Based upon the Audit Committee's investigation to date, the Company believes that the inadequate declarations and underpayments did not exceed $500,000 in any given year and $2.7 million in the aggregate and that interest and penalties with respect thereto could range from $3.3 million to $15.4 million.
However, the Audit Committee has not yet completed the internal review or determined whether, or in what amounts, the underpayments will result in any government action or whether any past due interest, fines or other penalties will be imposed. As a result, the Company has not made a final determination as to whether a restatement of any of its historical financial statements is necessary.
Due to the possibility of a restatement of certain financial information, including prior year financial information necessary for comparison to interim financial data, the Company was not able to timely file its Quarterly Report on Form 10-Q for the period ended June 30, 2007. The Company intends to file its Quarterly Report for the period ended June 30, 2007 as soon as practicable following the conclusion of the Audit Committee's internal review.
Deckers Outdoor Corporation
marketing@alchempro.com
