Carbo Ceramics (CRRTQ) 10-Q 28 Apr 14 2014 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2014	Apr. 23, 2014
Document Information [Line Items]	'	'
Document Type	'10-Q	'
Amendment Flag	'false	'
Document Period End Date	31-Mar-14	'
Document Fiscal Year Focus	'2014	'
Document Fiscal Period Focus	'Q1	'
Trading Symbol	'CRR	'
Entity Registrant Name	'CARBO CERAMICS INC	'
Entity Central Index Key	'0001009672	'
Current Fiscal Year End Date	'--12-31	'
Entity Filer Category	'Large Accelerated Filer	'
Entity Common Stock, Shares Outstanding	'	23,102,178

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	Mar. 31, 2014	Dec. 31, 2013
In Thousands, unless otherwise specified
Current assets:	'	'
Cash and cash equivalents	$86,098	$94,250
Trade accounts and other receivables, net	107,036	125,179
Inventories:	'	'
Finished goods	98,175	87,218
Raw materials and supplies	41,813	47,042
Total inventories	139,988	134,260
Prepaid expenses and other current assets	4,706	5,442
Prepaid income taxes	'	1,888
Deferred income taxes	10,483	10,363
Total current assets	348,311	371,382
Property, plant and equipment:	'	'
Land and land improvements	31,225	31,163
Land-use and mineral rights	14,138	12,751
Buildings	72,425	72,702
Machinery and equipment	532,402	535,529
Construction in progress	145,191	109,735
Total	795,381	761,880
Less accumulated depreciation and amortization	291,762	283,345
Net property, plant and equipment	503,619	478,535
Goodwill	12,164	12,164
Intangible and other assets, net	18,633	16,870
Total assets	882,727	878,951
Current liabilities:	'	'
Accounts payable	23,985	24,570
Accrued payroll and benefits	5,959	13,650
Accrued freight	9,032	6,873
Accrued income taxes	6,367	'
Dividends payable	6,931	'
Other accrued expenses	10,939	11,595
Total current liabilities	63,213	56,688
Deferred income taxes	52,901	53,676
Shareholders' equity:	'	'
Preferred stock, par value $0.01 per share, 5,000 shares authorized, none outstanding	'	'
Common stock, par value $0.01 per share, 80,000,000 shares authorized; 23,102,178 and 23,080,632 shares issued and outstanding at March 31, 2014 and December 31, 2013, respectively	231	231
Additional paid-in capital	55,052	56,782
Retained earnings	717,669	714,835
Accumulated other comprehensive loss	-6,339	-3,261
Total shareholders' equity	766,613	768,587
Total liabilities and shareholders' equity	$882,727	$878,951

CONSOLIDATED_BALANCE_SHEETS_Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Mar. 31, 2014	Dec. 31, 2013
Preferred stock, par value	$0.01	$0.01
Preferred stock, share authorized	5,000	5,000
Preferred stock, share outstanding	'	'
Common stock, par value	$0.01	$0.01
Common stock, share authorized	80,000,000	80,000,000
Common stock, share issued	23,102,178	23,080,632
Common stock, share outstanding	23,102,178	23,080,632

CONSOLIDATED_STATEMENTS_OF_INC

CONSOLIDATED STATEMENTS OF INCOME (USD $)	3 Months Ended
In Thousands, except Per Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Revenues	$148,564	$147,657
Cost of sales	104,200	105,273
Gross profit	44,364	42,384
Selling, general, and administrative, and other operating expenses	16,953	16,993
Operating profit	27,411	25,391
Other income:	'	'
Interest income, net	171	185
Foreign currency exchange loss, net	-23	-12
Other, net	-56	-61
Nonoperating expense, total	92	112
Income before income taxes	27,503	25,503
Income taxes	9,076	7,926
Net income	$18,427	$17,577
Earnings per share:	'	'
Basic	$0.80	$0.76
Diluted	$0.80	$0.76
Other information:	'	'
Dividends declared per common share (See Note 4)	$0.60	$0.54

