Note 2 - Correction of Immaterial Errors

12 Months Ended

Dec. 31, 2016

Notes to Financial Statements

Accounting Changes and Error Corrections [Text Block]

2.

Correction of immaterial errors

In the

second

quarter of

2016,

management determined that the company

may

incur additional income taxes and interest in a foreign jurisdiction with respect to the

2011

through

2015

fiscal years. The cumulative adjustment for this income tax (including interest of

$1.5

million) as of

January

2,

2016,

is approximately

$4.9

 million. The adjustment applicable to

2015,

2014,

2013,

2012,

and

2011

was

$1.6

million,

$1.3

million,

$1.0

million,

$0.9

million, and

$0.1

million, respectively.

Pursuant to the guidance of Staff Accounting Bulletin ("SAB") No.

99,

Materiality, the company concluded that the errors were not material to any of its applicable prior period annual and quarterly financial statements. Although the errors were immaterial to prior periods, the prior period annual and interim financial statements were revised, in accordance with SAB No.

108,

Considering the Effects of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements, due to the significance of the out-of-period correction. The adjustment for each year has been treated as applicable to the

fourth

quarter of each year.

The following is a reconciliation of the effects of the adjustments to the previously reported balance sheet at

January

 

2,

 

2016

follows:

	January 2, 2016
(in thousands)	Previously Reported		Adjustment			As Revised
Other long-term liabilities	$	12,809	$	4,946		$	17,755
Total shareholders’ equity		744,198		(4,946	)		739,252

The following is a reconciliation of the effects of the adjustments to the previously reported statements of net income for the years ended

January

2,

2016

and

December

27,

2014

follows:

	Year Ended January 2, 2016							Year Ended December 27, 2014
(in thousands except per share amounts )	Previously Reported		Adjustment			As Revised		Previously Reported		Adjustment			As Revised
Income taxes	$	24,482	$	1,600		$	26,082	$	32,228	$	1,318		$	33,546
Net income		82,466		(1,600	)		80,866		99,418		(1,318	)		98,100
Income per share:
Basic	$	3.65	$	(0.07	)	$	3.58	$	4.41	$	(0.06	)	$	4.35
Diluted	$	3.63	$	(0.07	)	$	3.56	$	4.37	$	(0.05	)	$	4.32

The following is a reconciliation of the effects of the adjustments to the previously reported statements of cash flows for the years ended

January

2,

2016

and

December

27,

2014

follows:

	Year Ended January 2, 2016								Year Ended December 27, 2014
(in thousands)	Previously Reported			Adjustment			As Revised		Previously Reported			Adjustment			As Revised
Net income	$	82,466		$	(1,600	)	$	80,866	$	99,418		$	(1,318	)	$	98,100
Accrued taxes		(1,043	)		1,600			557		(549	)		1,318			769
Net cash provided by operating activities		165,826			—			165,826		153,141			—			153,141

The following is a reconciliation of the effects of the adjustments to the previously reported statements of equity for the years ended

January

2,

2016

and

December

27,

2014

follows:

	Year Ended January 2, 2016							Year Ended December 27, 2014
(in thousands)	Previously Reported		Adjustment			As Revised		Previously Reported		Adjustment			As Revised
Net income	$	82,466	$	(1,600	)	$	80,866	$	99,418	$	(1,318	)	$	98,100
Comprehensive income		57,921		(1,600	)		56,321		57,875		(1,318	)		56,557
Retained earnings		562,717		(4,946	)		557,771		523,302		(3,346	)		519,956
Total shareholders’ equity		744,198		(4,946	)		739,252		727,665		(3,346	)		724,319

The following is a reconciliation of the effects of the adjustments to the previously reported statement of equity at

December

28,

2013

follows:

	December 28, 2013
(in thousands)	Previously Reported		Adjustment			As Revised
Retained earnings	$	445,059	$	(2,028	)	$	443,031
Total shareholders’ equity		686,916		(2,028	)		684,888