Reclassification

12 Months Ended

Mar. 27, 2016

Reclassification

Reclassification

Note 3. Reclassification

Prior to the third quarter of fiscal year 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 financial results presented in these financial statements correctly reflect indirect costs relieved from inventory as cost of goods sold for all periods. The accompanying Consolidated Statements of Income have been adjusted to correct this immaterial error in the classification of indirect inventory costs in the income statement. This resulted in an increase in cost of goods sold, and a corresponding decrease in selling, general and administrative expenses, of $13.3 million and $11.8 million, respectively, for fiscal years 2015 and 2014. These corrections had 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.

As of March 27, 2016 the Company adopted Accounting Standards Update No. 2015-17, Income Taxes, as discussed in Note 2. As such, the Company restated its consolidated balance sheet as of March 29, 2015 to reflect the reclassification of $3.9 million of deferred tax assets from current to noncurrent.