Summary
This 8-K filing from The Bank of New York Mellon Corporation (BK) on May 27, 2014, reports on two significant events. Firstly, the company has entered into an agreement to sell its New York headquarters at 1-7 Wall Street for $585 million. This sale, expected to close in Q3 2014, is anticipated to result in a substantial pre-tax gain of approximately $345 million ($200 million after-tax). Secondly, BNY Mellon expects to record an after-tax charge of approximately $100 million ($125 million pre-tax) in the second quarter of 2014. This charge is related to previously disclosed administrative errors concerning the resident status of certain funds it manages, which could lead to a tax liability. Investors should note the potential positive impact of the headquarters sale on earnings, offset by the negative impact of the tax-related charge.
Key Highlights
- 1Sale of BNY Mellon's headquarters at 1-7 Wall Street, New York, for $585 million.
- 2Expected closing of the headquarters sale in the third quarter of 2014.
- 3Anticipated pre-tax gain of approximately $345 million ($200 million after-tax) from the property sale.
- 4Expectation of a $100 million after-tax charge (approximately $125 million pre-tax) in Q2 2014.
- 5The charge is due to administrative errors related to the resident status of certain managed funds.
- 6The sale agreement is a material definitive agreement filed as an exhibit.
- 7The report contains forward-looking statements subject to risks and uncertainties.