13.	RECENT ACCOUNTING PRONOUNCEMENTS AND DEVELOPMENTS

November 2015,

the

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

2015

17,

“Income Taxes: Balance Sheet Classification of Deferred Taxes”, which requires that deferred tax liabilities and assets be netted against each other and classified as non-current in a classified statement of financial position. ASU

2015

is effective for public companies for annual and interim periods beginning after

December

15,

2016.

During the

first

quarter of

2017,

we adopted ASU

2015

on a retrospective basis. As such, we reclassified

$94

of foreign current deferred tax assets to non-current on the consolidated balance sheets as of

April 2, 2017

and

December 31, 2016.

The deferred tax liabilities relate to U.S. tax obligations which cannot be netted against foreign deferred taxes. The adoption of ASU

2015

did

not

affect our consolidated statements of income.

March 2016,

the FASB iss

ued ASU

2016

09,

“Compensation – Stock Compensation (Topic

718

)”, which identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. ASU

2016

is effective for public companies for annual and interim periods beginning after

December

15,

2016.

We adopted the new accounting standard in the

first

quarter of

2017

and will maintain our policy to estimate forfeitures expected to occur to determine stock-based compensation expense. Adoption of this new accounting standard resulted in the recognition of an increase in the Company’s gross deferred tax asset of approximately

$1,200

and an offsetting increase in the valuation allowance. There was

impact to the Company’s retained earnings as a result of adopting this new accounting standard.

July 2015,

the FASB issued ASU

2015

11,

"Simplifying the Measurement of Inventory," which simplifies the subsequent measurement of inventory by using only the lower of cost and net realizable value. This standard is effective for fiscal years and interim periods within those years beginning after

December 15, 2016,

and must be applied on a retrospective basis. We adopted the new accounting standard in the

first

quarter of

2017.

There was

material impact to the Company's financial statements as a result of adopting this new accounting standard.

There have been

developments to recently issued accounting standards, including the expected dates of adoption and estimated effects on the Company

’s consolidated financial statements and disclosures, from those disclosed in the Company’s

2016

Annual Report on Form

-K, except for the following:

●

January 2017,

the FASB issued ASU

2017

04,

“Intangibles – Goodwill and Other (Topic

350

) – Simplifying the Test for Goodwill Impairment”, which eliminates the

two

-step process that required identification of potential impairment and a separate measure of the actual impairment. The annual assessment of goodwill impairment will be determined by using the difference between the carrying amount and the fair value of the reporting unit. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements.

●

May 2017,

the FASB issued ASU

2017

09,

“Compensation – Stock Compensation (Topic

718

) – Scope of Modification Accounting”, which provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in Topic

718.

ASU

2017

is effective for fiscal years beginning after

December 15, 2017

and interim periods within those fiscal years, and early adoption is permitted, including in an interim period. ASU

2017

is to be applied on a prospective basis to an award modified on or after the adoption date. We do

not

intend to early adopt ASU

2017

and do

not

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