1 3 .	RECENT ACCOUNTING PRONOUNCEMENTS AND DEVELOPMENTS The Company adopted the following recently issued accounting standards during the quarter ended April 2, 2017:

●

November

2015,

the FASB issued Accounting Standards Update (“ASU”)

2015

17,

“Income Taxes: Balance Sheet Classification of Deferred Taxes” (“ASU

2015

17”).

ASU

2015

requires that deferred tax liabilities and assets be netted against each other and classified as non-current in a classified statement of financial position. ASU

2015

is effective for public companies for annual and interim periods beginning after

December

15,

2016.

During the

first

quarter of

2017,

we adopted ASU

2015

on a retrospective basis. As such, we reclassified

of foreign current deferred tax assets to non-current on the consolidated balance sheets as of

April

2017

and

December

31,

2016.

The deferred tax liabilities relate to U.S. tax obligations which cannot be netted against foreign deferred taxes. The adoption of ASU

2015

did not affect our consolidated statements of income.

●

March

2016,

the FASB issued (“ASU”)

2016

09,

Compensation – Stock Compensation (Topic

718)

("ASU

2016

09").

ASU

2016

identifies areas for simplification involving several aspects of accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, an option to recognize gross stock compensation expense with actual forfeitures recognized as they occur, as well as certain classifications on the statement of cash flows. ASU

2016

is effective for public companies for annual and interim periods beginning after

December

15,

2016.

We adopted the new accounting standard in the

first

quarter of

2017

and will maintain our policy to estimate forfeitures expected to occur to determine stock-based compensation expense. Adoption of this new accounting standard resulted in the recognition of an increase in the Company’s gross deferred tax asset of approximately

$1.2

and an offsetting increase in the valuation allowance. There was no impact to the Company’s retained earnings as a result of adopting this new accounting standard.

●

July

2015,

the FASB issued ASU

2015

11,

"Simplifying the Measurement of Inventory," which simplifies the subsequent measurement of inventory by using only the lower of cost and net realizable value. This standard is effective for fiscal years and interim periods within those years beginning after

December

15,

2016,

and must be applied on a retrospective basis.

We adopted the new accounting standard in the

first

quarter of

2017.

There was no material impact to the Company's financial statements as a result of adopting this new accounting standard.

There have been no developments to recently issued accounting standards, including the expected dates of adoption and estimated effects on the Company’s consolidated financial statements and disclosures, from those disclosed in the Company’s

2016

Annual Report on Form

-K, except for the following.

●

January

2017,

the FASB issued ASU

2017

04,

Intangibles-Goodwill and Other (Topic

350)

Simplifying the Test for Goodwill Impairment. ASU

2017

eliminates the

two

-step process that required identification of potential impairment and a separate measure of the actual impairment. The annual assessment of goodwill impairment will be determined by using the difference between the carrying amount and the fair value of the reporting unit. The Company is currently assessing the impact that adopting this new accounting standard will have on its consolidated financial statements.