Improper accounting for items such as rebates from suppliers, tooling costs and retiree health care costs has prompted Visteon Corp. to reduce its earnings by a total of $132 million from 2000 through the third quarter of last year.
The money-losing auto supplier filed restated quarter and annual earnings reports with the Securities and Exchange Commission late Wednesday without making any announcement. Last week, Visteon agreed to another financial bailout with former parent Ford Motor Co.
In the filings, Visteon said: It changed how it accounted for rebates from suppliers. It now accounts for the rebates as reductions to long-term assets, instead of reduction to expenses. The change added about $11 million to Visteon's expenses. Costs for Visteon-owned tooling are now counted as long-term assets, not receivables. The change cut about $20 million from Visteon's earnings. It had changed its retiree health care benefits plan in January 2002 and January 2004, and also changed the expense charges for the plan. But it did not properly notify the affected employees, Visteon said, and was reversing the expense charge changes. It also had pension plan charges at one of its foreign locations. Total charges are about $69 million. It also had unrecorded expenses for a pension plan for employees that it cut in the United Kingdom. The charge cost Visteon about $9 million.
With the restated earnings, Visteon has lost a total of $3.19 billion since it was spun off from Ford in June 2000.
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