Australia’s BHP Flags $1.8 Billion Charge From US Tax Reform, But Long Term Outlook Good

Australian mining company BHP's new corporate logo, released to Reuters from their Melbourne, Australia, headquarters May 15, 2017. BHP/Handout via Reuters

BHP Billiton said on Tuesday it will record a $1.8 billion income tax expense due to cuts in the U.S. Federal corporate income tax rate.

The expense, which will be treated as an exceptional item, consists mainly of a non-cash charge on deferred taxes of $898 million and another charge on foreign tax credits of $834 million.