NOTE 3—RESTATEMENTS

In the fourth quarter of fiscal 2011 the Company recorded non-cash impairment charges totaling $471.4 related to intangible assets in the Branded Cereal Products segment (included in discontinued operations). These charges consisted of a goodwill impairment of $364.8 and trademark impairment charges of $106.6 (primarily related to the Honey Bunches of Oats, Post Selects, and Post trademarks). In May of 2012, the Company determined that the goodwill impairment calculation performed in the fourth quarter of fiscal 2011 resulting in the $364.8 non-cash impairment charge excluded certain deferred taxes when determining the fair value of the net assets of the Branded Cereal Products segment. The exclusion of certain deferred taxes from the impairment computation resulted in the fourth quarter impairment charge being understated by $54.0. The impairment charge is not deductible for tax purposes and therefore, it does not impact income tax expense. The Company has restated its consolidated financial statements as of and for the year ended September 30, 2011 and its condensed consolidated financial statements as of December 31, 2011 to reflect an additional non-cash goodwill impairment charge of $54.0 during the fourth quarter of fiscal 2011 and corresponding reduction in goodwill for its former Branded Cereal Products segment. The effects of the restatement adjustment on the September 30, 2011 consolidated balance sheet as previously reported and the impact of recasting the restated amounts for discontinued operations (see Note 4) are listed in the following table. Amounts affected by the restatement adjustment have been labeled as restated in the accompanying statements and notes.


	September 30, 2011
	Previously Reported		Restatement Adjustment			Corrected		Recast Adjustment			Currently Reported
Consolidated Balance Sheet
Goodwill	$	2,590.1	$	(54.0	)	$	2,536.1	$	(1,375.2	)	$	1,160.9
Total assets		6,333.2		(54.0	)		6,279.2		—			6,279.2
Retained earnings		1,080.9		(54.0	)		1,026.9		—			1,026.9
Total shareholders' equity		2,619.2		(54.0	)		2,565.2		—			2,565.2
Total liability and shareholders' equity		6,333.2		(54.0	)		6,279.2		—			6,279.2

In connection with the preparation of the restated financial statements, the Company identified additional errors in the footnotes to the financial statements related to the condensed financial statements of guarantors included in Note 17 of the originally filed March 31, 2011 Quarterly Report on Form 10-Q. These errors do not impact the Company's consolidated balances and amounts. See Note 19 for additional information on the impact of these errors and the restatement of the condensed financial statements of guarantors.