New Accounting Standards Implemented (Policies)

6 Months Ended

Jul. 01, 2011

New Accounting Standards Implemented (Policies) [Abstract]

Revenue Recognition - Multiple Element Arrangements

In October 2009, the Financial Accounting Standards Board (FASB) issued a revised accounting standard for revenue arrangements with multiple deliverables. The revision: (1) removes the objective-and-reliable-evidence-of-fair-value criterion from the separation criteria used to determine whether an arrangement involving multiple deliverables contains more than one unit of accounting, (2) provides a hierarchy that entities must use to estimate the selling price of each deliverable, (3) eliminates the use of the residual method for allocation, and (4) expands the ongoing disclosure requirements. The revised accounting standard was effective for the Company beginning on January 1, 2011, and did not have a material impact on the Company’s financial position, results of operations or cash flows.

Revenue Recognition - Software

In October 2009, the FASB issued a revised accounting standard for certain revenue arrangements that include software elements. Under the revised standard, tangible products that contain both software and non-software components that work together to deliver a product’s essential functionality are excluded from the scope of pre-existing software revenue recognition standards. In addition, hardware components of a tangible product containing software components are excluded from the scope of software revenue recognition standards. The revised accounting standard was effective for the Company beginning on January 1, 2011, and did not have a material impact on the Company’s financial position, results of operations or cash flows.

Fair Value Measurement

In May 2011, the FASB issued a revised accounting standard for fair value measurement and disclosure. The revisions clarify how to measure fair value and require additional disclosures as follows: 1) transfers between Level 1 and Level 2 of the fair value hierarchy, 2) the valuation process used and the sensitivity of a fair value measurement categorized within Level 3 of the fair value hierarchy to changes in unobservable inputs, and 3) the categorization by level of the fair value hierarchy for items that are not measured at fair value in the statement of financial position, but for which the fair value of such items is required to be disclosed. The revised accounting standard is effective for the Company for periods beginning after December 15, 2011. The Company is currently assessing the impact the revised accounting standard will have on its disclosure requirements.

Comprehensive Income

In June 2011, the FASB issued a revised accounting standard for presentation of comprehensive income in financial statements. The revisions provide two options to present total comprehensive income as follows: (1) a single, continuous statement of comprehensive income, which must include the components of net income, a total for net income, the components of other comprehensive income (OCI), a total for OCI, and a total for comprehensive income, or (2) two separate but consecutive statements, which require that entities report components of net income and total net income in the statement of income immediately followed by a statement of OCI that must include the components of OCI, a total for OCI, and a total for comprehensive income. The statement of OCI may begin with net income. This revised accounting standard eliminates the current option to present components of other comprehensive income as part of the statement of changes in stockholders’ equity. The revised accounting standard is effective for the Company for periods beginning after December 15, 2011 and requires retrospective application for all periods presented, with early adoption permitted. The Company is currently assessing the revised standard and the method of presentation for comprehensive income that will be selected.