entity transfers of inventory , the income tax effects will continue to be deferred until the inventory has been sold to a third party .
cadence adopted the new standard on the first day of fiscal 2018 using the modified retrospective transition approach and recorded a cumulative-effect adjustment to decrease retained earnings in the amount of $ 8.3 million .
the cumulative-effect adjustment includes the write-off of income tax consequences deferred from prior intra-entity transfers involving assets other than inventory and new deferred tax assets for amounts not recognized under u.s .
gaap .
we anticipate the potential for increased volatility in future effective tax rates from the adoption of this guidance .
stock-based compensation in may 2017 , the fasb issued asu 2017-09 , 201ccompensation 2014stock compensation ( topic 718 ) : scope of modification accounting , 201d that provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting .
cadence adopted the standard on the first day of fiscal 2018 .
the adoption of this standard did not impact cadence 2019s consolidated financial statements or the related disclosures .
cumulative effect adjustments to retained earnings the following table presents the cumulative effect adjustments , net of income tax effects , to beginning retained earnings for new accounting standards adopted by cadence on the first day of fiscal 2018 : retained earnings ( in thousands ) .

retained earnings ( in thousands )
balance december 30 2017 as previously reported
$ 341003
cumulative effect adjustment from the adoption of new accounting standards:
revenue from contracts with customers ( topic 606 ) *
91640
financial instruments 2014overall ( subtopic 825-10 ) : recognition and measurement of financial assets and financial liabilities
2638
income taxes ( topic 740 ) : intra-entity transfers of assets other than inventory
-8349 ( 8349 )
balance december 30 2017 as adjusted
426932
net income
345777
balance december 29 2018
$ 772709

* the cumulative effect adjustment from the adoption of revenue from contracts with customers ( topic 606 ) is presented net of the related income tax effect of $ 17.5 million .
new accounting standards not yet adopted leases in february 2016 , the fasb issued asu 2016-02 , 201cleases ( topic 842 ) , 201d requiring , among other things , the recognition of lease liabilities and corresponding right-of-use assets on the balance sheet by lessees for all leases with a term longer than 12 months .
the new standard is effective for cadence in the first quarter of fiscal 2019 .
a modified retrospective approach is required , applying the new standard to leases existing as of the date of initial application .
an entity may choose to apply the standard as of either its effective date or the beginning of the earliest comparative period presented in the financial statements .
cadence adopted the new standard on december 30 , 2018 , the first day of fiscal 2019 , and used the effective date as the date of initial application .
consequently , financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods prior to the first quarter of fiscal 2019 .
cadence elected certain practical expedients permitted under the transition guidance within the new standard , which among other things , allowed cadence to carry forward its prior conclusions about lease identification and classification. .

Question: what is the percentage net effect of the cumulative effect adjustments , net of income tax effects , to beginning retained earnings for new accounting standards adopted by cadence on the retained earnings balance as adjusted for december 30 , 2017?
Answer: 25%
Calculation: subtract(426932, 341003), divide(#0, 341003)