filed Friday for an extension on its quarterly report as it considers new regulatory guidance that could force a restatement of past numbers.
The Seattle-based coffee giant said it sought a five-day extension on its 10-Q due this afternoon with the
Securities and Exchange Commission
. The company said the filing will give it till next Wednesday to post fiscal first-quarter numbers with the agency.
Starbucks said it sought the delay in light of the agency staff's Feb. 7 guidance on operating lease accounting issues. Starbucks said the agency's comments indicate that Starbucks' past treatment of those issues, while "commonly utilized by a number of prominent restaurant and other retail companies," was incorrect.
The company said the changes in its books will revolve around accounting for tenant improvement allowances and rent holidays. Starbucks said any changes in its first-quarter earnings due to the revised accounting treatment won't be material. Last month Starbucks posted a 31% gain in first-quarter profit.
Starbucks also indicated it "has not yet reached a final decision as to whether these matters will require a restatement of prior period financial statements, but believes that a restatement is likely. If so, the company believes that for rent holidays there would be a reduction in beginning retained earnings in fiscal 2002 and subsequent immaterial increases in reported net earnings for fiscal years 2002 through 2004. In addition, for tenant improvement allowances there would be corrections similar to those previously described."
Early Friday, Starbucks fell 56 cents to $49.62.