Note 2 - New Accounting Pronouncements	9 Months Ended
Sep. 30, 2017
Notes to Financial Statements
Description of New Accounting Pronouncements Not yet Adopted [Text Block]	Note 2. New Accounting Pronouncements Recently Adopted In March 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016 - 09, Compensation – Stock Compensation (Topic 718 ) (“ASU 2016 - 09” ). The standard simplifies several aspects of accounting for stock-based payment transactions, including the accounting for income taxes, forfeitures, statutory tax withholding requirements, as well as classification in the statement of cash flows. We adopted this standard on January 1, 2017. For the nine months ended September 30, 2017, we recognized all excess tax benefits and tax deficiencies associated with exercise of stock options as income tax expense or benefit as a discrete event. The adoption of this ASU did not have a material impact on our consolidated financial statements. Not Yet Adopted In January 2017, the FASB issued ASU No. 2017 - 01 (“ASU 2017 - 01” ), Business Combinations (Topic 805 ): Clarifying the Definition of a Business. The standard narrows the application of when an integrated set of assets and activities is considered a business and provides a framework to assist entities in evaluating whether both an input and a substantive process are present to be considered a business. It is expected that this new guidance will reduce the number of transactions that would be accounted for as a business. ASU 2017 - 01 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, with early adoption permitted. We do not expect the adoption of this new standard to have a material impact on our consolidated financial statements. In January 2017, the FASB issued ASU No. 2017 - 04 (“ASU 2017 - 04” ), Intangibles - Goodwill and Other (Topic 350 ): Simplifying the Test for Goodwill Impairment . The standard simplifies how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount. ASU 2017 - 04 will be effective for the annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. We do not expect the adoption of the new standard to have a material impact on our consolidated financial statements. In November 2016, the FASB issued ASU No. 2016 - 18 (“ASU 2016 - 18” ), Statement of Cash Flows (Topic 230 ) – Restricte d Cash. For entities that have restricted cash and are required to present a statement of cash flows, ASU 2016 - 18 changes the cash flow presentation for restricted cash. ASU 2016 - 18 will be effective for fiscal years beginning after December 15, 2017, and interim periods within those annual periods. We do not expect the adoption of this new standard to have a material impact on our consolidated financial statements or statement of cash flows. In August 2016, the FASB issued ASU No. 2016 - 15 (“ASU 2016 - 15” ), Statement of Cash Flows (Topic 230 ): Classification of Certain Cash Receipts and Cash Payments . The standard provides guidance on eight ( 8 ) cash flow issues: ( 1 ) debt prepayment or debt extinguishment costs; ( 2 ) settlement of zero -coupon bonds; ( 3 ) contingent consideration payments after a business combination; ( 4 ) proceeds from the settlement of insurance claims; ( 5 ) proceeds from the settlement of corporate-owned life insurance policies; ( 6 ) distributions received from equity method investees; ( 7 ) beneficial interests in securitization transactions; and ( 8 ) separately identifiable cash flows and application of the predominance principle. ASU 2016 - 15 addresses how certain cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016 - 15 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2017 with early adoption permitted. We do not expect the adoption of this new standard to have a material impact on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016 - 02, Leases (Topic 842 ) (“ASU 2016 - 02” ) . The standard requires lessees to recognize leases on their balance sheets, and leaves lessor accounting largely unchanged. Additionally, ASU 2016 - 02 requires a modified retrospective approach for all leases existing at, or entered into after, the date of initial application, with an option to elect to use certain transition relief. ASU 2016 - 02 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted. We are currently evaluating the impact of this new standard on our consolidated financial statements. In January 2016, the FASB issued ASU No. 2016 - 01, Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016 - 01” ). The standard requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income, and separate presentation of financial assets and financial liabilities by measurement category and form of financial asset. Additionally, ASU 2016 - 01 eliminates the requirement to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments on the balance sheet. ASU 2016 - 01 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Other than an amendment relating to presenting in comprehensive income the portion of the total change in the fair value of a liability resulting from a change in instrument-specific credit risk (if the entity has elected to measure the liability at fair value), early adoption is not permitted. We do not expect the adoption of this new standard to have a material impact on our consolidated financial statements. In May 2014, the FASB issued ASU No. 2014 - 09, Revenue from Contracts with Customers (Topic 606 ) (“ASU 2014 - 09” ). The standard provides a single model for revenue arising from contracts with customers and supersedes current revenue recognition guidance. This ASU provides that an entity should recognize revenue to depict transfers of promised goods or services to customers in amounts reflecting the consideration to which the entity expects to be entitled in the transaction by: ( 1 ) identifying the contract; ( 2 ) identifying the contract’s performance obligations; ( 3 ) determining the transaction price; ( 4 ) allocating the transaction price to the performance obligations; and ( 5 ) recognizing revenue when or as the entity satisfies the performance obligations. The guidance permits companies to apply the requirements either retrospectively to all prior periods presented or in the year of adoption through a cumulative adjustment by applying a modified retrospective transition method. ASU 2014 - 09 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. In 2016, the FASB issued several amendments to the standard, including principal versus agent considerations when another party is involved in providing goods or services to a customer and the process of identifying performance obligations. We have evaluated our significant revenue contracts and reviewed our current accounting policies and practices. We have identified four primary revenue streams from contracts with customers as part of our assessment: 1 ) royalties, 2 ) licensing arrangements, 3 ) software licensing arrangements, and 4 ) product sales. While we are still in the process of evaluating the full impact, we have identified certain immaterial historical revenue transactions relating to our software licensing arrangements for which the timing of recognition would have been different under this update. The actual amount of the cumulative adjustment will depend on the timing of revenue recognition of similar transactions at the end of 2017. While we cannot determine the amount based on information currently available, we do not expect it to have a material impact on our consolidated financial statements. We are in the process of updating our revenue accounting policy and implementing changes to our business processes and controls in response to the new update. We will adopt this new revenue recognition standard on January 1, 2018, using the modified retrospective method.

