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Thursday, January 11, 2018

Lenovo to make $400 million one-off charge on U.S. tax reforms

HONG KONG (Reuters) - @Lenovo Group Ltd said on Wednesday it expected to make a one-off charge of $400 million for nine months ended in December due to a reassessment of U.S. deferred tax assets. FILE PHOTO - A Lenovo logo is seen on a computer in Kiev, Ukraine April 21, 2016. REUTERS/Gleb Garanich/File Photo The adjustment to be reflected in the financial results is of a non-cash nature, and the company does not expect it to have any material effect on its operation or cash-flow position, the PC maker said in a filing to the Hong Kong bourse. Lenovo, a unit of Legend Holdings, said U.S. corporate tax cuts would “positively impact” future earnings of its U.S. operations in the long-term. Lenovo will announce third-quarter results on Feb. 1. Tax reforms signed into law in December lower the income tax rate for U.S. companies to 21 percent from 35 percent.

https://www.reuters.com/article/us-lenovo-group-tax/lenovo-to-make-400-million-one-off-charge-on-u-s-tax-reforms-idUSKBN1EZ04T?il=0

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