Intel Corp. announced late Thursday that a decision by the Internal Revenue Service will add $600 million to the current quarter's revenue.
Intel, Santa Clara, Calif., said that the IRS has closed its examination of the company's tax returns up to and including 1998, and that the two sides have agreed on a number of issues, including adjustments related to inter-company allocation of profits.
In the current quarter, the company expects to reverse previously accrued taxes reducing the quarter's tax provision by $600 million, or approximately 17 cents per share.
This agreement does not change Intel's previous tax rate guidance. The company still expects its tax rate for 2000 to be 31.7%, excluding the $600 million accrual reversal and acquisition-related costs from both prior and future mergers and acquisitions. Intel plans to release its first quarter earnings after the close of the financial markets on April 18.