Correction of Errors in Previously Reported Financial Statements

6 Months Ended

Jun. 30, 2012

Correction of Errors in Previously Reported Financial Statements [Abstract]

CORRECTION OF ERRORS IN PREVIOUSLY REPORTED FINANCIAL STATEMENTS

Note 2: CORRECTION OF ERRORS IN PREVIOUSLY REPORTED FINANCIAL STATEMENTS

In August 2012, management in our environmental segment conducted a physical count of inventory at its operations in Spain. Upon an evaluation of the results of that physical inventory, we determined that our inventory values as recorded were misstated and that these misstatements affected prior periods.

Our previously issued financial statements dating back to 2008 and prior years contain other errors which were not previously corrected as they were immaterial to our previously issued consolidated financial statements. We assessed the materiality of all the errors in accordance with SEC Staff Accounting Bulletin (“SAB”) No. 99, Materiality and in accordance with the rollover and iron curtain methods as described in SAB No. 108, Considering the Effects of Prior Year Misstatements in Current Year Financial Statements.

We concluded that these errors were individually and collectively immaterial to our previously issued financial statements. However, under SAB 108, we concluded that there is a reasonable possibility that our financial statements for the twelve months ended December 31, 2012 will be materially misstated if we correct the prior year errors in the current year. As a result, we decided to correct our prior year financial statements even though the errors are immaterial to the financial statements issued in those years. Under SAB 108, correcting prior year financial statements for immaterial errors does not require our previously filed reports to be amended; rather, SAB 108 allows these corrections to be made when we file our prior period consolidated financial statements in our 2012 Form 10-K.

For all periods including and between the twelve months ended December 31, 2008 and the three months ended March 31, 2012, these errors, when combined with the errors in our Spanish operations, decreased net income available to AMCOL shareholders by $2.7. Although there were several errors across various categories, we have summarized the errors into general categories and quantified the amount by which they increased (decreased) net income available to AMCOL shareholders as noted below:

• Spain – $2.8 decrease for errors associated with accounting for inventory and other items in our environmental segment’s Spanish operations;

• South Africa – $0.8 decrease for errors related to the accounting for the acquisition of mineral rights in our minerals and materials segment’s chromite operations in South Africa;

• Malaysia – $0.3 increase resulting from correcting errors in our oilfield services segment’s Malaysian operations, largely relating to improper recognition of expenses and errors in accounting for revenues;

• DongMing – adjustments to correct errors made in accounting for accounts payable in this China subsidiary;

• Tax – $0.2 increase resulting largely from inaccuracies in the accounting for income tax expense in our international operations; and

• $0.4 increase for other insignificant errors we have aggregated together.

Adjustments by category and increase (decrease) to Net income available to AMCOL sharesholders attributable to each category	Prior to 2009			Twelve Months Ended December 31,									Three Months Ended March 31, 2012			Total
				2009			2010			2011
Spain	$	-		$	(0.8	)	$	(0.6	)	$	(1.1	)	$	(0.3	)	$	(2.8	)
South Africa		-			(0.3	)		-			(0.5	)		-			(0.8	)
Malaysia		-			-			(0.4	)		0.7			-			0.3
DongMing		0.2			0.1			0.2			(0.5	)		-			-
Tax		(0.5	)		0.1			(1.2	)		1.5			0.3			0.2
Other		(0.3	)		(0.7	)		0.6			0.4			0.4			0.4
Total	$	(0.6	)	$	(1.6	)	$	(1.4	)	$	0.5		$	0.4		$	(2.7	)

Corrections to annual periods ended December 31, 2009, December 31, 2010 and 2011 and as of December 31, 2010 and 2011

The effect of correcting these errors on our condensed consolidated statements of operations for our years ended December 31, 2009, 2010 and 2011 is as follows:

