Bristol Cites Tax Impact -- WSJ
January 06 2018 - 3:02AM
Dow Jones News
By Jonathan D. Rockoff
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (January 6, 2018).
Bristol-Myers Squibb Co. said Friday it expects to pay an extra
$3 billion in taxes on its overseas cash in the fourth quarter, a
result of the tax overhaul.
New York-based Bristol is the latest company to outline the tax
bill it faces under the new law, which levies a tax on profits made
abroad ahead of eliminating U.S. taxes on future foreign
earnings.
Technology and drug companies especially had been keeping
hundreds of billions of dollars outside the U.S. to avoid paying
the 35% corporate tax under the old U.S. tax system.
The biggest drug companies, including Bristol, have $166 billion
in cash overseas and $501 billion in unremitted earnings overall,
Morgan Stanley estimates. Bristol has $8 billion in cash and $26
billion in unremitted earnings, according to the bank's
estimates.
In a filing with securities regulators, Bristol said the tax
charge "will impact" the company's forecasted 2017 tax rate and
earnings per share, but won't affect its non-GAAP financial
guidance.
Bristol "is still evaluating all the provisions of the tax
reform legislation and currently estimates that the net impact of
tax reform on the non-GAAP tax rate as roughly neutral in 2018,"
the company said.
Goldman Sachs Group Inc. has said it would take a $5 billion
charge to earnings, while biotech Amgen Inc. has said it expects to
pay at least $6 billion because of the new law.
Write to Jonathan D. Rockoff at Jonathan.Rockoff@wsj.com
(END) Dow Jones Newswires
January 06, 2018 02:47 ET (07:47 GMT)
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