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Boeing to take $150 million charge due to health care bill

Post by Kelly Kearsley on March 31, 2010 at 2:26 pm with 1 Comment »
March 31, 2010 2:26 pm

Boeing Co. will take a charge of $150 million due to the recent health care overhaul legislation, the aircraft maker said Wednesday.

The charge will hurt earnings by 20 cents per share in the first quarter of 2010, The Associated Press reported.

In 2013 Boeing will no longer be able to claim an income tax deduction related to certain prescription drug benefits for retirees. Accounting rules require that the company take the charge during the period the legislation is enacted.

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.

Boeing, which is based in Chicago, gave a cautious outlook for 2010 in January after dealing with program delays and declining orders in 2009.

At the time, it said it expected to earn $3.70 to $4 per share this year on revenue of $64 billion to $66 billion. But Boeing said it will now review its guidance in light of the health care reform and update it when it releases first-quarter results.

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General Business
Leave a comment Comments → 1
  1. jplieurance says:

    This isn’t quite what it appears to be, so let’s get all the facts. Boeing and the AP forgot to mention one thing: as part of the presciption drug plan from the Bush administration, Boeing, CAT, 3M, and all the others received a $1500 per person subsidy to provide prescription benefits to their retirees. In addition, they were allowed to claim the deduction; a classic case of double-dipping.

    What this actually is is an end to another corporate handout and an elimination of a redundancy that costs the taxpayers probably a few $billion a year.

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