Baxter International said in a Feb. 13 filing with the U.S. securities and exchange commission that it had overstated its income by $276 million for the last four years.
After conducting an internal probe, it found that it over-reported its income by $40 million in 2016, by $117 million in 2017, by $77 million in 2018 and by $42 million in the first half of 2019.
The company said the issue was with the foreign exchange rate it used in international transactions. The exchange rate wasn't in accordance with standard U.S. practice.
"It’s important to note that these misstatements of foreign exchange gains and losses are nonoperational in nature. This means they are unrelated to our core operations and business results," Baxter told Mass Device.
The company said it plans to file corrected financial statements by March 31.