Summary
IDEXX Laboratories, Inc. (IDXX) has filed an 8-K report on January 5, 2018, to disclose the estimated financial impact of the recently enacted Tax Cuts and Jobs Act (Tax Legislation). The company anticipates a significant reduction in its recurring effective tax rate, projected to be between 750 and 850 basis points starting in 2018. This change is expected to positively impact future profitability by lowering the ongoing tax burden. Furthermore, the Tax Legislation will result in a one-time estimated charge to earnings for the fourth quarter and full year 2017, ranging from $35 million to $45 million. This charge is primarily due to the deemed repatriation of foreign profits and adjustments to U.S. deferred taxes. Investors should note that these figures are estimates based on currently available information and may be subject to change as the company continues to analyze the full effects of the new tax law.
Key Highlights
- 1IDEXX estimates the Tax Cuts and Jobs Act will reduce its recurring effective tax rate by 750-850 basis points starting in 2018.
- 2The company anticipates a one-time earnings reduction of $35 million - $45 million for the fourth quarter and full year 2017 due to the tax reform.
- 3This one-time charge is attributed to the deemed repatriation of foreign profits and remeasurement of U.S. deferred taxes.
- 4The company will announce its Q4 and full-year 2017 financial results on February 1, 2018.
- 5The disclosed information is furnished under Item 2.02 and is not deemed 'filed' for certain SEC liability purposes.
- 6These are preliminary estimates, and actual impacts could differ materially.
- 7Brian P. McKeon, Executive Vice President, Chief Financial Officer and Treasurer, signed the report.