Reclassification of Items in Statement of Income and Supplemental Results Summary

9 Months Ended

Dec. 27, 2015

Reclassification of Items in Statement of Income and Supplemental Results Summary

Reclassification of Items in Statement of Income and Supplemental Results Summary

Note 2. Reclassification of Items in Statement of Income and Supplemental Results Summary

The accompanying Consolidated Statements of Income for the three and nine months ended December 28, 2014, along with the supplemental financial information provided in Note 9, have been adjusted to correct an immaterial error in the classification of indirect inventory costs in the income statement.  Prior to the third quarter of fiscal 2016, the Company classified indirect costs relieved from inventory upon a sale as selling, general and administrative expenses, as opposed to cost of goods sold. The income statements and supplemental financial information presented here correctly reflect indirect costs relieved from inventory as cost of goods sold for all periods.  This resulted in an increase in cost of goods sold, and a corresponding decrease in selling, general and administrative expenses of $3.7 million and $9.9 million for the three and nine month periods ended December 28, 2014, respectively, and $6.6 million for the first six months of fiscal 2016($3.3 million in each of the first and second quarters). These corrections have no impact on previously reported revenues, operating margin, net income, earnings per share, or on previously reported Consolidated Balance Sheets or Consolidated Statements of Cash Flows.