Table 21: Selected Financial Data, 1996 1998

Appendix XVII

Sunbeam Corporation

Table 21: Selected Financial Data, 1996 1998

Dollars in millions

Fiscal year Fiscal year

First quarter fisca1

Affected financial data

1996

1997

year 1998

Net income (loss), as reported

$(228.3)

$109.4

$(44.6)

Net income (loss), as restated

(208.5)

38.3

(54.1)

Source: SEC filings.

The incorrectly reported numbers affected numerous accounts. Sunbeam

concluded, based upon its review, that for certain periods revenue was

incorrectly recognized (principally "bill and hold" and guaranteed sales

transactions), certain costs and allowances were not accrued or were

incorrectly recorded (principally allowances for sales returns, co-op

advertising, customer deductions and reserves for product liability and

warranty expense), and certain costs were incorrectly included in and

charged to restructuring, asset impairment and other costs.

Accounting/Audit Firm

Arthur Andersen was the independent auditor and wrote unqualified

opinions for Sunbeam, although Arthur Andersen's engagement partner,

Phillip Harlow, was allegedly aware of Sunbeam's accounting improprieties

and disclosure failures. On May 15, 2001, Mr. Harlow was charged with

fraud along with Sunbeam's former senior management team, led by Mr.

Albert J. Dunlap, chairman of the board. The suit is still pending. Details are

provided in the "Legal and Regulatory Actions Taken" section of this case.

Stock Price

Sunbeam stock was traded on the New York Stock Exchange (NYSE) under

the ticker symbol SOC. However, on February 6, 2001, NYSE suspended

trading of Sunbeam stock and subsequently delisted the company in 2001.

It currently trades over the counter as SOCNQ. On March 4, 1998, Sunbeam

stock hit a high of $52 per share (fig. 24). The stock price fell over 9 percent

on March 19 after Sunbeam issued a profit warning; then on April 3, 1998,

the stock price fell another 25 percent to $34 after Sunbeam issued a

second profit warning. The stock continued to fall through April and May

1998. Following a June 8, 1998, article in Barron's suggesting that Sunbeam

engaged in "accounting gimmickry," the reports of an SEC inquiry, and the

firing of Mr. Dunlap, the stock declined from over $20 per share to under

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GAO-03-138 Financial Restatements