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1A. RESTATEMENT
 9 Months Ended
Sep. 30, 2013
Equity [Abstract]  
1A - RESTATEMENT

On November 12, 2013, the Company amended its Annual Report on Form 10-K as of and for the year ended December 31, 2012. The Company is also restating herein its previously issued consolidated balance sheet as of December 31, 2012 to correct an error in its accounting for income taxes.

 

In the fourth quarter of 2012, the Company recorded a benefit from income taxes of approximately $60.4 million primarily resulting from the release of a valuation allowance against its deferred tax assets. In November 2013, during a review of the Company’s work papers supporting its deferred tax assets, management discovered an error in the historical tax treatment of certain mark-to-market adjustments recorded in relation to its interest rate swaps, dating back as far as 2009. This error caused the Company’s deferred tax assets to be overstated by approximately $4.3 million and unrecognized tax benefit liability (included in accounts payable, accrued expenses and other) to be understated by approximately $0.4 million at December 31, 2012. Periods prior to the fourth quarter of 2012 were not significantly impacted by the overstatement as the Company had a valuation allowance established against the overstated deferred tax assets.

 

To correct the income tax benefit overstatement described above, the Company restated the following line items in its financial statements:

  As Previonsly Reported   Restatement Adjustments   As Restated 
As of and for the year ended December 31, 2012               
Current portion of deferred tax assets  $7,607   $–   $7,607 
Deferred tax assets, net of current portion   52,790    (4,255)   48,535 
Total deferred tax assets   60,397   (4,255)   56,142 
Total Assets   715,119    (4,255)   710,864 
Accounts payable, accrued expenses and other   105,929    428    106,357 
Total current liabilities   118,613    428    119,041 
Total liabilities   717,120    428    717,548 
Accumulated deficit   (171,093)   (4,683)   (175,776)
Total stockholders' deficit   (2,001)   (4,683)   (6,684)