A New York Times news report said the company took a $10.9 million or 7 cents a share charge to reflect a change the reform law made in the tax treatment of benefits. Early in the second quarter of 2010, the company said, it also decided to put $78 million into an underfunded pension plan, suggesting confidence in its cash position.
The news report said the company has been strengthening its cash position, and had accumulated more than $100 million in cash on hand at the end of the quarter. Generally, the Times Company reported a net income of $12.8 million for the first quarter, compared with a loss of $74.5 million in the period a year earlier.
A number of other companies have already announced they were taking the same accounting charge because of the health reform measure (see Healthcare-Related Earnings “Hit” List Continues to Expand).
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