Note 3 - Reclassifications

9 Months Ended

Oct. 01, 2016

Notes to Financial Statements

Reclassifications [Text Block]

3

. Reclassifications

Certain amounts presented in the 2015 financial statements have been reclassified to conform to the 2016 presentation. In April 2015, the

Financial Accounting Standards Board (the “FASB”)

issued

Accounting Standards Update (“ASU”)

No. 2015-03,

Interest - Imputation of Interest

(Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs.

The amendments in this ASU require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts.

The amended guidance is effective for financial statements issued for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. The amended guidance is to be applied on a retrospective basis. The company adopted the new guidance on January 3, 2016 and has made the corresponding reclassification on its balance sheet for the fiscal year ended January 2, 2016. The adoption of the new guidance had no effect on the company’s net income, cash flows or shareholders’ equity. Additionally, the company has reclassified a portion of its current tax position at January 2, 2016 to more accurately reflect its prepaid/liability position at a jurisdictional level.