GOODWILL

Goodwill represents the premium paid over the fair value of the net tangible and intangible assets acquired in business combinations. The Company is required to assess the carrying value of its reporting units that contain goodwill at least on an annual basis. The Company has the option to

first

assess qualitative factors to determine whether it is necessary to perform a

two

-step impairment test. If the Company believes, as a result of the qualitative assessment, that it is more likely than not that the fair value of a reporting unit is less than the carrying value, the quantitative impairment test is required. The Company formally assesses these qualitative factors, and if necessary, conducts its annual goodwill impairment test as of the last day of the Company’s fiscal

November

each year or if indicators of impairment exist. During all periods presented, the Company determined that the existing qualitative factors did not suggest that an impairment of goodwill exists. Since there have been no indicators of impairment, the Company has not performed a quantitative impairment test.

The changes in the carrying amount of goodwill for the

fifty

two

week period ended

December

31,

2016

are as follows:

	Engineering		Information Technology		Specialty Health Care		Total
Balance as of January 3, 2015	$	3,004	$	5,516	$	1,703	$	10,223

Goodwill recorded, SDS acquisition		1,407		-		-		1,407

Balance as of January 2, 2016	$	4,411	$	5,516	$	1,703	$	11,630

Goodwill recorded, AHP acquisition		-		-		695		695

Balance as of December 31, 2016	$	4,411	$	5,516	$	2,398	$	12,325