CarMax (KMX) Revised Financial Statements Between '95-'09 Amid Sale-Leaseback Accounting
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With its Q4 earnings report, CarMax (NYSE: KMX) also issued the following statement:
We have revised our previously issued consolidated financial statements to correct our accounting for sale-leasebacks entered into between 1995 and 2009. As a result of the revision, we have recorded certain properties subject to the sale-leasebacks as assets and the related sale proceeds as financing liabilities. Depreciation is being recognized on the assets. Payments on the leases are now recognized as interest expense and a reduction in the financing liabilities, rather than being recognized as rent expense. We have determined that our financial statements were not materially affected by the revision. As a result of the correction, reported net earnings per diluted share were reduced by $0.02 in both fiscal 2012 and fiscal 2011.
We have revised our previously issued consolidated financial statements to correct our accounting for sale-leasebacks entered into between 1995 and 2009. As a result of the revision, we have recorded certain properties subject to the sale-leasebacks as assets and the related sale proceeds as financing liabilities. Depreciation is being recognized on the assets. Payments on the leases are now recognized as interest expense and a reduction in the financing liabilities, rather than being recognized as rent expense. We have determined that our financial statements were not materially affected by the revision. As a result of the correction, reported net earnings per diluted share were reduced by $0.02 in both fiscal 2012 and fiscal 2011.
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