Ak Steel Holding (AKS) 10-Q 4 Aug 09 2009 Q2 Quarterly report Financial data

1000 - CONDENSED CONSOLIDATED S

1000 - CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)
In Millions	3 Months Ended Jun. 30, 2009	3 Months Ended Jun. 30, 2008	6 Months Ended Jun. 30, 2009	6 Months Ended Jun. 30, 2008
Net sales	793.6	2236.6	1715.8	$4,028
Cost of products sold (exclusive of items shown below)	766.6	1892.3	1689.6	3405.5
Selling and administrative expenses	47.9	55	95.7	111.5
Depreciation	51.6	51.4	102.9	103.4
Total operating costs	866.1	1998.7	1888.2	3620.4
Operating profit (loss)	-72.5	237.9	-172.4	407.6
Interest expense	9.2	11.6	19.4	23.3
Other income, net	3.4	3.8	5.7	9.2
Income (loss) before income taxes	-78.3	230.1	-186.1	393.5
Income tax provision (benefit)	-30.3	84.6	-64.5	147
Net income (loss)	(48)	145.5	-121.6	246.5
Less: Net income (loss) attributable to noncontrolling interests	-0.8	0.3	(1)	0.2
Net income (loss) attributable to AK Steel Holding Corporation	-47.2	145.2	-120.6	246.3
Basic earnings per share:
Net income (loss) attributable to AK Steel Holding Corporation common stockholders-basic	-0.43	1.3	-1.1	2.2
Diluted earnings per share:
Net income (loss) attributable to AK Steel Holding Corporation common stockholders-diluted	-0.43	1.29	-1.1	2.18
Common shares and common share equivalents outstanding (weighted average in millions):
Basic	108.7	111.6	109.3	111.5
Diluted	108.7	112.4	109.3	112.3
Dividends declared and paid per share	0.05	0.05	0.1	0.1

2000 - CONDENSED CONSOLIDATED B

2000 - CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)
In Millions	Jun. 30, 2009	Dec. 31, 2008
Current Assets:
Cash and Cash Equivalents	385.8	562.7
Accounts Receivable, Net	279.1	469.9
Inventory, Net	531.4	566.8
Deferred tax asset, current	341.5	333
Other Current Assets	69.4	70.4
Total Current Assets	1607.2	2002.8
Property, Plant and Equipment	5356.6	5282.1
Accumulated Depreciation	(3,319)	-3220.8
Property, Plant and Equipment, net	2037.6	2061.3
Other Assets:
Investment in AFSG	55.6	55.6
Other investments	48	50.4
Goodwill	37.1	37.1
Other intangible assets	0.2	0.3
Deferred tax asset, non-current	503.4	459.1
Other non-current assets	10.3	15.4
Total Non-current Assets	654.6	617.9
TOTAL ASSETS	4299.4	4,682
Current Liabilities:
Accounts payable	312.4	348.1
Accrued liabilities	227.8	233
Current portion of long-term debt	0.7	0.7
Current portion of pension and other postretirement benefit obligations	149.2	152.4
Total Current Liabilities	690.1	734.2
Non-current Liabilities:
Long-term debt	606.1	632.6
Pension and other postretirement benefit obligations	1,982	2144.2
Other non-current liabilities	213.7	200.3
Total Non-current Liabilities	2801.8	2977.1
TOTAL LIABILITIES	3491.9	3711.3
Stockholders' Equity:
Common stock	1.2	1.2
Additional paid-in capital	1904.9	1898.9
Treasury stock	-162.2	-150.8
Accumulated deficit	-1072.5	-940.9
Accumulated other comprehensive income	134.4	159.6
Total AK Steel Holding Corporation Stockholders’ Equity	805.8	968
Noncontrolling interest	1.7	2.7
TOTAL STOCKHOLDERS’ EQUITY	807.5	970.7
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	4299.4	$4,682

2100 - Parenthetical Data for t

2100 - Parenthetical Data for the Balancce Sheet (USD $)
	Jun. 30, 2009	Dec. 31, 2008
CONDENSED CONSOLIDATED BALANCE SHEETS
Preferred stock, authorized shares	25,000,000	25,000,000
Common stock, authorized shares	200,000,000	200,000,000
Common stock, par value	0.01	0.01
Common stock, issued shares	121,871,559	121,105,429
Common stock, outstanding shares	109,385,769	110,394,774
Treasury stock, common shares at cost	12,485,790	10,710,655