				Year Ended December 31, 2009
				Adjustments
	Previously Reported			Spain			South Africa			DongMing			Tax			Other			Total			As Adjusted
Continuing Operations
Net sales	$	691.9		$	-		$	-		$	-		$	-		$	(3.7	)	$	(3.7	)	$	688.2
Cost of sales		505.6			0.7			0.5									(3.8	)		(2.6	)		503.0
Gross profit		186.3			(0.7	)		(0.5	)		-			-			0.1			(1.1	)		185.2
Selling, general and administrative expenses		133.4			0.3			0.1			(0.1	)					1.5			1.8			135.2
Operating profit		52.9			(1.0	)		(0.6	)		0.1			-			(1.4	)		(2.9	)		50.0
Other income (expense):
Interest expense, net		(12.2	)														0.2			0.2			(12.0	)
Other, net		(0.9	)														0.6			0.6			(0.3	)
		(13.1	)		-			-			-			-			0.8			0.8			(12.3	)
Income before income taxes and income (loss) from affiliates and joint ventures		39.8			(1.0	)		(0.6	)		0.1			-			(0.6	)		(2.1	)		37.7
Income tax expense (benefit)		5.3			(0.2	)		(0.1	)		-			(0.1	)		-			(0.4	)		4.9
Income before income (loss) from affiliates and joint ventures		34.5			(0.8	)		(0.5	)		0.1			0.1			(0.6	)		(1.7	)		32.8
Income (loss) from affiliates and joint ventures		0.1															(0.1	)		(0.1	)		-
Income (loss) from continuing operations		34.6			(0.8	)		(0.5	)		0.1			0.1			(0.7	)		(1.8	)		32.8
Discontinued Operations
Income (loss) on discontinued operations		0.3															-			-			0.3
Net income (loss)		34.9			(0.8	)		(0.5	)		0.1			0.1			(0.7	)		(1.8	)		33.1
Net income (loss) attributable to noncontrolling interests		0.1						(0.2	)								-			(0.2	)		(0.1	)
Net income (loss) attributable to AMCOL shareholders	$	34.8		$	(0.8	)	$	(0.3	)	$	0.1		$	0.1		$	(0.7	)	$	(1.6	)	$	33.2
Weighted average common shares outstanding		30.8																		30.8			30.8
Weighted average common and common equivalent shares outstanding		31.0																		31.0			31.0
Amounts attributable to AMCOL shareholders
Income from continuing operations, net of tax	$	34.5																	$	(1.6	)	$	32.9
Discontinued operations, net of tax		0.3																		-			0.3
Net income	$	34.8																	$	(1.6	)	$	33.2
Earnings per share attributable to AMCOL shareholders:
Basic earnings (loss) per share:
Continuing operations	$	1.12																	$	(0.05	)	$	1.07
Discontinued operations		0.01																		-			0.01
Net income	$	1.13																	$	(0.05	)	$	1.08
Diluted earnings (loss) per share:
Continuing operations	$	1.11																	$	(0.05	)	$	1.06
Discontinued operations		0.01																		-			0.01
Net income	$	1.12																	$	(0.05	)	$	1.07

	Year Ended December 31, 2010
				Adjustments
	Previously Reported			Spain			South Africa			Malaysia			DongMing			Tax			Other			Total			As Adjusted
Continuing Operations
Net sales	$	841.0		$	-		$	-		$	(0.6	)	$	-		$	-		$	(14.2	)	$	(14.8	)	$	826.2
Cost of sales		624.1			0.6															(12.7	)		(12.1	)		612.0
Gross profit		216.9			(0.6	)		-			(0.6	)		-			-			(1.5	)		(2.7	)		214.2
Selling, general and administrative expenses		146.9						(0.1	)					(0.3	)					(1.5	)		(1.9	)		145.0
Operating profit		70.0			(0.6	)		0.1			(0.6	)		0.3			-			(0.0	)		(0.8	)		69.2
Other income (expense):
Interest expense, net		(9.7	)																	0.1			0.1			(9.6	)
Other, net		1.2																		0.1			0.1			1.3
		(8.5	)		-			-			-			-			-			0.2			0.2			(8.3	)
Income before income taxes and income (loss) from affiliates and joint ventures		61.5			(0.6	)		0.1			(0.6	)		0.3			-			0.2			(0.6	)		60.9
Income tax expense (benefit)		19.4						0.1			(0.2	)		0.1			1.2			0.2			1.4			20.8
Income before income (loss) from affiliates and joint ventures		42.1			(0.6	)		-			(0.4	)		0.2			(1.2	)		(0.0	)		(2.0	)		40.1
Income (loss) from affiliates and joint ventures		(11.3	)																	0.2			0.2			(11.1	)
Income (loss) from continuing operations		30.8			(0.6	)		-			(0.4	)		0.2			(1.2	)		0.2			(1.8	)		29.0
Discontinued Operations
Income (loss) on discontinued operations		(0.9	)																	-			-			(0.9	)
Net income (loss)		29.9			(0.6	)		-			(0.4	)		0.2			(1.2	)		0.2			(1.8	)		28.1
Net income (loss) attributable to noncontrolling interests		(0.4	)																	(0.4	)		(0.4	)		(0.8	)
Net income (loss) attributable to AMCOL shareholders	$	30.3		$	(0.6	)	$	-		$	(0.4	)	$	0.2		$	(1.2	)	$	0.6		$	(1.4	)	$	28.9
Weighted average common shares outstanding		31.2																					31.2			31.2
Weighted average common and common equivalent shares outstanding		31.5																					31.5			31.5
Amounts attributable to AMCOL shareholders
Income from continuing operations, net of tax	$	31.2																				$	(1.4	)	$	29.8
Discontinued operations, net of tax		(0.9	)																				-			(0.9	)
Net income	$	30.3																				$	(1.4	)	$	28.9
Earnings per share attributable to AMCOL shareholders:
Basic earnings (loss) per share:
Continuing operations	$	1.00																				$	(0.04	)	$	0.96
Discontinued operations		(0.03	)																				-			(0.03	)
Net income	$	0.97																				$	(0.04	)	$	0.93
Diluted earnings (loss) per share:
Continuing operations	$	0.99																				$	(0.04	)	$	0.95
Discontinued operations		(0.03	)																				-			(0.03	)
Net income	$	0.96																				$	(0.04	)	$	0.92

