Business Context and Reporting Period
Company: Ecolab Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: February 14, 2006
Subject: Regulation FD Disclosure regarding the adoption of SFAS 123(R) and restatement of prior period financial statements.
Key Financial Metrics
This filing does not report current period revenue, profit, cash flow, margins, debt, or liquidity figures. The document serves as a notification of accounting standard changes and the availability of restated historical data.
Material Changes Versus Prior Period
- Accounting Standard Adoption: Ecolab adopted SFAS 123(R), the new standard for expensing stock options, effective for the fourth quarter of 2005.
- Restatement Method: The company utilized the modified retrospective application method.
- Impact on Historical Data: All prior period financial statements have been restated to recognize share-based compensation expense that was previously reported only in the Notes to Consolidated Financial Statements.
Guidance, Outlook, and Management Commentary
Management Action: Ecolab has posted comparative operating segment information for the quarterly and interim year-to-date periods ended March 31, June 30, and September 30, 2005, on its investor website (www.ecolab.com/investor).
Exhibits: The restated information is also furnished as Exhibits (99)B through (99)D of this report. A news release regarding this disclosure is attached as Exhibit (99)A.
Risks and Contingencies: The filing text does not provide specific details on new risks or contingencies beyond the accounting transition.
Important Facts for Investor Verification
- Verify the specific impact of the SFAS 123(R) adoption on net income and earnings per share by reviewing the restated exhibits (99)B, (99)C, and (99)D.
- Confirm the updated share-based compensation expense figures in the restated historical periods compared to previously reported numbers.
- Review the news release (Exhibit 99)A for any additional management commentary on the transition process.