September 13, 2004
Reader's Digest Takes $27M Charge
Reader's Digest Association Inc., Pleasantville, NY, said last week that it will take a one-time charge of $27 million, or 17 cents per share, for the quarter ended June 30 because it began recording costs for magazine direct response promotions as they occur on July 1.
Previously it deferred and amortized certain magazine promotion costs.
The charge lowered its full-year earnings to 49 cents per share from a previously reported 66 cents.