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Revisions To Financial Statements
 6 Months Ended
Jun. 30, 2020
Revisions To Financial Statements [Abstract]  
Revisions To Financial Statements

3. REVISIONS TO FINANCIAL STATEMENTS

 

In preparing third quarter 2019 financial statements, the Company identified errors in the handling of foreign exchange related to premium funds held from reinsureds. Although management determined that the impact of the foreign exchange differences were not material to prior period financial statements, the impact of recording the cumulative difference would have significantly impacted results within the third quarter 2019. As a result, prior period balances have been revised in the applicable financial statements and corresponding footnotes to correct the foreign exchange adjustments.

 

Management assessed the materiality of this change within prior period financial statements based upon SEC Staff Accounting Bulletin Number 99, Materiality, which is since codified in Accounting Standards Codification ("ASC") 250, Accounting Changes and Error Corrections. The prior period comparative financial statements that are presented herein have been revised.

 

The following tables present line items for prior period financial statements that have been affected by the revision. For these line items, the tables detail the amounts as previously reported, the impact upon those line items due to the revision, and the amounts as currently revised within the financial statements.

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE

 

 

Three Months Ended June 30, 2019

 

 

Six Months Ended June 30, 2019

INCOME (LOSS):

 

 

As Previously

 

 

Impact of

 

 

 

 

 

As Previously

 

 

Impact of

 

 

 

 

 

 

Reported

 

 

Revisions

 

 

As Revised

 

 

Reported

 

 

Revisions

 

 

As Revised

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other income (expense)

 

$

(7,977)

 

$

(10,248)

 

$

(18,225)

 

$

(17,030)

 

$

(4,495)

 

$

(21,525)

Total revenues

 

$

2,018,975

 

$

(10,248)

 

$

2,008,727

 

$

3,979,058

 

$

(4,495)

 

$

3,974,563

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) BEFORE TAXES

 

$

382,593

 

$

(10,248)

 

$

372,345

 

$

791,384

 

$

(4,495)

 

$

786,889

Income tax expense (benefit)

 

 

39,738

 

 

(261)

 

 

39,477

 

 

99,629

 

 

(159)

 

 

99,470

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NET INCOME (LOSS)

 

$

342,855

 

$

(9,987)

 

$

332,868

 

$

691,755

 

$

(4,336)

 

$

687,419

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COMPREHENSIVE INCOME (LOSS)

 

$

514,064

 

$

(9,987)

 

$

504,077

 

$

1,109,410

 

$

(4,336)

 

$

1,105,074

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS PER COMMON SHARE:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

8.42

 

$

(0.25)

 

$

8.17

 

$

16.98

 

$

(0.10)

 

$

16.88

Diluted

 

$

8.39

 

$

(0.24)

 

$

8.15

 

$

16.93

 

$

(0.11)

 

$

16.82

CONSOLIDATED STATEMENTS OF

 

Six Months Ended June 30, 2019

CHANGES IN STOCKHOLDER'S EQUITY

 

As Previously

 

Impact of

 

 

 

 

 

Reported

 

Revisions

 

As Revised

 

 

 

 

 

 

 

 

 

 

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

RETAINED EARNINGS:

 

 

 

 

 

 

 

 

 

Balance, January 1

 

$

9,574,440

 

$

(43,007)

 

$

9,531,433

Net income (loss)

 

 

348,900

 

 

5,651

 

 

354,551

Balance, March 31

 

 

9,866,203

 

 

(37,356)

 

 

9,828,847

Net income (loss)

 

 

342,855

 

 

(9,987)

 

 

332,868

Balance, June 30,

 

 

10,152,059

 

 

(47,343)

 

 

10,104,716

TOTAL STOCKHOLDER'S EQUITY, June 30

 

$

8,884,160

 

$

(47,343)

 

$

8,836,817

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

Six Months Ended June 30, 2019

 

 

As Previously

 

Impact of

 

 

 

 

 

Reported

 

Revisions

 

As Revised

(Dollars in thousands)

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

691,755

 

$

(4,336)

 

$

687,419

Decrease (increase) in premiums receivable

 

 

(178,319)

 

 

3,736

 

 

(174,583)

Decrease (increase) in funds held by reinsureds, net

 

 

(56,180)

 

 

759

 

 

(55,421)

Decrease (increase) in income taxes

 

 

180,285

 

 

(159)

 

 

180,126