U. S. Steel to Record Q1 Charge due to New Healthcare Legislation
04/08/2010 - United States Steel expects to record a charge of approximately $27 million in the first quarter of 2010 as a result of recently enacted Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010.
Responding to inquiries, United States Steel Corp. said that it will record a charge of approximately $27 million in the first quarter of 2010 as a result of recently enacted Patient Protection and Affordable Care Act and the Health Care and Education Reconciliation Act of 2010. The company will incur the charge in order to adjust deferred tax assets as required under the two acts.
The company said that the annual cash tax increase of this aspect of the Acts would be less than $10 million, based on the Medicare Part D subsidies expected to be received in 2010.
While the change under the two acts does not become effective until 2013, U.S. generally accepted accounting principles require that the impact of changes in tax law be immediately recognized in income in the period of enactment.
United States Steel Corp., headquartered in Pittsburgh, Pa., is an integrated steel producer with major production operations in the United States, Canada and Central Europe and an annual raw steelmaking capability of 31.7 million net tons. The company manufactures a wide range of value-added steel sheet and tubular products for the automotive, appliance, container, industrial machinery, construction, and oil and gas industries.
