Lucent Tech Discovers $80 Million Accounting Error In Balance Sheet

WASHINGTON -(Dow Jones)- Lucent Technologies Inc. disclosed Tuesday that it became aware of an error reported in its fourth-quarter and fiscal year financials last week that will result in an $80 million increase in its pension liabilities and a corresponding reduction in shareowners' equity.

The designer and deliverer of systems, software and services for next-generation communications networks for service providers and enterprises said in a document filed with the Securities and Exchange Commission that the adjustment is the result of an error with preliminary actuarial information used in calculating its pension liabilities as of Sept. 30.

Lucent said it expects a final actuarial report early this month, at which time it will finalize the amount of the adjustment.

The company doesn't expect the adjustment to impact its previously reported results of operations or cash flows for the quarter or fiscal year, according to the filing.

In addition, Lucent lowered its previous estimate for fiscal 2006 income tax expense to $170 million from $200 million as a result of the adjustment.

-By Chad Clinton, Dow Jones Newswires; 202-862-1349; chad.clinton@dowjones.com

(END) Dow Jones Newswires "

Posted to the site on 1st November 2005