17. Revisions to Prior Period Financial Statements

We identified errors related to our accounts payable and certain other errors for the years ended December 31, 2012 and 2011 and prior periods. The accounts payable errors related to certain obligations that we had incurred but not identified in a timely manner. A portion of the obligations not identified timely related to managed communities and, therefore, the errors also affected, in equal amounts, our due from related persons asset balance, revenue from reimbursed costs incurred on behalf of managed communities and expense from reimbursed costs incurred on behalf of managed communities for the applicable periods.

The errors also affected the (provision) benefit for income taxes in each year. In 2011, the release of our valuation allowance increased $867 related to the errors from prior periods.

In accordance with the guidance in the FASB ASC Topic 250, Accounting Changes and Error Corrections, ASC Topic 250-10-S99-1, Assessing Materiality, and ASC Topic 250-10-S99-2, Considering the Effects of Prior Year Misstatements in Current Year Financial Statements, we concluded that our previously issued consolidated financial statements for the years ended December 31, 2012 and 2011 and prior periods were not materially misstated as a result of these errors, but that the cumulative effect of these errors, if recorded in 2013, would be material to our consolidated financial statements for the year ended December 31, 2013. As such, we revised our previously reported consolidated financial statements for the periods ended December 31, 2012 and 2011 presented in this Annual Report on Form 10-K, and reduced the 2011 opening shareholders' equity balance by $2,354, to correct for these errors. We also revised the quarterly periods in 2013 and 2012. See Note 16 "Selected Quarterly Financial Data (Unaudited)" for the impact of the revisions on each of the applicable interim prior periods.

These errors had no impact on our cash flows from operating, investing or financing activities. The following tables set forth the effect of the revisions on each of the individual affected line items in our consolidated financial statements:

	Year Ended December 31, 2012									Year Ended December 31, 2011

	As Previously Reported			Adjustments			As Revised			As Previously Reported			Adjustments			As Revised
Consolidated Statements of Operations data:
Reimbursed costs incurred on behalf of managed communities	$	126,995		$	661		$	127,656		$	20,552		$	415		$	20,967
Total revenues		1,207,145			661			1,207,806			1,060,187			415			1,060,602
Other senior living operating expenses		259,749			2,000			261,749			249,491			(944	)		248,547
Costs incurred on behalf of managed communities		126,995			661			127,656			20,552			415			20,967
General and administrative		61,777			40			61,817			57,443			97			57,540
Total operating expenses		1,182,264			2,701			1,184,965			1,043,688			(432	)		1,043,256
Operating income		24,881			(2,040	)		22,841			16,499			847			17,346
Income from continuing operations before income taxes and equity in earnings of an investee		19,412			(2,040	)		17,372			16,180			847			17,027
(Provision) benefit for income taxes		(7,904	)		806			(7,098	)		57,849			540			58,389
Income from continuing operations		11,824			(1,234	)		10,590			74,168			1,387			75,555
Net income	$	23,541		$	(1,234	)	$	22,307		$	70,787		$	1,387		$	72,174
Basic income per share from:
Continuing operations	$	0.25		$	(0.02	)	$	0.23		$	1.76		$	0.03		$	1.79
Discontinued operations		0.24			—			0.24			(0.08	)		—			(0.08	)


Net income per share—basic	$	0.49		$	(0.02	)	$	0.47		$	1.68		$	0.03		$	1.71




Diluted income per share from:
Continuing operations	$	0.25		$	(0.02	)	$	0.23		$	1.67		$	0.03		$	1.70
Discontinued operations		0.23			—			0.23			(0.08	)		—			(0.08	)


Net income per share—diluted	$	0.48		$	(0.02	)	$	0.46		$	1.59		$	0.03		$	1.62

	As of December 31, 2012

	As Previously Reported			Adjustments			As Revised
Consolidated Balance Sheet data:
Due from related persons	$	6,881		$	1,076		$	7,957
Total current assets		158,610			1,076			159,686
Long term net deferred tax assets		36,214			1,346			37,560
Total assets		592,569			2,422			594,991
Accounts payable and accrued expenses		66,045			3,603			69,648
Due to related persons		19,484			1,020			20,504
Total current liabilities		198,327			4,623			202,950
Accumulated deficit		(44,455	)		(2,201	)		(46,656	)
Total shareholders' equity		313,554			(2,201	)		311,353
Total liabilities and shareholders' equity	$	592,569		$	2,422		$	594,991