Tribune Co., the owner of the Los Angeles Times, said on Tuesday it will appeal a U.S. Tax Court ruling against it for approximately $1 billion in tax deficiencies.
The court disallowed the 1998 tax-free reorganization of Matthew Bender, a former subsidiary of The Times Mirror Company. Tribune acquired Times Mirror in June 2000, inheriting the pre-existing tax dispute.
The exact amount of the tax deficiency has yet to be determined, but is estimated to be in the $1 billion range for both the Matthew Bender transaction and a similar transaction completed by Times Mirror in the same year. Over time, deductions for state taxes and interest will reduce the net cash outlay to approximately $850 million, the Chicago-based company said.
