Gillette Restates Results for 1999, 2000

Gillette Co.provided revised income statements for 1999 and 2000, but said the accounting changes would have no impact on its overall profits. The revision reflects Boston-based Gillette’s adoption of accounting changes for sales incentives, a new oral care business segment and other internal adjustments. The changes took effect Jan. 1.

Last May, the Financial Accounting Standards Board’s Emerging Issues Task Force reached a consensus for recognizing certain sales incentives such as rebates, coupons and free products. Gillette said its adoption affects the classification of revenue and expenses in the income statement.

The change also allows Gillette to compare its 2001 performance to previous years, and does not change the company’s profit from operations. If the years 1998 through 2000 are adjusted, the impact on selling, general and administrative expenses would result in a reduction between $110 million and $130 million, Gillette said. In addition, the net sales figure is reduced by about $60 million to $80 million and cost of sales is increased by about $50 million.