SIOUX CITY, Iowa, Jan. 31 /PRNewswire-FirstCall/ --
Terra Industries Inc. (NYSE: TRA) reported that it has essentially
completed the work required to adopt Financial Accounting Standards Board
Statement of Financial Accounting Standard ("SFAS") No. 142, "Goodwill and
Other Intangible Assets." SFAS No. 142 provides that goodwill will be tested
for impairment on an annual basis using valuation criteria different than
those for accounting standards in effect prior to January 1, 2002. As a
result, Terra will write off $206 million of assets that had been classified
as "Excess of cost over net assets of acquired businesses" in Terra's
December 31, 2001 Statement of Financial Position. This charge will be
reported as the cumulative effect of an accounting change in Terra's 2002
first quarter financial statements. Terra anticipates no tax benefit
associated with the charge. The historical impact of amortizing this asset
was charges of $18.8 million, $18.6 million and $19.3 million for the years
ended December 31, 2001, 2000 and 1999, respectively.
Terra Industries Inc., with 2001 revenues of $1 billion, is a leading
international producer of nitrogen products and methanol.
Information contained in this news release, other than historical
information, may be considered forward-looking. Forward-looking information
reflects management's current views of future events and financial performance
that involve a number of risks and uncertainties. The factors that could
cause actual results to differ materially include, but are not limited to, the
following: changes in financial markets, general economic conditions within
the agricultural industry, competitive factors and price changes (principally
selling prices of nitrogen and methanol products and natural gas costs),
changes in product mix, changes in the seasonality of demand patterns, changes
in weather conditions, changes in governmental regulations and other risks
described in the "Factors That Affect Operating Results" section of Terra's
current annual report.
Note: Terra Industries' news announcements are also available on its web
site, http://www.terraindustries.com, and by fax at no charge by
calling 800-758-5804, code 437906.
SOURCE Terra Industries Inc.
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