13.	New Accounting Standards

In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09,

Revenue from Contracts with Customers,

which requires companies to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration it expects to be entitled in exchange for those goods or services. On July 9, 2015, the FASB voted to delay the effective date of this standard by one year. This deferral resulted in ASU 2014-09 being effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. However, early adoption is permitted so that ASU 2014-09 would become effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2016. The Company intends to adopt the standard early so that it will be effective for the Company beginning in the first quarter of fiscal 2017. The new standard permits the use of either the retrospective or cumulative effect transition method on adoption. The Company is evaluating the effect that ASU 2014-09 will have on its consolidated financial statements and related disclosures, including which transition method it will adopt, but does not anticipate a material impact.

In August

2014, the FASB issued ASU No. 2014-15,

Presentation of Financial Statements – Going Concern,

which states management should evaluate whether there are conditions or events, considered in the aggregate, that raise a substantial doubt about the entity’s ability to continue as a going concern within one year after the date that the financial statements are issued. Management’s evaluation should be based on relevant conditions and events that are known and likely to occur at the date that the financial statements are issued. The standard update will be effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter, however, early application is permitted. The Company is evaluating the effect that ASU 2014-15 will have on its consolidated financial statements and related disclosures, but does not anticipate a material impact.

In April 2015, the FASB issued ASU No. 2015-05(ASU 2015-05),

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. This standard clarifies the circumstances under which a cloud computing customer would account for the arrangement as a license of internal-use software under ASC 350-40. ASU 2015-05 is effective for public entities for annual and interim periods therein beginning after December 15, 2015. Early adoption is permitted. Entities may adopt the guidance either retrospectively or prospectively to arrangements entered into, or materially modified after the effective date. The Company has adopted ASU 2015-05 with no material impact.

In November 2015, The FASB issued ASU No. 2015-17, Income Taxes (Topic 740):

Balance Sheet Classification of Deferred Taxes.

The new guidance requires that all deferred tax assets and liabilities, along with any related valuation allowance, be classified as noncurrent on the balance sheet. As a result, each jurisdiction will now only have one net noncurrent deferred tax asset or liability. Importantly, the guidance does not change the existing requirement that only permits offsetting within a jurisdiction – that is, companies are still prohibited from offsetting deferred tax liabilities from one jurisdiction against deferred tax assets of another jurisdiction. The new guidance will be effective for the Company in the fiscal year beginning after December 15, 2016, including interim periods within those years (i.e., in the first quarter of 2017). Early adoption is permitted for all entities as of the beginning of an interim or annual reporting period. The guidance may be applied either prospectively, for all deferred tax assets and liabilities, or retrospectively (i.e., by reclassifying the comparative balance sheet). If applied prospectively, entities are required to include a statement that prior periods were not retrospectively adjusted. If applied retrospectively, entities are also required to include quantitative information about the effects of the change on prior periods. The Company adopted ASU No. 2015-17 during the period ended April 2, 2016

The Company chose not to apply the ASU retrospectively, and as such prior periods were not retrospectively adjusted.

In February 2016 the FASB issued ASU No. 2016-02

, Leases (Topic 842),

which amended guidance for lease arrangements in order to increase transparency and comparability by providing additional information to users of financial statements regarding an entity's leasing activities. The revised guidance seeks to achieve this objective by requiring reporting entities to recognize lease assets and lease liabilities on the balance sheet for substantially all lease arrangements. The guidance, which is required to be adopted in the first quarter of 2019, will be applied on a modified retrospective basis beginning with the earliest period presented. Early adoption is permitted. We are currently evaluating the impact of adopting this guidance on our consolidated financial statements.

In March 2016, the FASB issued ASU No. 2016-08,

Principal versus Agent Considerations (Reporting

Revenue Gross versus Net),

to amend the principal-agent implementation guidance. The new guidance clarifies the unit of account to be used in principal versus agent assessments and emphasizes that a principal obtains control of a good or service that it then transfers to the customer. ASU 2016-08 is effective for interim and annual reporting periods beginning after December 15, 2017, and early adoption is permitted. The Company is currently assessing the impact of ASU 2016-08 on its consolidated financial statements.

In March 2016, the FASB issued ASU No. 2016-09

, Compensation-Stock Compensation (Topic 718):

Improvements to Employee Share-Based Payment Accounting

to simplify the accounting for stock compensation, including income tax accounting, award classification, estimating forfeitures and cash flow presentation. The new guidance is effective for interim and annual reporting periods beginning after December 15, 2016, and early adopting is permitted. The Company is currently assessing the impact of ASU 2016-09 on its consolidated financial statements.

In April 2016, the FASB issued ASU No. 2016-10,

Revenue from Contracts with Customers (Topic 606):

Identifying Performance Obligations and Licensing

. The new guidance addresses implementation issues identified under ASC Topic 606 by the FASB-IASB Joint Transition Resource Group for Revenue Recognition (TRG). Specifically, implementation questions submitted to the TRG informed the FASB about certain Implementation issues in ASC Topic 606 guidance on identifying performance obligations and licensing. The new guidance is effective for annual and interim reporting periods beginning after December 15, 2017, with early adoption permitted for interim and annual reporting periods beginning after December 31, 2016. The Company is currently assessing the impact of ASU 2016-10 on its consolidated financial statements.