Our lips are sealed…

November 28, 2003

When it comes to disclosing off-balance sheet arrangements, or variable interest entitities (VIEs), most companies have been going one of two routes: disclosing to their investors and placing the item back on their balance sheets, even though they’re not required to until next year, or telling investors that they’re still studying the issue. But air-conditioner company Fedders Corp. (FJC) has opted for a third way. In their K filed on Wednesday, the company says that it “is not reasonably probable that it will be required to consolidate or disclose information about a variable interest entity.” That’s a lawyered-up way of telling investors that their lips are sealed.

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