	Year Ended December 31, 2011
				Adjustments
	Previously Reported			Spain			South Africa			Malaysia			DongMing			Tax			Other			Total			As Adjusted
Continuing Operations
Net sales	$	942.4		$	-		$	-		$	0.6		$	-		$	-		$	0.8		$	1.4		$	943.8
Cost of sales		689.5			1.2			0.3			-			-			-			(0.1	)		1.4			690.9
Gross profit		252.9			(1.2	)		(0.3	)		0.6			-			-			0.9			-			252.9
Selling, general and administrative expenses		165.2			0.1			-			(0.2	)		0.7			-			-			0.6			165.8
Operating profit		87.7			(1.3	)		(0.3	)		0.8			(0.7	)		-			0.9			(0.6	)		87.1
Other income (expense):
Interest expense, net		(11.5	)		-			-			-			-			-			0.2			0.2			(11.3	)
Other, net		0.2			-			-			-			-			-			-			-			0.2
		(11.3	)		-			-			-			-			-			0.2			0.2			(11.1	)
Income before income taxes and income (loss) from affiliates and joint ventures		76.4			(1.3	)		(0.3	)		0.8			(0.7	)		-			1.1			(0.4	)		76.0
Income tax expense (benefit)		21.8			(0.2	)		0.3			0.1			(0.2	)		(1.8	)		0.5			(1.3	)		20.5
Income before income (loss) from affiliates and joint ventures		54.6			(1.1	)		(0.6	)		0.7			(0.5	)		1.8			0.6			0.9			55.5
Income (loss) from affiliates and joint ventures		5.5												-			(0.3	)		0.1			(0.2	)		5.3
Income (loss) from continuing operations		60.1			(1.1	)		(0.6	)		0.7			(0.5	)		1.5			0.7			0.7			60.8
Discontinued Operations
Income (loss) on discontinued operations		(0.9	)																	(0.3	)		(0.3	)		(1.2	)
Net income (loss)		59.2			(1.1	)		(0.6	)		0.7			(0.5	)		1.5			0.4			0.4			59.6
Net income (loss) attributable to noncontrolling interests		0.1			-			(0.1	)		-			-			-			-			(0.1	)		-
Net income (loss) attributable to AMCOL shareholders	$	59.1		$	(1.1	)	$	(0.5	)	$	0.7		$	(0.5	)	$	1.5		$	0.4		$	0.5		$	59.6
Weighted average common shares outstanding		31.7																					31.7			31.7
Weighted average common and common equivalent shares outstanding		32.1																					32.1			32.1
Amounts attributable to AMCOL shareholders
Income from continuing operations, net of tax	$	60.0																				$	0.8		$	60.8
Discontinued operations, net of tax		(0.9	)																				(0.3	)		(1.2	)
Net income	$	59.1																				$	0.5		$	59.6
Earnings per share attributable to AMCOL shareholders:
Basic earnings (loss) per share:
Continuing operations	$	1.89																				$	0.03		$	1.92
Discontinued operations		(0.03	)																				(0.01	)		(0.04	)
Net income	$	1.86																				$	0.02		$	1.88
Diluted earnings (loss) per share:
Continuing operations	$	1.87																				$	0.02		$	1.89
Discontinued operations		(0.03	)																				(0.01	)		(0.04	)
Net income	$	1.84																				$	0.01		$	1.85

The effect of correcting these errors in our condensed consolidated balance sheets as of December 31, 2010 and 2011 is as follows:

ASSETS	December 31, 2010
			Adjustments
	Previously Reported		Spain			South Africa		Malaysia			DongMing		Tax		Other			Total			As Adjusted
Current assets:
Cash and cash equivalents	$	27.3	$	-		$	-	$	-		$	-	$	-	$	(0.5	)	$	(0.5	)	$	26.8
Accounts receivable, net		194.0		(0.4	)				(1.1	)						(2.4	)		(3.9	)		190.1
Inventories		107.5		(1.0	)											(0.9	)		(1.9	)		105.6
Prepaid expenses		12.6														0.4			0.4			13.0
Deferred income taxes		5.5														-						5.5
Income tax receivable		8.5														-						8.5
Other		6.2														-						6.2
Total current assets		361.6		(1.4	)		-		(1.1	)		-		-		(3.4	)		(5.9	)		355.7
Noncurrent assets:
Property, plant, equipment, and mineral rights and reserves:
Land		11.6														(0.7	)		(0.7	)		10.9
Mineral rights		51.4					13.6									-			13.6			65.0
Depreciable assets		454.4														(2.1	)		(2.1	)		452.3
		517.4		-			13.6		-			-		-		(2.8	)		10.8			528.2
Less: accumulated depreciation and depletion		256.9														(0.2	)		(0.2	)		256.7
		260.5		-			13.6		-			-		-		(2.6	)		11.0			271.5
Goodwill		70.9																				70.9
Intangible assets, net		42.6														(0.7	)		(0.7	)		41.9
Investment in and advances to affiliates and joint ventures		19.0														1.9			1.9			20.9
Available-for-sale securities		14.2														-						14.2
Deferred income taxes		7.6					1.6									-			1.6			9.2
Other assets		22.7							0.5							0.3			0.8			23.5
																-
Total noncurrent assets		437.5		-			15.2		0.5			-		-		(1.1	)		14.6			452.1
Total Assets	$	799.1	$	(1.4	)	$	15.2	$	(0.6	)	$	-	$	-	$	(4.5	)	$	8.7		$	807.8

