Tyco Expands Review Back to 1999
Aug. 15, 2002
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EXETER, N.H. (AP) _ Tyco International Ltd. has expanded an internal investigation into its finances to include accounting practices dating back to 1999.
Company spokesman Gary Holmes said Thursday that Tyco does not envision making ``material adjustments'' to its past financial results.
He also said Tyco cannot predict the results or duration of a review of the company's accounting by the Securities and Exchange Commission.
In a filing with the SEC, Tyco said the SEC has required the company to reclassify some items.
The filing, submitted Wednesday, said the SEC is looking at accounting issues including the adequacy of some disclosures and the company's accounting treatment of security-monitoring contracts.
The SEC also is examining how Tyco integrated companies it acquired and liabilities from the purchase-accounting method it used for acquisitions, Tyco said.
Tyco launched an internal review of company loans and other perks to former chief executive Dennis Kozlowski immediately after Kozlowski's indictment in June on charges of evading New York sales taxes for pricey works of art. The company's investigation will last as long as inquiries by outside agencies continue, Holmes said.
In the SEC filing, the company said new chief executive Edward Breen expanded the internal investigation to include accounting practices.
The filing said Breen got a $3.5 million signing bonus to leave Motorola Inc. last month and is entitled to stock options that could be worth millions.
Tyco previously said it has hired forensic accountants to help Breen and Tyco's auditors with the internal inquiry, the first results of which should be ready by mid-September, a month later than first envisioned.
Based in Bermuda but with U.S. headquarters in Exeter, Tyco's stock has fallen roughly 80 percent this year because of questions about its accounting and liquidity and the various investigations of the company and Kozlowski.
Tyco shares gained 2.8 percent, or 36 cents, to close Thursday at $13.26 a share on the New York Stock Exchange.