Quarterly report pursuant to Section 13 or 15(d)

Significant Accounting Policies (Policies)

v3.8.0.1
Significant Accounting Policies (Policies)
9 Months Ended
Oct. 01, 2017
Accounting Policies [Abstract]  
New Accounting Pronouncements, Policy [Policy Text Block]
In
July 2015,
the FASB published ASU
2015
-
11:
Simplifying the Measurement of Inventory (Topic
330
). The amendments in this Update more closely align the measurement of inventory in U.S. GAAP with the measurement of inventory in International Financial Reporting Standards (IFRS). FASB has amended some of the other guidance in Topic
330
to more clearly articulate the requirements for the measurement and disclosure of inventory. However, the FASB does
not
intend for those clarifications to result in any changes in practice. Other than the change in the subsequent measurement guidance from the lower of cost or market to the lower of cost and net realizable value for inventory within the scope of this Update, there are
no
other substantive changes to the guidance on measurement of inventory. For public business entities, the amendments in this Update are effective for fiscal years beginning after
December 15, 2016,
including interim periods within those fiscal years. The adoption of ASU
2015
-
11
had
no
impact on the consolidated financial statements.
 
In
November 2015,
the FASB published ASU
2015
-
17:
Income Taxes (Topic
740
). The amendment requires that deferred tax assets and liabilities be classified as non-current in a classified statement of financial position. The amendments in this Update are effective for public business entities for financial statements issued for fiscal years beginning after
December 15, 2016,
and interim periods within those fiscal years. The adoption of ASU
2015
-
17
resulted in the presentation of the Company
’s deferred tax assets as non-current. The deferred tax assets reported in the prior periods have been reclassified to conform to the current presentation.
 
In
March 2016,
the FASB published ASU
2016
-
09:
Compensation
– Stock Compensation (Topic
718
). The amendment simplifies several aspects of accounting for share-based payment transactions including income tax consequences, classification of awards as either equity or liabilities, classification on the statement of cash flows and accounting for forfeitures. Some of the areas for simplification apply only to nonpublic entities. The amendments in this ASU are effective for public business entities for fiscal years beginning after
December 15, 2016,
and interim periods within those fiscal years. The adoption of ASU
2016
-
09
had
no
impact on the consolidated financial statements.
 
Recent Accounting Pronouncements
Not
Yet Adopted
 
In
March 2016,
the FASB published ASU
2016
-
08:
Revenue from Contracts with Customers (Topic
606
). The amendment clarifies the implementation guidance on principal versus agent considerations. In
April 2016,
the FASB published ASU
2016
-
10:
Revenue from Contracts with Customers (Topic
606
), which clarified application of the standard in identifying performance obligations and licensing arrangements. In
May 2016,
the FASB published ASU
2016
-
12:
Revenue from Contracts with Customers (Topic
606
), which included narrow-scope improvements and practical expedients. Specifically the update addresses application of collectability, presentation of sales taxes, noncash consideration, and completed contracts and contract modifications at transition. In
May 2014,
the FASB published ASU
2014
-
09:
Revenue from Contracts with Customers (Topic
606
), which supersedes (i) revenue recognition requirements in Topic
605
and most related industry-specific guidance, and (ii) cost guidance included in Subtopic
605
-
35,
Revenue Recognition
—Construction-Type and Production-Type Contracts, and amends existing requirements for recognition of a gain/loss on the transfer of nonfinancial assets that are
not
in a contract with a customer (for example, assets within the scope of Topic
360,
Property, Plant, and Equipment, and intangible assets within the scope of Topic
350,
Intangibles—Goodwill and Other) to be consistent with the new requirements. In
August 2015,
the FASB published ASU
2015
-
14
Topic
606
which effectively postponed the effective adoption requirement by
one
year such that the standard is effective for years beginning after
December 15, 2017
including interim periods with those years. Management is currently evaluating the impact of the new standard, analyzing and performing a diagnostic on the various revenue streams within our manufacturing services. We anticipate a modified retrospective adoption effective
January 1, 2018.
 
 
In
January 2016,
the FASB published ASU
2016
-
01:
Financial Instruments - Overall (Topic
825
-
10
). The amendment addresses certain aspects of recognition, measurement, presentation and disclosure of financial assets and liabilities. The amendments in this ASU are effective for public business entities for fiscal years beginning after
December 15, 2017,
and interim periods within those fiscal years. The impact of adoption of the standard has
not
yet been determined.
 
In
February 2016,
the FASB published ASU
2016
-
02:
Leases (Topic
842
). The amendment proposes that all lessees should recognize the assets and liabilities that arise from leases. Elections
may
be available for those leases with terms of
12
months or less. The amendment still retains the distinction between finance leases and operating leases. The amendments in this ASU are effective for public business entities for financial statements issued for fiscal years beginning after
December 15, 2018,
and interim periods within those fiscal years. The impact of the adoption of the standard is expected to result in the recognition of all leases with the corresponding assets and liabilities recorded in the consolidated financial statements. Management is currently evaluating the qualitative and quantitative impact of this standard.
 
 
In
May 2016,
the FASB published ASU
2016
-
13
Financial Instruments
– Credit losses (Topic
326
): Measurement of Credit Losses on Financial Instruments. The main objective of this Update is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this Update replace the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendment is effective for years beginning after
December 15, 2019
including interim periods with those years. Early adoption is permitted only for those annual reporting periods beginning on or after
December 15, 2018.
The Company continues to evaluate the impact of this accounting standard. The impact of adoption of the standard has
not
yet been determined.
 
In
August 2016,
the FASB published ASU
2016
-
15
Statement of Cash Flows (Topic
230
): Classification of Certain Cash Receipts and Cash Payments. This Accounting Standards Update addresses the following
eight
specific cash flow issues: Debt prepayment or debt extinguishment costs; settlement of
zero
-coupon debt instruments or other debt instruments with coupon interest rates that are insignificant in relation to the effective interest rate of the borrowing; contingent consideration payments made after a business combination; proceeds from the settlement of insurance claims; proceeds from the settlement of corporate-owned life insurance policies (COLIs) (including bank-owned life insurance policies (BOLIs)); distributions received from equity method investees; beneficial interests in securitization transactions; and separately identifiable cash flows and application of the predominance principle. The amendment is effective for years beginning after
December 15, 2017
including interim periods with those years. Early adoption is permitted. The
adoption of ASU
2016
-
15
is
not
expected to impact the consolidated financial statements.
 
In
November 2016,
the FASB published ASU
2016
-
18
Statement of Cash Flows (Topic
230
): Restricted Cash. This update addresses the requirement that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The amendment is effective for years beginning after
December 15, 2017
including interim periods with those years. Early adoption is permitted. The impact of adoption of the standard is expected to result in a modification to the current presentation of the statement of cash flows such that restricted cash is
not
presented as an investing activity, but is presented as part of the net change in cash from beginning to the ending balance.