3000 - CONDENSED CONSOLIDATED S

3000 - CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Millions	6 Months Ended Jun. 30, 2009	6 Months Ended Jun. 30, 2008
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	-121.6	246.5
Depreciation	102.9	103.4
Amortization	6.6	5.8
Deferred income taxes	-37.4	105.2
Pension contributions	(100)	(150)
Contribution to Middletown retirees VEBA	(65)	(468)
Pension and other postretirement benefit payments greater than expense	-31.3	-43.8
Excess Tax Benefits from Stock-based Compensation-operating	0	-12.3
Working Capital	162.6	-15.1
Working capital - Middletown Coke	3.9	0
Other operating items, net	26.7	-10.7
Net cash flows from operating activities	-52.6	(239)
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital investments	-76.8	-86.2
Capital investments – Middletown Coke	-18.8	0
Purchase of investments	0	-4.2
Other investing items, net	0.3	0.7
Net cash flows from investing activities	-95.3	-89.7
CASH FLOWS FROM FINANCING ACTIVITIES:
Redemption of long-term debt	-23.1	-0.3
Proceeds from exercise of stock options	0	3.3
Purchase of treasury stock	-11.4	-9.5
Excess Tax Benefits from Stock-based Compensation-financing	0	12.3
Common stock dividends paid	(11)	-11.2
Advances from minority interest owner to Middletown Coke	15.5	0
Other financing items, net	1	1.3
Net Cash Flows From Financing Activities	(29)	-4.1
Net decrease in cash and cash equivalents	-176.9	-332.8
Cash and cash equivalents, beginning of period	562.7	713.6
Cash and cash equivalents, end of period	385.8	380.8
Supplemental disclosure of cash flow information:
Interest, net of capitalized interest	28.4	24.5
Income Taxes Paid	-25.7	26.8
Issuance of Restricted Common Stock and Restricted Stock Units	4.2	5.4

6000 - Basis of Presentation

6000 - Basis of Presentation
	6 Months Ended Jun. 30, 2009
Basis of Presentation
Basis of Presentation	NOTE 1 - Basis of Presentation In the opinion of the management of AK Steel Holding Corporation ("AK Holding") and AK Steel Corporation ("AK Steel", and together with AK Holding, the "Company"), the accompanying condensed consolidated financial statements contain all adjustments, consisting of normal recurring adjustments necessary to present fairly the financial position of the Company as of June 30, 2009, the results of its operations for the three- and six-month periods ended June 30, 2009 and 2008, and its cash flows for the six-month periods ended June 30, 2009 and 2008. The results of operations for the six months ended June 30, 2009 are not necessarily indicative of the results to be expected for the year ending December 31, 2009. These condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements of the Company for the year ended December 31, 2008.

6010 - Earnings and Dividends P

6010 - Earnings and Dividends Per Share
	6 Months Ended Jun. 30, 2009
Earnings and Dividends Per Share
Earnings and Dividends Per Share	NOTE 2 - Earnings and Dividends Per Share Three Months Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 Net income (loss) attributable to AK Steel Holding Corporation $ (47.2 ) $ 145.2 $ (120.6 ) $ 246.3 Less: Distributed earnings to common stockholders - 5.6 - 11.2 Undistributed earnings $ (47.2 ) $ 139.6 $ (120.6 ) $ 235.1 Common stockholders earnings - basic: Distributed earnings to common stockholders $ - $ 5.6 $ - $ 11.2 Undistributed earnings to common stockholders (47.2 ) 139.0 (120.6 ) 234.1 Common stockholders earnings - basic $ (47.2 ) $ 144.6 $ (120.6 ) $ 245.3 Common stockholders earnings - diluted: Distributed earnings to common stockholders $ - $ 5.6 $ - $ 11.2 Undistributed earnings to common stockholders (47.2 ) 139.0 (120.6 ) 234.0 Common stockholders earnings - diluted $ (47.2 ) $ 144.6 $ (120.6 ) $ 245.2 Common shares outstanding (weighted average in millions): Common shares outstanding for basic earnings per share 108.7 111.6 109.3 111.5 Effect of dilutive stock-based compensation - 0.8 - 0.8 Common shares outstanding for diluted earnings per share 108.7 112.4 109.3 112.3 Basic earnings per share: Distributed earnings $ - $ 0.05 $ - $ 0.10 Undistributed earnings (0.43 ) 1.25 (1.10 ) 2.10 Basic earnings per share $ (0.43 ) $ 1.30 $ (1.10 ) $ 2.20 Diluted earnings per share: Distributed earnings $ - $ 0.05 $ - $ 0.10 Undistributed earnings (0.43 ) 1.24 (1.10 ) 2.08 Diluted earnings per share $ (0.43 ) $ 1.29 $ (1.10 ) $ 2.18 Potentially issuable common shares (in millions) excluded from earnings per share calculation due to anti-dilutive effect 1.1 - 1.1 - - 4 - Per Financial Accounting Standards Board ("FASB") Staff Position EITF 03-6-1, Determining WhetherInstruments Granted in Share Based Payment Transactions Are Participating Securities", beginning with the three-month period ended March 31, 2009,earnings per share ("EPS") has been calculated utilizing the "two-class" methodby dividing the sum of distributed earnings to common stockholders andundistributed earnings allocated to common stockholders by the weighted averagenumber of common shares outstanding during the period.In applyingthe "two-class" method, undistributed earnings are allocated to both commonshares and participating securities.The restricted stockgranted by AK Steel is entitled to dividends and meets the criteria of aparticipating security. EPS for the three-month andsix-month periods ended June 30,

