Immaterial Misstatement

12 Months Ended

Dec. 31, 2015

Immaterial Misstatement

Immaterial Misstatement

3. Immaterial Misstatement

Subsequent to the issuance of the Consolidated Financial Statements for the year ended December 31, 2014, during the preparation of the consolidated financial statements for the quarter ended March 31, 2015 management identified a misstatement in the presentation of deferred taxes associated with its 7¼% senior notes due 2019 (the “2019 Notes”) originally issued by Forest on June 6, 2007, and the 7½% senior notes due 2020 (the “2020 Notes”) originally issued by Forest on September 17, 2012, and the effects of adjusting the allocation of the stepped-up basis in certain assets relating to the effects of the Combination. Such amounts should have been presented as current deferred tax liabilities as of December 31, 2014. The Company also corrected the classification of certain assets related to post-retirement benefit obligations that had previously been presented as “Other short-term assets” on the Consolidated Balance Sheets. Such amounts should have been presented as other long term-assets. Management concluded that these misstatements are immaterial, individually and in the aggregate. The effects of these misstatements on previously reported December 31, 2014 balances are presented in the table below. These balances related to deferred taxes were further adjusted for the impact of adopting ASU No. 2015-17 which reflects zero deferred taxes in the 2014 Consolidated Balance Sheet. Refer to Note 6 for additional details.

	Consolidated Balance Sheet
	as of December 31, 2014
	As Previously Reported		Adjustments		As Adjusted for Misstatement
	(in thousands)
Assets
Current assets:
Other short-term assets	$	8,120	$	(6,565)	$	1,555
Other assets:
Deferred income taxes		46,084		71,578		117,662
Other long-term assets		100		6,565		6,665
Total assets	$	2,438,350	$	71,578	$	2,509,928
Liabilities and shareholders’ deficit
Current liabilities:
Deferred income taxes	$	46,084	$	71,578	$	117,662
Total liabilities and shareholders’ deficit	$	2,438,350	$	71,578	$	2,509,928