topleft
topright

Login or Register


Featured Blogger

Tempest in a health-care teapot
Ron F

Red-Hot Thread

"When rehiring former employees, take the critical first step of training them as new team members; don't assume they're up to speed on changes that occured in their absence."

Latest Forum Posts

in Your Career by JohnSane, 01-04-10 16:30
in Your Career by annearf, 26-03-10 17:12
in Your Career by SherylNash01, 26-03-10 16:21
More companies disclose health-care charges Print E-mail
Thursday, 01 April 2010

(Reuters) - Lockheed Martin, Boeing, Goodrich and Ingersoll-Rand on Wednesday joined a growing list of companies that plan to book charges related to US healthcare reform.

The federal government pays subsidies to large companies, including AT&T, Caterpillar and Deere & Co, to help pay for prescription drug benefits for retirees.

The U.S. healthcare overhaul signed into law last week by President Barack Obama would eliminate tax deductions that have been available to companies that provide such benefits.

Some corporate leaders have complained that the change amounts to a tax increase. White House officials have countered that it essentially closes a tax loophole.

Although the change does not take effect until 2013, accounting rules require that the charges be recorded in the period the legislation was enacted.

On Wednesday, the list of corporations expecting to take charges related to healthcare reform grew.

Lockheed Martin, the world's largest defense contractor, said it expected to record a $96 million, or about 25 cents a share, after-tax charge in the first quarter.

Boeing said it would take a charge of around $150 million, or 20 cents per share, against first-quarter results.

Aircraft parts supplier Goodrich expected the charge to be about $10 million, or 8 cents per share, in the first quarter, while air compressor and cooling systems maker Ingersoll-Rand forecast a charge of $41 million, or 12 cents per share.

Conversely, General Electric has said that it does not expect health care reform to have a "significant material impact" on its results.

© 2010 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.

Trackback(0)
Comments (0)Add Comment

Write comment
smaller | bigger

security code
Write the displayed characters


busy
 




Market Data



Copyright © 2010 CFOZone. All rights reserved.