Boeing [BA] yesterday said that it will take a one-time, $150 million non-cash charge in the first quarter due to the new health care reform law that eliminates a tax deduction related to prescription drug benefits for retirees.
Separately, Goodrich [GR] said it would incur a one-time, $10 million, eights cents earnings per share (EPS) charge in its first quarter for the same reasons. Boeing’s charge amounts to 20 cents EPS.
The tax deduction won’t be eliminated until 2013 but accounting standards require that the charge be taken when the legislation changing the tax law is enacted. Boeing said that beginning in 2103 it will begin realizing the cash impacts from the change in the tax law over many years.
Boeing said it would update its earnings guidance when it reports first quarter results.