Obamacare forces another company to change its financial outlook, this one in the president’s old backyard.
Illinois Tool Works Inc. (NYSE: ITW) today announced that as a result of certain provisions in the recently enacted Patient Protection and Affordable Health Care program, future Medicare prescription drug subsidies received by the Company for retiree prescription drug coverage will now be taxable. As a result, the Company expects to record a discrete tax adjustment of $22 million, or 4 cents of diluted income per share from continuing operations, in its 2010 first quarter results to reflect this change in tax treatment. This discrete tax adjustment was not included in the Company’s March 15, 2010 revised earnings forecast.
At least the congressman who represents the district that includes their headquarters, Republican Mark Kirk, voted against the bill.