Medtronic halves estimate of device tax hit

Medtronic ($MDT) now says the 2.3% medical device industry tax will only cost half as much as previously estimated, likely hitting the company in the $20 million to $25 million range.  Initially, executives claimed the tax would cost the company $50 million extra for fiscal 2013. Why the change? As the Minneapolis/St. Paul Business Journal reports, Medtronic CFO Garry Ellis claimed the company developed its initial estimate without factoring in final government regulations. With those in mind, the tax doesn't hit existing inventory, Ellis noted, so the tax's full effect will take a while to ramp up. Medtronic disclosed the revised tax estimate during its Feb. 19 earnings call. Story | More

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