Summary
Newmont Corporation is filing a Current Report on Form 8-K to amend its previously filed Annual Report on Form 10-K for the year ended December 31, 2017. The primary purpose of this filing is to update financial statements and disclosures related to the adoption of a new accounting standard (ASU No. 2016-15) and to correct immaterial errors in prior accounting. These adjustments are being made voluntarily to provide updated information, even though existing regulations would allow for their correction in future filings. The most significant change involves the reclassification of certain cash flow items due to the adoption of ASU 2016-15, effective January 1, 2018. Specifically, $196 million related to the repayment of debt (accreted interest) is now classified as an operating activity instead of a financing activity. Additionally, $15 million and $6 million for 2017 and 2016 respectively, related to contingent consideration payments for acquisitions, have been reclassified from investing to operating activities. The company also corrected an immaterial error in its calculation of asset retirement and remediation liabilities, which had resulted in a slight understatement of these obligations and related expenses. These corrections, while deemed immaterial individually and in aggregate, are being provided for transparency and to update relevant sections of the 2017 Form 10-K.
Key Highlights
- 1Newmont is voluntarily updating its 2017 Form 10-K due to accounting standard adoption and error corrections.
- 2Adoption of ASU No. 2016-15 impacts the classification of cash flows.
- 3$196 million in debt repayment (accreted interest) is reclassified from financing to operating activities.
- 4Contingent acquisition payments ($15M in 2017, $6M in 2016) are reclassified from investing to operating activities.
- 5An immaterial error in asset retirement and remediation liability calculations has been corrected.
- 6The corrections are not considered material to previously reported financial condition or results of operations.
- 7This 8-K filing updates specific sections of the 2017 Form 10-K, including financial statements and MD&A, and can be incorporated into future filings.