Note

New Accounting Pronouncements

Recently Adopted

March 2016,

the

Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”)

No.

2016

09,

Compensation – Stock Compensation (Topic

718

)

(“ASU

2016

09”

). The standard simplifies several aspects of accounting for stock-based payment transactions, including the accounting for income taxes, forfeitures, statutory tax withholding requirements, as well as classification in the statement of cash flows. We adopted this standard on

January 1, 2017.

For the

nine

months ended

September 30, 2017,

we recognized all excess tax benefits and tax deficiencies associated with exercise of stock options as income tax expense or benefit as a discrete event. The adoption of this ASU did

not

have a material impact on our consolidated financial statements.

Not

Yet Adopted

January 2017,

the FASB issued ASU

No.

2017

(“ASU

2017

01”

Business Combinations (Topic

805

): Clarifying the Definition of a Business.

The standard narrows the application of when an integrated set of assets and activities is considered a business and provides a framework to assist entities in evaluating whether both an input and a substantive process are present to be considered a business. It is expected that this new guidance will reduce the number of transactions that would be accounted for as a business. ASU

2017

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

December 15, 2017,

with early adoption permitted. We do

not

expect the adoption of this new standard to have a material impact on our consolidated financial statements.

January 2017,

the FASB issued ASU

No.

2017

(“ASU

2017

04”

Intangibles - Goodwill and Other (Topic

350

): Simplifying the Test for Goodwill Impairment

. The standard simplifies how an entity is required to test goodwill for impairment by eliminating Step

from the goodwill impairment test. Step

measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount. ASU

2017

will be effective for the annual or any interim goodwill impairment tests in fiscal years beginning after

December 15, 2019.

Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after

January 1, 2017.

We do

not

expect the adoption of the new standard to have a material impact on our consolidated financial statements.

November 2016,

the FASB issued ASU

No.

2016

(“ASU

2016

18”

Statement of Cash Flows (Topic

230

) – Restricte

d Cash. For entities that have restricted cash and are required to present a statement of cash flows, ASU

2016

changes the cash flow presentation for restricted cash. ASU

2016

will be effective for fiscal years beginning after

December 15, 2017,

and interim periods within those annual periods. We do

not

expect the adoption of this new standard to have a material impact on our consolidated financial statements or statement of cash flows.