6020 - Inventories

6020 - Inventories
	6 Months Ended Jun. 30, 2009
Inventories
Inventories	NOTE 3 - Inventories Inventories are valued at the lower of cost or market.The cost of the majority of inventories is measured on the last in, first out (LIFO) method.Other inventories are measured principally at average cost. June 30, December 31, 2009 2008 Finished and semi-finished $ 720.7 $ 877.1 Raw materials 473.0 512.1 Total cost 1,193.7 1,389.2 Adjustment to state inventories at LIFO value (662.3 ) (822.4 ) Net inventories $ 531.4 $ 566.8

6030 - Pension and other postre

6030 - Pension and other postretirement benefits
	6 Months Ended Jun. 30, 2009
Pension and Other Postretirement Benefits
Pension and Other Postretirement Benefits	NOTE 4 - Pension and other postretirement benefits The Company provides noncontributory pension and various healthcare and life insurance benefits to most employees and retirees.The major pension plans are not fully funded and, based on current assumptions, the Company has contributed approximately $210.0 to the qualified pensions plan trusts during 2009.Of this total, $100.0 was made in the first half of 2009, and $110.0 was made early inthethird quarterof 2009. The total contribution of $210.0 exceeded by approximately $55.0 the amount that the Company was required to contribute in 2009 and is expected to reduce the Company's 2010 contribution obligation. The Company made $225.0 in contributions during 2008. Net periodic benefit costs for pension and other postretirement benefits were as follows: - 5 - Three Months Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 Pension Benefits Service cost $ 0.8 $ 2.0 $ 2.0 $ 4.0 Interest cost 52.5 53.2 104.9 106.4 Expected return on assets (44.7 ) (60.5 ) (89.3 ) (120.9 ) Amortization of prior service cost 0.6 0.8 1.6 1.9 Amortization of loss 4.5 4.3 9.0 8.6 Net periodic benefit cost (income) $ 13.7 $ (0.2 ) $ 28.2 $ 0.0 Other Postretirement Benefits Service cost $ 1.0 $ 1.1 $ 2.0 $ 2.2 Interest cost 13.8 16.2 27.6 40.2 Amortization of prior service credit (19.8 ) (19.6 ) (39.5 ) (33.9 ) Amortization of loss (gain) (0.8 ) 0.7 (1.7 ) 1.3 Net periodic benefit cost (income) $ (5.8 ) $ (1.6 ) $ (11.6 ) $ 9.8 The increase in "Net periodic benefit cost (income) " for Pension Benefits for the three and six months ended June 30, 2009 was principally caused by a decrease in the value of pension assets at the end of 2008 compared to the end of 2007, which resulted in a reduction in the associated calculation of expected return on assets. The decrease in "Net periodic benefit cost (income) " for Other Postretirement Benefits for the three and six months ended June 30, 2009 was primarily the result of the full effect of the March 2008 settlement with a group of retirees from the Company's Middletown Works.Under the terms of that settlement, AK Steel transferred to a Voluntary Employees Beneficiary Association trust (the "VEBA Trust ") all postretirement benefit obligations (the "OPEB Obligations ") owed to the Class Members.See discussion of Middletown Works Retiree Healthcare Benefits Litigation in Note9. In the first quarter of 2008, the Company adopted the measurement date provisions of FASB Statement of Financial Accounting Standards No. 158, "Accounting for Defined Benefit Pension and Other Postretirement Plans - an amendment of FASB Statements No. 87, 88, 106 and 132(R) " ( "FAS 158 ").As a result, the Company recorded a $12.0 pre-tax charge to retained earnings

6040 - Share Based Compensation

6040 - Share Based Compensation
	6 Months Ended Jun. 30, 2009
Share-Based Compensation
Share-Based Compensation	NOTE 5 - Share-Based Compensation AK Holding's Stock Incentive Plan (the "SIP") permits the granting of nonqualified stock option, restricted stock, performance share and restricted stock unit awards to directors, officers and key management employees of the Company.These nonqualified stock option, restricted stock, performance share and restricted stock unit awards may be granted with respect to an aggregate maximum of 16million shares through the period ending December 31, 2011.The shares that are issued as the result of these grants are newly issued shares. The exercise price of each option may not be less than the market price of the Company's common stock on the date of the grant.Stock options have a maximum term of ten years and may not be exercised earlier than six months following the date of grant or such other term as may be specified in the award agreement. Stock options granted to officers and key managers vest and become exercisable in three equal installments on the first, second and third anniversary of the grant date. Stock options granted to directors vest and become exercisable after one year.Performance shares vest after a three-year period.The total number of performance shares issued will be based on the Company's share performance compared to a - 6 - prescribed compounded annual growth rate and the total share return compared to Standard and Poor's MidCap 400 index.Restricted stock awards granted to officers and key managers on or prior to December 31, 2006, that are not yet fully vested were awarded on terms pursuant to which 25% of the shares covered by a restricted stock award vest two years after the date of the award and an additional 25% vest on the third, fourth and fifth anniversaries of the date of the award.Restricted stock awards granted to officers and key managers after December 31, 2006 will vest ratably on the first, second and third anniversaries of the grant.Until October 16, 2008, directors were granted restricted stock as the equity component of their compensation. On October 16, 2008, the Board of Directors amended the SIP to allow restricted stock units ("RSUs") to be granted to non-employee Directors in lieu of restricted shares of common stock as the equity component of a Director's compensation.In addition, the Board of Directors permitted each Director a one-time election to convert all of his or her existing restricted stock to RSUs.To the extent not so converted, restricted stock issued to a Director prior to October 16, 2008 vests at the end of the Director's full tenure on the Board.New grants of RSUs vest immediately upon grant, but are not settled (i.e., paid out) until one year after the date of the grant, unless deferred settlement is elected as described below.RSUs resulting from converted restricted stock vested and were settled as of the date of the 2009 Annual Meeting of the company's stockholders, subject also to a deferred settlement election.Directors have the option to defer settlement of their RSUs until six months following the date they complete their full tenure on the Board due to attainment of mandatory retirement age, the election by the stockholders of a repl

