CORRECTION OF PRIOR PERIOD ERRORS

12 Months Ended

Dec. 31, 2022

CORRECTION OF PRIOR PERIOD ERRORS

CORRECTION OF PRIOR PERIOD ERRORS

11.CORRECTION OF PRIOR PERIOD ERRORS

During the current fiscal year-end financial reporting process, the Company identified prior period accounting errors that the Company has concluded are not material to the Company’s previously reported consolidated financial statements and unaudited interim condensed consolidated financial statements.  The financial reporting periods affected by these errors include the Company’s previously reported consolidated financial statements for the fiscal years ended December 31, 2020 and 2021, and the Company’s previously reported unaudited interim condensed consolidated financial information for each of the quarterly and fiscal year-to-date periods in the fiscal years ended December 31, 2020 and 2021 (collectively the ”previously reported financial statements”).

Based on management’s evaluation of the accounting errors under the SEC Staff’s Accounting Bulletins Nos. 99 (“SAB 99”) and 108 (“SAB 208”) and interpretations thereof, the Company concluded the errors are not material, on an individual or aggregate basis, to the Company’s previously reported financial statements.  The errors originated many years ago, are less than 3.6% of the impacted accounts, and would not materially impact ratios or amounts relied upon by users of the financial statements.  However, the Company further concluded the accounting errors cannot be corrected as an out-of-period adjustment in the Company’s current period consolidated financial statements as of and for the year ended December 31, 2022, because to do so would cause a material misstatement in those financial statements.  Accordingly, the Company is proceeding according to the guidance prescribed by SAB 108 which specifies that the errors must be corrected the next time the previously reported financial statements are filed.  Therefore, the Company has corrected these accounting errors in the accompanying consolidated financial statements as of and for the fiscal years ended December 31, 2021, 2020 and 2019 as a revision of these financial statements.  In addition, the Company plans to correct the accounting errors in its previously reported interim condensed consolidated financial information for the three-month period ended March 31, 2023, the three- and six-month periods ended June 30, 2023, and the three- and nine-month period ended September 30, 2023, as an immaterial revision of those financial statements upon filing of the Company’s fiscal year 2023 Quarterly Reports on Form 10-Q.

The following is a description of the accounting errors and their impact on the Company’s previously reported financial statements:

A component of the Company’s recent ERP system upgrade was the implementation of an improved consolidation reporting module which is used to consolidate financial statements of the individual entities and produce the necessary entries for elimination of transactions between those entities.  During the fourth quarter of 2022 as an element of this implementation, a complete review of historical elimination entries was performed, and it was determined that certain amounts were not properly eliminated in prior year periods.  These elimination errors occurred beginning in 1996 with the acquisition our foreign subsidiaries, continued through 2006 and were carried forward through 2021. 

The following table presents the impact of correcting these errors on the Company’s previously reported financial statements, and as of and for the year ended December 31, 2022 (in thousands):

	December 31, 2021
	As
	Reported		Adjustment		Revised
Property, plant and equipment, net	$	96,496	$	(1,203)	$	95,293
Accounts payable		119,029		2,717		121,746
Accumulated surplus		141,918		(3,920)		137,998
	December 31, 2020
	As
	Reported		Adjustment		Revised
Property, plant and equipment, net	$	98,620	$	(1,203)	$	97,417
Accounts payable		85,534		2,717		88,251
Accumulated surplus		133,879		(3,920)		129,959
	December 31, 2019
	As
	Reported		Adjustment		Revised
Property, plant and equipment, net	$	90,735	$	(1,203)	$	89,532
Accounts payable		95,750		2,717		98,467
Accumulated surplus		112,261		(3,920)		108,341