Summary
This 8-K filing from Harris Corporation, filed on September 21, 2006, reports a significant development regarding a tax settlement. The company received written notification on September 15, 2006, that the Joint Committee on Taxation had approved a settlement between Harris Corporation and the Internal Revenue Service (IRS) concerning tax audits for fiscal years 2001, 2002, and 2003. This favorable settlement will result in a positive financial impact for Harris Corporation. The company expects to record a reduction to tax expense in the first quarter of fiscal year 2007, amounting to $12 million, which translates to approximately $0.08 per diluted share. Furthermore, this settlement is anticipated to lower Harris Corporation's effective tax rate for the full fiscal year 2007, revising previous guidance from 34% down to 33%. This information is crucial for investors as it directly impacts the company's profitability and future earnings per share projections.
Key Highlights
- 1Harris Corporation has reached a settlement with the Internal Revenue Service (IRS) for tax audits covering fiscal years 2001, 2002, and 2003.
- 2The settlement was approved by the United States Congress Joint Committee on Taxation.
- 3The company will record a $12 million reduction to tax expense in the first quarter of fiscal year 2007.
- 4This reduction in tax expense is expected to positively impact diluted earnings per share by approximately $0.08.
- 5The full fiscal year 2007 tax rate guidance has been lowered from 34% to 33% due to this settlement.
- 6The event date for this notification was September 15, 2006.