CSC to Restate Earnings on Tax Charges

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Computer Sciences Corp. said late Wednesday that it plans to restate fiscal earnings from 2000 to 2006 after finding “significant errors” in tax liability accounting and take a charge of up to $400 million.


The El Segundo-based information technology services provider said in a regulatory filing that it is correcting the errors, which will cost the company between $300 million and $400 million. This does not include a previously disclosed $60 million charge related to a stock-options probe the company announced in February.


The company also announced last week it was delaying filing its 2006 10-K due to additional accounting issues involving taxes on transactions from earlier quarters. And it said its longtime chief executive, Van Honeycutt, was retiring and had been immediately replaced by Michael Laphen, the company’s chief operating officer.


Shares in CSC were down $1.15, or 2 percent, to $55.53 in afternoon trading Thursday on the New York Stock Exchange.

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