LIABILITIES AND SHAREHOLDERS’ EQUITY	December 31, 2010
				Adjustments
	Previously Reported			Spain			South Africa			Malaysia			DongMing			Tax			Other			Total			As Adjusted
Current liabilities:
Accounts payable	$	53.2		$	-		$	-		$	-		$	(0.7	)				$	(1.1	)	$	(1.8	)	$	51.4
Accrued income taxes		4.1			(0.1	)					(0.2	)		0.2			1.2			(0.1	)		1.0			5.1
Accrued liabilities		55.2			0.1															(0.1	)					55.2
Total current liabilities		112.5			-			-			(0.2	)		(0.5	)		1.2			(1.3	)		(0.8	)		111.7
Noncurrent liabilities:
Long-term debt		236.2																		(0.5	)		(0.5	)		235.7
Pension liabilities		21.3																		-						21.3
Deferred compensation		8.7																		0.3			0.3			9.0
Deferred income tax		0.4						15.8									0.4			-			16.2			16.6
Other long-term liabilities		19.6																		(1.2	)		(1.2	)		18.4
Total noncurrent liabilities		286.2			-			15.8			-			-			0.4			(1.4	)		14.8			301.0
Shareholders’ Equity:
Common stock		0.3																		-						0.3
Additional paid in capital		95.1																		-						95.1
Retained earnings		283.2			(1.4	)		(0.3	)		(0.4	)		0.5			(1.6	)		(0.4	)		(3.6	)		279.6
Accumulated other comprehensive income (loss)		28.9						(0.1	)											(0.1	)		(0.2	)		28.7
Less: Treasury stock		(8.9	)																	-						(8.9	)
Total AMCOL shareholders’ equity		398.6			(1.4	)		(0.4	)		(0.4	)		0.5			(1.6	)		(0.5	)		(3.8	)		394.8
Noncontrolling interest		1.8						(0.2	)											(1.3	)		(1.5	)		0.3
Total equity		400.4			(1.4	)		(0.6	)		(0.4	)		0.5			(1.6	)		(1.8	)		(5.3	)		395.1
Total Liabilities and Shareholders’ Equity	$	799.1		$	(1.4	)	$	15.2		$	(0.6	)	$	-		$	-		$	(4.5	)	$	8.7		$	807.8

ASSETS	December 31, 2011
			Adjustments
	Previously Reported		Spain			South Africa		Malaysia			DongMing		Tax		Other			Total			As Adjusted
Current assets:
Cash and cash equivalents	$	23.7	$	-		$	-	$	-		$	-	$	-	$	-		$	-		$	23.7
Accounts receivable, net		206.8		(1.6	)				(0.7	)						0.3			(2.0	)	$	204.8
Inventories		146.6		(1.8	)		0.2									(0.2	)		(1.8	)		144.8
Prepaid expenses		15.7														-						15.7
Deferred income taxes		5.9														-						5.9
Income tax receivable		6.9														-						6.9
Other		6.7														(0.6	)		(0.6	)		6.1
Total current assets		412.3		(3.4	)		0.2		(0.7	)		-		-		(0.5	)		(4.4	)		407.9
Noncurrent assets:
Property, plant, equipment, and mineral rights and reserves:
Land		13.9																				13.9
Mineral rights		41.9					10.6									-			10.6			52.5
Depreciable assets		482.3														0.3			0.3			482.6
		538.1		-			10.6		-			-		-		0.3			10.9			549.0
Less: accumulated depreciation and depletion		275.5														-						275.5
		262.6		-			10.6		-			-		-		0.3			10.9			273.5
Goodwill		69.5																				69.5
Intangible assets, net		36.6														-						36.6
Investment in and advances to affiliates and joint ventures		26.4														-						26.4
Available-for-sale securities		3.8														-						3.8
Deferred income taxes		7.8					0.7									-			0.7			8.5
Other assets		23.7							0.7							-			0.7			24.4
Total noncurrent assets		430.4		-			11.3		0.7			-		-		0.3			12.3			442.7
Total Assets	$	842.7	$	(3.4	)	$	11.5	$	-		$	-	$	-	$	(0.2	)	$	7.9		$	850.6

