Summary
Agilent Technologies, Inc. has filed a Form 8-K to announce that its previously issued financial statements for the fiscal year ended October 31, 2004, and the interim financial data for the quarter ended October 31, 2004, should no longer be relied upon. This non-reliance is due to an accounting error related to the miscalculation and understatement of its estimate for U.S. jurisdictional losses in income tax accounting. The company's Audit & Finance Committee, in consultation with management, determined the restatement was necessary. The error has been corrected, resulting in a recognized additional tax benefit and a corresponding increase in income tax expense related to Accumulated Other Comprehensive Income. This correction will decrease the provision for income taxes for fiscal 2004 and the related interim period by $20 million, thereby increasing net income by the same amount, or $0.04 per diluted share. The company has also filed its 2005 Annual Report on Form 10-K, which includes this restatement.
Key Highlights
- 1Agilent Technologies is restating its financial statements for the fiscal year ended October 31, 2004, and the quarter ended October 31, 2004.
- 2The restatement is due to an accounting error in the calculation of U.S. jurisdictional loss for income tax purposes.
- 3The error led to an understatement of the estimated U.S. jurisdictional loss.
- 4The correction will result in an increase in net income of $20 million, or $0.04 per diluted share, for fiscal 2004 and the specified interim period.
- 5The company's Audit & Finance Committee has concluded that the previously issued financial statements should no longer be relied upon.
- 6The error was identified through the company's internal control over financial reporting.
- 7The restated financial information is included in Agilent's recently filed Form 10-K for the fiscal year ended October 31, 2005.