| Revision of Prior Period Amounts |
2. Revision of Prior Period Amounts
In
preparing Lydall’s financial statements for the quarter ended
September 30, 2011, the Company discovered certain prior period
errors related to accounting for income taxes associated with
dividends from a foreign subsidiary, which were omitted in error
from U.S. income tax reporting. The impact of the errors
was partially offset by a resulting adjustment to certain valuation
allowances. These errors impacted income tax expense
recorded by the Company beginning in the year ended December 31,
2004 and subsequent periods through June 30, 2011. The
Company evaluated these errors and determined that they were
immaterial to each of the reporting periods affected.
However, if the adjustments to correct the cumulative errors
had been recorded in the current period, the Company believes the
impact would be material to 2011 results. As a result,
the Company revised in the current filing previously reported
quarterly results for the first and second quarters of 2011, the
third and fourth quarters of 2010, as well as Lydall’s annual
results for 2010, 2009 and 2008, for these income tax
errors. In addition to recording these out of
period tax adjustments, the Company recorded other adjustments to
prior period amounts to correct other immaterial out of period
errors.
The
Consolidated Balance Sheet was also revised to reflect the
cumulative effect of these errors described above and other
immaterial errors. These revisions to the Consolidated
Balance Sheet resulted in a decrease to retained earnings of $1.3
million and $2.0 million as of December 31, 2010 and June 30,
2011, respectively.
The
adjustments to the Consolidated Statement of Cash Flows for the six
months ended June 30, 2011 and three months ended March 31, 2011,
and all periods in 2010, 2009 and 2008 did not result in any
changes to the amounts previously reported for net cash from
operating activities, investing activities or financing activities
in these periods. All adjustments had an immaterial
effect on the components of cash flows from operating activities
and had no net impact on net cash from operating activities in any
period.
On
June 30, 2011, the Company sold its Affinity
business. Beginning in the Form 10-Q for the period
ended June 30, 2011 the Company retroactively restated its results
to reflect its Affinity business as a discontinued
operation. Except for the quarterly results for the
second and third quarters of 2010, the Company has not
retroactively restated its previously reported results for the
Affinity sale and discontinued operations. The Company
will retroactively restate the results for 2010 and 2009 and all
2011 and 2010 quarters in its 2011 Form 10-K. The
Company has determined that the impact of the above adjustments
will not be material to the revised amounts.
The
revisions of prior period reported amounts are as
follows:
|
Consolidated Balance Sheet - December 31, 2009
|
|
| |
|
As Previously
Reported
|
|
|
|
|
|
Revised
|
|
|
in thousands
|
|
December 31, 2009
|
|
|
Adjustments
|
|
|
December 31, 2009
|
|
| |
|
|
|
|
|
|
|
|
|
|
Taxes
receivable
|
|
$ |
4,651 |
|
|
$ |
(1,269 |
) |
|
$ |
3,382 |
|
|
Total
current assets
|
|
$ |
99,987 |
|
|
$ |
(1,269 |
) |
|
$ |
98,718 |
|
|
Total
assets
|
|
$ |
224,352 |
|
|
$ |
(1,269 |
) |
|
$ |
223,083 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred
tax liabilities
|
|
