Also, as you’d expect by now, the amount involved was slight - $2.4 million or about 2% of the beginning balance of the retained earnings. In the end, it was mostly due to a reclass out of retained earnings ($7.2 million) into additional paid-in capital ($9.6 million). The difference between the two was the deferred tax asset effects.
CBL had “incorrectly recorded the realized tax return benefits of excess stock compensation deductions as reductions to income tax expense rather than as increases to additional paid-in capital and minority interest liability.” Net result of that kind of recording is to overstate retained earnings and understate paid-in capital. It’s the first instance noticed of this kind of error - but it still continues the string of SAB 108 positive corrections.
CBL 1-yr chart