CONSOLIDATED_STATEMENTS_OF_COM

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Net income	$18,427	$17,577
Other comprehensive loss:	'	'
Foreign currency translation adjustment	-4,448	-695
Deferred income tax benefit	1,370	243
Other comprehensive loss, net of tax	-3,078	-452
Comprehensive income	$15,349	$17,125

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Operating activities	'	'
Net income	$18,427	$17,577
Adjustments to reconcile net income to net cash provided by operating activities:	'	'
Depreciation and amortization	11,803	11,908
Provision for doubtful accounts	89	25
Deferred income taxes	482	1,059
Excess tax benefits from stock based compensation	-372	-67
(Gain) loss on disposal or impairment of assets	-8	-2
Foreign currency transaction loss, net	23	12
Stock compensation expense	2,086	1,757
Changes in operating assets and liabilities:	'	'
Trade accounts and other receivables	17,701	-5,767
Inventories	-7,352	-6,893
Prepaid expenses and other current assets	680	-542
Long-term prepaid expenses	-1,927	855
Accounts payable	134	-1,276
Accrued expenses	-6,235	-7,727
Accrued income taxes, net	8,578	6,108
Net cash provided by operating activities	44,109	17,027
Investing activities	'	'
Capital expenditures	-38,908	-13,752
Net cash used in investing activities	-38,908	-13,752
Financing activities	'	'
Dividends paid	-6,945	-6,256
Purchase of common stock	-5,779	-3,671
Excess tax benefits from stock based compensation	372	67
Net cash used in financing activities	-12,352	-9,860
Effect of exchange rate changes on cash	-1,001	-253
Net decrease in cash and cash equivalents	-8,152	-6,838
Cash and cash equivalents at beginning of period	94,250	90,635
Cash and cash equivalents at end of period	86,098	83,797
Supplemental cash flow information	'	'
Interest paid	10	1
Income taxes paid	$16	$761

Basis_of_Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2014
Basis of Presentation	'
	1	Basis of Presentation
	The accompanying unaudited consolidated financial statements of CARBO Ceramics Inc. have been prepared in accordance with United States generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required for complete financial statements. In the opinion of management, all adjustments, consisting only of normal recurring adjustments, considered necessary for a fair presentation have been included. The results of the interim periods presented herein are not necessarily indicative of the results to be expected for any other interim period or the full year. The consolidated balance sheet as of December 31, 2013 has been derived from the audited financial statements at that date. These financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2013 included in the annual report on Form 10-K of CARBO Ceramics Inc. for the year ended December 31, 2013.
	The consolidated financial statements include the accounts of CARBO Ceramics Inc. and its operating subsidiaries (the “Company”). All significant intercompany transactions have been eliminated.

Earnings_Per_Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2014
Earnings Per Share	'
	2	Earnings Per Share
	The following table sets forth the computation of basic and diluted earnings per share under the two-class method:
			Three months ended
			March 31,
			2014			2013
	Numerator for basic and diluted earnings per share:
	Net income		$	18,427		$	17,577
	Effect of reallocating undistributed earnings of participating securities			(136	)		(117	)
	Net income available under the two-class method		$	18,291		$	17,460
	Denominator:
	Denominator for basic earnings per share—weighted-average shares			22,948,109			22,990,048
	Effect of dilutive potential common shares			—			—
	Denominator for diluted earnings per share—adjusted weighted-average shares			22,948,109			22,990,048
	Basic earnings per share		$	0.8		$	0.76
	Diluted earnings per share		$	0.8		$	0.76

Common_Stock_Repurchase_Progra

Common Stock Repurchase Program	3 Months Ended
	Mar. 31, 2014
Common Stock Repurchase Program	'
	3	Common Stock Repurchase Program
	On August 28, 2008, the Company’s Board of Directors authorized the repurchase of up to two million shares of the Company’s common stock. Shares are effectively retired at the time of purchase. During the three months ended March 31, 2014, the Company repurchased and retired 36,969 shares at an aggregate purchase price of $4,062. As of March 31, 2014, the Company has repurchased and retired 1,989,545 shares at an aggregate purchase price of $88,196.

