Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Carter Malloy – Stephens, Inc.
Carter Malloy – Stephens, Inc.
This is a little bit off the business, but looking at the potential for an affiliate tax to get passed, have you guys considered what it would take as far as expenses for you to build out your platform to manage the complexity of that and then maybe any impact on the consumer and also, in flipside the positive impact to your business.
Thomas Donnelly
Well, one of the things that we've already said here is complexity is our friend, and we find that the more kind of global taxes we see being passed around, the harder it is for CFOs to justify bringing these kind of products in-house or these processes in-house. And so in a strange way we tend to kind of welcome these tax changes and these fees that we've seen coming from global government operations.
In terms of our difficulty in implementing, I don't even think it's on the radar. I think that's something we put together pretty quickly and probably wouldn't miss a beat on it and we would not see substantial expense on it. We would use our current tax management infrastructure just and wrap that around that solution.
And in terms of whether it would matter much to the affiliates, I don't believe it would. Our sense is that it probably will not make a lot of difference. We've watched sales taxes get put in place and it doesn't have an effect that we can measure in terms of revenue.
Operator
Your next question comes from Colin Sebastian - Lazard.
Colin Sebastian – Lazard Capital Markets
I just have a question, I guess, following up on the capital expenditures. If you could just talk in a little more detail about the increase versus your prior expectations and does this relate at all to the increase in the pipeline that you mentioned, and if it does, if you could sort of expand on that. Is the pipeline, when that started to really ramp up, and what profile or partner would you characterize it as being are there any large partners in there?
Joel Ronning
The majority of it is related to the SAP, data management and reporting initiative, it's just turning out to be a little bit harder. We're still sticking to our deadlines and we're going to crowd it hard here this quarter rather than carry it on, we think that's the right thing to do. And from a total cost of ownership perspective, it's not crazy.
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