LIABILITIES AND SHAREHOLDERS’ EQUITY	December 31, 2011
				Adjustments
	Previously Reported			Spain			South Africa			Malaysia			DongMing		Tax			Other			Total			As Adjusted
Current liabilities:
Accounts payable	$	56.4		$	-		$	-		$	-		$	-	$	-		$	0.1		$	0.1		$	56.5
Accrued income taxes		2.7			(0.3	)		0.1								0.1			(0.2	)		(0.3	)		2.4
Accrued liabilities		59.0			(0.8	)					(0.3	)							-			(1.1	)		57.9
Total current liabilities		118.1			(1.1	)		0.1			(0.3	)		-		0.1			(0.1	)		(1.3	)		116.8
Noncurrent liabilities:
Long-term debt		260.7																	-						260.7
Pension liabilities		34.8																	-						34.8
Deferred compensation		8.9																	-						8.9
Deferred income tax		0.8						12.6			-					-			0.1			12.7			13.5
Other long-term liabilities		19.2																	-						19.2
Total noncurrent liabilities		324.4			-			12.6			-			-		-			0.1			12.7			337.1
Shareholders’ Equity:
Common stock		0.3																	-						0.3
Additional paid in capital		94.5						(0.2	)										-			(0.2	)		94.3
Retained earnings		319.5			(2.5	)		(0.9	)		0.3					(0.1	)		0.1			(3.1	)		(316.4	)
Accumulated other comprehensive income (loss)		(14.9	)		0.2														(0.3	)		(0.1	)		(15.0	)
Less: Treasury stock		(3.4	)																-						(3.4	)
Total AMCOL shareholders’ equity		396.0			(2.3	)		(1.1	)		0.3			-		(0.1	)		(0.2	)		(3.4	)		392.6
Noncontrolling interest		4.2						(0.1	)										-			(0.1	)		4.1
Total equity		400.2			(2.3	)		(1.2	)		0.3			-		(0.1	)		(0.2	)		(3.5	)		396.7
Total Liabilities and Shareholders’ Equity	$	842.7		$	(3.4	)	$	11.5		$	-		$	-	$	-		$	(0.2	)	$	7.9		$	850.6

The correction of these errors had no effect on the previously reported amounts of operating, investing, and financing cash flows in our condensed consolidated statement of cash flows for the year ended December 31, 2009. The effect of correcting these errors in our condensed consolidated statements of cash flows for the years ended December 31, 2010 and 2011 is as follows:

	Year Ended December 31, 2010
	Previously Reported			Adjustments			As Adjusted
Net cash provided by (used in) operating activities	$	48.1		$	0.1		$	48.2
Net cash (used in) investing activities		(48.1	)		(0.6	)		(48.7	)
Net cash provided by (used in) financing activities		(0.8	)		-			(0.8	)
Effect of foreign currency rate changes on cash		0.4			-			0.4
Net increase (decrease) in cash and cash equivalents		(0.4	)		(0.5	)		(0.9	)
Cash and cash equivalents at beginning of period		27.7			-			27.7
Cash and cash equivalents at end of period	$	27.3		$	(0.5	)	$	26.8

	Year Ended December 31, 2011
	Previously reported			Adjustments			As Adjusted
Net cash provided by (used in) operating activities	$	38.6		$	0.2		$	38.8
Net cash (used in) investing activities		(54.7	)		0.5			(54.2	)
Net cash provided by (used in) financing activities		11.6			(0.2	)		11.4
Effect of foreign currency rate changes on cash		0.9			-			0.9
Net increase (decrease) in cash and cash equivalents		(3.6	)		0.5			(3.1	)
Cash and cash equivalents at beginning of period		27.3			(0.5	)		26.8
Cash and cash equivalents at end of period	$	23.7		$	-		$	23.7

With regards to our consolidated statement of comprehensive income for the year ended December 31, 2009, correcting these errors reduced total comprehensive income by $2.0, reflecting the $1.8 decrease to net income as previously discussed in addition to $0.2 of losses resulting from foreign currency translation.

With regards to our consolidated statement of comprehensive income for the year ended December 31, 2010, correcting these errors reduced total comprehensive income by $1.8 resulting from the $1.8 decrease to net income as previously discussed.

With regards to our consolidated statement of comprehensive income for the year ended December 31, 2011, correcting these errors increased total comprehensive income by $0.5, reflecting the $0.4 increase to net income as previously discussed in addition to $0.1 of income resulting from foreign currency translation.

With regards to our consolidated statements of equity, our retained earnings at January 1, 2009 decreased by $0.6 resulting from the decrease to net income attributable to AMCOL shareholders for the years prior to 2009.

