Accounting errors will cost Office Depot

DELRAY BEACH — Errors in booking revenue from vendors will cost Office Depot and force the company to restate earnings.

Office Depot said late Thursday that its audit committee completed a review of vendor programs accounting for the last three quarters and found that revenue from the program prematurely booked.

The company estimates that it will reduce diluted earnings per share by 2 cents for the third quarter of 2006; by 3 cents in the fourth quarter; by a penny in the first quarter of 2007 and by two cents in the second quarter of this year.

Office Depot also will take a charge of about 7 cents a share beginning in the second half of this year, and in decreasing amounts in future years through 2010.

The company said the errors “are non-cash adjustments to our previously reported results.”

It will file an amended annual report with the Securities and Exchange Commission for 2006 and amended filings for affected quarters.

The review, which stemmed from a whistleblower complaint, came to light last week when Office Depot delayed releasing third quarter results.

News of the review spawned several shareholder lawsuits.