Prior Periods' Financial Statement Revisions

As a result of misstatements identified by the Company during 2019, we are revising our previously issued financial statements as of and for the years ended December 31, 2018 and 2017, as well as the interim periods in 2018 and the first three quarters of 2019.

During the fourth quarter of 2019, we identified intentional misstatements in the accounting for inventory at one of our smaller foreign subsidiaries. This inappropriate accounting resulted in the understatement of previously reported cost of sales by $0.7 million and $1.3 million in 2018 and 2017, respectively, and the overstatement of previously reported inventories by $1.7 million as of December 31, 2018.

In addition, and as previously reported in our Form 10-Q for the three and nine-months ended September 30, 2019, we identified certain prior period tax misstatements, primarily related to tax accounting associated with the 2018 impairment of our joint venture, as well as other immaterial tax accounting misstatements. These tax misstatements resulted in an understatement of previously reported benefit for income taxes of $2.5 million and $0.5 million in 2018 and 2017, respectively.

We assessed the materiality of these inventory and tax misstatements on prior periods’ financial statements in accordance with Securities and Exchange Commission (the” SEC”) Staff Accounting Bulletin (“SAB”) Topic 1.M, Materiality, codified in Accounting Standards Codification (“ASC”) Topic 250, Accounting Changes and Error Corrections, (“ASC 250”) and concluded that the misstatements were not material to the prior annual or interim periods. However, the Company has determined it to be appropriate to revise its accompanying 2018 and 2017 consolidated financial statements to correct for these misstatements. In connection with such revision, the Company is also correcting for other immaterial misstatements, including the incorrect classification of certain dividend payments in the fourth quarter of 2018 within the Consolidated Statements of Changes in Stockholders’ Equity.

The accompanying notes to the consolidated financial statements reflect the impact of this revision. We have also reflected the impact of the revision in the applicable unaudited quarterly financial results presented in Note 23.

The following tables present the effect of the correction of the misstatements and the resulting revision on the Consolidated Statements of Operations and Comprehensive Income (Loss).



	Year Ended December 31, 2017
	As Originally Reported			Adjustment			As Revised
Cost of sales (exclusive of depreciation and amortization)	$	459,080		$	1,334		$	460,414
Income (loss) from operations	33,114			(1,334		)	31,780
Loss before (provision) benefit for income taxes and share of net income from joint venture	(58,873		)	(1,334		)	(60,207		)
Income tax benefit (expense)	79,026			519			79,545
Income (loss) from continuing operations	25,364			(815		)	24,549
Net income (loss)	163,052			(815		)	162,237
Foreign currency translation gain (loss)	22,094			40			22,134
Comprehensive income (loss)	175,903			(775		)	175,128
Basic net income (loss) per share	$	5.94		$	(0.03	)	$	5.91
Diluted net income (loss) per share	$	5.87		$	(0.02	)	$	5.85



	Year Ended December 31, 2018
	As Originally Reported			Adjustment			As Revised
Cost of sales (exclusive of depreciation and amortization)	$	588,205		$	976		$	589,181
Income (loss) from operations	(178,888		)	(976		)	(179,864		)
Loss before (provision) benefit for income taxes and share of net income from joint venture	(261,034		)	(976		)	(262,010		)
Income tax benefit (expense)	10,957			2,456			13,413
Income (loss) from continuing operations	(264,467		)	1,480			(262,987		)
Net income (loss)	(264,467		)	1,480			(262,987		)
Foreign currency translation gain (loss)	(13,880		)	271			(13,609		)
Comprehensive income (loss)	(278,347		)	1,751			(276,596		)
Basic net income (loss) per share	$	(8.35	)	$	0.05		$	(8.30	)
Diluted net income (loss) per share	$	(8.35	)	$	0.05		$	(8.30	)

The following table presents the effect of the correction of the misstatements on the Consolidated Balance Sheet as of December 31, 2018.



	As of December 31, 2018
	As Originally Reported			Adjustment			As Revised
Inventories	$	122,615		$	(1,690	)	$	120,925
Income tax receivable	946			1,331			2,277
Other current assets	21,901			(309		)	21,592
Total current assets	296,871			(668		)	296,203
Total assets	1,501,570			(668		)	1,500,902
Deferred tax liabilities	93,482			(1,644		)	91,838
Total liabilities	1,083,275			(1,644		)	1,081,631
Additional paid-in capital	511,545			(2,890		)	508,655
Accumulated deficit	(62,046		)	3,555			(58,491		)
Accumulated other comprehensive income (loss)	(31,625		)	311			(31,314		)
Total stockholders' equity	418,295			976			419,271
Total liabilities and stockholders' equity	1,501,570			(668		)	1,500,902

The following table presents the effect of the correction of the misstatements on the Consolidated Statements of Stockholders’ Equity.



	As Originally Reported			Adjustment			As Revised
As of and for the year ended December 31, 2017
Net income (loss)	$	163,052		$	(815	)	$	162,237
Retained earnings	211,080			(815		)	210,265
Foreign currency translation gain (loss)	22,094			40			22,134
Accumulated other comprehensive income (loss)	(17,745		)	40			(17,705		)
Total stockholders' equity	486,104			(775		)	485,329

As of and for the year ended December 31, 2018
Additional paid-in capital	$	511,545		$	(2,890	)	$	508,655
Net income (loss)	$	(264,467	)	$	1,480		$	(262,987	)
Accumulated deficit	(62,046		)	3,555			(58,491		)
Foreign currency translation gain (loss)	(13,880		)	271			(13,609		)
Accumulated other comprehensive income (loss)	(31,625		)	311			(31,314		)
Total stockholders' equity	418,295			976			419,271

The following table presents the effect of the correction of the misstatements on the Consolidated Statements of Cash Flows.



	Year Ended December 31, 2017
	As Originally Reported			Adjustment			As Revised
Net income (loss)	$	163,052		$	(815	)	$	162,237
Changes in operating assets and liabilities, net of acquisitions:
Inventories	(10,278		)	1,334			(8,944		)
Other	(1,076		)	(519		)	(1,595		)



	Year Ended December 31, 2018
	As Originally Reported			Adjustment			As Revised
Net income (loss)	$	(264,467	)	$	1,480		$	(262,987	)
Deferred income taxes	(20,758		)	(1,644		)	(22,402		)
Changes in operating assets and liabilities, net of acquisitions:
Inventories	(16,872		)	664			(16,208		)
Income taxes receivable and payable, net	40,946			(1,331		)	39,615
Other	(1,310		)	831			(479		)