New Healthcare Law Prompts Non-Cash Q1 Charge for AK Steel
03/24/2010 - AK Steel will record a non-cash charge of approximately $31 million in the first quarter of 2010 as the result of the recently-enacted Patient Protection and Affordable Care Act.
AK Steel says that it will record a non-cash charge of approximately $31 million in the first quarter of 2010 as the result of the recently-enacted Patient Protection and Affordable Care Act.
The company said the charge is the result of a change to the tax treatment of Medicare Part D reimbursements, which has in turn reduced the value of the company's deferred tax asset.
AK Steel emphasized that it expects to continue to receive Medicare Part D reimbursements even after the Act.
AK Steel produces flat-rolled carbon, stainless and electrical steels, primarily for automotive, appliance, construction and electrical power generation and distribution markets. The company employs about 6,200 men and women in Middletown, Mansfield, Coshocton and Zanesville, Ohio; Butler, Pa.; Ashland, Ky.; Rockport, Ind.; and its corporate headquarters in West Chester, Ohio.
AK Tube LLC, a wholly owned subsidiary of AK Steel, employs about 300 men and women in plants in Walbridge, Ohio, and Columbus, Ind. The company produces carbon and stainless electric resistance welded (ERW) tubular steel products for truck, automotive and other markets.