Corrections to interim periods within 2011

The effect of correcting these errors in our condensed consolidated statements of operations for each of the three months ended March 31 and June 30, 2011 is as follows:

	Quarter Ended March 31, 2011
	Previously Reported			Adjustments																			As Adjusted
				Spain			South Africa			Malaysia		DongMing		Tax			Other			Total
Continuing Operations
Net sales	$	217.8		$	-		$	-		$	0.6	$	-	$	-		$	0.2		$	0.8		$	218.6
Cost of sales		160.1			0.3			0.1										(0.3	)		0.1			160.2
Gross profit		57.7			(0.3	)		(0.1	)		0.6		-		-			0.5			0.7			58.4
Selling, general and administrative expenses		39.1																-						39.1
Operating profit		18.6			(0.3	)		(0.1	)		0.6		-		-			0.5			0.7			19.3
Other income (expense):
Interest expense, net		(2.7	)															0.1			0.1			(2.6	)
Other, net		(0.4	)															-						(0.4	)
		(3.1	)		-			-			-		-		-			0.1			0.1			(3.0	)
Income before income taxes and income (loss) from affiliates and joint ventures		15.5			(0.3	)		(0.1	)		0.6		-		-			0.6			0.8			16.3
Income tax expense (benefit)		4.3						0.1			0.1				(0.5	)		(0.1	)		(0.4	)		3.9
Income before income (loss) from affiliates and joint ventures		11.2			(0.3	)		(0.2	)		0.5		-		0.5			0.7			1.2			12.4
Income (loss) from affiliates and joint ventures		1.1													(0.1	)		-			(0.1	)		1.0
Income (loss) from continuing operations		12.3			(0.3	)		(0.2	)		0.5		-		0.4			0.7			1.1			13.4
Discontinued Operations
Income (loss) on discontinued operations		(0.1	)															-						(0.1	)
Net income (loss)		12.2			(0.3	)		(0.2	)		0.5		-		0.4			0.7			1.1			13.3
Net income (loss) attributable to noncontrolling interests		-																-						-
Net income (loss) attributable to AMCOL shareholders	$	12.2		$	(0.3	)	$	(0.2	)	$	0.5	$	-	$	0.4		$	0.7		$	1.1		$	13.3
Weighted average common shares outstanding		31.5																			31.5			31.5
Weighted average common and common equivalent shares outstanding		32.0																			32.0			32.0
Amounts attributable to AMCOL shareholders
Income from continuing operations, net of tax	$	12.3																		$	1.1		$	13.4
Discontinued operations, net of tax		(0.1	)																		-			(0.1	)
Net income	$	12.2																		$	1.1		$	13.3
Earnings per share attributable to AMCOL shareholders:
Basic earnings (loss) per share:
Continuing operations	$	0.39																		$	0.03		$	0.42
Discontinued operations		-																			-			-
Net income	$	0.39																		$	0.03		$	0.42
Diluted earnings (loss) per share:
Continuing operations	$	0.38																		$	0.04		$	0.42
Discontinued operations		-																			-			-
Net income	$	0.38																		$	0.04		$	0.42

	Quarter Ended June 30, 2011
				Adjustments
	Previously Reported			Spain			South Africa			Malaysia		DongMing			Tax		Other			Total			As Adjusted
Continuing Operations
Net sales	$	242.8		$	-		$	-		$	-	$	-		$	-	$	0.3		$	0.3		$	243.1
Cost of sales		180.7			0.3			0.1										-			0.4			181.1
Gross profit		62.1			(0.3	)		(0.1	)		-		-			-		0.3			(0.1	)		62.0
Selling, general and administrative expenses		40.3											0.7					-			0.7			41.0
Operating profit		21.8			(0.3	)		(0.1	)		-		(0.7	)		-		0.3			(0.8	)		21.0
Other income (expense):
Interest expense, net		(2.8	)															0.1			0.1			(2.7	)
Other, net		0.5																-						0.5
		(2.3	)		-			-			-		-			-		0.1			0.1			(2.2	)
Income before income taxes and income (loss) from affiliates and joint ventures		19.5			(0.3	)		(0.1	)		-		(0.7	)		-		0.4			(0.7	)		18.8
Income tax expense (benefit)		5.9						0.1					(0.2	)				(0.1	)		(0.2	)		5.7
Income before income (loss) from affiliates and joint ventures		13.6			(0.3	)		(0.2	)		-		(0.5	)		-		0.5			(0.5	)		13.1
Income (loss) from affiliates and joint ventures		(0.1	)															-						(0.1	)
Income (loss) from continuing operations		13.5			(0.3	)		(0.2	)		-		(0.5	)		-		0.5			(0.5	)		13.0
Discontinued Operations
Income (loss) on discontinued operations		0.2																-						0.2
Net income (loss)		13.7			(0.3	)		(0.2	)		-		(0.5	)		-		0.5			(0.5	)		13.2
Net income (loss) attributable to noncontrolling interests		-																-						-
Net income (loss) attributable to AMCOL shareholders	$	13.7		$	(0.3	)	$	(0.2	)	$	-	$	(0.5	)	$	-	$	0.5		$	(0.5	)	$	13.2
Weighted average common shares outstanding		31.7																			31.7			31.7
Weighted average common and common equivalent shares outstanding		32.2																			32.2			32.2
Amounts attributable to AMCOL shareholders
Income from continuing operations, net of tax	$	13.5																		$	(0.5	)	$	13.0
Discontinued operations, net of tax		0.2																			-			0.2
Net income	$	13.7																		$	(0.5	)	$	13.2
Earnings per share attributable to AMCOL shareholders:
Basic earnings (loss) per share:
Continuing operations	$	0.42																		$	(0.01	)	$	0.41
Discontinued operations		0.01																			-			0.01
Net income	$	0.43																		$	(0.01	)	$	0.42
Diluted earnings (loss) per share:
Continuing operations	$	0.42																		$	(0.02	)	$	0.40
Discontinued operations		0.01																			-			0.01
Net income	$	0.43																		$	(0.02	)	$	0.41