Dividends_Paid

Dividends Paid	3 Months Ended
	Mar. 31, 2014
Dividends Paid	'
	4	Dividends Paid
	On January 21, 2014, the Board of Directors declared a cash dividend of $0.30 per common share payable to shareholders of record on February 3, 2014. The dividend was paid on February 18, 2014. On March 18, 2014, the Board of Directors declared a cash dividend of $0.30 per common share payable to shareholders of record on May 1, 2014. The dividend is payable on May 15, 2014 and is presented in Current Liabilities at March 31, 2014.

Stock_Based_Compensation

Stock Based Compensation	3 Months Ended
	Mar. 31, 2014
Stock Based Compensation	'
	5	Stock Based Compensation
	The CARBO Ceramics Inc. Omnibus Incentive Plan (the “Omnibus Incentive Plan”) provides for granting of cash-based awards, stock options (both non-qualified and incentive) and other equity-based awards (including stock appreciation rights, phantom stock, restricted stock, restricted stock units, performance shares, deferred share units or share-denominated performance units) to employees and non-employee directors. As of March 31, 2014, 451,226 shares were available for issuance under the Omnibus Incentive Plan.
	The Company has made restricted stock awards pursuant to the Omnibus Incentive Plan. A summary of restricted stock activity and related information for the three months ended March 31, 2014 is presented below:
			Shares			Weighted-
						Average
						Grant-Date
						Fair Value
	Nonvested at January 1, 2014			136,195		$	90.5
	Granted			73,785		$	112.19
	Vested			(53,152	)	$	97.08
	Forfeited			(279	)	$	112.96
	Nonvested at March 31, 2014			156,549		$	98.44
	As of March 31, 2014, there was $12,234 of total unrecognized compensation cost, net of estimated forfeitures, related to restricted shares granted under the Omnibus Incentive Plan. That cost is expected to be recognized over a weighted-average period of 2.3 years. The total fair value of shares vested during the three months ended March 31, 2014 was $5,160.
	The Company has made phantom stock awards to key international employees pursuant to the Omnibus Incentive Plan. The units subject to an award vest and cease to be forfeitable in equal annual installments over a three-year period. Participants awarded units of phantom shares are entitled to a lump sum cash payment equal to the fair market value of a share of Common Stock on the vesting date. In no event will Common Stock of the Company be issued with regard to outstanding phantom shares. As of March 31, 2014, there were 18,180 units of phantom shares granted under the Omnibus Incentive Plan, of which 9,397 have vested and 1,570 have been forfeited, with a total value of $995, a portion of which is accrued as a liability within Other Accrued Expenses.

Bank_Borrowings

Bank Borrowings	3 Months Ended
	Mar. 31, 2014
Bank Borrowings	'
	6	Bank Borrowings
	The Company has an unsecured revolving credit agreement with a bank. The credit agreement provides the Company with a revolving credit facility of $50,000 and expires on July 25, 2018. The Company has the option of choosing either the bank’s fluctuating Base Rate or LIBOR Fixed Rate, plus an Applicable Margin, all as defined in the credit agreement. The terms of the credit agreement provide for certain affirmative and negative covenants and require the Company to maintain certain financial ratios. Commitment fees are payable quarterly at an annual rate between 0.375% and 0.50% of the unused line of credit.

Foreign_Currencies

Foreign Currencies	3 Months Ended
	Mar. 31, 2014
Foreign Currencies	'
	7	Foreign Currencies
	As of March 31, 2014, the Company’s net investment that is subject to foreign currency fluctuations totaled $82,461 and the Company has recorded a cumulative foreign currency translation loss of $6,339, net of deferred income tax benefit. This cumulative translation loss is included in and is the only component of Accumulated Other Comprehensive Loss. There were no amounts reclassified to net income during the three months ended March 31, 2014.

