USANA expects one-time non-cash charge of $33M in Q4 from U.S. tax reform
USANA Health Sciences reported that it expects to take a one-time non-cash charge to its income statement following U.S. tax reform enacted on December 22. The preliminary estimate for this charge is expected to be approximately $33M, which the company will recognize in its 4Q17 results in accordance with Generally Accepted Accounting Principles. The charge is largely due to foreign tax credits and other deferred tax assets that the company does not expect to be able to realize under the new tax laws. An update of the estimated tax charge will be provided in the company's 4Q17 earnings release in February 2018. "Under the company's current global operating structure, we expect the company's effective tax rate to increase in 2018 under the recently enacted U.S. tax reform," said Doug Hekking, CFO. "We are not prepared to provide an effective tax rate forecast for 2018 at this time, because we are currently evaluating several operating and structural changes that may allow the company to benefit from the new, lower U.S. tax rate prospectively. We will update investors regarding our expected 2018 income tax rate forecast when we provide our initial outlook in February."