SAN JOSE, Calif., July 29, 2015 /PRNewswire/ -- Altera
Corporation (NASDAQ: ALTR) today announced that the United States
Tax Court (the "Court") has issued a favorable opinion with respect
to Altera's litigation with the Internal Revenue Service ("IRS")
filed with the Court in 2012. The litigation relates to the
treatment of stock-based compensation expense in an inter-company
cost-sharing arrangement with Altera's wholly owned subsidiary,
Altera International, Inc., for fiscal years 2004 through 2007
among other issues. In its opinion issued on July 27, 2015, the Court accepted Altera's
position and concluded that the company is not liable for any tax
or interest associated with the cost-sharing issue.
There are other outstanding issues that need to be resolved and
other procedural formalities that need to be completed in this
litigation before a decision is issued by the Court. We are not
able to predict the timing of when the decision will be issued by
the Court. Once the Court has issued a decision in the case, the
IRS will have a 90-day period to appeal. If the decision stands as
set forth in the opinion and upon a final adjudication, Altera
currently expects to record, based upon its preliminary estimates,
an aggregate favorable impact of $40 to $50
million to net income for fiscal years 2004 through 2007 for
the reversal of previously recorded reserves related to the
stock-based compensation cost-sharing issue.
Forward-Looking Statements
Statements in this press release that are not historical are
"forward-looking statements" as the term is defined in the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements are generally written in the future tense and/or
preceded by words such as "will," "expects," "anticipates," or
other words that imply or predict a future state. Forward-looking
statements include, but are not limited to, statements regarding
the effect on Altera's net income of a favorable ruling in ongoing
litigation. Investors are cautioned that all forward-looking
statements in this release involve risks and uncertainty that can
cause actual results to differ materially from those currently
anticipated, due to a number of factors, including without
limitation, the risk that any favorable ruling in ongoing
litigation is reversed on appeal, as well as other risk factors
discussed in documents filed by the company with the Securities and
Exchange Commission ("SEC") from time to time. Copies of Altera's
SEC filings are posted on the company's website and are available
from the company without charge. Forward-looking statements are
made as of the date of this release, and, except as required by
law, the company does not undertake an obligation to update its
forward-looking statements to reflect future events or
circumstances.
About Altera
Altera® programmable solutions enable designers of
electronic systems to rapidly and cost effectively innovate,
differentiate and win in their markets. Altera offers FPGA, SoC,
CPLD, and complementary technologies, such as power solutions, to
provide high-value solutions to customers worldwide. Visit
www.altera.com.
ALTERA, ARRIA, CYCLONE, ENPIRION, MAX, MEGACORE, NIOS, QUARTUS
and STRATIX words and logos are trademarks of Altera Corporation
and registered in the U.S. Patent and Trademark Office and in other
countries. All other words and logos identified as trademarks or
service marks are the property of their respective holders as
described at www.altera.com/legal.
INVESTOR
CONTACT
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MEDIA
CONTACT
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Scott Wylie - Vice
President
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Sue Martenson -
Senior Manager
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Investor
Relations
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Public
Relations
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(408)
544-6996
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(408)
544-8158
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swylie@altera.com
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newsroom@altera.com
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SOURCE Altera Corporation