TOWSON, Md., Oct. 21 /PRNewswire-FirstCall/ -- The Black & Decker
Corporation (NYSE: BDK) today announced that the United States District Court
of Maryland has granted the Corporation's motion for summary judgment on its
complaint against the United States Internal Revenue Service and the related
IRS counterclaim.
The Corporation had filed a complaint against the IRS seeking refunds of
approximately $57 million, plus interest, and the IRS subsequently filed a
counterclaim relating to the disallowance of certain capital loss deductions.
As previously disclosed in the Corporation's filings with the Securities and
Exchange Commission, should the IRS prevail in its disallowance of these
capital loss deductions and imposition of related interest, it would result in
a cash outflow by the Corporation of approximately $140 million.
In its opinion, the Court ruled in the Corporation's favor that the
capital losses cannot be disallowed by the IRS. The IRS can appeal this
decision, in which event a final resolution of the case may not occur until
2005 or later.
This release includes forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. By their nature, all forward-looking statements involve
risks and uncertainties. For a more detailed discussion of the risks and
uncertainties that may affect Black & Decker's operating and financial results
and its ability to achieve the financial objectives discussed in this press
release, interested parties should review the "Forward-Looking Statements"
sections in Black & Decker's reports filed with the Securities and Exchange
Commission, including the Annual Report on Form 10-K for the fiscal year ended
December 31, 2003.
Black & Decker is a leading global manufacturer and marketer of power
tools and accessories, hardware and home improvement products, and technology-
based fastening systems.
SOURCE The Black & Decker Corporation
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Related links:
http://www.bdk.com
Company News On-Call: Black & Decker press releases
available through http://www.prnewswire.com/comp/235329.html
CONTACT:
Barbara B. Lucas, Senior Vice President,
Public Affairs, +1-410-716-2980, or Mark M. Rothleitner, Vice
President, Investor Relations and Treasurer, +1-410-716-3979,
both of The Black & Decker Corporation
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