The effect of correcting these errors in our condensed consolidated statement of operations for the six months ended June 30, 2011 is as follows:

	Six Months Ended June 30, 2011
				Adjustments
	Previously Reported			Spain			South Africa			Malaysia		DongMing			Tax			Other			Total			As Adjusted
Continuing Operations
Net sales	$	460.6		$	-		$	-		$	0.6	$	-		$	-		$	0.5		$	1.1		$	461.7
Cost of sales		340.8			0.6			0.2			-		-			-			(0.3	)		0.5			341.3
Gross profit		119.8			(0.6	)		(0.2	)		0.6		-			-			0.8			0.6			120.4
Selling, general and administrative expenses		79.4			-			-			-		0.7			-			-			0.7			80.1
Operating profit		40.4			(0.6	)		(0.2	)		0.6		(0.7	)		-			0.8			(0.1	)		40.3
Other income (expense):
Interest expense, net		(5.5	)		-			-			-		-			-			0.2			0.2			(5.3	)
Other, net		0.1			-			-			-		-			-			-			-			0.1
		(5.4	)		-			-			-		-			-			0.2			0.2			(5.2	)
Income before income taxes and income (loss) from affiliates and joint ventures		35.0			(0.6	)		(0.2	)		0.6		(0.7	)		-			1.0			0.1			35.1
Income tax expense (benefit)		10.2			-			0.2			0.1		(0.2	)		(0.5	)		(0.2	)		(0.6	)		9.6
Income before income (loss) from affiliates and joint ventures		24.8			(0.6	)		(0.4	)		0.5		(0.5	)		0.5			1.2			0.7			25.5
Income (loss) from affiliates and joint ventures		1.0			-			-			-		-			(0.1	)		-			(0.1	)		0.9
Income (loss) from continuing operations		25.8			(0.6	)		(0.4	)		0.5		(0.5	)		0.4			1.2			0.6			26.4
Discontinued Operations
Income (loss) on discontinued operations		0.1			-			-			-		-			-			-			-			0.1
Net income (loss)		25.9			(0.6	)		(0.4	)		0.5		(0.5	)		0.4			1.2			0.6			26.5
Net income (loss) attributable to noncontrolling interests		-			-			-			-		-			-			-			-			-
Net income (loss) attributable to AMCOL shareholders	$	25.9		$	(0.6	)	$	(0.4	)	$	0.5	$	(0.5	)	$	0.4		$	1.2		$	0.6		$	26.5
Weighted average common shares outstanding		31.6																				31.6			31.6
Weighted average common and common equivalent shares outstanding		32.1																				32.1			32.1
Amounts attributable to AMCOL shareholders
Income from continuing operations, net of tax	$	25.8																			$	0.6		$	26.4
Discontinued operations, net of tax		0.1																				-			0.1
Net income	$	25.9																			$	0.6		$	26.5
Earnings per share attributable to AMCOL shareholders:
Basic earnings (loss) per share:
Continuing operations	$	0.82																			$	0.02		$	0.84
Discontinued operations		-																				-			-
Net income	$	0.82																			$	0.02		$	0.84
Diluted earnings (loss) per share:
Continuing operations	$	0.81																			$	0.02		$	0.83
Discontinued operations		-																				-			-
Net income	$	0.81																			$	0.02		$	0.83

With regards to our condensed consolidated statement of comprehensive income for the three months ended March 31, 2011, correcting these errors increased total comprehensive income by $1.0, reflecting the $1.1 increase to net income as previously discussed in addition to $0.1 of losses resulting from foreign currency translation.

With regards to our condensed consolidated statement of comprehensive income for the three months ended June 30, 2011, correcting these errors reduced total comprehensive income by $0.6 resulting from the decrease to net income as previously discussed in addition to $0.1 of losses resulting from foreign currency translation.

With regards to our condensed consolidated statement of comprehensive income for the six months ended June 30, 2011, correcting these errors increased total comprehensive income by $0.4, reflecting the $0.6 increase to net income as previously discussed in addition to $0.2 of losses resulting from foreign currency translation.