Legal_Proceedings

Legal Proceedings	3 Months Ended
	Mar. 31, 2014
Legal Proceedings	'
	8	Legal Proceedings
	The Company is subject to legal proceedings, claims and litigation arising in the ordinary course of business. While the outcome of these matters is currently not determinable, management does not expect that the ultimate costs to resolve these matters will have a material adverse effect on the Company’s consolidated financial position, results of operations, or cash flows.
	On February 9, 2012, the Company and two of its officers, Gary A. Kolstad and Ernesto Bautista III, were named as defendants in a purported class-action lawsuit filed in the United States District Court for the Southern District of New York (the “February SDNY Lawsuit”), brought on behalf of shareholders who purchased the Company’s Common Stock between October 27, 2011 and January 26, 2012 (the “Relevant Time Period”). On April 10, 2012, a second purported class-action lawsuit was filed against the same defendants in the United States District Court for the Southern District of New York, brought on behalf of shareholders who purchased or sold CARBO Ceramics Inc. option contracts during the Relevant Time Period (the “April SDNY Lawsuit”, and collectively with the February SDNY Lawsuit, the “Federal Securities Lawsuit”). In June 2012, the February SNDY Lawsuit and the April SDNY Lawsuit were consolidated. The Federal Securities Lawsuit alleges violations of the federal securities laws arising from statements concerning the Company’s business operations and business prospects that were made during the Relevant Time Period and requests unspecified damages and costs. In September 2012, the Company and Messrs. Kolstad and Bautista filed a motion to dismiss this lawsuit. The motion to dismiss was granted, and the Federal Securities Lawsuit was dismissed without prejudice in June 2013. In September 2013, the plaintiffs filed a motion requesting leave to file a second amended complaint and sustain the lawsuit. In January 2014, the Court denied plaintiffs’ motion, and entered a judgment in favor of the Company and Messrs. Kolstad and Bautista. The plaintiffs did not timely appeal this judgment, and it has become final.
	On June 13, 2012, the Directors of the Company and Mr. Bautista were named as defendants in a purported derivative action lawsuit brought on behalf of the Company by a stockholder in District Court in Harris County, Texas (the “Harris County Lawsuit”). This lawsuit alleges various breaches of fiduciary duty and other duties by the defendants that generally are related to the Federal Securities Lawsuit, as well as a breach of duty by certain defendants in connection with stock sales. The lawsuit requests unspecified damages and costs, and had been further stayed, pending final resolution of the Federal Securities Lawsuit. Given the final judgment in the Federal Securities Lawsuit, the plaintiff in the Harris County Lawsuit agreed to dismiss this case. The lawsuit was dismissed without prejudice in March 2014.

Earnings_Per_Share_Tables

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2014
Computation of Basic and Diluted Earnings per Share under Two-Class Method	'
	The following table sets forth the computation of basic and diluted earnings per share under the two-class method:
		Three months ended
		March 31,
		2014			2013
	Numerator for basic and diluted earnings per share:
	Net income	$	18,427		$	17,577
	Effect of reallocating undistributed earnings of participating securities		(136	)		(117	)
	Net income available under the two-class method	$	18,291		$	17,460
	Denominator:
	Denominator for basic earnings per share—weighted-average shares		22,948,109			22,990,048
	Effect of dilutive potential common shares		—			—
	Denominator for diluted earnings per share—adjusted weighted-average shares		22,948,109			22,990,048
	Basic earnings per share	$	0.8		$	0.76
	Diluted earnings per share	$	0.8		$	0.76

Stock_Based_Compensation_Table

Stock Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2014
Summary of Restricted Stock Activity and Related Information	'
	A summary of restricted stock activity and related information for the three months ended March 31, 2014 is presented below:
		Shares			Weighted-
					Average
					Grant-Date
					Fair Value
	Nonvested at January 1, 2014		136,195		$	90.5
	Granted		73,785		$	112.19
	Vested		(53,152	)	$	97.08
	Forfeited		(279	)	$	112.96
	Nonvested at March 31, 2014		156,549		$	98.44

Computation_of_Basic_and_Dilut

Computation of Basic and Diluted Earnings per Share under Two-Class Method (Detail) (USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2013
Numerator for basic and diluted earnings per share:	'	'
Net income	$18,427	$17,577
Effect of reallocating undistributed earnings of participating securities	-136	-117
Net income available under the two-class method	$18,291	$17,460
Denominator:	'	'
Denominator for basic earnings per share-weighted-average shares	22,948,109	22,990,048
Effect of dilutive potential common shares	'	'
Denominator for diluted earnings per share-adjusted weighted-average shares	22,948,109	22,990,048
Basic earnings per share	$0.80	$0.76
Diluted earnings per share	$0.80	$0.76

