The nature of the restatement adjustments and the impact of the adjustments to the year ended December 31, 2012 are shown in the following table:


	Year Ended December 31, 2012
				Restatement Adjustments
	As Previously Reported			Revenue Recognition			Inventory Reserves			Understated Employee Benefits			Settlement Obligations		Tax Matters			Account Classification			Cost Center Allocation			Other Adjustments			Total Adjustments			As Restated
Net sales	$	819,592		$	(11,400	)	$	—		$	—		$	1,364	$	—		$	(2,220	)	$	—		$	—		$	(12,256	)	$	807,336
Cost of sales		556,091			(1,301	)		7,810			833			485		—			2,651			(3,231	)		751			7,998			564,089

Gross profit		263,501			(10,099	)		(7,810	)		(833	)		879		—			(4,871	)		3,231			(751	)		(20,254	)		243,247

Selling, general and administrative expenses		78,971			(530	)		—			121			—		773			—			3,286			56			3,706			82,677
Research and development expenses		78,723			—			—			137			—		—			(2,651	)		(55	)		101			(2,468	)		76,255

Operating income		105,807			(9,569	)		(7,810	)		(1,091	)		879		(773	)		(2,220	)		—			(908	)		(21,492	)		84,315

Other income (expenses)
Interest expense, net		(22,600	)		—			—			—			—		—			—			—			—			—			(22,600	)
Foreign currency gain, net		55,961			1,281			—			—			—		(3	)		—			—			41			1,319			57,280
Others		2,119			(449	)		—			—			—		—			2,220			—			—			1,771			3,890

		35,480			832			—			—			—		(3	)		2,220			—			41			3,090			38,570

Income before income taxes		141,287			(8,737	)		(7,810	)		(1,091	)		879		(776	)		—			—			(867	)		(18,402	)		122,885

Income tax expenses (benefits)		(52,014	)		—			—			—			—		64,861			—			—			—			64,861			12,847

Net income	$	193,301		$	(8,737	)	$	(7,810	)	$	(1,091	)	$	879	$	(65,637	)	$	—		$	—		$	(867	)	$	(83,263	)	$	110,038

Earnings per common share—
Basic	$	5.29																												$	3.01
Diluted	$	5.16																												$	2.93

Weighted average number of shares—
Basic		36,567,684																													36,567,684
Diluted		37,496,965																													37,533,391

The nature of the restatement adjustments and the impact of the adjustments to the year ended December 31, 2011 are shown in the following table:


	Year Ended December 31, 2011
				Restatement Adjustments
	As Previously Reported			Revenue Recognition			Inventory Reserves			Understated Employee Benefits			Settlement Obligations			Tax Matters			Account Classification			Other Adjustments			Total Adjustments			As Restated
Net sales	$	772,831		$	(27,539	)	$	—		$	—		$	—		$	—		$	(2,162	)	$	—		$	(29,701	)	$	743,130
Cost of sales		538,515			(10,104	)		10,075			1,740			2,116			—			707			547			5,081			543,596

Gross profit		234,316			(17,435	)		(10,075	)		(1,740	)		(2,116	)		—			(2,869	)		(547	)		(34,782	)		199,534

Selling, general and administrative expenses		68,367			(378	)		—			323			—			1,223			497			191			1,856			70,223
Research and development expenses		76,767			—			—			409			—			—			(707	)		120			(178	)		76,589
Restructuring and impairment charges		4,096			—			—			—			—			—			(497	)		—			(497	)		3,599
Special expense for IPO incentive		12,146			—			—			—			—			—			—			—			—			12,146

Operating income		72,940			(17,057	)		(10,075	)		(2,472	)		(2,116	)		(1,223	)		(2,162	)		(858	)		(35,963	)		36,977

Other expenses
Interest expense, net		(24,984	)		—			—			—			—			—			—			—			—			(24,984	)
Foreign currency loss, net		(11,633	)		121			—			—			—			—			—			164			285			(11,348	)
Loss on early extinguishment of senior notes		(5,459	)		—			—			—			—			—			—			—			—			(5,459	)
Others		(1,052	)		518			—			—			—			—			2,162			—			2,680			1,628

		(43,128	)		639			—			—			—			—			2,162			164			2,965			(40,163	)

Income (loss) before income taxes		29,812			(16,418	)		(10,075	)		(2,472	)		(2,116	)		(1,223	)		—			(694	)		(32,998	)		(3,186	)

Income tax expenses		8,019			—			—			—			—			96			—			—			96			8,115

Net income (loss)	$	21,793		$	(16,418	)	$	(10,075	)	$	(2,472	)	$	(2,116	)	$	(1,319	)	$	—		$	(694	)	$	(33,094	)	$	(11,301	)

Earnings (loss) per common share—
Basic	$	0.56																										$	(0.29	)
Diluted	$	0.55																										$	(0.29	)

