Printer Friendly

PEPSICO ANNOUNCES PRELIMINARY ESTIMATE OF IMPACT OF NEW TAX LEGISLATION ON 1993 EARNINGS

 PURCHASE, N.Y., Sept. 9 /PRNewswire/ -- PepsiCo, Inc. (NYSE: PEP), today announced that the preliminary estimate of the impact of the new federal tax legislation on 1993 earnings is expected to be approximately 5 cents per share. Of this impact, 4 cents represents a one-time non-cash charge to be recorded in the third quarter for the adjustment of net deferred tax liabilities as required under SFAS 109, the new accounting rules adopted last year. Third quarter results will also include the largest part of the remaining 1 cent, reflecting the fact that the 1 percent increase in the corporate rate is retroactive to the beginning of the year.
 When additional provisions in the law, primarily the reduction in tax benefits associated with the operations in Puerto Rico, take effect in the future, it is expected that the new law will technically add approximately 2.5 points to PepsiCo's tax rate. However, the actual tax rate in 1994 and beyond will be affected by many other things and, therefore, cannot be predicted at this time.
 -0- 9/9/93
 /CONTACT: Elaine Franklin, manager - corporate information of PepsiCo, Inc., 914-253-3122/
 (PEP)


CO: PepsiCo, Inc. ST: New York IN: FOD SU: ERP

TW -- NY009 -- 0166 09/09/93 09:16 EDT
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Sep 9, 1993
Words:208
Previous Article:MULTI-MARKET RADIO, INC. RELEASES SIX MONTH RESULTS
Next Article:DUAL DRILLING REPORTS SECOND QUARTER AND SIX-MONTHS RESULTS
Topics:

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters