Ralcorp to File Amended Financial Statements
Ralcorp Holdings, Inc. (NYSE: RAH) today announced that it will restate the previously issued fiscal 2011 financial statements contained in its Annual Report on Form 10-K for the fiscal year ended September 30, 2011 and the first quarter fiscal 2012 financial statements contained in its Quarterly Report on Form 10-Q for the fiscal quarter ended December 31, 2011. The restatements relate to the non-cash goodwill impairment charges associated with the Post brand cereal business, which was spun-off to Ralcorp shareholders on February 3, 2012.
The previously disclosed $364.8 million non-cash goodwill impairment charge, which related to the Post brand cereal business, was originally recorded in the fourth quarter of fiscal 2011. Recently, in finalizing the accounting for the separation of the Post brand cereal business, the company identified an error in the amount of deferred tax liabilities used in its fourth quarter 2011 goodwill impairment analysis. As a result of this error, the net book value of the net assets associated with the Post brand cereal business was understated and, as a result, the impairment that was recorded in the fourth quarter of fiscal 2011 was also understated. The company concluded that an additional impairment charge of approximately $54 million should have been reflected in the fourth quarter of fiscal 2011.
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