By The Associated Press
Wednesday, March 31, 2010
Global industrial company Ingersoll-Rand PLC said Wednesday that it expects to record a first-quarter charge of $41 million, or 12 cents per share, because of recent health care reforms.
President Barack Obama signed the Patient Protection and Affordable Care Act into law on March 23 and the Health Care and Education Reconciliation Bill of 2010 into law on Tuesday.
Tax benefits for the company "will be reduced to the extent its prescription drug expenses are reimbursed under the Medicare Part D retiree drug subsidy program," Ingersoll-Rand said in a Securities and Exchange Commission filing.
"Although the provisions of the Healthcare Reform Legislation relating to the retiree drug subsidy program do not take effect until 2013, the company is required to recognize the full accounting impact in its financial statements in the reporting period in which the Healthcare Reform Legislation is enacted," the company said.
Ingersoll-Rand, based in Ireland, has industrial operations include manufacturing, agriculture, and transportation.
Shares of Ingersoll-Rand fell a penny to close at $34.87.