August 2016,

the FASB issued ASU

No.

2016

(“ASU

2016

15”

Statement of Cash Flows (Topic

230

): Classification of Certain Cash Receipts and Cash Payments

. The standard provides guidance on

eight

(

) cash flow issues: (

) debt prepayment or debt extinguishment costs; (

) settlement of

zero

-coupon bonds; (

) contingent consideration payments after a business combination; (

) proceeds from the settlement of insurance claims; (

) proceeds from the settlement of corporate-owned life insurance policies; (

) distributions received from equity method investees; (

) beneficial interests in securitization transactions; and (

) separately identifiable cash flows and application of the predominance principle. ASU

2016

addresses how certain cash receipts and cash payments are presented and classified in the statement of cash flows. ASU

2016

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

December 15, 2017

with early adoption permitted. We do

not

expect the adoption of this new standard to have a material impact on our consolidated financial statements.

February 2016,

the FASB issued ASU

No.

2016

02,

Leases (Topic

842

)

(“ASU

2016

02”

)

The standard requires lessees to recognize leases on their balance sheets, and leaves lessor accounting largely unchanged. Additionally, ASU

2016

requires a modified retrospective approach for all leases existing at, or entered into after, the date of initial application, with an option to elect to use certain transition relief. ASU

2016

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

December 15, 2018,

with early adoption permitted. We are currently evaluating the impact of this new standard on our consolidated financial statements.

January 2016,

the FASB issued ASU

No.

2016

01,

Recognition and Measurement of Financial Assets and Financial Liabilities

(“ASU

2016

01”

). The standard requires equity investments (except those accounted for under the equity method of accounting or those that result in consolidation of the investee) to be measured at fair value with changes in fair value recognized in net income, and separate presentation of financial assets and financial liabilities by measurement category and form of financial asset. Additionally, ASU

2016

eliminates the requirement to disclose the methods and significant assumptions used to estimate the fair value that is required to be disclosed for financial instruments on the balance sheet. ASU

2016

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

December 15, 2017.

Other than an amendment relating to presenting in comprehensive income the portion of the total change in the fair value of a liability resulting from a change in instrument-specific credit risk (if the entity has elected to measure the liability at fair value), early adoption is

not

permitted. We do

not

expect the adoption of this new standard to have a material impact on our consolidated financial statements.

May 2014,

the FASB issued ASU

No.

2014

09,

Revenue from Contracts with Customers (Topic

606

)

(“ASU

2014

09”

). The standard provides a single model for revenue arising from contracts with customers and supersedes current revenue recognition guidance. This ASU provides that an entity should recognize revenue to depict transfers of promised goods or services to customers in amounts reflecting the consideration to which the entity expects to be entitled in the transaction by: (

) identifying the contract; (

) identifying the contract’s performance obligations; (

) determining the transaction price; (

) allocating the transaction price to the performance obligations; and (

) recognizing revenue when or as the entity satisfies the performance obligations. The guidance permits companies to apply the requirements either retrospectively to all prior periods presented or in the year of adoption through a cumulative adjustment by applying a modified retrospective transition method. ASU

2014

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

December 15, 2017.

2016,

the FASB issued several amendments to the standard, including principal versus agent considerations when another party is involved in providing goods or services to a customer and the process of identifying performance obligations. We have evaluated our significant revenue contracts and reviewed our current accounting policies and practices.

We have

identified

four

primary revenue streams from contracts with customers as part of our assessment:

) royalties,

) licensing arrangements,

) software licensing arrangements, and

) product sales. While we are still in the process of evaluating the full impact, we have identified certain immaterial historical revenue transactions relating to our software licensing arrangements for which the timing of recognition would have been different under this update. The actual amount of the cumulative adjustment will depend on the timing of revenue recognition of similar transactions at the end of

2017.

While we cannot determine the amount based on information currently available, we do

not

expect it to have a material impact on our consolidated financial statements. We are in the process of updating our revenue accounting policy and implementing changes to our business processes and controls in response to the new update. We will adopt this new revenue recognition standard on

January 1, 2018,

using the modified retrospective method.