Ak Steel Holding (AKS) 10-Q 26 Apr 10 2010 Q1 Quarterly report Financial data

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)
In Millions, except Per Share data	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Net sales	1405.7	922.2
Cost of products sold (exclusive of items shown below)	1243.6	923
Selling and administrative expenses	54.2	47.8
Depreciation	50.3	51.3
Total operating costs	1348.1	1022.1
Operating profit (loss)	57.6	-99.9
Interest expense	8.9	10.2
Other income (expense)	-4.6	2.3
Income (loss) before income taxes	44.1	-107.8
Income tax provision due to tax law change	25.3
Income tax provision (benefit)	17.4	-34.2
Total income tax provision (benefit)	42.7	-34.2
Net income (loss)	1.4	-73.6
Less: Net loss attributable to noncontrolling interests	-0.5	-0.2
Net income (loss) attributable to AK Steel Holding Corporation	1.9	-73.4
Basic earnings per share:
Net income (loss) per share attributable to AK Steel Holding Corporation	0.02	-0.67
Diluted earnings per share:
Net income (loss) per share attributable to AK Steel Holding Corporation	0.02	-0.67
Common shares and common share equivalents outstanding (weighted average in millions):
Basic	109.5	109.8
Diluted	110	109.8
Dividends declared and paid per share	0.05	0.05

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (USD $)
In Millions	3 Months Ended Mar. 31, 2010	12 Months Ended Dec. 31, 2009
Current Assets:
Cash and cash equivalents	330.2	461.7
Accounts receivable, net	598.3	463.1
Inventory, net	522.7	416.7
Deferred tax asset, current	222.9	223.9
Other current assets	58.1	64.7
Total Current Assets	1732.2	1630.1
Property, Plant and Equipment	5401.9	5385.1
Accumulated depreciation	-3459.2	-3409.1
Property, plant and equipment, net	1942.7	1,976
Other Assets:
Investment in AFSG Holdings, Inc.	55.6	55.6
Other investments	53.9	52.1
Goodwill	37.1	37.1
Other intangible assets	0.2	0.2
Deferred tax asset, non-current	486.2	514.7
Other non-current assets	8.6	8.9
Total Non-current Assets	641.6	668.6
TOTAL ASSETS	4316.5	4274.7
Current Liabilities:
Accounts payable	623.9	438.9
Accrued liabilities	193.4	157
Current portion of long-term debt	0.7	0.7
Current portion of pension and other postretirement benefit obligations	143.1	144.1
Total Current Liabilities	961.1	740.7
Non-current Liabilities:
Long-term debt	605.7	605.8
Pension and other postretirement benefit obligations	1,704	1856.2
Other non-current liabilities	194.8	191.9
Total Non-current Liabilities	2504.5	2653.9
TOTAL LIABILITIES	3465.6	3394.6
Commitments and Contingencies
Stockholders' Equity:
Preferred stock, authorized 25,000,000 shares	0	0
Common stock, authorized 200,000,000 shares of $.01 par value each; issued 2010, 122,723,132 shares, 2009, 121,881,816 shares; outstanding 2010, 109,907,793 shares, 2009, 109,394,455 shares	1.2	1.2
Additional paid-in capital	1922.7	1911.4
Treasury stock, common shares at cost, 2010, 12,815,339 shares; 2009, 12,487,361 shares	-169.7	-162.2
Accumulated deficit	-1041.1	-1037.5
Accumulated other comprehensive income	139.4	167.9
Total AK Steel Holding Corporation Stockholders' Equity	852.5	880.8
Noncontrolling interest	-1.6	-0.7
TOTAL STOCKHOLDERS' EQUITY	850.9	880.1
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	4316.5	4274.7

PARENTHETICAL DATA FOR THE BALA

PARENTHETICAL DATA FOR THE BALANCE SHEET (USD $)
	Mar. 31, 2010	Dec. 31, 2009
Stockholders' Equity:
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	122,723,132	121,881,816
Common stock, outstanding shares	109,907,793	109,394,455
Treasury stock, common shares at cost	12,815,339	12,487,361

