Pennsylvania, US-based Carpenter Technology Corporation, a producer and distributor of specialty alloys, including stainless steels, titanium alloys, and super-alloys, has said that it will record a non-cash charge of approximately $5.9 million or $0.13 per share in its third quarter ending March 31, 2010 as a result of the recently enacted health care reform legislation.
Under the new legislation, the income tax treatment of the subsidy to encourage companies to provide retiree prescription drug coverage has been changed.
Although the provisions of the new legislation changing the tax treatment of the subsidy do not take effect until 2013, Carpenter is required by US generally accepted accounting principles to recognize the full accounting impact in the period in which the legislation is enacted.