CHARLOTTE, N.C., March 31, 2010 /PRNewswire-FirstCall/ -- Goodrich
Corporation (NYSE: GR) announced today that it expects to incur a
one-time charge against its first quarter 2010 results of
approximately $10 million, or
$0.08 per diluted share, due to the
recently-passed U.S. health care reform legislation.
The expected charge relates to the elimination of tax deductions
available to companies that provide prescription drug coverage to
retirees. The Medicare Modernization Act of 2003 (MMA) expanded
Medicare to include prescription drug coverage through a plan known
as Medicare Part D. Under the MMA, employers that provide
prescription drug coverage to retirees that equals or exceeds the
benefit provided under Medicare Part D are entitled to a subsidy of
28 percent of the cost of the coverage.
Currently, employers can deduct the entire cost of providing the
coverage. For taxable years beginning after December 31, 2012, the newly-enacted Patient
Protection and Affordable Care Act will repeal the rule permitting
deduction of the portion of expense that is offset by the Part D
subsidy.
Goodrich Corporation, a Fortune 500 company, is a global
supplier of systems and services to aerospace, defense and homeland
security markets. With one of the most strategically
diversified portfolios of products in the industry, Goodrich serves
a global customer base with significant worldwide manufacturing and
service facilities. For more information visit
http://www.goodrich.com.
Forward Looking Statements
Certain statements made in this release are forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995 regarding the company's future plans,
objectives, and expected performance. Specifically, statements that
are not historical facts, including statements accompanied by words
such as "believe," "expect," "anticipate," "intend," "estimate," or
"plan," are intended to identify forward-looking statements and
convey the uncertainty of future events or outcomes. The company
cautions readers that any such forward-looking statements are based
on assumptions that the company believes are reasonable, but are
subject to a wide range of risks, and actual results may differ
materially.
Important factors that could cause actual results to differ
materially from projected results can be found in the company's
filings with the Securities and Exchange Commission, including in
the company's Annual Report on Form 10-K for the year ended
December 31, 2009.
The company cautions you not to place undue reliance on the
forward- looking statements contained in this release, which speak
only as of the date on which such statements were made. The company
undertakes no obligation to release publicly any revisions to these
forward-looking statements to reflect events or circumstances after
the date on which such statements were made or to reflect the
occurrence of unanticipated events.
SOURCE Goodrich Corporation