FACTBOX-Corporate America books healthcare reform charges

Defense News: April 15 (Reuters) - U.S. companies have begun to tally the financial hit they say they will take as a result of the U.S. healthcare overhaul signed into law last month by President Barack Obama.

The government continues to pay subsidies to large companies, including AT&T Inc (T.N), Caterpillar Inc (CAT.N) and Boeing Co (BA.N), to help fund prescription drug benefits for their large ranks of retirees. [ID:nHEALTH]

However, the revamped law no longer allows companies to deduct the amount of the subsidies from their taxable income. Corporate America complains that the change amounts to a tax increase, while the White House says it essentially closes a tax loophole.

The charges are noncash accounting items.

Not all big companies are warning of trouble. General Electric Co (GE.N), for example, said it did not expect a "significant material impact" on its first-quarter results.

Coating and chemical maker PPG Industries Inc (PPG.N) joined the ranks of companies taking such a charge on Thursday.

Below are 10 of the largest charges forecast:

* AT&T, the largest U.S. telephone company, said it would record a $1 billion noncash charge for the first quarter and evaluate prospective changes to the healthcare benefits it offers to both active and retired workers. [ID:nN26192636]

* Verizon Communications Inc (VZ.N), the No. 2 U.S. phone company, anticipates a $970 million noncash charge for the change. [ID:nN01142694]

* Deere & Co (DE.N), which makes farm equipment, said it expected to record a $150 million charge, mostly in its current fiscal second quarter. [ID:nN25216862]

* No. 2 plane maker Boeing said it would take an income tax charge of $150 million, or 20 cents per share, against first-quarter results. [ID:nN31202447]

* Caterpillar said accounting standards required the world's largest maker of earth-moving equipment to book a $100 million after-tax charge for the first quarter to reflect the change. [ID:nN24185079]

* No. 2 life insurer Prudential Financial Inc (PRU.N) said it expected a $100 million charge for the first quarter. [ID:nWNAB4727]

* Lockheed Martin Corp (LMT.N), the world's biggest defense contractor, said it expected to record a $96 million after-tax charge for the first quarter, which would translate to around 25 cents per share. [ID:nN31242589]

* 3M Co (MMM.N), which makes products ranging from Post-It notes to optical films for flat-panel televisions, will record a one-time, noncash charge of up to $90 million, or 12 cents per share. [ID:nN26208452]

* PPG took an $85 million charge related to the change. [ID:nN15213654]

* Aluminum producer Alcoa Inc (AA.N) expects to record a charge of about $80 million. [ID:nN05147044]