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CARTERET, N.J. -- Pathmark Stores Inc. widened its bottom-line loss for the fourth quarter and year ended Jan. 29, after finding that it underestimated a goodwill impairment charge, the chain said last week.
An audit adjustment on the calculation of fair market value of assets and liabilities boosted the impairment charge to $302.6 million, or $10.06 a share, from $263.6 million, or $8.76 a share, according to a report from Dow Jones.
As a result of the revised charge, the loss for the fourth quarter ended Jan. 29 widened to $301.6 million, or $10.03 a share, from the $262.3 million, or $8.73 a share, previously reported.
For the most recent year, the company revised its loss estimate to $308.6 million, or $10.26 a share, wider than the loss of $269.3 million, or $8.96 a share, previously reported.
Pro forma results weren't affected, the company said.
An overhaul of the retailer's accounting procedures is in the works and it plans to monitor the effectiveness of its new protocols, Pathmark said in a press release Friday.
Pathmark found it lacked effective control over the year-end calculation of goodwill impairment and book overdraft accounting. The chain noted that these constitute material weaknesses under Section 404 of the Sarbanes-Oxley Act.