Summary
Edwards Lifesciences Corporation (EW) has filed an 8-K report on February 27, 2012, to address a restatement of its previously issued financial statements for the first three quarters of 2011. The Audit Committee, in consultation with management and PricewaterhouseCoopers LLP, determined that technical errors in the balance sheets and cash flow statements necessitate this restatement. Specifically, the errors involve the classification between cash and cash equivalents and short-term investments, and the accounting treatment of excess tax benefits from stock plans. Importantly, the company emphasizes that these restatements do not affect its previously reported sales, net income, or earnings per share for the affected periods. The balance sheet items, including total assets and equity, remain unchanged except for the reclassification of certain items between cash and short-term investments. Investors should note that the detailed impact of these corrections is outlined in Note 20 of the Notes to Consolidated Financial Statements within the company's recently filed 2011 Form 10-K.
Key Highlights
- 1Edwards Lifesciences is restating its financial statements for the first three quarters of 2011.
- 2The restatement is due to technical errors in balance sheet and cash flow statement classifications.
- 3Errors pertain to the classification of cash/cash equivalents versus short-term investments.
- 4Errors also relate to the accounting treatment of excess tax benefits from stock plans.
- 5Crucially, there is no impact on previously reported sales, net income, or earnings per share.
- 6Total assets and equity remain unchanged, with only reclassifications within current assets noted.
- 7Full details of the restatement are provided in Note 20 of the company's 2011 Form 10-K.