term Debt

term Debt
	6 Months Ended Jun. 30, 2009
Long-term Debt
Long-term Debt	NOTE 6 - Long-term Debt During the second quarter of 2009, the Company repurchased $3.3 of its 7 3/4% senior notes due in 2012 (the "Senior Notes"), with cash payments totaling $3.0.In connection with these repurchases, the Company recorded non-cash, pre-tax gains of approximately $0.3.Total repurchases for the first half of 2009 were $26.4 with cash payments of $22.8 and non-cash, pre-tax gains of approximately $3.6, resulting in an outstanding balance of $504.0 at June 30, 2009 for the remaining Senior Notes.The repurchases were funded from the Company's existing cash balances.The - 8 - Company from time to time may continue to make cash repurchases of its outstanding senior notes though open market purchases, privately negotiated transactions or otherwise.Such repurchases, if any, will depend upon whether any senior notes are offered to the Company by the holders, prevailing market conditions, the Company's cash and liquidity position and needs, and other relevant factors.The amounts involved in the repurchases may or may not be material. The carrying value of the Company's financial instruments does not differ materially from their estimated fair value at June 30, 2009 and the end of 2008 with the exception of the Company's long-term debt.At June 30, 2009, the fair value of the Company's long-term debt, including current maturities, was approximately $600.3.The fair value estimate was based on financial market information available to management as of June 30, 2009.Management is not aware of any significant factors that would materially alter this estimate since that date.The fair value of the Company's long-term debt, including current maturities, at December 31, 2008 was approximately $515.8. The senior note indenture includes restrictive covenants regarding (a) the use of proceeds from asset sales, (b) some investments, (c) the amount of sale/leaseback transactions, and (d) transactions by subsidiaries and with affiliates.Furthermore, the senior note indenture imposes the following additional financial covenants: A minimum interest coverage ratio of at least 2.5 to 1 for the incurrence of debt.Failure to meet this covenant would not constitute an event of default.Rather it would limit the amount of additional debt the Company could incur to $100.0 beyond the borrowing available under our existing revolving credit facility.At June 30, 2009, the ratio was approximately 3.4 to 1 and the Company believes that as a result of continued weak economic conditions, the interest coverage ratio could be below 2.5 later in 2009.However, other than the impact on borrowing noted above, noncompliance with this covenant would not materially impact the Company's cash or liquidity position.The ratio is calculated by dividing the interest expense, including capitalized interest and fees on letters of credit, into EBITDA (defined, essentially, as operating income (i) before interest, income taxes, depreciation, amortization of intangible assets and restricted stock, extraordinary items and purchase accounting and asset distributions, (ii) adjusted for income before income taxes for discontinued operations, and (iii) reduced for the

6060 - Income Taxes

6060 - Income Taxes
	6 Months Ended Jun. 30, 2009
Income Taxes
Income Taxes	NOTE 7 - Income Taxes Income taxes recorded through June 30, 2009 have been estimated based on year-to-date income and projected results for the full year.The amounts recorded reflect the provisions of FASB Interpretation No. 48, "Accounting for Uncertainty in Income Taxes" which clarifies the accounting for uncertainty in income taxes recognized in an entity 's financial statements and prescribes standards for the recognition and measurement of tax positions taken or expected to be taken on a tax return. The balance of unrecognized tax benefits at December 31, 2008 was $49.1.For the six-month period ended June 30, 2009, the unrecognized tax benefits related to tax positions taken in prior periods increased by $4.8.This increase related to income generated by foreign subsidiaries.The portion of the increase in unrecognized tax benefits that will affect the effective tax rate is $4.8.For 2009, it is estimated the Company will record an additional $0.7 of unrecognized tax benefits related to tax positions likely to be taken on tax returns to be filed for the current year with no effect on the effective tax rate. The Company recognizes interest and penalties accrued related to uncertain tax positions as a component of income tax expense. Accrued interest and penalties are included in other non-current liabilities in the condensed consolidated balance sheets.The balance of interest and penalties at December 31, 2008 was $7.3.For the three- and six-month - 9 - periods ended June 30, 2009, the Company recognized approximately $0.6 and $1.5, respectively, in interest and penalties. Certain tax positions exist for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change within twelve months of June 30, 2009.The Company has filed an appeal with taxing authorities to resolve a state tax issue related to the Company 's filing position for tax years prior to 2002.The resolution of this issue, if concluded in the Company 's favor, is estimated to reduce related unrecognized tax benefits within the next twelve months by approximately $0.3 to $0.9. The Company is subject to taxation by the United States and by various state and foreign jurisdictions.The Company 's tax years for 2006 and forward are subject to examination by the tax authorities.Net operating losses carried forward from prior years are subject to examination by tax authorities.However, with a few exceptions, the Company is no longer subject to federal, state, local or foreign examinations by tax authorities for years before 2006.