$ |
6,357 |
|
|
$ |
(59 |
) |
|
$ |
6,298 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Retained
earnings
|
|
$ |
169,083 |
|
|
$ |
(1,210 |
) |
|
$ |
167,873 |
|
|
Total
stockholders' equity
|
|
$ |
156,389 |
|
|
$ |
(1,210 |
) |
|
$ |
155,179 |
|
|
Total
liabilities and stockholders' equity
|
|
$ |
224,352 |
|
|
$ |
(1,269 |
) |
|
$ |
223,083 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Balance Sheet - December 31, 2010
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
As
Previously
Reported
|
|
|
|
|
|
|
Revised
|
|
|
in thousands
|
|
December 31, 2010
|
|
|
Adjustments
|
|
|
December 31, 2010
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxes
receivable
|
|
$ |
1,867 |
|
|
$ |
(1,150 |
) |
|
$ |
717 |
|
|
Total
current assets
|
|
$ |
116,031 |
|
|
$ |
(1,150 |
) |
|
$ |
114,881 |
|
|
Total
assets
|
|
$ |
231,888 |
|
|
$ |
(1,150 |
) |
|
$ |
230,738 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Accrued
taxes
|
|
$ |
3,113 |
|
|
$ |
317 |
|
|
$ |
3,430 |
|
|
Total
current liabilities
|
|
$ |
52,671 |
|
|
$ |
317 |
|
|
$ |
52,988 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred
tax liabilities
|
|
$ |
5,360 |
|
|
$ |
(157 |
) |
|
$ |
5,203 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Retained
earnings
|
|
$ |
171,822 |
|
|
$ |
(1,310 |
) |
|
$ |
170,512 |
|
|
Total
stockholders' equity
|
|
$ |
155,455 |
|
|
$ |
(1,310 |
) |
|
$ |
154,145 |
|
|
Total
liabilities and stockholders' equity
|
|
$ |
231,888 |
|
|
$ |
(1,150 |
) |
|
$ |
230,738 |
|
Consolidated Balance Sheet - June 30, 2011
|
in thousands
|
|
As Previously
Reported
|
|
|
|
|
|
Revised
|
|
|
(Unaudited)
|
|
June 30, 2011
|
|
|
Adjustments
|
|
|
June 30, 2011
|
|
| |
|
|
|
|
|
|
|
|
|
|
Accrued
taxes
|
|
$ |
4,389 |
|
|
$ |
1,501 |
|
|
$ |
5,890 |
|
|
Total
current liabilities
|
|
$ |
54,332 |
|
|
$ |
1,501 |
|
|
$ |
55,833 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Deferred
tax liabilities
|
|
$ |
7,618 |
|
|
$ |
499 |
|
|
$ |
8,117 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
Retained
earnings
|
|
$ |
182,492 |
|
|
$ |
(2,000 |
) |
|
$ |
180,492 |
|
|
Total
stockholders' equity
|
|
$ |
172,979 |
|
|
$ |
(2,000 |
) |
|
$ |
170,979 |
|
Consolidated Statement of Operations - Year Ended December 31,
2008**
| |
|
As Previously
Reported
|
|
|
|
|
|
Revised
|
|
| |
|
Year Ended
|
|
|
|
|
|
Year Ended
|
|
|
in thousands, except per share data
|
|
December 31, 2008**
|
|
|
Adjustments
|
|
|
December 31, 2008**
|
|
| |
|
|
|
|
|
|
|
|
|
|
Income
tax (benefit) expense from continuing operations
|
|
$ |
(3,888 |
) |
|
$ |
336 |
|
|
$ |
(3,552 |
) |
| Loss
from continuing operations |
|
$ |
(6,031 |
) |
|
$ |
(336 |
) |
|
$ |
(6,367 |
) |
|
Net
loss
|
|
$ |
(4,979 |
) |
|
$ |
(336 |
) |
|
$ |
(5,315 |
) |
|
Basic
loss per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$ |
(0.37 |
) |
|
|
|
|
|
$ |
(0.39 |
) |
|
Net
loss
|
|
$ |
(0.30 |
) |
|
|
|
|
|
$ |
(0.32 |
) |
|
Diluted
earnings (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$ |
(0.37 |
) |
|
|
|
|
|
$ |
(0.39 |
) |
|
Net
loss
|
|
$ |
(0.30 |
) |
|
|
|
|
|
$ |
(0.32 |
) |
|
Weighted
average number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
16,458 |
|
|
|
|
|
|
|
16,458 |
|
|
Diluted
|
|
|
16,458 |
|
|
|
|
|
|
|
16,458 |
|
**
As previously reported year ended December 31, 2008 discontinued
operations represents the sale of Lydall's wholly owned subsidiary,
Lydall Transport, Ltd.
