Deckers Outdoor Corp.
will pay up to an estimated $9.1 million and restate financial
statements due to underpayment of some tax payments related to a
Chinese subsidiary, according to a regulatory filing.
In a filing
with the Securities and Exchange Commission, the company said it
underreported employee payroll declarations and underpaid some tax
payments to authorities in China for one of its foreign subsidiaries,
Holbrook Ltd., based in Hong Kong.
Deckers will restate its
financial statements for the fiscal years 2004 to 2006 and some
financial statements related to fiscal 2002 and 2003 and said such
prior financial statements should not be relied upon.
The total correction to its financial statements could range between $6.1 million and $9.1 million, the company said.
Deckers said it plans to complete the restatement as quickly as possible.
Deckers
said the underpayment was due to a material weakness resulting in
insufficient supervision and oversight of local accounting staff in the
Holbrook subsidiary. As a result, it has changed the management and
reporting structure of its accounting staff in China and it also
separated its financial accounting and disbursement functions and
introduced third-party preparation and reporting of payroll.
