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The AAO Weblog covers accounting issues and current events as they relate the practice of investment analysis.

 
 
Apr 22

Written by: Jack Ciesielski
4/22/2005 8:29 AM 

If you looked at this before 10:27 East Coast time, please take another look. The information about auditor changes has been pulled: please ignore it if you already saw it. It turns out that some of the auditor changes mentioned took place before the lease revision announcement. I hope to have it back next week in better form. And now... we return you to your regularly scheduled program.

Another Friday, another Lease Restater Roll Call...

Cumulative count through 4PM, Wednesday: 261. New faces in the line-up since last week include Dollar Tree, Goody's Family Clothing, KeyCorp, National City, Neiman Marcus, Regis Corp., RF Micro Devices, Sbarro, Sports Club Company, Stater Brothers Holdings, SuperValu, and Vimpelcom. The pattern remains pretty much intact: most new additions were retailers. But there was a little more variety than usual: two banks (KeyCorp, National City) and a health club operator (Sports Club Company). Award for outlier of the week goes to RF Micro Devices, the first semiconductor company to join the list. The firm's 8-K was spare on details about the nature of the lease corrections to be made.

Industry categories: 144 retailers, 58 in the hospitality industry, 15 in the wireless telecom business, 7 real estate enterprises, 5 in banking/finance, and an assorted 32 others comprised the 261 total companies.

Types of lease accounting errors: There were 155 instances of errors relating to rent holidays, 96 errors tied to construction allowances and 93 errors related to mismatch of lives or lease terms. (For a refresher on the different kinds of errors being reported, link here. For an explanation as to why "rent holiday" errors are most common, link here. )

Auditor headcount: When the lease accounting revisions were announced by firms, Deloitte & Touche were the auditors for 69 of them; Ernst & Young, the auditors for another 69 of them; PricewaterhouseCoopers was the auditor for 57 firms; KPMG, another 54 companies; BDO Seidman, 5 firms; Grant Thornton, 2 of the firms; and the remaining 5 firms were audited by non-national firms.

Human costs: At least one CFO has had enough. Outback Steakhouse's CFO retires after "lunacy over lease accounting took me past the breaking point," reports the San Jose Mercury.

Now, the main event: the 261 companies that have restated, made catch-up adjustments or are in the process of reviewing their accounting. The usual disclaimer: no assurances are given that this is the entire universe of lease-challenged companies; it's strictly a best-efforts attempt.










































Buca

Denny's

Harold's Stores

Macerich

Phillips-Van Heusen

Stein Mart

Buckle

Deutsche Telekom

Hastings Entertainment

Main Street Restaurant Group

Pier 1 Imports

Stride Rite

Buffalo Wings

Dick's Sporting Goods

Haverty Furniture

Marlin Business Services

Portola Packaging

SuperValu

Build-A-Bear Workshop

Diedrich Coffee

Healthcare Realty Trust

Marsh Supermarkets

Powell Industries

Talbots

Burlington Coat Factory

Dollar General

Heritage Commerce

May Department Stores

Ramco Gershenson

Target

Cache

Dollar Tree

Hersha Hospitality Trust

McCormick & Schmick's

Red Robin Gourmet Burgers

Texas Roadhouse

California Pizza Kitchen

Domino's

Hibbitt Sporting Goods

McDonald's

Regis

TJX Cos.

Cambrex

Dress Barn

Highwoods Properties

Men's Wearhouse

Restaurant Co.

Too

Carrol's

Duane Reade

Hollywood Entertainment

Michael's Stores

Restoration Hardware

Total Entertainment Restaurant

Cato

Duckwall-Alco Stores

Hot Topic

Monro Muffler Brake

RF Micro Devices

Toys 'R Us

CBRL Group

EGL

Hudson's Bay

Morgan Stanley

Richardson Electronics

Tractor Supply

CEC Entertainment

El Pollo Loco

Hypercom

Mother's Work

Rite Aid

Tuesday Morning

Ceridian

Electronics Boutique

IHOP

Movie Gallery

Ross Stores

Tully's Coffee

Champps Entertainment

Emeritus

Intelidata Technologies

National City

Rowe Companies (The)

U.S. Unwired

Charlotte Russe

Equinox Holdings

Internap Network Services

Navigant International

RTI International Metals

Ubiquitel

Charming Shoppes

eResearch Technology

Interpublic Group of Companies

Nebraska Book

Rubios Restaurants

United Retail Group

Cheesecake Factory

Ethan Allen

IWO Holdings

Neiman Marcus

Ruby Tuesday

Urban Outfitters

Chico's FAS

Family Dollar

J. Crew Group

New World Restaurant Group

S&K Famous Brands

Vicorp

Children's Place Retail Stores

Finish Line

J. Jill Group

New York & Company

Safeway

Vimpelcom

Christopher & Banks

Forzani

Jack in the Box

Nextel Partners

Saks

Walgreen

Cingular Wireless

Fossil

Jean Coutu Group (The)

Nordstrom

SBA Communications

Warnaco

Circuit City

Fred's

Jo-Ann Stores

O'Charley's

Sbarro

Watchguard Technologies

CKE Restaurants

Fresh Choice

Jos. A. Bank

O'Reilly Automotive

Sears

Wendy's

Claire's Stores

Friendly Ice Cream

Kaman

Office Depot

Select Comfort

West Marine

Coldwater Creek

Fuel-Tech N.V.

KeyCorp

Outback Steakhouse

Service Corporation International

Western Wireless

Connetics

GameStop

Kirkland's

P.F. Chang's China Bistro

Sharper Image

Whole Foods Market

Cosi

Gander Mountain

Kohl's

Pacific Sunwear

Shoe Pavillion

Wild Oats Markets

Cost Plus

GAP

Krispy Kreme Doughnuts

Panera Bread

Shopko Stores

Williams-Sonoma

Costco

General Growth Properties

Kroger

Papa Johns Int'l

Siebel Systems

Wilson The Leather Experts

Cousins Properties

Genesco

Landry's Restaurants

Pathmark Stores

Smith & Wollensky Restaurant Group

Worldwide Restaurant Concepts

Covansys

Global Signal

Leap Wireless International

Paxson Communications Corp.

Spectrasite

Yankee Candle Company

Crown Castle Int'l

GNC

Lightbridge

Payless ShoeSource

Sports Authority

Yum Brands

CSK Auto

Goody's Family Clothing

Limited Brands

Peet's Coffee & Tea

Sports Club Company (The)

Zale

CVS Corp.

Gottschalk's

Linens 'n Things

Pemco Aviation

Stage Stores

Darden Restaurants

Grande Communications

Lone Star Steakhouse

Penney (J.C.)

Star Buffet

Dave & Busters

Grill Concepts

Long's Drug Stores

Pep Boys Manny Moe & Jack

Starbucks

Deb Shops

Gymboree

Lowe's

PETCO Animal Supplies

Stater Brothers Holdings

Delhaize

Halliburton

Luby's

Petsmart

Steelcase

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