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NOTE 23—RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS
Restatement of Prior Period Consolidated Financial Statements
The December 31, 2010 and 2009 consolidated balance sheets and the consolidated statement of shareholders' equity for the years ended December 31, 2010, 2009 and 2008 have been restated to correct the deferred income tax liability relating to a gain recorded in 2002 in connection with a series of transactions, which included the exchange of certain of the Company's media businesses for certain other assets, and the subsequent incorrect allocation of a portion of the deferred income taxes that were recorded in 2002 to a former subsidiary. These errors were identified during an analysis of the tax basis of certain businesses in connection with a 2011 review of the Company's organizational structure. Accordingly, the Company has restated the financial statements referenced above to correct these errors. The correction of these errors as of December 31, 2010, 2009 and 2008 increased non-current deferred income tax liabilities and reduced shareholders' equity by $380.9 million and increased shareholders' equity and reduced deferred income taxes as of December 31, 2007 by $241.9 million. Reclassifications of certain other deferred income tax balances as of December 31, 2010 and 2009 have also been recorded. The effects of the restatement have been reflected in the other notes to the consolidated financial statements as appropriate. Correcting these errors has no impact on the Company's consolidated statement of operations or consolidated statement of cash flows.
Consolidated Balance Sheet as of December 31, 2010:
|
|
|
|
|
|
|
|
|
|
|
|
|
As originally
reported |
|
Effect of
restatement |
|
As
restated |
|
|
|
(In thousands)
|
|
|
Other non-current assets |
|
$ |
192,383 |
|
$ |
(110,475 |
) |
$ |
81,908 |
|
|
Total Assets |
|
|
3,439,554 |
|
|
(110,475 |
) |
|
3,329,079 |
|
|
Deferred income taxes |
|
|
— |
|
|
270,501 |
|
|
270,501 |
|
|
Other long-term liabilities |
|
|
20,350 |
|
|
(111 |
) |
|
20,239 |
|
|
Additional paid-in capital |
|
|
11,428,749 |
|
|
(380,865 |
) |
|
11,047,884 |
|
|
Total shareholders' equity |
|
|
2,430,933 |
|
|
(380,865 |
) |
|
2,050,068 |
|
|
Total Liabilities and Shareholders' Equity |
|
|
3,439,554 |
|
|
(110,475 |
) |
|
3,329,079 |
|
Consolidated Balance Sheet as of December 31, 2009:
|
|
|
|
|
|
|
|
|
|
|
|
|
As originally
reported |
|
Effect of
restatement |
|
As
restated |
|
|
|
(In thousands)
|
|
|
Other non-current assets |
|
$ |
223,910 |
|
$ |
(102,292 |
) |
$ |
121,618 |
|
|
Total Assets |
|
|
4,015,889 |
|
|
(102,292 |
) |
|
3,913,597 |
|
|
Deferred income taxes |
|
|
— |
|
|
278,609 |
|
|
278,609 |
|
|
Other long-term liabilities |
|
|
23,633 |
|
|
(36 |
) |
|
23,597 |
|
|
Additional paid-in capital |
|
|
11,322,993 |
|
|
(380,865 |
) |
|
10,942,128 |
|
|
Total shareholders' equity |
|
|
3,127,826 |
|
|
(380,865 |
) |
|
2,746,961 |
|
|
Total Liabilities and Shareholders' Equity |
|
|
4,015,889 |
|
|
(102,292 |
) |
|
3,913,597 |
|
Consolidated Statement of Shareholders' Equity:
|
|
|
|
|
|
|
|
|
|
|
|
|
As originally
reported |
|
Effect of
restatement |
|
As
restated |
|
|
|
(In thousands)
|
|
|
Additional paid-in capital as of December 31, 2010 |
|
$ |
11,428,749 |
|
$ |
(380,865 |
) |
$ |
11,047,884 |
|
|
Total shareholders' equity as of December 31, 2010 |
|
|
2,430,933 |
|
|
(380,865 |
) |
|
2,050,068 |
|
|
Additional paid-in capital as of December 31, 2009 |
|
|
11,322,993 |
|
|
(380,865 |
) |
|
10,942,128 |
|
|
Total shareholders' equity as of December 31, 2009 |
|
|
3,127,826 |
|
|
(380,865 |
) |
|
2,746,961 |
|
|
Additional paid-in capital as of December 31, 2008 |
|
|
11,112,014 |
|
|
(380,865 |
) |
|
10,731,149 |
|
|
Total shareholders' equity as of December 31, 2008 |
|
|
4,427,536 |
|
|
(380,865 |
) |
|
4,046,671 |
|
|
Spin-Off of HSNi, ILG, Ticketmaster and Tree.com related to retained earnings in 2008 |
|
|
(184,174 |
) |
|
(241,863 |
) |
|
(426,037 |
) |
|
Spin-Off of HSNi, ILG, Ticketmaster and Tree.com related to additional paid in capital in 2008 |
|
|
(3,749,643 |
) |
|
(380,865 |
) |
|
(4,130,508 |
) |
|
Spin-Off of HSNi, ILG, Ticketmaster and Tree.com related to total shareholders' equity in 2008 |
|
|
(3,971,284 |
) |
|
(622,728 |
) |
|
(4,594,012 |
) |
|
Retained earnings as of December 31, 2007 |
|
|
567,820 |
|
|
241,863 |
|
|
809,683 |
|
|
Total shareholders' equity as of December 31, 2007 |
|
|
8,583,662 |
|
|
241,863 |
|
|
8,825,525 |
|
|