Revision of Financial Statements |
Note 2. Revision of
Financial Statements
During 2013, the Company
completed the implementation of internal controls over financial
reporting as required by the Sarbanes-Oxley Act of 2002. In
connection with that work and as reported in November 2013, the
Company discovered that its accounting for state franchise taxes
was incorrect. Further, as the Company completed the close of its
year-end accounting, it identified other errors related to interest
income, insurance premiums, compensated absences, and income taxes.
Collectively, the errors result in an overstatement of net income
for the years ended December 31, 2010 through
December 31, 2012. The Company considered both the
quantitative and qualitative factors within the provisions of the
Securities and Exchange Commission Staff Accounting Bulletin
No. 99, Materiality, and Staff Accounting Bulletin
No. 108, Considering the Effects of Prior Year
Misstatements when Quantifying Misstatements in Current Year
Financial Statements. Based on this evaluation, the Company
concluded that the errors were immaterial to the previously issued
financial statements and those financial statements can continue to
be relied upon. Therefore, the Company has made immaterial
corrections to its previously filed financial statements included
in this Annual Report on Form 10-K filing to reflect the
corrections in the proper period. Future filings that include prior
periods will be revised, as needed, when filed.
The effect of the
immaterial revisions in the consolidated financial statements as of
and for the years ended December 31, 2011 and 2012 is as
follows:
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Consolidated Statements
of Income
Years Ended December 31, |
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2012 |
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2011 |
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As
Reported(1) |
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Revised |
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Change |
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As
Reported(1) |
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Revised |
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Change |
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Interest and fee
income
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$ |
119,235 |
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$ |
119,025 |
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$ |
(210 |
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$ |
91,303 |
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$ |
91,513 |
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$ |
210 |
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Insurance income,
net
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10,820 |
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10,681 |
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(139 |
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9,247 |
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9,155 |
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(92 |
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Total revenue
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136,046 |
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135,697 |
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(349 |
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105,219 |
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105,337 |
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118 |
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Personnel
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33,453 |
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33,492 |
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39 |
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25,549 |
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25,679 |
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130 |
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Other
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10,413 |
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10,644 |
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231 |
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6,502 |
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6,573 |
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71 |
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Total expenses
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96,114 |
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96,384 |
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270 |
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71,806 |
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72,007 |
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201 |
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Income before income
taxes
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39,932 |
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39,313 |
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(619 |
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33,413 |
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33,330 |
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(83 |
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Income taxes
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14,565 |
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14,561 |
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(4 |
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12,169 |
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12,290 |
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121 |
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Net income
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$ |
25,367 |
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$ |
24,752 |
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$ |
(615 |
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$ |
21,244 |
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$ |
21,040 |
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$ |
(204 |
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Net income per common
share:
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Basic
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$ |
2.17 |
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$ |
2.12 |
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$ |
(0.05 |
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$ |
2.28 |
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$ |
2.25 |
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$ |
(0.03 |
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Diluted
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$ |
2.12 |
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$ |
2.07 |
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$ |
(0.05 |
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$ |
2.21 |
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$ |
2.19 |
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$ |
(0.03 |
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Consolidated Balance
Sheet
December 31, 2012 |
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As
Reported(1) |
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Revised |
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Change |
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Less unearned finance
charges, insurance premiums, and commissions
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$ |
(92,024 |
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$ |
(92,376 |
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$ |
(352 |
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Finance
receivables
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439,826 |
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439,474 |
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(352 |
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Net finance
receivables
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416,210 |
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415,858 |
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(352 |
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Other assets
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7,483 |
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7,361 |
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(122 |
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Total assets
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434,991 |
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434,517 |
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(474 |
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Accounts payable and
accrued expenses
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6,096 |
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6,987 |
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891 |
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Total
liabilities
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304,422 |
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305,313 |
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891 |
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Retained
earnings
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49,162 |
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47,797 |
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(1,365 |
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Total stockholders’
equity
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130,569 |
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129,204 |
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(1,365 |
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Total liabilities and
stockholders’ equity
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$ |
434,991 |
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$ |
434,517 |
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$ |
(474 |
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Consolidated Statements
of
Stockholders’ Equity |
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As
Reported(1) |
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Revised |
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Change |
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December 31, 2010
Retained earnings
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$ |
2,551 |
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$ |
2,005 |
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$ |
(546 |
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Net income
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21,244 |
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21,040 |
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(204 |
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December 31, 2011
Retained earnings
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23,795 |
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23,045 |
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(750 |
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Net income
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25,367 |
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24,752 |
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(615 |
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December 31, 2012
Retained earnings
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49,162 |
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47,797 |
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(1,365 |
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Consolidated Statements
of Cash Flows
Years Ended December 31, |
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2012 |
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2011 |
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As
Reported(1) |
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Revised |
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Change |
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As
Reported(1) |
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Revised |
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Change |
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Net income
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$ |
25,367 |
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$ |
24,752 |
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$ |
(615 |
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$ |
21,244 |
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$ |
21,040 |
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$ |
(204 |
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(Increase) decrease in
other assets
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(1,417 |
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(1,295 |
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122 |
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— |
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— |
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— |
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Increase (decrease) in
other liabilities
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(1,351 |
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(1,048 |
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303 |
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(521 |
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(169 |
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352 |
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Net cash provided by
operating activities
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57,912 |
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57,722 |
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(190 |
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41,345 |
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41,493 |
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148 |
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Net origination of finance
receivables
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(127,842 |
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(127,652 |
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190 |
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(73,512 |
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(73,660 |
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(148 |
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Net cash used in investing
activities
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(159,201 |
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(159,011 |
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190 |
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(79,074 |
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(79,222 |
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(148 |
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(1) |
Certain prior period
amounts have been reclassified to conform to the current
presentation. Such reclassifications had no impact on previously
reported net income or stockholders’ equity. |
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