Armstrong World Industries to record $22 million charge from tax provision in health care law

Armstrong to record $22M charge from health care

LANCASTER, Pa. — Armstrong World Industries Inc. will record a non-cash income tax charge of about $22 million against its first-quarter earnings because of a provision in the health care overhaul signed into law last month.

The flooring and building products manufacturer is among dozens of companies that have announced plans to record charges as a result of the law that President Obama signed last month. Armstrong disclosed the charge in a Securities and Exchange Commission filing on Tuesday.

Under the law, companies will have to start paying taxes on a government subsidy they receive for providing drug benefits to retirees. Accounting rules require that the expected charge be booked immediately.