Starting in 2013, companies that provide prescription-drug
benefits for retirees under Medicare can no longer deduct this
subsidy from their taxes, due to the federal health-care overhaul
signed into law on March 23.
Since companies had created an asset based on these expected
deductions, they will now need to take a charge to reflect the fall
in the asset's value.
The following companies have announced the amount of their
health-care-related charges. Search the subject code N/HCC for the
latest news on this topic.
Johnson & Johnson (JNJ) -- sees 2010 earnings cut by 10
cents a share
Hormel Foods Corp. (HRL) -- 5 cents a share to be taken in
2Q
Eli Lilly & Co. (LLY) -- 12 cents a share in 1Q
Gannett Co. (GCI) -- $2.2 million in 1Q
MetLife Inc. (MET) -- $75 million in 1Q
PPF Industries (PPG) -- $85 million in 1Q
United States Steel Corp. (X) -- $27 million in 1Q
CNH Global NV (CNH) -- $20 million in 1Q
AT&T Inc. (T) -- $1 billion in 1Q
3M Co. (MMM) -- $85 million to $90 million in 1Q
Exelon Corp.(EXC) -- $65 million in 1Q
Verizon Communications Inc.(VZ) -- $970 million in 1Q
Carpenter Technology Corp.(CRS) -- 13 cents a share in 3Q
Ingersoll-Rand Co. Ltd. (IR) -- $41 million in 1Q
Lockheed Martin Corp. (LMT) -- $96 million in 1Q
Valero Energy Corp. (VLO) -- $15 million to $20 million in
1Q
Deere & Co. (DE) -- $150 million in 1Q
Boeing Co. (BA) -- $150 million in 1Q
Caterpillar Inc. (CAT) -- $100 million in 1Q
Prudential Financial (PRU) -- $100 million in 1Q
Xcel Energy Inc. (XEL) -- $17 million in 1Q
Goodrich Corp. (GR) -- $10 million in 1Q
AK Steel Holding Corp. (AKS) $31 million in 1Q
Honeywell International Inc. (HON) -- $13 million in 1Q
Allegheny Technologies Inc. (ATI) -- $5 million in 1Q
Kroger Co. (KR) -- $1.5 million to $2 million in 2010
Illinois Tool Works INc. (ITW) -- $22 million in 1Q
CMS Energy Corp. (CMS) -- $17 million in 1Q
Eaton Corp. (ETN)-- $25 million in 1Q
Exelon Corp. (EXC) -- $65 million in 1Q
Hartford Financial Services Group Inc. (HIG) -- $20 million in
1Q
Brush Engineered Materials Inc. (BW) -- 7 cents a share in
1Q