Office Depot to restate 2010 financials to $46 million loss

Boca Raton, Fla. -- Office Depot said it will restate its finances for the second and third quarters of fiscal 2010 as well as for the full fiscal year. The company said the U.S. Internal Revenue Service denied its claim for an $80 million benefit related to taxes.

The removal of the benefit, which had already been recorded in financial statements, will result in a loss for 2010 of $46 million. Previously the company said it earned $33 million.

In addition, the $63 million current tax receivable associated with the carryback amount will be removed from the balance sheet, resulting in an adverse impact to its 2011 operating cash flow.

“While we are disappointed to have to restate our 2010 financial results, it’s important to note that this restatement has no impact on our previously reported 2010 EBIT or EBITDA, and no net impact on 2010 cash flows,” Office Depot CFO Mike Newman said.

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