SAN DIEGO, Aug. 29, 2012 /PRNewswire/ -- CareFusion Corp. (NYSE: CFN) today notified the Securities and Exchange Commission (SEC) that it will delay filing its annual report on Form 10-K for the fiscal year ended June 30. Under SEC rules, the company will have a 15-day extension until Sept. 13 to complete the filing.
CareFusion will use the extension to consult with the SEC about the company's accounting policy for sales-type leases in its Pyxis® medication and supply dispensing product line, a policy CareFusion has consistently applied for more than 10 years. In connection with its year-end audit, the company was made aware of a potential alternative application of the accounting rules and thought it prudent to discuss the matter directly with the SEC prior to filing its Form 10-K.
"With more than 40 quarters using the same method, we believe our accounting is in accordance with GAAP and, in collaboration with our independent auditors, have voluntarily requested pre-clearance from the SEC prior to filing our Form 10-K," said Jim Hinrichs, chief financial officer. "If the SEC does not object to our accounting policy, we would expect to file our Form 10-K without any changes to the financial results reported on Aug. 9."
The alternative application of GAAP being discussed with the SEC would have the effect of increasing the amount of revenue recorded at the inception of each lease and decreasing the amount of revenue recorded over the life of each lease. Accounting for leases in this way would likely result in a modest increase in cumulative revenue and earnings, while the impact on any particular fiscal year may vary. In addition, this would result in an increase in the company's investment in sales-type leases on the balance sheet.