Dixie Group announces estimated impact of Tax Cut and Jobs Act of 2017
The Dixie Group expects that future U.S. after-tax earnings will be positively impacted by the recently-enacted changes to US corporate taxes, largely due to the reduction of the US federal corporate income tax rate. The lowering of the US corporate income tax rate and changes to the income tax rules, including the revised treatment of net operating losses, requires revaluation of the company's deferred tax assets and liabilities. The ultimate impact of the change in the US corporate income tax rate is subject to a number of complex provisions in the legislation which the Company is reviewing. The current estimated impact of the Tax Cut and Jobs Act of 2017 is a non-cash charge to the income statement of around $8.2 million that will affect the Company's 2017 results. Details of the final actual charge are expected to be disclosed in the Company's 2017 results announcement, due on March 1, 2018.