Lenovo to make $400 million one-off charge on US tax reforms
The adjustment to be reflected in the financial results is of a non-cash nature
A man uses his laptop next to Lenovo's logos during the Mobile World Congress in Barcelona, Spain February 25, 2016. PHOTO: REUTERS
Lenovo said on Wednesday, it expected to make a one-off charge of $400 million for nine months ended in December due to a reassessment of US deferred tax assets.
The adjustment to be reflected in the financial results is of a non-cash nature, and the company does not expect it to have any material effect on its operation or cash-flow position, the PC maker said in a filing to the Hong Kong bourse.
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Lenovo, a unit of Legend Holdings, said US corporate tax cuts would “positively impact” future earnings of its US operations in the long-term.
Lenovo will announce third-quarter results on February 1.
Tax reforms signed into law in December lower the income tax rate for US companies to 21 per cent from 35 per cent.
The adjustment to be reflected in the financial results is of a non-cash nature, and the company does not expect it to have any material effect on its operation or cash-flow position, the PC maker said in a filing to the Hong Kong bourse.
Which voice in your fridge? Makers pick virtual assistants
Lenovo, a unit of Legend Holdings, said US corporate tax cuts would “positively impact” future earnings of its US operations in the long-term.
Lenovo will announce third-quarter results on February 1.
Tax reforms signed into law in December lower the income tax rate for US companies to 21 per cent from 35 per cent.