Note 11 - ERP Platform

3 Months Ended

Mar. 31, 2018

Notes to Financial Statements

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

1

1

– ERP Platform

In

February 2018,

the Company determined that a majority of the components of its ERP Platform would require replacement earlier than anticipated at the time the software was installed and capitalized in

2011.

In accordance with ASC Topic

350

-

40,

the Company prospectively adjusted the useful life of the components to be replaced so that the respective net book values of these components will be fully amortized upon replacement.

The Company expects to replace certain components of its ERP Platform

no

later than

May 2018.

The net book value of the components being replaced is

$19.9

million and is included in Other Assets on the Consolidated Balance Sheets. The Company began to amortize that amount in

February 2018

and will continue to amortize that amount through

May 2018.

During the

first

quarter of

2018,

the Company recorded additional amortization expense of

$10.2

million related to replacement of the majority of its ERP Platform components. The Company expects to record amortization expense of

$9.3

million during the

second

quarter of

2018.

Prior to making the decision to replace these components, the Company’s amortization expense for its ERP Platform was approximately

$0.9

million per quarter.