Timberland announces financial restatement
The Timberland Company announced Wednesday that the company will be restating financial information for statements issued between fiscal 2001 and 2006. First quarter 2007 results will not be released until the restatement is complete.
According to Timberland officials, a recent review of financial statements for fiscal 2001 through 2006 “determined some technical requirements for accounting for derivative instruments and hedging activities were not met and should not be relied upon.”
Financial statements for 2004 to 2006 will be restated according to Timberland officials. Financial information will be restated for fiscal 2003 and 2002 and for each quarter in 2006 and 2005.
Despite the need for review, company officials indicate revenue, cash flow and liquidity will not be changed by the restatement and earnings will be reduced by less than $10 million.
The company also announced the acquisition of IPATH Footwear Inc., a developer of skate-boarding inspired footwear, apparel and accessories headquartered in California. The terms of the agreement have not been disclosed.
The Timberland Company, headquartered in Stratham, designs, manufactures and markets footwear, apparel and accessories for the outdoor enthusiast. —TRACIE STONE