IMMATERIAL RESTATEMENT (Notes)

6 Months Ended

Jul. 01, 2017


	IMMATERIAL RESTATEMENT

During the third quarter of 2016, the Company discovered embezzlement activities at its Korean subsidiary. Based upon the results of forensic investigation procedures, the Company identified that the embezzlement activities occurred from fiscal year 2011 through fiscal year 2016. The embezzlement resulted in a total theft loss of $1,589,000 over that period and as a result of the embezzlement we have made the following correcting adjustments to the amounts presented in our previously issued quarterly financial information.

In the three and six month periods ended June 25, 2016, the Company has recorded in Other income (expense), net, embezzlement expense of approximately $123,000 and $200,000, respectively, representing the total amount of theft loss that occurred. Of that amount, $53,000 and $114,000 had previously been expensed, although misclassified during the three and six month periods ended June 25, 2016 ($36,000 and $47,000 as Cost of component revenues and $17,000 and $67,000 as Foreign currency transaction losses), and $70,000 and $86,000 had been incurred but not yet recorded during the three and six month periods ended June 25, 2016. Accordingly, the embezzlement expense recorded in the accompanying financial statements includes the effects of correcting these misstatements.