Consolidated Statement of Operations - Year Ended December 31,
2009
| |
|
As Previously
Reported
|
|
|
|
|
|
Revised
|
|
| |
|
Year Ended
|
|
|
|
|
|
Year Ended
|
|
|
in thousands, except per share data
|
|
December 31, 2009
|
|
|
Adjustments
|
|
|
December 31, 2009
|
|
| |
|
|
|
|
|
|
|
|
|
|
Income
tax (benefit) expense
|
|
$ |
(3,789 |
) |
|
$ |
243 |
|
|
$ |
(3,546 |
) |
|
Net
loss
|
|
$ |
(14,572 |
) |
|
$ |
(243 |
) |
|
$ |
(14,815 |
) |
|
Basic
loss per share
|
|
$ |
(0.88 |
) |
|
|
|
|
|
$ |
(0.89 |
) |
|
Diluted
loss per share
|
|
$ |
(0.88 |
) |
|
|
|
|
|
$ |
(0.89 |
) |
|
Weighted
average number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
16,567 |
|
|
|
|
|
|
|
16,567 |
|
|
Diluted
|
|
|
16,567 |
|
|
|
|
|
|
|
16,567 |
|
Consolidated Statement of Operations - Quarter Ended September 30,
2010*
| |
|
As Previously
Reported
|
|
|
|
|
|
Revised
|
|
|
in thousands, except per share data
|
|
Quarter Ended
|
|
|
|
|
|
Quarter Ended
|
|
|
(unaudited)
|
|
September 30, 2010*
|
|
|
Adjustments
|
|
|
September 30, 2010*
|
|
| |
|
|
|
|
|
|
|
|
|
|
Income
tax (benefit) expense
|
|
$ |
(1,284 |
) |
|
$ |
170 |
|
|
$ |
(1,114 |
) |
|
Income
(loss) from continuing operations
|
|
$ |
597 |
|
|
$ |
(170 |
) |
|
$ |
427 |
|
|
Net
income (loss)
|
|
$ |
1,516 |
|
|
$ |
(170 |
) |
|
$ |
1,346 |
|
|
Basic
earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$ |
0.04 |
|
|
|
|
|
|
$ |
0.03 |
|
|
Net
income
|
|
$ |
0.09 |
|
|
|
|
|
|
$ |
0.08 |
|
|
Diluted
earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$ |
0.04 |
|
|
|
|
|
|
$ |
0.03 |
|
|
Net
income
|
|
$ |
0.09 |
|
|
|
|
|
|
$ |
0.08 |
|
|
Weighted
average number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
16,682 |
|
|
|
|
|
|
|
16,682 |
|
|
Diluted
|
|
|
16,731 |
|
|
|
|
|
|
|
16,731 |
|
*
As previously reported quarter ended September 30, 2010 has been
retroactively restated to reflect Affinity as a discontinued
operation.
