Troy, MI, February 14--Kmart Holdings Inc. said it will restate most of its fiscal 2004 financial results to cover an accounting change related to a $60 million convertible note.
The company, which is in the process of purchasing Sears, said the change will result in noncash charges and will not impact cash flows in certain statements from fiscal 2004.
The note was used when the company emerged from bankruptcy earlier last year.
Kmart's restatement will shave $22 million, or 1 cent a share, to $2.15 a share off the profit for the 39-week period that ended Jan. 28, 2004. The change also cost the company $9 million in fiscal 2004 that did not affect per-share earnings.
The restatement was made after negotiations between Kmart and the Securities and Exchange Commission.
Kmart said it will pay about $11 billion to acquire Sears and restructure the organization under the Sears Holdings Inc. name.
