Computer Sciences will restate results from 6 years
Computer Sciences Corp. said Wednesday that it would book costs of as much as $400 million to correct six years of errors in tax accounting.
The mistakes apply to its fiscal years from 2000 to 2006 and are in addition to the $60-million expense for stock options that the company already disclosed, Computer Sciences said in a regulatory filing. Restatements will be made in the 2007 annual report, which the company expects to file by June 13.
Computer Sciences delayed reporting fourth-quarter results a week ago to finish accounting for income taxes on transactions from earlier periods. On Wednesday, the board concluded that the company’s financial statements included in its 2006 annual report should not be relied upon because of errors, the El Segundo-based company said.
Shares of Computer Sciences rose 72 cents to $56.68.
In addition to delaying its results last week, Computer Sciences named Michael Laphen as chief executive, replacing Van B. Honeycutt. Honeycutt, who will remain chairman until his term expires July 30, had been CEO since 1995.
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