Summary
Dollar General Corporation (DG) is filing an 8-K report on March 3, 2005, to announce that it must restate its financial statements for fiscal years 2000 through 2003. This restatement is due to a need to correct certain lease accounting practices, prompted by a recent clarification from the SEC regarding such matters. While the cumulative adjustments are considered material to the financial statements for the year ended January 28, 2005, the estimated adjustments for each individual prior year are not expected to be material on their own and will not impact current or future cash flows. Investors should note that this restatement means previously issued financial statements for the specified years should no longer be relied upon. The company has consulted with its Audit Committee and independent auditors, Ernst & Young LLP, regarding this matter. This filing primarily serves to inform stakeholders of this accounting adjustment and its implications, as disclosed in an accompanying press release.
Key Highlights
- 1Dollar General is restating financial statements for fiscal years 2000-2003.
- 2The restatement is required due to corrections in lease accounting practices.
- 3The need for restatement was triggered by a recent SEC clarification on lease accounting.
- 4Cumulative adjustments are material to the year ending January 28, 2005, but individual prior years' adjustments are not expected to be material.
- 5The accounting changes will not impact the company's current or future cash flows.
- 6Previously issued financial statements for fiscal years 2000-2003 should no longer be relied upon.
- 7The company has discussed these matters with its Audit Committee and Ernst & Young LLP.