Common_Stock_Repurchase_Progra1

Common Stock Repurchase Program - Additional Information (Detail) (USD $)	3 Months Ended	67 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2014	Mar. 31, 2014	Aug. 28, 2008
			Maximum
Equity, Class of Treasury Stock [Line Items]	'	'	'
Board of Directors authorized the repurchase of common stock	'	'	2,000,000
Repurchased and retired, shares	36,969	1,989,545	'
Repurchased and retired, aggregate purchase price	$4,062	$88,196	'

Dividends_Paid_Additional_Info

Dividends Paid - Additional Information (Detail) (USD $)	1 Months Ended		3 Months Ended
	Mar. 18, 2014	Jan. 21, 2014	Mar. 31, 2014	Mar. 31, 2013
Dividends Payable [Line Items]	'	'	'	'
Dividends declared per common share	$0.30	$0.30	$0.60	$0.54
Cash dividend, payment date	15-May-14	18-Feb-14	'	'
Cash dividend, record date	1-May-14	3-Feb-14	'	'
Cash dividend, declaration date	18-Mar-14	21-Jan-14	'	'

Stock_Based_Compensation_Addit

Stock Based Compensation - Additional Information (Detail) (Omnibus Incentive Plan, USD $)	3 Months Ended
In Thousands, except Share data, unless otherwise specified	Mar. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'
Shares available for issuance under the plan	451,226
Restricted Stock	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'
Unrecognized compensation expense, net	$12,234
Unrecognized compensation expense, net, weighted average period	'2 years 3 months 18 days
Total fair value of restricted stock vested	5,160
Phantom Share Units (PSUs)	'
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]	'
Vesting period	'3 years
Units granted	18,180
Units vested	9,397
Units forfeited	1,570
Total fair value of units outstanding	$995

Summary_of_Restricted_Stock_Ac

Summary of Restricted Stock Activity and Related Information (Detail) (Restricted Stock Units (RSUs), USD $)	3 Months Ended
	Mar. 31, 2014
Restricted Stock Units (RSUs)	'
Shares	'
Beginning Balance	136,195
Granted	73,785
Vested	-53,152
Forfeited	-279
Ending Balance	156,549
Weighted-Average Grant-Date Fair Value	'
Beginning Balance	$90.50
Granted	$112.19
Vested	$97.08
Forfeited	$112.96
Ending Balance	$98.44

Bank_Borrowings_Additional_Inf

Bank Borrowings - Additional Information (Detail) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014
Line of Credit Facility [Line Items]	'
Line of credit, maximum borrowing capacity	$50,000
Line of credit maturity date	25-Jul-18
Frequency of payments for commitment fees	'Quarterly
Minimum	'
Line of Credit Facility [Line Items]	'
Commitment fees on unused line of credit, percentage	0.38%
Maximum	'
Line of Credit Facility [Line Items]	'
Commitment fees on unused line of credit, percentage	0.50%

Foreign_Currencies_Additional_

Foreign Currencies - Additional Information (Detail) (USD $)	3 Months Ended
In Thousands, unless otherwise specified	Mar. 31, 2014	Dec. 31, 2013
Schedule of Foreign Currency Balance [Line Items]	'	'
Investment subject to foreign currency fluctuations	$82,461	'
Cumulative foreign currency translation loss, net of deferred income tax benefit	-6,339	-3,261
Amount reclassified to net income	$0	'

