Bristol-Myers Squibb Co. said Friday it expects to pay an extra $3 billion in taxes on its overseas cash in the fourth quarter, a result of the tax overhaul.
New York-based Bristol is the latest company to outline the tax bill it faces under the new law, which levies a tax on profits made abroad ahead of eliminating U.S. taxes on future foreign earnings.
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Technology and drug companies especially had been keeping hundreds of billions of dollars outside the U.S. to avoid paying the 35% corporate tax under the old U.S. tax system.
The biggest drug companies, including Bristol, have $166 billion in cash overseas and $501 billion in unremitted earnings overall, Morgan Stanley estimates. Bristol has $8 billion in cash and $26 billion in unremitted earnings, according to the bank's estimates.
In a filing with securities regulators, Bristol said the tax charge "will impact" the company's forecasted 2017 tax rate and earnings per share, but won't affect its non-GAAP financial guidance.
Bristol "is still evaluating all the provisions of the tax reform legislation and currently estimates that the net impact of tax reform on the non-GAAP tax rate as roughly neutral in 2018," the company said.
Goldman Sachs Group Inc. has said it would take a $5 billion charge to earnings, while biotech Amgen Inc. has said it expects to pay at least $6 billion because of the new law.
Write to Jonathan D. Rockoff at Jonathan.Rockoff@wsj.com
(END) Dow Jones Newswires
January 05, 2018 19:33 ET (00:33 GMT)