Goodrich to Recognize First Quarter Charge for Impact of Health Care Reform Legislation

CHARLOTTE, N.C., March 31, 2010 /PRNewswire-FirstCall/ -- Goodrich Corporation (NYSE: GR) announced today that it expects to incur a one-time charge against its first quarter 2010 results of approximately $10 million, or $0.08 per diluted share, due to the recently-passed U.S. health care reform legislation.

The expected charge relates to the elimination of tax deductions available to companies that provide prescription drug coverage to retirees. The Medicare Modernization Act of 2003 (MMA) expanded Medicare to include prescription drug coverage through a plan known as Medicare Part D. Under the MMA, employers that provide prescription drug coverage to retirees that equals or exceeds the benefit provided under Medicare Part D are entitled to a subsidy of 28 percent of the cost of the coverage.  

Currently, employers can deduct the entire cost of providing the coverage.  For taxable years beginning after December 31, 2012, the newly-enacted Patient Protection and Affordable Care Act will repeal the rule permitting deduction of the portion of expense that is offset by the Part D subsidy.

Goodrich Corporation, a Fortune 500 company, is a global supplier of systems and services to aerospace, defense and homeland security markets.  With one of the most strategically diversified portfolios of products in the industry, Goodrich serves a global customer base with significant worldwide manufacturing and service facilities.  For more information visit http://www.goodrich.com.

Forward Looking Statements

Certain statements made in this release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the company's future plans, objectives, and expected performance. Specifically, statements that are not historical facts, including statements accompanied by words such as "believe," "expect," "anticipate," "intend," "estimate," or "plan," are intended to identify forward-looking statements and convey the uncertainty of future events or outcomes. The company cautions readers that any such forward-looking statements are based on assumptions that the company believes are reasonable, but are subject to a wide range of risks, and actual results may differ materially.

Important factors that could cause actual results to differ materially from projected results can be found in the company's filings with the Securities and Exchange Commission, including in the company's Annual Report on Form 10-K for the year ended December 31, 2009.

The company cautions you not to place undue reliance on the forward- looking statements contained in this release, which speak only as of the date on which such statements were made. The company undertakes no obligation to release publicly any revisions to these forward-looking statements to reflect events or circumstances after the date on which such statements were made or to reflect the occurrence of unanticipated events.

SOURCE Goodrich Corporation

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