Weighted average number of shares—
Basic		38,775,642																											38,775,642
Diluted		39,774,898																											38,775,642

The following table presents the impact of the restatement adjustments on the Company’s previously reported consolidated balance sheet as of December 31, 2012:


	As of December 31, 2012
				Restatement Adjustments
	As Previously Reported			Revenue Recognition			Inventory Reserves			Understated Employee Benefits			Settlement Obligations			Tax Matters			Account Classification			Other Adjustments			Total Adjustments			As Restated

Assets
Current assets
Cash and cash equivalents	$	182,238		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	182,238
Restricted cash		133			—			—			—			—			—			—			—			—			133
Accounts receivable, net		143,331			(37,217	)		—			—			—			—			(131	)		—			(37,348	)		105,983
Inventories, net		89,363			11,787			(18,917	)		—			—			—			—			151			(6,979	)		82,384
Other receivables		1,429			—			—			—			—			—			131			—			131			1,560
Prepaid expenses		7,884			—			—			—			—			—			—			—			—			7,884
Current deferred income tax assets		22,768			—			—			—			—			(20,980	)		—			—			(20,980	)		1,788
Other current assets		9,680			—			—			—			—			—			—			944			944			10,624

Total current assets		456,826			(25,430	)		(18,917	)		—			—			(20,980	)		—			1,095			(64,232	)		392,594

Property, plant and equipment, net		238,256			—			—			—			—			—			—			(864	)		(864	)		237,392
Intangible assets, net		15,260			—			—			—			—			—			—			—			—			15,260
Long-term prepaid expenses		18,048			—			—			—			—			—			—			—			—			18,048
Deferred income tax assets		46,710			—			—			—			—			(44,124	)		—			—			(44,124	)		2,586
Other non-current assets		14,866			—			—			—			—			—			—			—			—			14,866

Total assets	$	789,966		$	(25,430	)	$	(18,917	)	$	—		$	—		$	(65,104	)	$	—		$	231		$	(109,220	)	$	680,746

Current liabilities
Accounts payable	$	79,236		$	—		$	—		$	—		$	—		$	—		$	—		$	129		$	129		$	79,365
Other accounts payable		15,600			—			—			—			—			—			—			1,159			1,159			16,759
Accrued expenses		43,486			—			—			—			1,322			2,111			—			456			3,889			47,375
Derivative liabilities		—			—			—			—			—			—			—			944			944			944
Other current liabilities		9,973			(636	)		—			—			—			207			—			—			(429	)		9,544

Total current liabilities		148,295			(636	)		—			—			1,322			2,318			—			2,688			5,692			153,987

Long-term borrowings, net		201,653			—			—			—			—			—			—			—			—			201,653
Accrued severance benefits, net		112,446			—			—			2,412			—			—			—			—			2,412			114,858
Other non-current liabilities		17,263			—			—			2,615			—			—			—			(1,159	)		1,456			18,719

Total liabilities		479,657			(636	)		—			5,027			1,322			2,318			—			1,529			9,560			489,217

Commitments and contingencies (Note 20)
Stockholders’ equity
Common stock		396			—			—			—			—			—			—			—			—			396
Additional paid-in capital		101,885			—			—			—			—			—			—			524			524			102,409
Retained earnings		287,251			(24,061	)		(18,253	)		(4,740	)		(1,307	)		(66,993	)		—			(1,805	)		(117,159	)		170,092
Treasury stock		(39,918	)		—			—			—			—			—			—			—			—			(39,918	)
Accumulated other comprehensive loss		(39,305	)		(733	)		(664	)		(287	)		(15	)		(429	)		—			(17	)		(2,145	)		(41,450	)

Total stockholders’ equity		310,309			(24,794	)		(18,917	)		(5,027	)		(1,322	)		(67,422	)		—			(1,298	)		(118,780	)		191,529

Total liabilities and stockholders’ equity	$	789,966		$	(25,430	)	$	(18,917	)	$	—		$	—		$	(65,104	)	$	—		$	231		$	(109,220	)	$	680,746

The following table presents the impact of the restatement adjustments on the Company’s previously reported consolidated balance sheet as of December 31, 2011:


	As of December 31, 2011
				Restatement Adjustments
	As Previously Reported			Revenue Recognition			Inventory Reserves			Understated Employee Benefits			Settlement Obligations			Tax Matters			Account Classification			Other Adjustments			Total Adjustments			As Restated

