Verizon (VZ) announced on April 1 that because it will no longer receive a Federal income tax deduction for the expenses incurred in connection with retiree prescription drug coverage, the company expects to record a one-time, non-cash tax charge of about $970 million in the first quarter of 2010 to reflect the impact of this change.
"Because future anticipated retiree health-care liabilities and related subsidies are already reflected in Verizon's financial statements, this change requires Verizon to reduce the value of the related tax benefits recognized in its financial statements in the period during which the law is enacted," the company said in an SEC filing.
A Verizon spokesman said that the company hasn't been expressing any concern about the possible side effects of the new health care reform law.
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