Medtronic said the U.S. Treasury Department’s temporary and proposed rules on tax inversions won’t have a material financial impact based on the company’s preliminary review, according to the Sonoran Weekly Review.
Here are five takeaways:
1. Tax inversions are strategies used by companies to slash their tax bills by resettling their companies' headquarters overseas.
2. After completing its acquisition of Covidien in January 2015, Medtronic moved headquarters overseas to Ireland in what appeared to be a tax inversion strategy.
3. In the past, President Obama has criticized device companies moving headquarters overseas to achieve lower tax rates.
4. Medtronic will continue to more fully examine the regulations and will provide appropriate disclosure concerning any potential material impact on the company.
5. The company's stock is up 2.38 percent after the news, hitting $77.29 per share.