VERIZON BLAMES $970 MILLION Q1 CHARGE ON HEALTHCARE LAW

摘要

Verizon expects to take a charge of $970 million in the first quarter because the newnhealthcare law changes the tax treatment of the Medicare Part D subsidy. The law means thencompany would "no longer receive a Federal income tax deduction for the expenses incurrednin connection with providing the subsidized coverage to the extent of the subsidy received," itnsaid in an SEC filing late Thursday. AT&T has said it will take a $1 billion charge because ofnthe law. Democratic leaders of the House Commerce Committee wrote both companies aboutnthe issue last week. The $970 million charge wouldn't harm Verizon's 'A' credit rating,nStandard & Poor's said. "The size of this charge relative to Verizon's revenue and cashngeneration, coupled with deferral of the actual higher cash taxes that will eventually result fromnthe legislation, will not materially impact Verizon's overall credit profile."