[A Trane logo hangs outside Trane headquarters in Parsippany, New Jersey. Ingersoll-Rand, the world's largest maker of truck-refrigeration units, owns Trane.]
Ingersoll-Rand (IR) announced in an SEC filing on April 1 that because of the new healthcare law, the tax benefits available to Ingersoll-Rand will be reduced to the extent its prescription drug expenses are reimbursed under the Medicare Part D retiree drug subsidy program.
Although the provisions of the healthcare reform legislation as it pertains to the retiree drug subsidy program do not take effect until 2013, the company -- as with the others that follow -- is required to recognize the full accounting impact in its financial statements in the reporting period in which the healthcare reform legislation is enacted. This led Ingersoll to announce a non-cash charge to income tax expense in the first quarter of 2010 of about $41 million, or roughly 12 cents a share.
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