| Description | Amount Uncovered by Audit | Amount Settled/Collected |
|---|---|---|
| 1. Multinational Consumer Electronics Manufacturer – uncovered underpaid amounts resulting from: (i) unreported sales of numerous licensed products; (ii) failure to submit per unit minimum royalty amounts; and (iii) unauthorized deduction of various expenses | $ 450,000 | $ 450,000 |
| 2. Clothing Manufacturer – uncovered underpaid amounts resulting from: (i) failure to submit royalties relative to sublicense of licensed products; (ii) failure to submit minimum royalty guarantees; and (iii) overstatement of bad debt deduction | > $ 2,000,000 | > $ 1,000,000 |
| 3. Game Developer and Manufacturer – uncovered underpaid amounts resulting from: (i) unreported sales of licensed products; (ii) application of erroneous royalty rates; (iii) failure to submit royalties relative to value of markup by foreign affiliates; and (iv) overstated deductions | $ 241,000 | $ 241,000 |
| 4. Shoe Manufacturer – uncovered underpaid amounts resulting from: (i) failure to submit royalties relative to full value of amounts invoiced for licensed products; (ii) failure to satisfy minimum advertising requirements; and (iii) interest on late fees | $ 380,000 | > $ 175,000 |
| 5. Intimate Apparel Manufacturer – uncovered underpaid amounts resulting from: (i) unreported sales of licensed products; and (ii) overstatement of allowable deduction | $ 88,000 | $ 88,000 |
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