US food giant General Mills said yesterday (29 January) that it will take a US$53m charge in the third quarter of fiscal 2009 due to an unfavourable tax adjustment.
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The maker of brands including Haagen-Dazs and Old El Paso said in a filing with the Securities and Exchange Commission that the Court of Appeals issued an opinion reversing an earlier decision ruling in favour of the company on an “uncertain tax matter”.
The decision reverses a $30m income tax benefit recognised in the third quarter of 2008 and $23m in cumulative income tax benefits recognised from fiscal 1992 through 2007.
General Mills said it expects to make cash payments of around $30m to settle the matter, primarily in fiscal 2009.
The company said it is also evaluating an appeal of the ruling to the US Supreme Court.
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