Symantec Settles One IRS Matter for $36 Million11 June 2006
Symantec Corp. (NASDAQ: SYMC) today announcedthat it has reached an agreement in principle with the Internal RevenueService to settle the outstanding claim concerning the audit of thecompany's 2003 and 2004 fiscal years. The company expects to settle thisoutstanding tax obligation for $36 million, excluding interest, compared tothe original IRS assessment of approximately $100 million. The companyanticipates that it will finalize the settlement with the IRS by the end ofJune 2006.
On April 17, 2006, Symantec disclosed that the company received notices ofproposed adjustment from the IRS in connection with an ongoing audit ofSymantec's 2003 and 2004 fiscal years. The IRS claimed that the companyowed an incremental tax liability of approximately $100 million, excludingpenalties and interest, primarily related to transfer pricing mattersbetween Symantec and a foreign subsidiary.
The company expects that this cash settlement will be reflected on the Junequarter balance sheet. In addition, the company's recently filed Form 10-Kreflects appropriate accruals to cover the settlement.
Symantec continues to appeal a separate IRS claim also announced on April17, 2006 concerning the IRS exam of the 2000 and 2001 tax years for VeritasSoftware Corp., which the company acquired in July 2005.
About Symantec
Symantec is the world leader in providing solutions to help individuals andenterprises assure the security, availability, and integrity of theirinformation. Headquartered in Cupertino, Calif., Symantec has operationsin more than 40 countries. More information is available atwww.symantec.com.
NOTE TO EDITORS: If you would like additional information on SymantecCorporation and its products, please visit the Symantec News Room athttp://www.symantec.com/news. All prices noted are in U.S. dollars and arevalid only in the United States.
Symantec and the Symantec Logo are trademarks or registered trademarks ofSymantec Corporation or its affiliates in the U.S. and othercountries. Other names may be trademarks of their respective owners.
FORWARD-LOOKING STATEMENTS: This press release contains statements whichmay be considered forward-looking within the meaning of the U.S. federalsecurities laws, including statements relating to the anticipatedresolution of the IRS matter described in this press release. Thesestatements are subject to known and unknown risks, uncertainties and otherfactors that may cause our actual results to differ materially from thoseexpressed or implied in this press release, including the risk that thecompany and the IRS will be unable to reach final settlement. Additionalinformation concerning these and other risk factors is contained in theRisk Factors section of Symantec's Form 10-K for the fiscal year endedMarch 31, 2006. Symantec assumes no obligation to update anyforward-looking information contained in this press release.
MEDIA CONTACT:Genevieve HaldemanSymantec Corporation408-517-7642glhaldeman@symantec.com
INVESTOR CONTACT:Helyn CorcosSymantec Corporation408-517-8324hcorcos@symantec.com
SOURCE: Symantec
Source: marketwire
All trademarks and copyrighted information contained herein are the property of their respective owners.
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