MANHASSET, N.Y. International Rectifier Corp. has today announced a filing extension for its Form 10-Q for the fiscal quarter ended March 31, 2006.
The extension is required pending the completion of a review of the company's classification of excess tax benefits from the exercise of stock options, under SFAS No. 123R. As part of that review, the company has determined it should correct the classification in its consolidated cash flow statements for the excess tax benefits generated from the exercise of stock options.
In the first and second quarters of fiscal 2006, the company presented these excess tax benefits as operating cash flows, while SFAS 123R requires their presentation as financing cash flows. The company does not believe this change will impact its financial results for the quarter ended March 31, 2006.
For the six months ended Dec. 31, 2005, the excess tax benefit from options exercised was $4.3 million, principally attributed to the three months ended Sept. 30, 2005. As a consequence of this correction, net cash from operating activities will be reduced by $4.3 million and net cash by financial activities will be increased by the same amount. The change in classification does not affect the overall net change in cash and cash equivalents for these periods.
The change in cash flow classification of excess tax benefit from options exercised does not affect unaudited consolidated statements of income for the three months ended Sept. 30, 2005 or for the three or six months ended Dec. 31, 2005, and has no effect on the unaudited consolidated balance sheets reported as of Sept. 30, 2005 or Dec. 31, 2005.
International Rectifier intends to file Forms 10-Q/A for the fiscal quarters ended Dec. 31, 2005 and Sept. 30, 2005, reflecting the corrected classification of the excess tax benefit in the consolidated statements of cash flows.
The company anticipates it will be able to file the Form 10-Q for the quarter ended March 31, 2006 within the five calendar day time period specified in Rule 12b-25.