Qiagen announces that, mainly as a consequence of the new U.S. tax legislation, it will take an after-tax charge on net income of approx. $110-120 mln or about $0.47-$0.52/share in Q4, and an additional after-tax charge in 2018 of approx. $7 mln or about $0.03/share
- These charges, the vast majority of which involve non-cash items, do not affect QIAGEN's adjusted EPS forecast for the fourth quarter and full-year 2017, nor the forecast to be provided for full-year 2018 in January 2018, since these charges will be excluded from adjusted results.
- For the charge in the fourth quarter of 2017, approximately $100-110 million of the write-off involve non-cash items related to deferred tax assets, revaluation of deferred tax liabilities and other tax provisions. QIAGEN has proactively initiated additional restructuring initiatives that will mitigate some of the impact of the new U.S. tax law. As a result, a new after-tax charge of approximately $10 million is planned to be taken in the fourth quarter of 2017. An additional after-tax charge of approximately $7 million is planned to be taken during 2018 related to these specific measures. QIAGEN notes that it has now completed its previously announced efficiency programs with these measures and does not expect any additional material non-M&A related restructuring charges in 2018.
- Based on an initial review of the new U.S. legislation, as well as the current global tax environment, QIAGEN currently expects a preliminary adjusted tax rate for full-year 2018 of approximately 20-21%, mainly due to the new U.S. limitations on interest deductions. This preliminary outlook for 2018 compares to an adjusted tax rate of approximately 17-18% expected for full-year 2017, and to a mid-term outlook provided at QIAGEN's analyst and investor day in November 2016 for an adjusted tax rate of approximately 19-20% in the period from 2018 to 2020.