6070 - Comprehensive Income

6070 - Comprehensive Income (Loss)
	6 Months Ended Jun. 30, 2009
Comprehensive Income (Loss)
Comprehensive Income (Loss)	NOTE 8 - Comprehensive Income (Loss) Comprehensive income (loss), net of tax, is as follows: Three Months Ended Six Months Ended June 30, June 30, 2009 2008 2009 2008 Net income (loss) attributable to AK Steel Holding Corporation $ (47.2 ) $ 145.2 $ (120.6 ) $ 246.3 Other comprehensive income (loss), net of tax: Foreign currency translation gain (loss) 2.3 0.7 0.9 1.2 Derivative instrument hedges, mark to market: Gain/(loss) arising in period (0.3 ) 11.3 (21.9 ) 31.5 Reclass of (gain) loss included in net income 9.5 (3.4 ) 13.7 (2.6 ) Unrealized holding gain (loss) on securities 1.6 0.3 0.2 (0.4 ) Pension and other postretirement benefit adjustment (9.1 ) (8.1 ) (18.1 ) 161.3 Comprehensive income (loss) $ (43.2 ) $ 146.0 $ (145.8 ) $ 437.3 A deferred tax rate of approximately 38.25% was applied to derivative instrument hedges, unrealized gains and losses and the pension and other postretirement benefit adjustment. Accumulated other comprehensive income, net of tax, is as follows: June 30, December 31, 2009 2008 Foreign currency translation $ 4.2 $ 3.3 Derivative instrument hedges (37.2 ) (29.0 ) Unrealized loss on investments (3.7 ) (3.9 ) Employee benefit liability 171.1 189.2 Accumulated other comprehensive income $ 134.4 $ 159.6

6080 - Environmental and Legal

6080 - Environmental and Legal Contingencies
	6 Months Ended Jun. 30, 2009
Environmental and Legal Contingencies
Environmental and Legal Contingencies	NOTE 9 - Environmental and Legal Contingencies Environmental Contingencies: Domestic steel producers, including AK Steel, are subject to stringent federal, state and local laws and regulations relating to the protection of human health and the environment.Over the past three years, the Company has expended the following for environmental- related capital investments and environmental compliance: Years Ended December 31, 2008 2007 2006 Environmental- related capital investments $ 1.8 $ 2.4 $ 9.6 Environmental compliance costs 126.5 122.8 125.5 AK Steel and its predecessors have been conducting steel manufacturing and related operations since the year 1900.Although the Company believes its operating practices have been consistent with prevailing industry standards during - 10 - this time, hazardous materials may have been released in the past at one or more operating sites or third party sites, including operating sites that the Company no longer owns.The Company has estimated potential remediation expenditures for those sites where future remediation efforts are probable based on identified conditions, regulatory requirements or contractual obligations arising from the sale of a business or facility.At June 30, 2009, the Company had recorded $17.7 in accrued liabilities and $40.3 in other non- current liabilities on its condensed consolidated balance sheets for estimated probable costs relating to environmental matters.The comparable balances recorded by the Company at December 31, 2008 were $16.5 in accrued liabilities and $40.8 in other non- current liabilities.In general, the material components of these accruals include the costs associated with investigations, delineations, risk assessments, remedial work, governmental response and oversight costs, site monitoring, and preparation of reports to the appropriate environmental agencies.The ultimate costs to the Company with respect to each site cannot be predicted with certainty because of the evolving nature of the investigation and remediation process.Rather, to develop the estimates of the probable costs, the Company must make certain assumptions. The most significant of these assumptions relate to the nature and scope of the work which will be necessary to investigate and remediate a particular site and the cost of that work.Other significant assumptions include the cleanup technology which will be used, whether and to what extent any other parties will participate in paying the investigation and remediation costs, reimbursement of governmental agency past response and future oversight costs, and the reaction of the governing environmental agencies to the proposed work plans.Costs of future expenditures are not discounted to their present value.The Company does not believe that there is a reasonable possibility that a loss or losses exceeding the amounts accrued will be incurred in connection with the environmental matters discussed below that would, either individually or in the aggregate, have a material adverse effect on the Company's consolidated financial condition, results of operations or cash flo

