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Disney restates 2001, 2002 earnings
Company cites "non-material human math error" as the reason behind restatement.
June 28, 2002: 7:40 PM EDT

NEW YORK (CNN/Money) - Walt Disney Co. on Friday amended financial filings with the Securities and Exchange Commission for the fiscal first and second quarters, saying it had made a math error.

The company said it had made errors in its income statements for the two quarters after it adjusted the numbers to account for a new accounting rule that requires companies to write down the value of their goodwill assets to reflect declines in value.

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The restatement boosted reported earnings per share for the company, but a spokesman called it a "non-material human math error" that does not affect the company's reported pro forma earnings -- which exclude certain charges -- cash flow or its balance sheet.

After the restatement, Disney (DIS: Research, Estimates) reported fiscal 2002 earnings of $613 million, or 29 cents per share, compared with a previously reported $358 million, or 17 cents.

The company restated 2000 earnings to $2.2 billion, or $1.03 per share, compared with a previously reported $1.6 billion, or 76 cents.

In the filing, Disney said it did not eliminate all of the goodwill and intangible asset charges associated with its Internet Group.

Under a recently accounting rule, called FAS 142, companies are required to write down their goodwill assets to reflect any permanent decline in value.  Top of page






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