Assets
Current assets
Cash and cash equivalents	$	162,111		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	—		$	162,111
Restricted cash		6,830			—			—			—			—			—			—			—			—			6,830
Accounts receivable, net		125,922			(23,055	)		—			—			—			—			(245	)		—			(23,300	)		102,622
Inventories, net		62,836			10,221			(10,049	)		—			—			—			—			(325	)		(153	)		62,683
Other receivables		256			—			—			—			—			—			245			8			253			509
Prepaid expenses		6,032			—			—			—			—			—			—			—			—			6,032
Current deferred income tax assets		3,406			—			—			—			—			(1,330	)		—			—			(1,330	)		2,076
Other current assets		12,503			—			—			—			—			(32	)		—			—			(32	)		12,471

Total current assets		379,896			(12,834	)		(10,049	)		—			—			(1,362	)		—			(317	)		(24,562	)		355,334

Property, plant and equipment, net		182,663			—			—			—			—			—			—			—			—			182,663
Intangible assets, net		16,787			—			—			—			—			—			—			—			—			16,787
Long-term prepaid expenses		4,790			—			—			—			—			—			—			—			—			4,790
Deferred income tax assets		3,537			—			—			—			—			1,233			—			—			1,233			4,770
Other non-current assets		15,002			—			—			—			—			—			—			—			—			15,002

Total assets	$	602,675		$	(12,834	)	$	(10,049	)	$	—		$	—		$	(129	)	$	—		$	(317	)		(23,329	)	$	579,346

Current liabilities
Accounts payable	$	77,848		$	—		$	—		$	—		$	—		$	—		$	—		$	32		$	32		$	77,880
Other accounts payable		13,452			—			—			—			—			—			—			—			—			13,452
Accrued expenses		31,723			—			—			—			2,100			1,216			—			430			3,746			35,469
Current portion of capital lease obligation		2,852			—			—			—			—			—			—			—			—			2,852
Derivative liabilities		9,757			—			—			—			—			—			—			—			—			9,757
Other current liabilities		2,007			1,918			—			—			—			(32	)		—			—			1,886			3,893

Total current liabilities		137,639			1,918			—			—			2,100			1,184			—			462			5,664			143,303

Long-term borrowings, net		201,389			—			—			—			—			—			—			—			—			201,389
Accrued severance benefits, net		90,755			—			—			1,677			—			—			—			—			1,677			92,432
Other non-current liabilities		6,222			—			—			1,828			—			—			—			—			1,828			8,050

Total liabilities		436,005			1,918			—			3,505			2,100			1,184			—			462			9,169			445,174

Commitments and contingencies (Note 20)
Stockholders’ equity
Common stock		394			—			—			—			—			—			—			—			—			394
Additional paid-in capital		98,929			—			—			—			—			—			—			131			131			99,060
Retained earnings		93,950			(15,583	)		(10,133	)		(3,830	)		(2,116	)		(1,319	)		—			(915	)		(33,896	)		60,054
Treasury stock		(11,793	)		—			—			—			—			—			—			—			—			(11,793	)
Accumulated other comprehensive loss		(14,810	)		831			84			325			16			6			—			5			1,267			(13,543	)

Total stockholders’ equity		166,670			(14,752	)		(10,049	)		(3,505	)		(2,100	)		(1,313	)		—			(779	)		(32,498	)		134,172

Total liabilities and stockholders’ equity	$	602,675		$	(12,834	)	$	(10,049	)	$	—		$	—		$	(129	)	$	—		$	(317	)	$	(23,329	)	$	579,346

Statement of Cash Flows

The following table presents the impact of the restatement adjustments on the Company’s previously reported consolidated statements of cash flows for the years ended December 31, 2012 and 2011:


	Year Ended December 31, 2012									Year Ended December 31, 2011
	As Previously Reported			Restatement Adjustments			As Restated			Previously Reported			Restatement Adjustments			As Restated
Cash flows from operating activities
Net income (loss)	$	193,301		$	(83,263	)	$	110,038		$	21,793		$	(33,094	)	$	(11,301	)
Adjustments to reconcile net income (loss) to net cash provided by operating activities
Depreciation and amortization		32,390			(324	)		32,066			51,224			—			51,224
Provision for severance benefits		20,937			593			21,530			14,698			1,783			16,481
Amortization of debt issuance costs and original issue discount		1,009			—			1,009			970			—			970
Loss (gain) on foreign currency translation, net		(63,567	)		(1,319	)		(64,886	)		15,140			(305	)		14,835
Restructuring and impairment charges		—			—			—			2,499			—			2,499
Stock-based compensation		1,996			393			2,389			2,085			131			2,216
Loss on early extinguishment of senior notes		—			—			—			5,459			—			5,459
Other		(615	)		(48	)		(663	)		1,585			(135	)		1,450
Changes in operating assets and liabilities
Accounts receivable		(7,534	)		13,292			5,758			(6,234	)		25,431			19,197
Inventories, net		(19,066	)		6,571			(12,495	)		4,274			85			4,359
Other receivables		(458	)		121			(337	)		2,657			(254	)		2,403
Other current assets		10,944			(109	)		10,835			(5,081	)		(12	)		(5,093	)
Deferred tax assets		(62,743	)		64,657			1,914			1,412			97			1,509
Accounts payable		(1,838	)		101			(1,737	)		18,084			60			18,144
Other accounts payable		(9,185	)		(1,822	)		(11,007	)		(6,891	)		(1,061	)		(7,952	)
Accrued expenses		24,412			(108	)		24,304			(5,577	)		3,909			(1,668	)
Other current liabilities		11,857			(2,360	)		9,497			(3,050	)		1,899			(1,151	)
Other non-current liabilities		(3,956	)		627			(3,329	)		326			511			837
Payment of severance benefits		(6,997	)		—			(6,997	)		(10,478	)		—			(10,478	)
Other		216			1			217			(364	)		1			(363	)

