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Recent Accounting Pronouncements
 3 Months Ended
Mar. 30, 2019
Recent Accounting Pronouncements
2. Recent Accounting Pronouncement
Adoption of New Accounting Standard
We adopted ASU No. 2016-02, Leases (Topic 842), as of December 30, 2018, using the modified retrospective approach. The modified retrospective approach provides a method for recording existing leases at the beginning of the period of adoption. In addition, we elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allowed us to carry forward the historical lease classification and we elected the hindsight practical expedient to determine the lease term for existing leases. We determined that most renewal options would not be reasonably certain in determining the expected lease term. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods.
Adoption of the new standard resulted in the recording of net lease assets of $11.6 million and lease liabilities of $13.7 million, as of December 30, 2018. The standard did not have an impact on our consolidated results of operations or cash flows.
 
The effect of the changes made to our consolidated December 30, 2018 balance sheet for the adoption of the new lease standard was as follows (in thousands):
 
 
 
Balance at

December 29,
2018
 
 
Adjustments

Due to

ASC 842
 
 
Balance at

December 30,
2018
 
Prepaid expenses and other current assets
 
$
2,528
 
 
$
(221
)1
 
$
2,307
 
Total current assets
 
$
95,633
 
 
$
(221
)1
 
$
95,412
 
Operating lease right-of-use assets
 
$
—
 
 
$
11,635
1,2,3
 
$
11,635
 
Total assets
 
$
122,070
 
 
$
11,414
1,2,3
 
$
133,484
 
Current operating lease liabilities
 
$
—
 
 
$
2,581
5
 
$
2,581
 
Accounts payable
 
$
6,053
 
 
$
(4
)4
 
$
6,049
 
Other accrued liabilities
 
$
4,952
 
 
$
(13
)3
 
$
4,939
 
Total current liabilities
 
$
30,008
 
 
$
2,564
3,4,5
 
$
32,572
 
Noncurrent operating lease liabilities
 
$
—
 
 
$
11,120
5
 
$
11,120
 
Other long-term liabilities
 
$
2,438
 
 
$
(2,270
)3
 
$
168
 
Total non-current liabilities
 
$
2,438
 
 
$
8,850
3,4,5
 
$
11,288
 
Total liabilities and stockholders’ equity
 
$
122,070
 
 
$
11,414
,4,5
 
$
133,484
 
 
 
 
 
 
 
 
 
 
1
 
Represents prepaid rent reclassified to operating lease right-of-use assets.
2
 
Represents capitalization of operating lease right-of-use assets and reclassification of straight-line rent accrual, and tenant incentives.
3
 
Represents reclassification of straight-line rent accrual to operating lease right-of-use assets.
4
 
Represents accrued rent reclassified to operating lease right-of-use assets.
5
 
Represents recognition of operating lease liabilities.