Summary
United Rentals, Inc. (URI) has filed a Form 8-K to announce a restatement of its previously issued financial statements. This restatement is due to the reallocation of a portion of the purchase price for acquisitions made since July 1, 2001. Specifically, the company is moving expense recognition from goodwill (which is not amortized) to customer relationships (which are amortized). As a result of this accounting adjustment, investors are cautioned not to rely on the company's historical financial statements. The restated consolidated financial statements, reflecting these changes, are included in the company's Form 10-K filed concurrently. This decision was made by authorized officers and discussed with the independent accountants.
Key Highlights
- 1United Rentals is restating previously issued financial statements.
- 2The restatement involves reallocating purchase price from goodwill to customer relationships for acquisitions since July 1, 2001.
- 3Goodwill is not amortized, while customer relationships are amortized.
- 4Investors are advised not to rely on historical financial statements prior to the restatement.
- 5The updated consolidated financial statements are included in the Form 10-K filed on the same date.
- 6The determination to restate was made on March 29, 2006, and discussed with independent accountants.