Facebook Takes $1B Tax Hit After Altera Cost-Sharing Loss (1)

July 24, 2019, 9:36 PMUpdated: July 24, 2019, 11:00 PM

Facebook Inc. incurred a more than $1 billion tax expense thanks to an unfavorable appeals court decision in a case involving Intel-owned Altera Corp.'s cost-sharing arrangements.

The social media giant recorded a cumulative income tax expense of $1.11 billion in the second quarter of 2019, the company said July 24 in a financial statement to the Securities and Exchange Commission.

The Altera ruling, in conjunction with an additional $2 billion expense accrued related to a $5 billion settlement with the Federal Trade Commission, increased Facebook’s effective tax rate for the quarter by 30 percentage points, the company said. ...

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