Kmart expects no impact from restated earnings
December 10, 2002-- Home Textiles Today,
Troy, MI — Vowing that it won't impact the company's liquidity and progress in formulating a plan to emerge from Ch. 11, Kmart will restate its financial statements for prior fiscal years, as well as the first two quarters of 2002.
Kmart concluded that restating its financial statements for the prior periods was appropriate because the aggregate adjustment was material to its 2002 fiscal year results.
On a preliminary basis, the company believes that the net impact of the adjustments would be to decrease the company's net loss for the previously reported 26-week period ended July 30, 2002, by less than $100 million. The company anticipates that these adjustments would increase the previously reported net loss or decrease reported net income for the prior fiscal three years less than $100 million on an aggregate basis as compared to a previously reported aggregate net loss for this three-year period of approximately $2 billion.