Published: Wednesday, March 31, 2010
Boeing takes $150m charge due to Obama healthcare plan
The Boeing Co. expects to take a $150 million charge in the first quarter as a result of the recently enacted federal health care plan.
Boeing said today that the expense will hurt its first quarter earnings by about 20 cents per share.
The company's announcement comes shortly after the enactment of President Barack Obama's Patient Protection and Affordable Care Act, as modified by the Health Care and Education Reconciliation Act.
Several other companies have said they will take accounting charges due to the health care reform bill including AT&T, AK Steel Corp., Caterpillar Inc. and 3M Co.
Beginning in 2013, Boeing said it will no longer be able to claim an income tax deduction related to prescription drug benefits provided to retirees and reimbursed under the Medicare Part D retiree drug 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.
Boeing will revise its earnings estimate and announce the change when it reports first quarter earnings next month.
The Associated Press contributed to this report.
Boeing said today that the expense will hurt its first quarter earnings by about 20 cents per share.
The company's announcement comes shortly after the enactment of President Barack Obama's Patient Protection and Affordable Care Act, as modified by the Health Care and Education Reconciliation Act.
Several other companies have said they will take accounting charges due to the health care reform bill including AT&T, AK Steel Corp., Caterpillar Inc. and 3M Co.
Beginning in 2013, Boeing said it will no longer be able to claim an income tax deduction related to prescription drug benefits provided to retirees and reimbursed under the Medicare Part D retiree drug 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.
Boeing will revise its earnings estimate and announce the change when it reports first quarter earnings next month.
The Associated Press contributed to this report.
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