Business Context and Reporting Period
Company: Greatbatch, Inc. (Note: Metadata referenced Integer Holdings Corp, but filing text identifies Greatbatch, Inc.)
Filing Type: Form 8-K (Current Report)
Date of Report: February 10, 2006
Subject: Non-reliance on previously issued financial statements for the year 2004 due to a discovered error in the income tax provision.
Key Financial Metrics
The filing discloses specific adjustments to prior period results but does not provide current period revenue, cash flow, or debt metrics.
- 2004 Net Earnings Adjustment: Reduction of $2.0 million.
- 2004 Earnings Per Share (EPS) Adjustment: Reduction of $0.09 to a restated $0.66 per share.
- Revenue Impact: None.
- Cash Flow Impact: None.
- Tax Provision: Increased with a corresponding decrease in refundable income taxes.
Material Changes Versus Prior Period
The material change is a restatement of 2004 financial results. Management discovered an error related to the 2004 provision for income taxes during 2005 year-end control procedures. This error resulted in a previously overstated net earnings figure for 2004.
Guidance, Outlook, Risks, and Contingencies
- Internal Controls: The company previously identified a "material weakness" in internal controls over income tax accounting as of December 31, 2004. Enhanced year-end control procedures have been implemented, and management believes controls were effective as of December 31, 2005.
- Restatement Plan: The company intends to present restated 2004 financial statements in its 2005 Form 10-K, expected to be filed prior to March 15, 2006.
- Non-Reliance: Investors should not rely on the 2004 financial statements and related audit reports presented in the amended Form 10-K or interim Form 10-Qs for periods ended March 31, June 30, and September 30, 2005.
- Auditor Communication: Management and the Audit Committee have discussed these matters with Deloitte & Touche LLP.
Important Facts for Investor Verification
- Verify the upcoming 2005 Form 10-K filing (expected before March 15, 2006) for the restated 2004 financial statements.
- Confirm the corrected 2004 EPS of $0.66 per share in future filings.
- Review the company's disclosure regarding the remediation of the material weakness in tax accounting controls.
- Note that the error had no impact on cash flows or revenues, only on net earnings and tax provisions.