AKRON (Jan. 3, 2005) — Goodyear has notified the Securities and Exchange Commission it continues to work on its amended 2003 annual report. Its 2004 annual report potentially could be delayed as a result.
The latest adjustment to the 2003 report involves reaching agreement with South Pacific Tyres (SPT) – a joint venture in Australia – covering the proper treatment for a transaction.
Goodyear said Dec. 30 the amount in question is about $8 million relating to a 10-year supply agreement between Goodyear and SPT. The financial statements for SPT are prepared according to Australian accounting principles and then adjusted to U.S. guidelines, Goodyear said.
Goodyear's partner in SPT is Ansell Ltd. (formerly Pacific Dunlop Ltd.)
The tire maker in November said it was amending the 2003 report to include additional financial disclosures related to certain affiliates. The report also would include a restatement of the company's prior-period financial statements, including its first and second quarter 2004 reports, to reflect after-tax expense adjustments of about $4.6 million.
Goodyear said the resolution of the problem could either have no impact on previous financial results or it could all count as a pre-tax expense in 2000 instead of being amortized over 10 years.
The company also said other items that could have an impact on its profits or losses in prior periods could be identified during this review.
Goodyear did not give a timeline for filing the 2003 report or whether the 2004 report also will be delayed.