Xerox Corp said on Friday that it had found an accounting error that resulted in the understatement of its interest expense of up to $6 million over seven quarters. The miscalculation was found in a review process in the adoption of accounting rules and involves the calculation of interest expense related to a debt instrument and associated interest rate swap agreements.
It results in an after-tax understatement of non-cash interest expense in each of the four quarters of 2001 and for the first three quarters of 2002 totalling between $5 million and $6 million or less than 1% per share. In January it plans to restate its 2001 and 2002 financial statements to adjust for these items.
Earlier in 2002 Xerox settled a federal investigation into its accounting, paying a $10 million fine without admitting or denying wrongdoing and restating its finances.
23-Dec-2002
