Cingular Wireless L.L.C. said it has changed its accounting for operating leases related to cell sites to conform to generally accepted accounting principals resulting in restated financial results for fiscal years 2000 through 2003 and the first three quarters of 2004. The carrier noted the restatements will result in a cumulative reduction in pre-tax earnings of $171 million, but will not impact cash flows, revenues, net subscriber additions or subscriber churn.
Cingular also said it would restate the financial statements of its network infrastructure venture with T-Mobile USA Inc. that ended earlier this year with T-Mobile USA acquiring Cingular’s California and Nevada networks for more than $2 billion.
The financial restatements will be included in Cingular’s 2004 10-K report scheduled to be filed next month.
In connection with the restatement, Cingular’s parent company BellSouth Corp. reported a pair of adjustments to its fourth-quarter 2004 earnings. The changes include a $70 million pre-tax adjustment to reduce its equity in earnings from Cingular and a reduction in earnings from continuing operations by 2 cents.
SBC Communications Inc. said it would trim fourth-quarter equity in net income by about $105 million.
