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Recent Accounting Pronouncements
 12 Months Ended
Jan. 02, 2021
Accounting Changes And Error Corrections [Abstract]  
Recent Accounting Pronouncements

Note 3.

Recent Accounting Pronouncements

Pronouncements adopted during Fiscal 2020

In June 2016, the Financial Accounting Standards Board (“FASB”) issued guidance that effects loans, debt securities, trade receivables, net investments in leases, off-balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope that have the contractual right to receive cash.  Additional guidance for this topic was issued in April 2019.  The new standard requires earlier recognition of credit losses. The company adopted the new standard as of December 29, 2019, the beginning of our Fiscal 2020.  The adoption of this guidance did not impact our financial statements; however, updated disclosures are included in Note 2, Summary of Significant Accounting Policies.  Changes were made to our internal control over financial reporting processes for estimating and evaluating the appropriateness of reserves for credit exposures.    

In January 2017, the FASB issued guidance to simplify the accounting for goodwill impairment.  The guidance removed Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation.  A goodwill impairment is now the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill.  Companies still have the option to perform a qualitative assessment to determine if a quantitative impairment test is necessary.  The company adopted the new standard as of December 29, 2019, the beginning of our Fiscal 2020, and, consistent with prior years, performed its annual impairment testing of goodwill in its fourth quarter of Fiscal 2020 under the new guidance. The adoption of the new standard did not have a material impact on our financial statements.

In August 2018, the FASB issued guidance to modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans.  Disclosures were removed for the amounts in accumulated other comprehensive income (“AOCI”) expected to be recognized as components of net periodic benefit cost over the next fiscal year, the amount and timing of assets expected to be returned to the employer, certain related party disclosures, and the effects of a one-percentage-point change in the assumed health care cost trend rates.  Additional disclosures include the weighted average interest crediting rate for plans with promised crediting interest rates and an explanation of the reasons for significant gains and losses related to the benefit obligation for the period.  The company adopted the new standard as of December 29, 2019, the beginning of our Fiscal 2020.

Accounting pronouncements not yet adopted

In December 2019, the FASB issued guidance which removes certain exceptions for investments, intraperiod allocations and interim calculations, and adds guidance to reduce complexity in accounting for income taxes. This guidance will be effective for us in our Fiscal 2021, with the option to early adopt at any time prior to the effective date. Accounting for franchise taxes will require adoption on a retrospective or modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. All other applicable provisions will require adoption on a retrospective, modified retrospective, or prospective basis, as required by this guidance. We do not anticipate that the adoption of this guidance will have a material impact on our financial statements and disclosures.

In March 2020, the FASB issued new accounting rules that provide optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform. The amendments in this standard can be applied anytime between the first quarter of 2020 and the fourth quarter of 2022. The company is currently in the process of evaluating the impact of adoption of the new rules on the company’s financial condition, results of operations, cash flows and disclosures.

We have reviewed other recently issued accounting pronouncements and concluded that either they are not applicable to our business or no material effect is expected upon future adoption.