Wednesday, March 31, 2010

Boeing plans 150-million-dollar charge under health-care law

WASHINGTON — US aerospace giant Boeing said Wednesday it expected to take an income-tax charge of about 150 million dollars in the 2010 first quarter as a result of sweeping health-care reform.

Boeing said that under the legislation, a final version of which was signed into law Tuesday by President Barack Obama, it can no longer claim an income-tax deduction related to prescription drug benefits provided to retirees and reimbursed under a federal subsidy.

"Although this tax increase does not take effect until 2013, accounting standards require that a deferred income-tax asset be written down in the period legislation changing the tax law is enacted," the Chicago-based company said in a statement.

Boeing said the charge was expected to reduce net earnings by approximately 150 million dollars, or 20 cents per share, in the first quarter of 2010.

"Cash impacts of this charge will be realized over many years beginning in 2013," the firm said, adding that it will update guidance issued on January 27 when it releases first-quarter financial results.

Boeing joins AT&T, Caterpillar, 3M and other major companies which recently have announced charges to cover changes under the landmark reform of health care that extended health insurance to an additional 32 million Americans.

No comments: