MTS Systems Makes ‘Gift, Travel and Entertainment’ Disclosure

MTS Systems joined our corporate investigations list this year.

Here’s the entry for MTS from the ‘investigations’ index of ethiXbase. 

The disclosure appears in the company’s May 2012 Form 10-Q.

MTS Systems is based in Minnesota and produces testing gear for military and other applications.

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Excerpt     

As previously reported, the Company is investigating certain gift, travel, entertainment and other expenses that may have been improperly incurred in connection with some of the Company’s operations in the Asia Pacific region. The investigation has focused on possible violations of Company policy, corresponding internal control issues and any possible violations of applicable law, including the Foreign Corrupt Practices Act. Though the investigation is not complete, the Company has taken remedial actions, including changes to internal control procedures and removing certain persons formerly employed in its Korea office. The Company believes, however, that the amount of the expenses in question is not material to its reported consolidated financial statements. The Company has voluntarily disclosed this matter to the U.S. Department of Justice and the SEC. Additionally, the Company has disclosed this matter to the U.S. Air Force pursuant to its Administrative Agreement. The Company cannot predict the outcome of this matter at this time or whether it will have a materially adverse impact on its business prospects, financial condition, operating results or cash flows.

Title                          MTS Systems Corp. – 5/4/2012

Document URL     investigations_disclosure/memofile3 [pdf embedded]

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