Verizon Kisses $970 Million Goodbye

The Obamacare hits keep a'comin':

Verizon Communications Inc., the second-largest U.S. phone company, became the latest company to record a cost related to the U.S. health-care overhaul, saying it will incur a $970 million expense.

The one-time, non-cash cost will be taken in the first quarter, New York-based Verizon said late today in a regulatory filing.

Verizon follows AT&T Inc., the biggest U.S. carrier, Deere & Co., Caterpillar Inc. and other companies in disclosing similar expenses after losing a tax benefit for retiree plans. The costs may reduce corporate profits by as much as $14 billion as companies account for the impact of the health-care reforms, according to benefits consulting firm Towers Watson.

“While it is a non-cash charge, it does reflect real value destruction, based on expected cash flows over the life of the company,” said Jonathan Schildkraut, an analyst at Jefferies & Co. in New York. Schildkraut, who expected the expense to be about $750 million, advises investors to buy Verizon shares and doesn’t own any himself.

Hey Democrats, can you hear me now?