6090 - Fair Value Measurements

6090 - Fair Value Measurements
	6 Months Ended Jun. 30, 2009
Fair Value Measurements
Fair Value Measurements	NOTE 10 - Fair Value Measurements The Company adopted Statement of Financial Accounting Standards No. 157, "Fair Value Measurements" ("FAS 157"), effective January 1, 2008.Under this standard, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the "exit price") in an orderly transaction between market participants at the measurement date. In determining fair value, the Company uses various valuation approaches.The hierarchy of those valuation approaches is broken down into three levels based on the reliability of inputs as follows: Level 1 inputs are quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.An active market for the asset or liability is a market in which transactions for the asset or liability occur with sufficient frequency and volume to provide pricing information on an ongoing basis.The valuation under this approach does not entail a significant degree of judgment. Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly.Level 2 inputs include: quoted prices for similar assets or liabilities in active markets, inputs other than quoted prices that are observable for the asset or liability, (e.g.,interest rates and yield curves observable at commonly quoted intervals or current market) and contractual prices for the underlying financial instrument, as well as other relevant economic measures. Level 3 inputs are unobservable inputs for the asset or liability.Unobservable inputs shall be used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. The following fair value table presents information about the Company's assets and liabilities measured at fair value on a recurring basis as of June 30, 2009, and December 31, 2008.There were no valuations using Level 3 inputs. June 30, 2009 December 31, 2008 Level 1 Level 2 Total Level 1 Level 2 Total Assets: Available for sale investments- Marketable equity securities (1) $ 23.5 $ - $ 23.5 $ 23.0 $ - $ 23.0 Commodity hedge contracts (2) - 2.3 2.3 - 0.6 0.6 Assets measured at fair value $ 23.5 $ 2.3 $ 25.8 $ 23.0 $ 0.6 $ 23.6 Liabilities (3): Foreign exchange contracts $ - $ 1.1 $ 1.1 $ - $ 1.3 $ 1.3 Commodity hedge contracts - 45.9 45.9 - 52.2 52.2 Liabilities measured at fair value $ - $ 47.0 $ 47.0 $ - $ 53.5 $ 53.5 (1) Held in a trust and included in Other investments on the Condensed Consolidated Balance Sheets. (2) Included in Current assets and Other non-current assets on the Condensed Consolidated Balance Sheets.

6100 - Investments in an Unreal

6100 - Investments in an Unrealized Loss Position
	6 Months Ended Jun. 30, 2009
Investments in an Unrealized Loss Position
Investments in an Unrealized Loss Position	NOTE 11 - Investments in an Unrealized Loss Position The Company has investments for a nonqualified pension plan with fair values at June 30, 2009 less than cost.The investments are in four mutual funds representing the SP 500 index, the Russell 1000 Value index, the Russell 1000 Growth index, and an EAFE index.The funds suffered significant declines which started in the second half of 2008 and continued into the first few months of 2009, consistent with the significant downturn in the equities markets that occurred during that period. The funds did begin to recover some of the losses beginning in March and into the second quarter of 2009.The Company evaluated past periods of market declines and the related periods of recovery.The investments in index funds represent broad asset categories designed to track macro economic conditions.The Company believes that the current macro economic conditions are temporary and that its investments in the above-referenced funds will recover to levels higher than cost within a reasonable period of time.The Company has no short term cash requirements for these investments and has no intentions of liquidating them before a period of time sufficient for the markets to recover.Based on this market evaluation and the Company's ability and intent to hold these investments for a reasonable period of time sufficient for a recovery of fair value, the Company does not consider those investments to be other than temporarily impaired at June 30, 2009.The Company will continue to monitor the positions.It is possible that a portion of the unrealized loss could be recognized in the second half of 2009 if the market recovery fails to continue. INVESTMENTS IN AN UNREALIZED LOSS POSITION At June 30, 2009 Loss Position Loss Position Loss Position Less Than 12 Months Greater Than 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized Value Loss Value Loss Value Loss Investment Marketable Equity Securities - - $ 16.2 $ 6.1 $ 16.2 $ 6.1

6110 - Variable Interest Entity

6110 - Variable Interest Entity
	6 Months Ended Jun. 30, 2009
Variable Interest Entity
Variable Interest Entity	NOTE 12 - Variable Interest Entity In the first quarter of 2008, the Company's Board of Directors approved a 20-year supply contract with Middletown Coke Company, Inc. ("Middletown Coke"), an affiliate of SunCoke Energy, Inc. ("SunCoke"), to provide the Company with metallurgical-grade coke and electrical power.The coke and power will come from a new facility to be constructed, owned and operated by Middletown Coke adjacent to the Company's Middletown Works.The proposed new facility is expected to produce about 550,000 tons of coke and 50 megawatts of electrical power annually.The anticipated cost to build the facility is approximately $340.0.Under the agreement, the Company will purchase all of the coke and electrical power generated from the new plant for at least 20 years, helping the Company achieve its goal of more fully integrating its raw material supply and providing about 25% of the power requirements of Middletown Works.The agreement is contingent upon, among other conditions, Middletown Coke receiving all necessary local, state and federal approvals and permits, as well as available economic incentives, to build and operate the proposed new facility.See discussion of Monroe litigation in Note 9.There are no plans to idle any existing cokemaking capacity if the proposed SunCoke project is consummated.Even though the Company has no ownership interest in Middletown Coke, the expected production from the facility is completely committed to the Company.As such, Middletown Coke is deemed to be a variable interest entity and the financial results of Middletown Coke are required to be consolidated with the results of the Company as directed by FASB Interpretation No. 46 (Revised), Consolidation of Variable Interest Entities.At June 30, 2009, Middletown Coke had added approximately $60.4 in assets net of current liabilities and $61.0 in other liabilities to the Company's condensed consolidated balance sheets.

