Summary
The Bank of New York Mellon Corporation (BK) has filed an 8-K report on February 12, 2013, disclosing a significant event related to a U.S. Tax Court ruling. The ruling pertains to the disallowance of certain foreign tax credits claimed by BNY Mellon for the 2001 and 2002 tax years. This is expected to result in an after-tax charge of approximately $850 million in the first quarter of 2013. Despite this substantial charge, BNY Mellon anticipates maintaining its well-capitalized status. The report also indicates that the charge is expected to impact the company's Basel III Tier 1 common equity ratio by approximately 55 basis points. Investors should note that while BNY Mellon is providing forward-looking statements regarding its capital position and the impact of the charge, these are subject to risks and uncertainties that could cause actual results to differ.
Key Highlights
- 1BNY Mellon expects an after-tax charge of approximately $850 million due to a U.S. Tax Court ruling on foreign tax credits.
- 2The charge relates to the disallowance of foreign tax credits claimed for the 2001 and 2002 tax years.
- 3The company anticipates this charge will be recognized in the first quarter of 2013.
- 4BNY Mellon expects to remain well capitalized following the charge.
- 5The Basel III Tier 1 common equity ratio is projected to be impacted by approximately 55 basis points.
- 6The company has attached a press release dated February 11, 2013, as Exhibit 99.1 to this filing.
- 7Forward-looking statements are included, subject to risks and uncertainties detailed in other SEC filings.