Net cash provided by operating activities		121,103			(2,997	)		118,106			104,531			(954	)		103,577

Cash flows from investing activities
Decrease in restricted cash		13,021			—			13,021			6,410			—			6,410
Increase in restricted cash		(6,238	)		—			(6,238	)		(13,609	)		—			(13,609	)
Proceeds from disposal of plant, property and equipment		937			—			937			219			—			219
Purchase of property, plant and equipment		(61,522	)		2,984			(58,538	)		(48,173	)		1,060			(47,113	)
Payment for intellectual property registration		(882	)		—			(882	)		(696	)		—			(696	)
Payment for purchase of Dawin, net of cash acquired		(8,642	)		—			(8,642	)		—			—			—
Collection of guarantee deposits		81			—			81			1,544			—			1,544
Payment of guarantee deposits		(320	)		—			(320	)		(2,482	)		—			(2,482	)
Other		37			—			37			(371	)		—			(371	)

Net cash used in investing activities		(63,528	)		2,984			(60,544	)		(57,158	)		1,060			(56,098	)

Cash flows from financing activities
Proceeds from issuance of common stock		962			—			962			9,336			—			9,336
Repurchase of senior notes		—			—			—			(50,307	)		—			(50,307	)
Repayment of obligations under capital lease		(2,968	)		—			(2,968	)		(6,312	)		—			(6,312	)
Acquisition of treasury stock		(28,125	)		—			(28,125	)		(11,793	)		—			(11,793	)

Net cash used in financing activities		(30,131	)		—			(30,131	)		(59,076	)		—			(59,076	)
Effect of exchange rates on cash and cash equivalents		(7,317	)		13			(7,304	)		1,642			(106	)		1,536

Net increase (decrease) in cash and cash equivalents		20,127			—			20,127			(10,061	)		—			(10,061	)

Cash and cash equivalents
Beginning of the period		162,111			—			162,111			172,172			—			172,172

End of the period	$	182,238			—		$	182,238		$	162,111			—		$	162,111

Supplemental cash flow information
Cash paid for interest	$	21,955			—		$	21,955		$	24,722			—		$	24,722

Cash paid (refunded) for income taxes	$	(609	)		—		$	(609	)	$	1,954			—		$	1,954

Non-cash investing and financing activities
Property, plant and equipment additions in other accounts payable	$	—		$	2,989		$	2,989		$	—		$	1,052		$	1,052
Deferred offering costs reclassified as reduction of additional paid-in capital	$	—		$	—		$	—		$	7,194		$	46		$	7,240

Comprehensive Income

The following table presents the impact of the restatement adjustments on the Company’s previously reported consolidated statements of comprehensive income for the years ended December 31, 2012 and 2011:


	Year Ended December 31, 2012						Year Ended December 31, 2011
	As Previously Reported			As Restated			As Previously Reported			As Restated

Net income (loss)	$	193,301		$	110,038		$	21,793		$	(11,301	)
Other comprehensive income (loss)
Foreign currency translation adjustments		(34,325	)		(37,737	)		7,105			8,373
Derivative adjustments
Fair valuation of derivatives		4,788			5,237			(5,041	)		(5,559	)
Reclassification adjustment for loss (gain) loss on derivatives included in net income (loss)		5,057			4,608			(11,496	)		(10,979	)
Unrealized loss on investments		(15	)		(15	)		(103	)		(103	)

Total comprehensive income (loss)	$	168,806		$	82,131		$	12,258		$	(19,569	)

Cumulative Restatement Adjustments to Previously Reported Beginning retained earnings

The following table presents the impact of the restatement adjustments on the Company’s previously reported consolidated retained earnings at January 1, 2011:


Retained earnings at January 1, 2011—As Previously Reported	$	72,157

Adjustments:
Understated Employee Benefits		(1,358	)
Other Revenue Recognition—Non-recurring Engineering		835
Accrued Liabilities		(221	)
Inventory Reserves		(58	)

Total adjustments		(802	)

Retained earnings at January 1, 2011—As Restated	$	71,355