Accounting Standards Adopted in Current Year

6 Months Ended

Jul. 02, 2016

Accounting Standards Adopted in Current Year

3. Accounting Standards Adopted in Current Year

In April 2015, the FASB issued updated guidance to simplify the presentation of debt issuance costs. The amendments in this update 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. In August 2015, the FASB issued updated guidance which clarifies the treatment of debt issuance costs from line-of-credit arrangements. In particular, this guidance clarifies that the Securities and Exchange Commission Staff would not object to an entity deferring and presenting debt issuance costs related to a line-of-credit arrangement as an asset and subsequently amortizing the deferred debt issuance costs ratably over the term of such arrangement, regardless of whether there are any outstanding borrowings on the line-of-credit arrangement. As further reflected in Note 7, the Company adopted this guidance during the first quarter of fiscal 2016 on a retrospective basis to simplify the presentation of debt issuance costs during the first quarter of fiscal 2016. As shown in the table below, pursuant to the guidance and a change in accounting principle applied on a retrospective basis, the Company has reclassified unamortized debt issuance costs associated with Term Facilities (defined hereafter) in the Company’s previously reported Consolidated Balance Sheet in the Company’s Annual Report on Form 10-K for fiscal 2015.

In November 2015, the FASB issued updated guidance on the classification of deferred tax assets. This accounting standard requires deferred tax assets and liabilities, along with related valuation allowances, to be classified as noncurrent on the balance sheet. As a result, each tax jurisdiction will now only have one net noncurrent deferred tax asset or liability. The new guidance does not change the existing requirement that prohibits offsetting deferred tax liabilities from one jurisdiction against deferred tax assets of another jurisdiction. The Company adopted this guidance during the first quarter of fiscal 2016 on a retrospective basis. As shown in the table below, pursuant to the guidance and a change in accounting principle applied on a retrospective basis, the Company has reclassified current deferred tax assets in the Company’s previously reported Consolidated Balance Sheet in the Company’s Annual Report on Form 10-K for fiscal 2015.

	January 2, 2016
	As Filed		Deferred Financing			Current Deferred Tax Asset			As Adjusted
Deferred income taxes	$	7,516	$	0		$	(7,516	)	$	0
Total current assets	$	358,973	$	0		$	(7,516	)	$	351,457
Deferred financing costs, net	$	25,209	$	(25,209	)	$	0		$	0
Other noncurrent assets	$	6,720	$	255		$	4,602		$	11,577
Total assets	$	1,422,084	$	(24,954	)	$	(2,914	)	$	1,394,216
Long-term debt	$	2,021,250	$	(24,954	)	$	0		$	1,996,296
Deferred income taxes	$	159,539	$	0		$	(2,914	)	$	156,625
Total liabilities	$	2,707,792	$	(24,954	)	$	(2,914	)	$	2,679,924