( 3)	Impact of Recently Issued Accounting Pronouncements

Business Combinations – Clarifying the Definition of a Business

January

2017,

the FASB issued ASU

2017

which clarifies the definition of a business to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The standard introduces a screen for determining when assets acquired are not a business and clarifies that a business must include, at a minimum, an input and a substantive process that contribute to an output to be considered a business. This standard is effective for fiscal years beginning after

December

15,

2017,

including interim periods within that reporting period. The Company does not expect this new guidance to have a material impact on its consolidated financial statements.

Statement of Cash Flows – Restricted Cash

November

2016,

the FASB issued ASU

2016

which clarifies the presentation requirements of restricted cash within the statement of cash flows. The changes in restricted cash and restricted cash equivalents during the period should be included in the beginning and ending cash and cash equivalents balance reconciliation on the statement of cash flows. When cash, cash equivalents, restricted cash or restricted cash equivalents are presented in more than

one

line item within the statement of financial position, an entity shall calculate a total cash amount in a narrative or tabular format that agrees to the amount shown on the statement of cash flows. Details on the nature and amounts of restricted cash should also be disclosed. This standard is effective for fiscal years beginning after

December

15,

2017,

including interim periods within that reporting period. The Company does not expect this new guidance to have a material impact on its consolidated financial statements.

Statement of Cash Flows

- Classification of Certain Cash Receipts and Cash Payments

August

2016,

the FASB issued ASU

2016

which provides guidance on the presentation and classification in the statement of cash flows for specific cash receipt and payment transactions, including debt prepayment or extinguishment costs, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims and corporate-owned life insurance policies, and distributions received from equity method investees. This standard is effective for fiscal years beginning after

December

15,

2017,

including interim periods within that reporting period. The Company does not expect this new guidance to have a material impact on its consolidated financial statements.

Simplification of Employee Share-Based Payment Accounting

March

2016,

the FASB issued ASU

2016

which simplifies several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures and classification in the statement of cash flows. This standard is effective for fiscal years beginning after

December

15,

2016,

including interim periods within that reporting period. The new standard requires recording an asset for excess tax benefits that had not previously been recognized. The Company has no remaining unrecognized excess tax benefits at

December

31,

2016.

All excess tax benefits and deficiencies in future periods will be recorded as part of the current period tax provision within the Income Statement. This will result in increased volatility in the Company’s effective tax rate. No other provisions of the new standard will have a significant impact on the consolidated financial statements.

Leases

February

2016,

the FASB issued ASU

2016

which requires lessees to recognize right of use assets and lease liabilities on the balance sheet for all leases except short-term leases. On the income statement, leases will be classified as operating or finance leases. This standard is effective for fiscal years beginning after

December

15,

2018,

including interim periods within that reporting period. At this time, the Company has no financing leases and only a limited number of operating leases. The result of adoption will be an increase to assets and liabilities by the same amount for the identified operating leases. This adjustment will not be material to the Company, assuming there is not an increase in lease activity.

Revenue from Contracts with Customers

May

2014,

the FASB issued ASU

2014

that introduces a new

five

-step revenue recognition model in which an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This ASU also requires disclosures sufficient to enable users to understand the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers, including qualitative and quantitative disclosures about contracts with customers, significant judgments and changes in judgments, and assets recognized from the costs to obtain or fulfill a contract. Numerous updates were issued in

2016

that provide clarification on a number of specific issues as well as requiring additional disclosures. The new standard is effective for fiscal years beginning after

December

15,

2017,

including interim periods within that reporting period. While the Company has not yet completed its final review of the impact of the new standard, the Company does not currently anticipate a material impact on its revenue recognition practices. The Company is still evaluating disclosure requirements under the new standard. We will continue to evaluate the standard as well as additional changes, modifications or interpretations which

may

impact our current conclusions. The Company expects to adopt the new standard using the modified retrospective method.

Simplifying the Measurement of Inventory

July

2015,

the FASB issued ASU

2015

which requires that inventory be measured at the lower of cost and net realizable value, which eliminates the other

two

options that currently exist for market, replacement cost and net realizable value less an approximately normal profit margin. This standard is effective for fiscal years beginning after

December

15,

2016,

including interim periods within that reporting period. The Company does not expect this new guidance to have a material impact on its consolidated financial statements.