AK Steel Tuesday announced that it will record a non-cash charge of approximately $31 million in the first quarter of 2010, as a result of the recently-enacted Patient Protection and Affordable Care Act.
The charge is due to a reduction in the value of the company's deferred tax asset as a result of a change to the tax treatment of Medicare Part D reimbursements. The company emphasized, however, that it expects to continue to receive Medicare Part D reimbursements even after the Act and that the first quarter charge attributable to this change is non-cash in nature.