Weatherford Drops Over 14% On 10K Delay (WFT)

Weatherford WFT traded over 14% lower than yesterday's leves after the company delayed the filing of its 10K. The company commented, "As a result of identifying the material weakness, we performed additional testing to determine whether or not the material weakness failed to identify any material errors in our accounting for income taxes. We have substantially completed the testing procedures. Based on these procedures, we have identified certain errors, the correction of which will be adjustments to our historical financial statements and our 2010 fourth quarter earnings release, totalling approximately $500 million for the periods from 2007 to 2010. The amount for each year is expected to range from $100-150 million. Approximately $460 million of these adjustments relate to an error in determining the tax consequences of intercompany amounts over multiple years."