Summary
Newmont Corporation (NEM) has filed an 8-K report on December 22, 2017, to disclose the immediate financial implications of the recently enacted U.S. Tax Cuts and Jobs Act. The company is still assessing the full impact of this complex legislation but has identified a significant effect on its deferred tax assets and liabilities due to the reduction in the U.S. corporate income tax rate from 35% to 21%. As a result of this rate change, Newmont anticipates a one-time, non-cash increase to its income tax expense for the year ended December 31, 2017, estimated to be between $200 million and $400 million. While this represents an expense, the company also notes potential future benefits, such as the elimination of the U.S. corporate alternative minimum tax. Newmont will provide further details in its upcoming Form 10-K filing.
Key Highlights
- 1Newmont is providing an update on the expected financial impact of the new U.S. Tax Cuts and Jobs Act, enacted on December 22, 2017.
- 2The company anticipates a one-time, non-cash increase to income tax expense for 2017, estimated between $200 million and $400 million.
- 3This expense is primarily due to the re-valuation of deferred tax assets and liabilities resulting from the reduction in the U.S. corporate income tax rate from 35% to 21%.
- 4Newmont is subject to FASB ASC 740-10, requiring recognition of the tax rate change effect in the period of enactment.
- 5The company will not be impacted by the one-time transition tax on unremitted foreign earnings due to its current tax structure.
- 6Potential future benefits include the elimination of the U.S. corporate alternative minimum tax.
- 7Further details and estimated impacts will be included in Newmont's Annual Report on Form 10-K for the year ended December 31, 2017.