TOOTSIE ROLL INDUSTRIES INC (TR): restructuring charge — Tootsie Roll expects $11-12M non-cash tax charge in Q4 2024 after board revokes deferred comp plan tax strategy

TOOTSIE ROLL INDUSTRIES INC

Board revoked 2018 authorization to preserve tax deductibility of deferred compensation under Section 162(m) due to IRS interpretations and account growth.
Non-cash charge of approximately $11-12 million to write off deferred tax assets in Q4 2024.
Charge will be reflected in 2024 Form 10-K; no future cash expenditures expected beyond loss of deduction.
Company cites sustained equity market appreciation as reason for increased account balances.

item 2.06

Key facts

Extracted from this filing and checked against the source text.

Restructurings & Charges SEC 8-K Item 2.05/2.06 confidence 0.9

TOOTSIE ROLL INDUSTRIES INC announced a impairment with charges of between approximately $11 and $12 million.

Type: impairment
Charge: between approximately $11 and $12 million

Exact text from the filing

The adjustment to the deferred tax assets is expected to result in a non-cash tax charge between approximately $11 and $12 million in fourth quarter 2024.

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Source: SEC EDGAR

accession 0001558370-24-016099

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