6120 - Disclosures About Deriva

6120 - Disclosures About Derivative Instruments and Hedging Activities
	6 Months Ended Jun. 30, 2009
Disclosures About Derivative Instruments and Hedging Activities
Disclosures About Derivative Instruments and Hedging Activities	NOTE 13 -Disclosures About Derivative Instruments and Hedging Activities In the ordinary course of business, the Company is exposed to market risk for price fluctuations of raw materials and energy sources.The Company uses cash settled commodity price swaps and/or options to hedge the market risk associated with nickel, aluminum, zinc and natural gas.The Company is also subject to risks of exchange rate fluctuations on a portion of inter-company receivables that are denominated in foreign currencies.The Company occasionally uses forward currency contracts to manage exposures to certain of these currency price fluctuations.As of June 30, 2009, the Company had entered into forward currency contracts in the amount of 16,300,000 euros. - 18 - The Company uses cash settled commodity price swaps and/or options to hedge the market risk associated with the purchase of certain of its raw materials and energy requirements.Such hedges routinely are used with respect to a portion of the Company's natural gas and nickel requirements and are sometimes used with respect to its aluminum and zinc requirements.The Company's hedging strategy is designed to protect it against normal volatility.However, abnormal price increases in any of these commodity markets could negatively impact operating costs.The effective portion of the gains and losses from the use of these instruments for natural gas are deferred in accumulated other comprehensive income on the condensed consolidated balance sheets and recognized into cost of products sold in the same period as the underlying transaction.Gains and losses on the derivative representing either hedge ineffectiveness or hedge components excluded from the assessment of effectiveness are recognized in current earnings.All other commodity price swaps and options are marked to market and recognized into cost of products sold with the offset recognized as other current assets or other accrued liabilities. SFAS No. 133 requires companies to recognize all derivative instruments as either assets or liabilities at fair value in the statement of financial position.In accordance with SFAS No. 133, the Company designates commodity price swaps and options as cash flow hedges of forecasted purchases of raw materials and energy sources. Existing commodity hedges at June 30, 2009 have settlement dates ranging from July 2009 to December 2010.The amount of the existing losses expected to be reclassified into earnings with the next twelve months is $32.6. As of June 30, 2009 the Company had the following outstanding commodity price swaps and/or options that were entered into to hedge forecasted purchases. Commodity Amount Unit Nickel 934,191 lbs Aluminum 660,000 lbs Zinc 3,000,000 lbs Natural Gas 12,750,000 MMBTU's Fair Value of Derivative Instruments in the Condensed Consolidated Balance Sheets as of June 30, 2009 Balance Sheet Location Asset Fair Value Liability Fair Value Derivatives designated as hedging instruments Commodity contracts Accrued liabilities $ - $ 40.7 Commodity contrac

6130 - Subsequent Event

6130 - Subsequent Event
	6 Months Ended Jun. 30, 2009
Subsequent Event
Subsequent Event	NOTE 14 - Subsequent Events There were no reportable subsequent events or transactions that occurred in the time period after the June 30, 2009 balance sheet date and prior to August 4, 2009, which is the date of this Form 10-Q filing with the Securities and Exchange Commission.

6140 - Reclassifications and Re

6140 - Reclassifications and Restatements
	6 Months Ended Jun. 30, 2009
Reclassifications and Restatements
Reclassifications and Restatements	NOTE 15 - Reclassifications and Restatements Certain amounts in prior year financial statements have been reclassified to reflect the reporting requirements of Financial Accounting Standard No. 160, "Noncontrolling Interests in Consolidated Financial Statements". Earnings per share has been restated in prior periods in conformity with FASB Staff Position No. EITF 03-6-1, Determining Whether Instruments Granted in Share Based Payment Transactions Are Participating Securities".

