GREENWICH, Conn. — United Rentals announced recently that it expects to restate its results to correct the accounting for six minor sale-leaseback transactions that occurred between December 2000 and March 2002. The company's preliminary estimate of the impact on previously reported pre-tax income for the four years ended Dec. 31, 2003 is as follows: a decrease of $12.2 million in 2000, a decrease of $19.4 million in 2001; and increases of $3.4 million and $18 million in 2002 and 2003, respectively.
The company also previously announced that it expects to restate its financial statements for the years 2000 through 2003 and the first nine months of 2004 to correct the expense associated with the self-insurance reserve. United estimates that this expense was underestimated by $40.7 million in the aggregate in 2001 and prior years; understated by $13.3 million in 2002; and overstated by $8.1 million and $38.5 million in 2003 and 2004 respectively.
United also will restate its financial statements for years prior to 2004 to correct the provision for income taxes, which was understated in 2002 and prior years, in the aggregate, by about $7.1 million; $10.4 million in 2003, and $0.2 million in 2004.
The company also intends to restate rental revenue. It has historically recognized equipment rental revenue based on the minimum amounts due and payable under the terms of its applicable rental contracts, rather than on a straight-line basis. It expects to report a $3.2 million increase to its previously reported 2001 rental revenue of $2,212.9 million ($2.2 billion). Its preliminary estimate calls for a $2.7 million decrease to its previously reported $2,154.7 million total for 2002; a $1.5 million decrease to its 2003 total of $2,177.5 million, and a $6.8 million decrease to its previously reported $2,302.2 million in 2004.
In other news, the company announced the appointments of James Milde as senior vice president and chief information officer, and Todd Helvie as vice president, tax and business development. Both positions are effective immediately.
Milde is responsible for the strategic leadership and oversight of the company's corporate and branch information technology operations. He has more than 20 years of senior management experience leading technology organizations and business operations. He has accomplished complex global initiatives, most recently at Sony Electronics as senior general manager and chief information officer; and at the Pepsi Bottling Group as senior vice president and chief information officer.
Helvie is responsible for United Rentals' corporate taxation and strategic acquisitions and divestitures. He has more than 13 years of senior management and legal experience, including directing treasury, risk, tax and acquisition functions for domestic and international corporations, most recently serving as senior vice president and treasurer for Delta Air Lines. Before that he was director of taxation for Pepsi-Cola Co.
Based in Greenwich, Conn., United Rentals is No. 1 on the RER 100.
