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Restatement of Previously Issued Consolidated Financial Statements | 9 Months Ended
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Sep. 30, 2014
Restatement of Previously Issued Consolidated Financial Statements |
Restatement of Previously Issued Consolidated Financial Statements | Note 1A — Restatement of Previously Issued Consolidated Financial Statements On August 1, 2014, we entered into a purchase and sale agreement for the sale of the Country Inn & Suites and three adjacent land parcels totaling 5.64 acres in San Antonio, Texas for $7.9 million. The sale closed on October 21, 2014. During the three months ended September 30, 2014, we recorded an estimated impairment loss of $3.6 million related to the transaction, which was intended to, but did not fully reflect the expected loss on the sale. In the fourth quarter of 2014, we determined that the loss on the sale was $8.2 million and we had underestimated the amount of the impairment loss in the third quarter of 2014 by $4.6 million. As a result, we are restating our unaudited consolidated financial statements to reflect an increase in the Loss on Impairment of Assets from $3.6 million to $8.2 million for the three months ended September 30, 2014 and an increase in the Loss on Impairment of Assets from $4.3 million to $8.9 million for the nine months ended September 30, 2014. Additionally, Land Held for Development reflected on the Unaudited Consolidated Balance Sheet has been reduced from $13.8 million to $9.2 million at September 30, 2014 to reflect the impairment of the assets related to the sale transaction. In addition to the restatement of our unaudited consolidated financial statements, we have restated the following notes to the unaudited consolidated financial statements to reflect certain changes noted above: · Note 3 — Hotel Property Acquisitions · Note 5 — Assets Held for Sale · Note 10 — Loss on Impairment of Assets · Note 15 — Earnings per Share The following tables present the effect of the adjustments to our previously reported unaudited consolidated financial statements for the three and nine months ended September 30, 2014 (in thousands, except per share amounts).
|  | Condensed Balance Sheets as of September 30, 2014 |
|  | (As Reported) |  | Adjustments |  | (As Restated) |
Land held for development |  | $ | 13,748 |  | $ | (4,573 | ) | $ | 9,175 |
Total assets |  | 1,472,626 |  | (4,573 | ) | 1,468,053 |
Accumulated deficit and distributions |  | (93,736 | ) | (4,517 | ) | (98,253 | )
Total stockholders’ equity |  | 791,768 |  | (4,517 | ) | 787,251 |
Noncontrolling interests in operating partnership |  | 7,595 |  | (56 | ) | 7,539 |
Total equity |  | 799,363 |  | (4,573 | ) | 794,790 |
Total liabilities and equity |  | 1,472,626 |  | (4,573 | ) | 1,468,053 |
|  | Condensed Consolidated Statements of Operations |
|  | Three Months Ended September 30, 2014 |  | Nine Months Ended September 30, 2014 |
|  | (As Reported) |  | Adjustments |  | (As Restated) |  | (As Reported) |  | Adjustments |  | (As Restated) |
Loss on impairment of assets |  | $ | 3,614 |  | $ | 4,573 |  | $ | 8,187 |  | $ | 4,274 |  | $ | 4,573 |  | $ | 8,847 |
Net income |  | 8,280 |  | (4,573 | ) | 3,707 |  | 20,765 |  | (4,573 | ) | 16,192 |
Income (loss) attributable to non-controlling interests: |  |  |  |  |  |  |  |  |  |  |  |  |
Operating partnership |  | 50 |  | (56 | ) | (6 | ) | 101 |  | (56 | ) | 45 |
Net income attributable to Summit Hotel Properties, Inc. |  | 8,230 |  | (4,517 | ) | 3,713 |  | 20,663 |  | (4,517 | ) | 16,146 |
Net income (loss) attributable to common stockholders |  | 4,083 |  | (4,517 | ) | (434 | ) | 8,222 |  | (4,517 | ) | 3,705 |
Basic and diluted net income (loss) per share |  | 0.05 |  | (0.06 | ) | (0.01 | ) | 0.10 |  | (0.06 | ) | 0.04 |
|  | Condensed Statements of Cash Flows for the Nine Months Ended September 30, 2014 |
|  | (As Reported) |  | Adjustments |  | (As Restated) |
Net income |  | $ | 20,765 |  | $ | (4,573 | ) | $ | 16,192 |
Adjustments to reconcile net income to net cash provided by operating activities: |  |  |  |  |  |  |
Loss on impairment of assets |  | 4,674 |  | 4,573 |  | 9,247 |
Net cash provided by operating activities |  | 79,013 |  | — |  | 79,013 |

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- Definition The entire disclosure for reporting accounting changes and error corrections. It includes the conveyance of information necessary for a user of the Company's financial information to understand all aspects and required disclosure information concerning all changes and error corrections reported in the Company's financial statements for the period. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=28359718&loc=d3e22644-107794 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 45 -Paragraph 23 -URI http://asc.fasb.org/extlink&oid=6368906&loc=d3e21914-107793 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=28359718&loc=d3e22595-107794 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=28359718&loc=d3e22499-107794 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB TOPIC 1.N.Q3) -URI http://asc.fasb.org/extlink&oid=26874127&loc=d3e30840-122693 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 1 -Section N + Details
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