Trump Tax Cut Costing Whirlpool $425M

Vendor's ‘best estimate’ of tax law’s impact
Whirlpool ended its first quarter of the year on a head of steam, with sales in North America up 7 percent, to $2.6 billion, excluding currency fluctuations.

Whirlpool said changes to the federal tax code will cost it about $425 million for the fourth quarter of 2017.

According to the majap maker, the Tax Cuts and Jobs Act, which was signed into law by President Trump on Dec. 22, raised the company’s effective tax rate from 15 percent to the new corporate income tax rate of 21 percent.

In addition, the global appliance manufacturer is being hit with a one-time “deemed repatriation” tax on offshore earnings.

Whirlpool said it will take the hit as a one-time non-cash charge for the quarter ended Dec. 31, 2017, and will continue to evaluate the impact of the new tax code. It said the $425 million Q4 charge represents its “best estimate” of its tax liability.

Whirlpool will report its fourth-quarter and full-year results on Thursday.

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