CARPENTER TECHNOLOGY HEADLINESSteel Producers /
Carpenter Technology
Carpenter to Record Q3 Non-Cash Expense Related to New U.S. Health Care Law
Apr. 2, 2010 Carpenter Technology Corp. 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. The new legislation changes the income tax treatment of the subsidy to encourage companies to provide retiree prescription drug coverage.
Although the provisions of the new legislation do not take effect until 2013, Carpenter says that it is required by U.S. generally accepted accounting principles to recognize the full accounting impact in the period in which the legislation is enacted.
The one-time charge reflects a reduction in the value of Carpenter’s deferred tax asset previously established for anticipated retiree health care liabilities under the prior law.
Carpenter produces and distributes specialty alloys, including stainless steels, titanium alloys, and superalloys.