Consolidated Statement of Operations - Quarter Ended December 31,
2010
| |
|
As
Previously
Reported
|
|
|
|
|
|
Revised
|
|
|
in
thousands, except per share data
|
|
Quarter
Ended
|
|
|
|
|
|
Quarter Ended
|
|
|
|
|
December 31, 2010
|
|
|
Adjustments
|
|
|
December 31, 2010
|
|
| |
|
|
|
|
|
|
|
|
|
|
Income
tax expense (benefit)
|
|
$ |
2,319 |
|
|
$ |
(70 |
) |
|
$ |
2,249 |
|
|
Net
(loss) income
|
|
$ |
(389 |
) |
|
$ |
70 |
|
|
$ |
(319 |
) |
|
Basic
loss per share
|
|
$ |
(0.02 |
) |
|
|
|
|
|
$ |
(0.02 |
) |
|
Diluted
loss per share
|
|
$ |
(0.02 |
) |
|
|
|
|
|
$ |
(0.02 |
) |
|
Weighted
average number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
16,695 |
|
|
|
|
|
|
|
16,695 |
|
|
Diluted
|
|
|
16,695 |
|
|
|
|
|
|
|
16,695 |
|
Consolidated Statement of Operations - Year Ended December 31,
2010
| |
|
As Previously
Reported
|
|
|
|
|
|
Revised
|
|
| |
|
Year
Ended
|
|
|
|
|
|
Year
Ended
|
|
|
in thousands, except per share data
|
|
December 31, 2010
|
|
|
Adjustments
|
|
|
December 31, 2010
|
|
| |
|
|
|
|
|
|
|
|
|
|
Income
tax expense
|
|
$ |
1,187 |
|
|
$ |
100 |
|
|
$ |
1,287 |
|
|
Net
income (loss)
|
|
$ |
2,739 |
|
|
$ |
(100 |
) |
|
$ |
2,639 |
|
|
Basic
earnings per share
|
|
$ |
0.16 |
|
|
|
|
|
|
$ |
0.16 |
|
|
Diluted
earnings per share
|
|
$ |
0.16 |
|
|
|
|
|
|
$ |
0.16 |
|
|
Weighted
average number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
16,672 |
|
|
|
|
|
|
|
16,672 |
|
|
Diluted
|
|
|
16,788 |
|
|
|
|
|
|
|
16,788 |
|
Consolidated Statement of Operations - Quarter Ended March 31,
2011
| |
|
As
Previously
Reported
|
|
|
|
|
|
Revised
|
|
|
in
thousands, except per share data
|
|
Quarter
Ended
|
|
|
|
|
|
Quarter Ended
|
|
|
(unaudited)
|
|
March 31, 2011
|
|
|
Adjustments
|
|
|
March 31, 2011
|
|
| |
|
|
|
|
|
|
|
|
|
|
Income
tax expense
|
|
$ |
1,729 |
|
|
$ |
63 |
|
|
$ |
1,792 |
|
|
Net
income (loss)
|
|
$ |
2,943 |
|
|
$ |
(63 |
) |
|
$ |
2,880 |
|
|
Basic
earnings per share
|
|
$ |
0.18 |
|
|
|
|
|
|
$ |
0.17 |
|
|
Diluted
earnings per share
|
|
$ |
0.17 |
|
|
|
|
|
|
$ |
0.17 |
|
|
Weighted
average number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
16,735 |
|
|
|
|
|
|
|
16,735 |
|
|
Diluted
|
|
|
16,838 |
|
|
|
|
|
|
|
16,838 |
|
Consolidated Statement of Operations - Quarter Ended June 30,
2011
| |
|
As
Previously
Reported
|
|
|
|
|
|
Revised
|
|
|
in
thousands, except per share data
|
|
Quarter Ended
|
|
|
|
|
|
Quarter Ended
|
|
|
(unaudited)
|
|
June 30, 2011
|
|
|
Adjustments
|
|
|
June 30, 2011
|
|
| |
|
|
|
|
|
|
|
|
|
|
Income
tax expense
|
|
$ |
1,284 |
|
|
$ |
627 |
|
|
$ |
1,911 |
|
|
Income
(loss) from continuing operations
|
|
$ |
3,243 |
|
|
$ |
(627 |
) |
|
$ |
2,616 |
|
|
Net
income (loss)
|
|
$ |
7,727 |
|
|
$ |
(627 |
) |
|
$ |
7,100 |
|
|
Basic
earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$ |
0.19 |
|
|
|
|
|
|
$ |
0.16 |
|
|
Net
income
|
|
$ |
0.46 |
|
|
|
|
|
|
$ |
0.42 |
|
|
Diluted
earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Continuing
operations
|
|
$ |
0.19 |
|
|
|
|
|
|
$ |
0.15 |
|
|
Net
income
|
|
$ |
0.46 |
|
|
|
|
|
|
$ |
0.42 |
|
|
Weighted
average number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
16,741 |
|
|
|
|
|
|
|
16,741 |
|
|
Diluted
|
|
|
16,909 |
|
|
|
|
|
|
|
16,909 |
|