AT&T To Take $1B Non-Cash Charge Due to Obama Health Plan
AT&T To Take $1B Non-Cash Charge Due to Obama Health Plan. http://blogs.barrons.com/techtraderdaily/2010/03/26/att-to-take-1b-non-cash-charge-due-to-obama-health-plan/
Caterpiller has also mentioned taking a charge. So might Apple Inc. also be taking a charge soon? If so when would it be announced and what effect could it have on earnings and share price?
EDIT: There’s more today from Karl Denninger: “Remember, the Democrat talking points were that this bill would “lower your costs” and “make health care more affordable.” It was also called a “jobs bill” - that is, that this bill would create jobs.
Within hours corporations announced intent to recognize the repeal of this exemption - via 8Ks filed with the SEC. This was not a surprise - Caterpillar had warned the Administration, as had other firms, that the bill as written would increase their costs and that they would have to recognize those forward costs.
Securities laws require firms to disclose material changes when they are realized - which in this case means when the bill was signed into law, since they had already analyzed the bill and it’s impact. Legally, these companies are obligated to file the 8Ks disclosing these charges.
The Administration and Democrats generally ignored these folks when they warned of this impact before the bill was passed, of course, claiming they were part of some “Vast Right-Wing Conspiracy.” Oh wait - that was Clinton. Ok, ok, so Pelosi said she had to pass this bill so we could know what was in it. (And no, that’s not an exaggeration - she really did say that!)
Well, the corporations weren’t lying, and now the 8Ks are flying. Caterpillar has announced an intent to take a $100 million non-cash charge, John Deer $150 million, and AT&T a whopping $1 billion.
Threats.” Read the threats http://market-ticker.denninger.net/[ Edited: 28 March 2010 10:37 AM by zulu ]