The effect of correcting these errors in our condensed consolidated statements of cash flows for the three months ended March 31, 2011 and six months ended June 30, 2011 is as follows:

	Three Months Ended March 31, 2011									Six Months Ended June 30, 2011
	Previously Reported			Adjustments			As Adjusted			Previously Reported			Adjustments			As Adjusted
Net cash provided by (used in) operating activities	$	10.3		$	-		$	10.3		$	13.9		$	0.1		$	14.0
Net cash (used in) investing activities		(10.3	)		0.5			(9.8	)		(24.4	)		0.5			(23.9	)
Net cash provided by (used in) financing activities		(6.3	)		-			(6.3	)		0.4			(0.1	)		0.3
Effect of foreign currency rate changes on cash		0.2			-			0.2			0.7			-			0.7
Net increase (decrease) in cash and cash equivalents		(6.1	)		0.5			(5.6	)		(9.4	)		0.5			(8.9	)
Cash and cash equivalents at beginning of period		27.3			(0.5	)		26.8			27.3			(0.5	)		26.8
Cash and cash equivalents at end of period	$	21.2		$	-		$	21.2		$	17.9		$	-		$	17.9

Corrections to three months ended March 31, 2012

The effect of correcting these errors in our condensed consolidated statement of operations for the three months ended March 31, 2012 is as follows:

	Quarter Ended March 31, 2012
	Previously Reported			Adjustments																	As Adjusted
				Spain			South Africa			Malaysia		Tax			Other			Total
Continuing Operations
Net sales	$	235.8		$	-		$	-		$	-	$	-		$	(0.2	)	$	(0.2	)	$	235.6
Cost of sales		170.7			0.4			0.1								(0.2	)		0.3			171.0
Gross profit		65.1			(0.4	)		(0.1	)		-		-			-			(0.5	)		64.6
Selling, general and administrative expenses		43.6			(0.2	)										(0.1	)		(0.3	)		43.3
Operating profit		21.5			(0.2	)		(0.1	)		-		-			0.1			(0.2	)		21.3
Other income (expense):
Interest expense, net		(2.7	)													-						(2.7	)
Other, net		(2.1	)													(0.1	)		(0.1	)		(2.2	)
		(4.8	)		-			-			-		-			(0.1	)		(0.1	)		(4.9	)
Income before income taxes and income (loss) from affiliates and joint ventures		16.7			(0.2	)		(0.1	)		-		-			-			(0.3	)		16.4
Income tax expense (benefit)		4.8			0.1			(0.1	)				(0.3	)		(0.2	)		(0.5	)		4.3
Income before income (loss) from affiliates and joint ventures		11.9			(0.3	)		-			-		0.3			0.2			0.2			12.1
Income (loss) from affiliates and joint ventures		1.2														-						1.2
Income (loss) from continuing operations		13.1			(0.3	)		-			-		0.3			0.2			0.2			13.3
Discontinued Operations
Income (loss) on discontinued operations		(0.2	)													0.2			0.2			-
Net income (loss)		12.9			(0.3	)		-			-		0.3			0.4			0.4			13.3
Net income (loss) attributable to noncontrolling interests		0.1														-						0.1
Net income (loss) attributable to AMCOL shareholders	$	12.8		$	(0.3	)	$	-		$	-	$	0.3		$	0.4		$	0.4		$	13.2
Weighted average common shares outstanding		32.0																	32.0			32.0
Weighted average common and common equivalent shares outstanding		32.3																	32.3			32.3
Amounts attributable to AMCOL shareholders
Income from continuing operations, net of tax	$	13.0																$	0.2		$	13.2
Discontinued operations, net of tax		(0.2	)																0.2			-
Net income	$	12.8																$	0.4		$	13.2
Earnings per share attributable to AMCOL shareholders:
Basic earnings (loss) per share:
Continuing operations	$	0.41																$	-		$	0.41
Discontinued operations		(0.01	)																0.01			-
Net income	$	0.40																$	0.01		$	0.41
Diluted earnings (loss) per share:
Continuing operations	$	0.41																$	-		$	0.41
Discontinued operations		(0.01	)																0.01			-
Net income	$	0.40																$	0.01		$	0.41

With regards to our consolidated statement of comprehensive income for the three months ended March 31, 2012, correcting these errors increased total comprehensive income by $0.3, reflecting the $0.4 increase to net income as previously discussed in addition to $0.1 of losses resulting from foreign currency translation.

The effect of correcting these errors in our condensed consolidated statements of cash flows for the three months ended March 31, 2012 is as follows:

	Three Months Ended March 31, 2012
	Previously Reported			Adjustments			As Adjusted
Net cash provided by (used in) operating activities	$	20.6		$	0.3		$	20.9
Net cash (used in) investing activities		(15.3	)		(0.1	)		(15.4	)
Net cash provided by (used in) financing activities		(12.1	)		(0.2	)		(12.3	)
Net increase (decrease) in cash and cash equivalents		(6.8	)		-			(6.8	)
Cash and cash equivalents at beginning of period		23.7			-			23.7
Cash and cash equivalents at end of period	$	16.9		$	-		$	16.9