RESTATEMENT

In November 2015, the Company identified errors in the accounting for the shareholders' and related redeemable noncontrolling interest in the Company’s investment in Voltyre-Prom. The Company did not correctly classify redeemable noncontrolling interest on the balance sheet as mezzanine equity, which is presented below liabilities and above equity. As the redeemable noncontrolling interest balance exceeds the carrying value of the investment, there is a reclassification of additional paid-in capital to mezzanine equity and a correction in the earnings per share calculation. Accordingly, the Company is restating its earnings per share for the three and six months ended June 30, 2015 and 2014, and its consolidated balance sheet as of June 30, 2015, and December 31, 2014. The corrections had no other effect on the Consolidated Statement of Operations.

The following table (unaudited) summarizes the restatement adjustments of the Company’s earnings per share for the three months and six months ended June 30, 2015 and 2014:



	Three months ended					Six months ended
	June 30,		June 30,			June 30,			June 30,
	2015		2014			2015			2014
Basic income (loss) per common share - as reported	$	0.13	$	(0.38	)	$	0.13		(0.34		)
Basic income (loss) per common share - as restated	$	0.17	$	(0.40	)	$	0.12		$	(0.37	)
Adjustment	$	0.04	$	(0.02	)	$	(0.01	)	$	(0.03	)

Diluted income (loss) per common share - as reported	$	0.12	$	(0.38	)	$	0.13		(0.34		)
Diluted income (loss) per common share - as restated	$	0.17	$	(0.40	)	$	0.12		$	(0.37	)
Adjustment	$	0.05	$	(0.02	)	$	(0.01	)	$	(0.03	)

The following table summarizes the restatement adjustments on the Company’s Consolidated Condensed Balance Sheet (unaudited) as of June 30, 2015 (amounts in thousands):



	Consolidated Balance Sheet
	June 30, 2015
	As reported			Adjustment			As restated
Assets
Current Assets
Cash and cash equivalents	187,484			—			187,484
Accounts receivable	224,689			—			224,689
Inventories	306,087			—			306,087
Deferred income taxes	13,972			—			13,972
Prepaid and other current assets	74,786			—			74,786
Total current assets	807,018			—			807,018
Property, plant and equipment, net	483,407			—			483,407
Deferred income taxes	18,303			—			18,303
Other assets	111,686			—			111,686
Total assets	$	1,420,414		$	—		$	1,420,414
Liabilities
Current Liabilities
Short-term debt	$	25,068		$	—		$	25,068
Accounts payable	135,758			—			135,758
Other current liabilities	121,967			—			121,967
Total current liabilities	282,793			—			282,793
Long-term debt	495,273			—			495,273
Deferred income taxes	3,524			—			3,524
Other long-term liabilities	84,330			—			84,330
Total liabilities	865,920			—			865,920
Redeemable noncontrolling interest	—			70,511			70,511
Equity
Titan stockholders' equity
Common stock	—			—			—
Additional paid-in capital	563,227			(49,627		)	513,600
Retained earnings	132,472			—			132,472
Treasury stock	(13,508		)	—			(13,508		)
Treasury stock reserved for deferred comp	(1,075		)	—			(1,075		)
Accumulated other comprehensive loss	(150,923		)	—			(150,923		)
Total Titan stockholders' equity	530,193			(49,627		)	480,566
Noncontrolling interests	24,301			(20,884		)	3,417
Total equity	554,494			(70,511		)	483,983
Total liabilities and equity	$	1,420,414		$	—		$	1,420,414

The following table summarizes the restatement adjustments on the Company’s Consolidated Balance Sheet as of December 31, 2014 (amounts in thousands):



	Consolidated Balance Sheet
	December 31, 2014
	As reported			Adjustment			As restated
Assets
Current Assets
Cash and cash equivalents	$	201,451		$	—		$	201,451
Accounts receivable	199,378			—			199,378
Inventories	331,432			—			331,432
Deferred income taxes	23,435			—			23,435
Prepaid and other current assets	80,234			—			80,234
Total current assets	835,930			—			835,930
Property, plant and equipment, net	527,414			—			527,414
Deferred income taxes	15,623			—			15,623
Other assets	116,757			—			116,757
Total assets	$	1,495,724		$	—		$	1,495,724
Liabilities
Current Liabilities
Short-term debt	$	26,233		$	—		$	26,233
Accounts payable	146,305			—			146,305
Other current liabilities	129,018			—			129,018
Total current liabilities	301,556			—			301,556
Long-term debt	496,503			—			496,503
Deferred income taxes	18,582			—			18,582
Other long-term liabilities	89,025			—			89,025
Total liabilities	905,666			—			905,666
Redeemable noncontrolling interest	—			71,192			71,192
Equity
Titan stockholders' equity
Common stock	—			—			—
Additional paid-in capital	562,367			(49,277		)	513,090
Retained earnings	126,007			—			126,007
Treasury stock	(13,897		)	—			(13,897		)
Treasury stock reserved for deferred comp	(1,075		)	—			(1,075		)
Accumulated other comprehensive loss	(112,630		)	—			(112,630		)
Total Titan stockholders' equity	560,772			(49,277		)	511,495
Noncontrolling interests	29,286			(21,915		)	7,371
Total equity	590,058			(71,192		)	518,866
Total liabilities and equity	$	1,495,724		$	—		$	1,495,724