Ford Motor (NYSE:F)
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1 Month : From Aug 2018 to Sep 2018
By Stephen Nakrosis
Ford Motor Co. (F) has amended a plan, first adopted in 2009, that preserves substantial tax attributes, "including tax credit carryforwards that will offset future taxable income" that could reduce federal income tax liability.
The new amendment, the third to the Tax Benefit Preservation Plan between Ford and Computershare Trust Company, N.A., extends the pact's expiration date to Sept. 30, 2021.
Ford said that as of year-end 2017, it had "tax attributes that would offset more than $25 billion of taxable income." The company said it could "utilize these tax attributes in certain circumstances to offset taxable income and reduce its federal income tax liability."
Ford's ability to use the tax credits could be limited if an "ownership change," as defined by Internal Revenue Service rules, took place.
Under the terms of the plan, any person or group acquiring 4.99% or more of the outstanding shares of common stock would trigger parts of the plan and could result in significant dilution in the ownership interest of such person or group in Ford stock.
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(END) Dow Jones Newswires
September 14, 2018 17:23 ET (21:23 GMT)
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