Summary
This 8-K filing by priceline.com Incorporated (now Booking Holdings Inc.) on March 3, 2008, announces a restatement of previously issued consolidated financial statements for fiscal years 2006 and 2005, and interim periods in 2007 and 2006. The restatement is due to a classification error related to the presentation of minority interest in its international subsidiary, priceline.com International Limited. Specifically, transactions involving shares held by minority interest were incorrectly classified as "Financing Activities" instead of "Investing Activities" in the cash flow statements. Additionally, minority interest was presented as a liability on the balance sheet when it should have been in the mezzanine section between liabilities and equity.
Key Highlights
- 1Priceline.com Incorporated will restate financial statements for FY 2006, FY 2005, and interim periods of 2007 and 2006.
- 2The restatement addresses a classification error regarding minority interest in the priceline.com International Limited subsidiary.
- 3Transactions involving minority interest shares were misclassified as Financing Activities instead of Investing Activities on the cash flow statements.
- 4Minority interest was incorrectly presented as a liability on the balance sheet, rather than in the mezzanine section.
- 5The restatement does not impact the Company's Statements of Operations (income statements).
- 6The restatement does not affect total assets, total liabilities, total stockholders' equity, total net cash flows, or cash balances previously reported.
- 7The classification error resulted in a reduction of total liabilities by approximately $22.5 million as of December 31, 2006.