Legal_Proceedings_Additional_I

Legal Proceedings - Additional Information (Detail)	1 Months Ended	3 Months Ended
	Feb. 09, 2012	Mar. 31, 2014
	Defendant
Harris County Lawsuit	'	'
Loss Contingencies [Line Items]	'	'
Law suit filing date	'	'On June 13, 2012, the Directors of the Company and Mr. Bautista were named as defendants in a purported derivative action lawsuit brought on behalf of the Company by a stockholder in District Court in Harris County, Texas (the "Harris County Lawsuit").
Name of defendant	'	'The Directors of the Company and Mr. Bautista
Name of plaintiff	'	'Stockholder in District Court in Harris County, Texas
Laws affected	'	'This lawsuit alleges various breaches of fiduciary duty and other duties by the defendants that generally are related to the Federal Securities Lawsuit, as well as a breach of duty by certain defendants in connection with stock sales. The lawsuit requests unspecified damages and costs
Federal Securities Lawsuit	'	'
Loss Contingencies [Line Items]	'	'
Name of defendant	'	'The Company and Messrs. Kolstad and Bautista
Laws affected	'	'The Federal Securities Lawsuit alleges violations of the federal securities laws arising from statements concerning the Companybs business operations and business prospects that were made during the Relevant Time Period and requests unspecified damages and costs.
April SDNY Lawsuit	'	'
Loss Contingencies [Line Items]	'	'
Law suit filing date	'	'On April 10, 2012, a second purported class-action lawsuit was filed against the same defendants in the United States District Court for the Southern District of New York, brought on behalf of shareholders who purchased or sold CARBO Ceramics Inc. option contracts during the Relevant Time Period (the bApril SDNY Lawsuitb, and collectively with the February SDNY Lawsuit, the bFederal Securities Lawsuitb).
Name of defendant	'	'The Company and two of its officers, Gary A. Kolstad and Ernesto Bautista III
Name of plaintiff	'	'Shareholders who purchased or sold CARBO Ceramics Inc. option contracts during the Relevant Time Period
Suit Consolidation	'	'In June 2012, the February SNDY Lawsuit and the April SDNY Lawsuit were consolidated.
Actions Taken by Defendant	'	'In September 2012, the Company and Messrs. Kolstad and Bautista filed a motion to dismiss this lawsuit. The motion to dismiss was granted, and the Federal Securities Lawsuit was dismissed without prejudice in June 2013. In September 2013, the plaintiffs filed a motion requesting leave to file a second amended complaint and sustain the lawsuit. In January 2014, the Court denied plaintiffsb motion, and entered a judgment in favor of the Company and Messrs. Kolstad and Bautista. The plaintiffs did not timely appeal this judgment, and it has become final.
Laws affected	'	'The Federal Securities Lawsuit alleges violations of the federal securities laws arising from statements concerning the Companybs business operations and business prospects that were made during the Relevant Time Period and requests unspecified damages and costs.
February SDNY Lawsuit	'	'
Loss Contingencies [Line Items]	'	'
Law suit filing date	'	'On February 9, 2012, the Company and two of its officers, Gary A. Kolstad and Ernesto Bautista III, were named as defendants in a purported class-action lawsuit filed in the United States District Court for the Southern District of New York (the "February SDNY Lawsuit"), brought on behalf of shareholders who purchased the Company's Common Stock between October 27, 2011 and January 26, 2012 (the "Relevant Time Period").
Name of defendant	'	'The Company and two of its officers, Gary A. Kolstad and Ernesto Bautista III
Name of plaintiff	'	'Shareholders who purchased the Company's Common Stock between October 27, 2011 and January 26, 2012
Number of officers named as defendants	2	'
Suit Consolidation	'	'In June 2012, the February SNDY Lawsuit and the April SDNY Lawsuit were consolidated.
Actions Taken by Defendant	'	'In September 2012, the Company and Messrs. Kolstad and Bautista filed a motion to dismiss this lawsuit. The motion to dismiss was granted, and the Federal Securities Lawsuit was dismissed without prejudice in June 2013. In September 2013, the plaintiffs filed a motion requesting leave to file a second amended complaint and sustain the lawsuit. In January 2014, the Court denied plaintiffsb motion, and entered a judgment in favor of the Company and Messrs. Kolstad and Bautista. The plaintiffs did not timely appeal this judgment, and it has become final.
Laws affected	'	'The Federal Securities Lawsuit alleges violations of the federal securities laws arising from statements concerning the Companybs business operations and business prospects that were made during the Relevant Time Period and requests unspecified damages and costs.