XML 60 R23.htm IDEA: XBRL DOCUMENT v3.20.1
Correction of Immaterial Errors in Prior Period Financial Statements
 3 Months Ended
Apr. 26, 2020
Accounting Changes and Error Corrections [Abstract]  
Correction of Immaterial Errors in Prior Period Financial Statements Correction of Immaterial Errors in Prior Period Financial Statements
During the fourth quarter of fiscal year 2020, management identified certain immaterial errors related to share-based compensation expense of market-based awards granted during fiscal years 2018, 2019 and 2020. At the inception of these grants, the Company appropriately determined that the awards contained a market condition and that the effect of the market condition should be reflected in the grant date fair value of the awards, with the resulting compensation expense fixed at inception and recognized ratably over the requisite service period, regardless of when, if ever, the market condition is satisfied. The actual awards, however, were incorrectly accounted for as performance-based awards, whereby the number of shares expected to vest and corresponding compensation expense was adjusted on a quarterly basis. The Company assessed the materiality of the errors from a qualitative and quantitative perspective, and concluded that the impact of the errors is not material. Therefore, the correction of the errors did not require the amendment of the Company's previously filed Annual Reports on Form 10-K or its Quarterly Reports on Form 10-Q for the impacted periods. The Company has corrected its consolidated financial statements for these errors for the impacted prior periods presented in this Quarterly Report on Form 10-Q.
The impact of the corrections on the Company's Statements of Income and Statements of Comprehensive Income for the three months ended April 28, 2019, are presented in the table below:
 
Three Months Ended
 
April 28, 2019
(in thousands)
As Reported
 
As Corrected
Selling, general and administrative
$
38,377

 
$
38,972

Product development and engineering
$
27,099

 
$
27,154

Total operating costs and expenses
$
68,458

 
$
69,108

Operating income
$
12,817

 
$
12,167

Income before taxes and equity in net losses of equity method investments
$
11,393

 
$
10,743

Benefit for income taxes
$
(2,312
)
 
$
(2,416
)
Net income before equity in net losses of equity method investments
$
13,705

 
$
13,159

Net income
$
13,294

 
$
12,748

Earnings per share:
 
 
 
Basic
$
0.20

 
$
0.19

Diluted
$
0.20

 
$
0.19

 
 
 
 
Comprehensive income
$
13,282

 
$
12,736


There was no impact to the Company's Balance Sheets or to total operating cash flows in the Statements of Cash Flows for any periods presented in this Quarterly Report on Form 10-Q.