Benton Harbor, MI, U.S.-based appliance maker Whirlpool Corporation today announced that the company, consistent with its August 2002 disclosure, will recognize a non-cash charge of approximately U.S. $68 million, or $43 million after tax, related to aircraft lease assets in discontinued operations. Whirlpool previously disclosed that these assets could be reduced in value if UAL Corp. filed for bankruptcy protection. The fourth-quarter charge to discontinued operations is estimated at approximately $0.62 per diluted share and will have no impact on Whirlpool's appliance business.
In addition, Whirlpool will accelerate the payment of up to $49 million in long-term deferred income taxes related to the lease assets. For 2003, the payments will be sourced from the company's cash flow, but have no impact on earnings.
The aircraft leases are part of a Whirlpool subsidiary's leveraged lease portfolio in discontinued operations. The portfolio is part of Whirlpool Financial Corporation, the financial services subsidiary whose operations were discontinued in 1997.
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