or less. The Company also has elected the package of practical expedients, which allows the Company
not
to reassess (
1
) whether any expired or existing contracts as of the adoption date are or contain a lease, (
2
) lease classification for any expired or existing leases as of the adoption date and (
3
) initial direct costs for any existing leases as of the adoption date. The Company did
not
elect to apply the hindsight practical expedient when determining lease term and assessing impairment of right-of-use assets. 
 
The Company recognizes its operating leases within its other assets, other accrued liabilities and other long-term liabilities on the Company's consolidated balance sheets. The Company's finance leases were immaterial.
 
Recent Accounting Pronouncements
Not
Yet Adopted
 
Credit Loss
 
In
June 2016,
the FASB issued authoritative guidance to replace the incurred loss impairment methodology under current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. For public entities, the guidance is effective for fiscal years beginning after
December 15, 2020,
and interim periods within those fiscal years, which for the Company would be the
first
quarter of fiscal
2021.
The Company does
not
expect a material impact on its consolidated financial statements upon adoption of this authoritative guidance.
 
Goodwill
 
In
January 2017,
the FASB issued authoritative guidance that simplifies the accounting for goodwill impairment. The authoritative guidance removes Step
2
of the goodwill impairment test, which requires a hypothetical purchase price allocation. Goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value,
not
to exceed the carrying amount of goodwill. All other goodwill impairment guidance will remain largely unchanged. Entities will continue to have the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary. For public entities, the guidance is effective for fiscal years beginning after
December 15, 2019,
and interim periods within those fiscal years, which for the Company would be the
first
quarter of fiscal
2020.
The Company does
not
expect a material impact on its consolidated financial statements upon adoption of this authoritative guidance.
 
 
Cloud Computing Arrangements
 
In
August 2018,
the FASB issued new guidance requiring a customer in a cloud computing arrangement (i.e., hosting arrangement) that is a service contract to follow the internal-use software guidance to determine which implementation costs to capitalize as assets or expense as incurred. Capitalized implementation costs related to a hosting arrangement that is a service contract will be amortized over the term of the hosting arrangement, beginning when the module or component of the hosting arrangement is ready for its intended use. For public entities, the guidance is effective for fiscal years beginning after
December 15, 2019,
and interim periods within those fiscal years, which for Company would be the
first
quarter of fiscal
2001.
The Company does
not
expect a material impact on its consolidated financial statements upon adoption of this authoritative guidance.
 
Income Taxes
 
In
December 2019,
the FASB issued authoritative guidance that simplifies the accounting for income taxes as part of the overall initiative to reduce complexity in accounting standards. Amendments include removal of certain exceptions to the general principles of Accounting Standards Codification
740,
Income Taxes. The amendments also include simplification in several other areas, such as recognition of deferred tax assets on step-up in tax basis in goodwill and accounting for franchise tax that is partially based on income. For public entities, the guidance is effective for fiscal years beginning after
December 15, 2020,
and interim periods within those fiscal years, which for the Company would be the
first
quarter of fiscal
2021.
Early adoption is permitted in any interim or annual period, with any adjustments reflected as of the beginning of the fiscal year of adoption. The Company has decided
not
to early adopt this new authoritative guidance and is currently evaluating the impact of this authoritative guidance on its consolidated financial statements.