Health care law gives John Deere a $150 million hit this year

John Deere:

Deere & Company announced today that the Patient Protection and Affordable Care Act signed into law this week will adversely impact its expenses for fiscal 2010. As a result of the legislation, the company's expenses are expected to be about $150 million higher on an after-tax basis, primarily in the second quarter. This impact was not included in the 2010 outlook for net income attributable to Deere & Company of approximately $1.3 billion disclosed in the company's first-quarter earnings report on February 17th.

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I expect to see more of these "benefits" of the act disclosed as companies have to file amendments with the SEC. This will not include most small businesses which are not public companies, but they will have similar prorata expense hits. This is sucking a lot of money out of the economy. I will try to note as many of them as I see.

Comments

  1. Cynd9:12 PM

    You want to consider the rest of the press release before concluding that the $150 million price tag is an example of how money is going to be "sucked" out of the economy.
    "Certain statements in this report are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to future events and financial performance. These forward-looking statements involve risks and uncertainties. Actual results may differ materially from those contemplated (expressed or implied) by such forward-looking statements, because of, among other things, the risks and uncertainties found in the Company's press releases and other SEC filings, including the risk factors identified under the heading "Risk Factors" in the "Management's Discussion and Analysis of Results of Operations and Financial Condition" in the Company's most recent Annual Report on Form 10-K, as updated by the Company's Quarterly Reports on Form 10-Q."
    Given the quoted statement, it might not be "money" being sucked out of the economy but, rather, a set-up for a profit-loss statement so more money can be siphoned into the pockets of stock-holders.

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