6150 - New Accounting Pronounce

6150 - New Accounting Pronouncements
	6 Months Ended Jun. 30, 2009
New Accounting Pronouncements	NOTE 16 - New Accounting Pronouncements In June 2009, the FASB issued Statement of Financial Accounting Standards No. 167, "Amendments to FASB Interpretation No. 46(R)", ("FAS 167").FAS 167 requires an enterprise to perform an analysis to determine whether the enterprise's variable interest or interests give it a controlling financial interest in a variable interest entity.This Statement is effective for fiscal years beginning on or after November 15, 2009.The Company is currently evaluating the impact of the adoption of FAS 167 on its financial position and results of operations. In April 2009, the FASB issued FASB Staff Position ("FSP") No. FAS 107-1 and APB 28-1, "Interim Disclosures about Fair Value of Financial Instruments".This FSP amends FASB Statement No. 107, "Disclosures about Fair Value of Financial Instruments", to require disclosures about fair value of financial instruments for interim reporting periods of publicly traded companies as well as in annual financial statements.This FSP also amends APB Opinion No. 28 "Interim Financial reporting", to require disclosures in summarized financial information at interim reporting periods.This FSP is effective for the Company for the period ended June 30, 2009 and relates to disclosures to be made about the fair value of its financial instruments. - 20 - Effective with the 2009 Form 10-K, the Company will amend its disclosure relating to postretirement benefit plan assets in compliance with FASB 132(R)-1, "Employers Disclosures about Postretirement Benefit Plan Assets".The disclosure will include discussion on: Investment policies andstrategies Categories of plan assets Fair value measurements of planassets Significant concentrations ofrisk In February 2008, the FASB issued FASB Staff Position Financial Accounting Standard No. 157-2, "Effective Date of FASB Statement No. 157", ("FSP FAS 157-2").FSP FAS 157-2 delays the effective date of FAS 157 from 2008 to 2009 for all nonfinancial assets and nonfinancial liabilities, except those that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually).The Company applied the provisions of FSP FAS 157-2 on January 1, 2009 and it had no impact on its financial position or results of operations.

6160 - Supplemental Guarantor I

6160 - Supplemental Guarantor Information
	6 Months Ended Jun. 30, 2009
Supplemental Guarantor Information
Supplemental Guarantor Information	NOTE 17 - Supplemental Guarantor Information AK Holding, along with AK Tube, LLC and AK Steel Investments Inc. (the "Guarantor Subsidiaries") fully and unconditionally, jointly and severally guarantee the payment of interest, principal and premium, if any, on AK Steel's 7 3/4% Senior Notes due in 2012.AK Tube, LLC is owned 100% by AKS Investments Inc. and AKS Investments Inc. is 100% owned by AK Steel.AK Steel is 100% owned by AK Holding.The Company has determined that full financial statements and other disclosures concerning AK Holding and the Guarantor Subsidiaries are not required to be presented.The presentation of the supplemental guarantor information reflects all investments in subsidiaries under the equity method.Net income (loss) of the subsidiaries accounted for under the equity method is therefore reflected in their parents' investment accounts.The principal elimination entries eliminate investments in subsidiaries and inter-company balances and transactions.The following supplemental condensed consolidating financial statements present information about AK Holding, AK Steel, the Guarantor Subsidiaries and the Other Subsidiaries.The Other Subsidiaries are not guarantors of the above notes. - 21 - Condensed Statements of Operations For the Three Months Ended June 30, 2009 AK Holding AK Steel Guarantor Subsidiaries Other Eliminations Consolidated Company Net sales $ - $ 658.4 $ 25.0 $ 129.5 $ (19.3 ) $ 793.6 Cost of products sold - 630.0 22.0 126.2 (11.6 ) 766.6 Selling and administrative expenses 0.9 45.9 2.2 4.8 (5.9 ) 47.9 Depreciation - 49.8 1.6 0.2 - 51.6 Total operating costs 0.9 725.7 25.8 131.2 (17.5 ) 866.1 Operating profit (loss) (0.9 ) (67.3 ) (0.8 ) (1.7 ) (1.8 ) (72.5 ) Interest expense - 9.1 - 0.1 - 9.2 Other income (expense) - (1.2 ) - 30.0 (25.4 ) 3.4 Income (loss) before income taxes (0.9 ) (77.6 ) (0.8 ) 28.2 (27.2 ) (78.3 ) Income tax provision (benefit) (0.3 ) (35.8 ) (0.3 ) 10.4 (4.3 ) (30.3 ) Income (loss) from continuing operations (0.6 ) (41.8 ) (0.5 ) 17.8 (22.9 ) (48.0 ) Less: income (loss) attributable to noncontrolling interests - - - (0.8 ) - (0.8 ) Income (loss) attributable to AK Steel Holding Corporation (0.6 ) (41.8 ) (0.5 ) 18.6 (22.9 ) (47.2 ) Equity in net income of subsidiaries (46.6 ) (4.8 ) - - 51.4 - Net income (loss) attributable to AK Steel Holding Corporation $ (47.2 ) $ (46.6 ) $ (0.5 ) $ 18.6 $ 28.5 $ (47.2 ) Condensed Statements of Op

Document Information

Document Information
	6 Months Ended Jun. 30, 2009
Document Information
Document Type	10-Q
Amendment Flag	false
Amendment Description	none
Document Period End Date	2009-06-30

Entity Information

Entity Information (USD $)
	6 Months Ended Jun. 30, 2009
Entity Information
Entity Registrant Name	AK Steel Holding Corporation
Entity Central Index Key	0000918160
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float	$2,076,650,398
Entity Common Stock, Shares Outstanding	109,392,346