General Mills To Take Health Care Charge
NEW YORK (TheStreet) -- General Mills (GIS) - Get General Mills, Inc. Report expects to take a non-cash charge of about $34 million, or 10 cents a share, in fourth quarter of fiscal 2010, as a result of the new health care reform bill signed into law on March 23.
General Mills, which owns well-known household food brands such as Pillsbury, Yoplait and Betty Crocker, joins the
that will no longer receive tax breaks for providing prescription drug benefits to retired workers.
Meanwhile, General Mills reaffirmed its earnings guidance of $4.57 to $4.59 a share for the fiscal year ending May 30.
>> Who Owns General Mills?: Bruce Kovner
Other companies that have announced similar charges include
Deere
(DE) - Get Deere & Company Report
,
Caterpillar
(CAT) - Get Caterpillar Inc. Report
,
Verizon
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,
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Medtronic
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,
AT&T
and
3M
.
The tax changes don't kick in until 2011; companies are reporting their financial impact this year in order to fulfill accounting rules.
Though the charges reported by many companies may seem substantial, some industry observers believe they'll barely leave a dent in corporate bottom lines.
Many companies have also been accused of "double dipping" on tax deductions under the old system.
-- Reported by Andrea Tse in New York
RELATED STORIES:
>> Health Care Reform: Companies React
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