Bristol-Myers sees $3 billion tax hit in fourth quarter 2017

Bristol-Myers Squibb will record a $3 billion charge from the fourth quarter of 2017 as a result of the U.S. tax reform law passed last month, the drugmaker said in a regulatory filing on Friday.

The expense is usually primarily related to taxes on unremitted offshore earnings, the company said.

Bristol said the charge will affect its previous forecast for net earnings per share along with also its tax rate, although will not have an impact on its outlook after adjusting for one-time items.

In October, the company said This kind of expected full-year 2017 net earnings per share of $2.36 to $2.46 with an effective tax rate of 25 percent to 26 percent, while adjusted earnings were forecast at $2.95 to $3.05 per share that has a tax rate of 22 percent.

modifications under the Tax Cuts along with also Jobs Act include a permanent reduction from the corporate income tax rate to 21 percent by 35 percent. This kind of also exempts U.S. corporations by U.S. taxes on most future foreign profits, sets a one-time tax for U.S. business profits today held overseas, along with also prevents companies by shifting profits out of the United States to lower-tax jurisdictions abroad.

Bristol-Myers said This kind of is usually still evaluating all the provisions of the legislation along with also currently estimates that will the net impact on its adjusted tax rate will be roughly neutral in 2018.

The drugmaker plans an update when This kind of provides a full-year outlook on Feb. 5.

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