Note 14 - Commitments and Contingencies

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Commitments and Contingencies Disclosure [Text Block]

14.

     

COMMITMENTS AND CONTINGENCIES

:

From time to time, the Company is involved in litigation arising out of its operations in the ordinary course of business. The Company maintains liability insurance, including product liability coverage, in amounts deemed adequate by management. To date, aggregate costs to the Company for claims, including product liability actions, have not been material. However, an uninsured or partially insured claim, or claim for which indemnification is not available, could have a material adverse effect on the Company’s financial condition or results of operations. The Company believes that there are no claims or litigation pending, the outcome of which could have a material adverse effect on its financial position or results of operations. However, due to the inherent uncertainty of litigation, there can be no assurance that the resolution of any particular claim or proceeding would not have a material adverse effect on the Company’s financial condition or results of operations for the fiscal period in which such resolution occurred.

The Company has purchase obligations of approximately

$8.1

million at

December

 

31,

2016

related to the Company’s construction contracts for a facility in Houston, Texas and a real estate purchase agreement for Las Vegas, Nevada. The Company also has contractual obligations of

$14.9

million with IBM for management services related to the Company’s SAP enterprise software and dealership management system and SAP America, Inc. with respect to the Software License Agreement for the SAP enterprise software and dealership management system.