CUPERTINO, Calif. -- Jun 09, 2006 -- Symantec Corp. (NASDAQ: SYMC) today announced that it has reached an agreement in principle with the Internal Revenue Service to settle the outstanding claim concerning the audit of the company's 2003 and 2004 fiscal years. The company expects to settle this outstanding tax obligation for $36 million, excluding interest, compared to the original IRS assessment of approximately $100 million. The company anticipates that it will finalize the settlement with the IRS by the end of June 2006.
On April 17, 2006, Symantec disclosed that the company received notices of proposed adjustment from the IRS in connection with an ongoing audit of Symantec's 2003 and 2004 fiscal years. The IRS claimed that the company owed an incremental tax liability of approximately $100 million, excluding penalties and interest, primarily related to transfer pricing matters between Symantec and a foreign subsidiary.
The company expects that this cash settlement will be reflected on the June quarter balance sheet. In addition, the company's recently filed Form 10-K reflects appropriate accruals to cover the settlement.
Symantec continues to appeal a separate IRS claim also announced on April 17, 2006 concerning the IRS exam of the 2000 and 2001 tax years for Veritas Software Corp., which the company acquired in July 2005.
Symantec is the world leader in providing solutions to help individuals and enterprises assure the security, availability, and integrity of their information. Headquartered in Cupertino, Calif., Symantec has operations in more than 40 countries. More information is available at www.symantec.com.
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FORWARD-LOOKING STATEMENTS: This press release contains statements which may be considered forward-looking within the meaning of the U.S. federal securities laws, including statements relating to the anticipated resolution of the IRS matter described in this press release. These statements are subject to known and unknown risks, uncertainties and other factors that may cause our actual results to differ materially from those expressed or implied in this press release, including the risk that the company and the IRS will be unable to reach final settlement. Additional information concerning these and other risk factors is contained in the Risk Factors section of Symantec's Form 10-K for the fiscal year ended March 31, 2006. Symantec assumes no obligation to update any forward-looking information contained in this press release.