| Item 4.01. | Changes in Registrant’s Certifying Accountant. |
(a) Previous Independent Registered Public Accounting Firm
KPMG LLP (“KPMG”) was previously the principal accountant for Superior Energy Services, Inc. (the “Company”). On July 23, 2021, the Audit Committee (the “Audit Committee”) of the Board of Directors of the Company approved the dismissal of KPMG as the Company’s independent registered public accounting firm.
KPMG’s audit reports on the Company’s consolidated financial statements as of and for the fiscal years ended December 31, 2020 and 2019 did not contain any adverse opinion or disclaimer of opinion, nor were they qualified or modified as to uncertainty, audit scope or accounting principles. KPMG LLP’s reports on the consolidated financial statements of the Company as of and for the years ended December 31, 2020 and 2019, contained a separate paragraph stating that “As discussed in Note 3 to the consolidated financial statements, the Company changed its method of accounting for leases as of January 1, 2019 due to the adoption of ASU 2016-02, Leases.”
During the two fiscal years ended December 31, 2020, and the subsequent interim period through July 23, 2021, (1) there were no “disagreements” (as defined in Item 304(a)(1)(iv) of Regulation S-K and related instructions) between the Company and KPMG on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedure, which disagreements, if not resolved to the satisfaction of KPMG, would have caused KPMG to make reference to the subject matter of the disagreement in their reports to the Audit Committee on the consolidated financial statements for such years, and (2) there were no “reportable events” (as defined in Item 304(a)(1)(v) of Regulation S-K) except that KPMG advised the Company of a material weakness in the Company’s internal control of financial reporting related to the design of the Company’s control to engage the appropriate specialists to assist in evaluating the income tax consequences of complex non-routine transactions, such as the 2020 reorganization under Chapter 11 of the United States Bankruptcy Code.
The Company provided KPMG with a copy of the disclosure it is making herein in response to Item 304(a) of Regulation S-K, and requested that KPMG furnish the Company with a copy of its letter addressed to the Securities and Exchange Commission (the “SEC”), pursuant to Item 304(a)(3) of Regulation S-K, stating whether KPMG agrees with the statements made by the Company in this Current Report on Form 8-K (“Report”) in response to Item 304(a) and, if not, stating the respects in which KPMG does not agree. A copy of KPMG’s letter addressed to the SEC dated July 27, 2021 is attached as Exhibit 16.1 to this Report.
(b) New Independent Public Accounting Firm
On July 23, 2021, the Audit Committee approved the appointment of PricewaterhouseCoopers LLP (“PwC”) as the Company’s new independent registered public accounting firm to perform independent audit services for the fiscal year ending December 31, 2021.
During the fiscal years ended December 31, 2020 and 2019, and the subsequent interim period through July 23, 2021, the Company has not consulted with PwC regarding any of the matters described in Item 304(a)(2)(i) or 304(a)(2)(ii) of Regulation S-K.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits
