Lenovo Group to make one time payment of $400 million

The PCmaker, a unit of Legend Holdings, stated that the payment, related to its U.S. deferred tax assets, would not significantly impact its cash position nor its operations.

The Lenovo Group Ltd has disclosed that it expects to make a one-time payment of $400 million for the nine months ended in December 2017 because of reassessment of its U.S. deferred tax assets.

In a filing to the Hong Kong stock exchange, Lenovo Group stated the adjustment which will be reflected in its financials is of non-cash nature. The firm does not foresee it having any material impact on its cash-flow position or operations.

Further, Lenovo, a unit of Legend Holdings, stated that the overhauling of the U.S. tax code would “positively impact” the future earnings of its U.S. operations, in the long-term.

Lenovo is set to announce its third-quarter results on February 1.

The Republican-led overhaul of the Tax code, signed into law in December 2017, lowers the income tax rate for U.S. companies to 21% from 35%.

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