Cummins Inc. said today that its non-cash accounts payable were understated by about $23 million before tax, which will cause a delay in filing its 10-K annual report for 2002 with the Securities and Exchange Commission (SEC).
Cummins said it is continuing to discuss this potential adjustment with SEC and the company's auditors, PricewaterhouseCoopers LLP, and is working closely with them to finalize the appropriate accounting treatment and the impact on its historical financial statements.
"We are taking this very seriously and are working with the SEC and PricewaterhouseCoopers to finalize the appropriate accounting treatment as quickly as possible," said chairman & CEO Tim Solso.
Cummins originally estimated the amount of the non-cash understatement of accounts payable to be in the range of $30 to $40 million in the aggregate over several years. However, after investigating this matter for the last two months, the company now believes the amount associated with this issue to be approximately $23 million pre-tax.
Solso said the company will file the Form 10-K as soon as practicable following the resolution of the discussions with the SEC.