1_CONDENSED CONSOLIDATED STATEM

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Millions	3 Months Ended Mar. 31, 2010	3 Months Ended Mar. 31, 2009
Cash flows from operating activities:
Net income (loss)	1.4	-73.6
Depreciation	50.3	51.3
Amortization	5.9	3.3
Deferred income taxes	44.8	-13.8
Contributions to pension trust	(75)	(50)
Contributions to Middletown retirees VEBA	(65)	(65)
Pension and other postretirement benefit payments greater than expense	(29)	(19)
Working capital	-47.6	124.8
Working capital-Middletown Coke	0.5	1
Other operating items, net	6.5	12
Net cash flows from operating activities	-107.2	(29)
Cash flows from investing activities:
Capital investments	-14.9	-32.9
Capital investments - Middletown Coke	(2)	-12.2
Other investing items, net		0.4
Net cash flows from investing activities	-16.9	-44.7
Cash flows from financing activities:
Redemption of long-term debt	-0.2	-19.9
Proceeds from exercise of stock options	1.3
Purchase of treasury stock	-7.5	-11.4
Common stock dividends paid	-5.5	-5.5
Advances from noncontrolling interest owner to Middletown Coke	2.3	11.2
Other financing items, net	2.2	-1.4
Net cash flows from financing activities	-7.4	(27)
Net decrease in cash and cash equivalents	-131.5	-100.7
Cash and cash equivalents, beginning of period	461.7	562.7
Cash and cash equivalents, end of period	330.2	462
Net cash paid (received) during the period for:
Interest, net of capitalized interest	1.2	1.4
Income taxes	4.4	(27)
Supplemental disclosure of non-cash investing and financing activities-
Issuance of restricted common stock and restricted stock units	5.1	$4

Basis of Presentation

Basis of Presentation
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
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 March 31, 2010, the results of its operations for the three-month periods ended March 31, 2010 and 2009, respectively, and its cash flows for the three-month periods ended March 31, 2010 and 2009, respectively.The results of operations for the three months ended March 31, 2010 are not necessarily indicative of the results to be expected for the year ending December 31, 2010.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, 2009.

Earnings and Dividends Per Shar

Earnings and Dividends Per Share
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
Earnings and Dividends Per Share	NOTE 2 - Earnings and Dividends Per Share Three Months Ended March 31, 2010 2009 Net income (loss) attributable to AK Holding $ 1.9 $ (73.4 ) Less: Distributed earnings to common stockholders and holders of certain stock compensation awards 5.5 5.5 Undistributed losses $ (3.6 ) $ (78.9 ) Common stockholders earnings basic and diluted: Distributed earnings to common stockholders $ 5.5 $ 5.5 Undistributed losses to common stockholders (3.6 ) (78.9 ) Common stockholders earnings (losses) $ 1.9 $ (73.4 ) Common shares outstanding (weighted average in millions): Common shares outstanding for basic earnings per share 109.5 109.8 Effect of dilutive stock-based compensation 0.5 Common shares outstanding for diluted earnings per share 110.0 109.8 Basic and diluted earnings per share: Distributed earnings $ 0.05 $ 0.05 Undistributed losses (0.03 ) (0.72 ) Basic and diluted earnings per share $ 0.02 $ (0.67 ) Potentially issuable common shares (in millions) excluded from earnings per share calculation due to anti-dilutive effect 0.3 1.1 Earnings per share (EPS) is calculated utilizing the two-class method by dividing the sum of distributed earnings to common stockholders and undistributed earnings allocated to common stockholders by the weighted average number of common shares outstanding during the period.In applying the two-class method, undistributed earnings are allocated to both common shares and participating securities.The restricted stock granted by AK Steel is entitled to dividends and meets the criteria of a participating security. On April 20, 2010, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.05 per share of common stock, payable on June 10, 2010, to stockholders of record on May 14, 2010.Also, on January 25, 2010, the Company announced that its Board of Directors declared a quarterly cash dividend of $0.05 per share of common stock, payable on March 10, 2010, to stockholders of record on February 12, 2010.

Inventories

Inventories
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
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. March 31, December 31, 2010 2009 Finished and semi-finished $ 726.0 $ 617.6 Raw materials 210.3 204.3 Total cost 936.3 821.9 Adjustment to state inventories at LIFO value (413.6 ) (405.2 ) Net inventories $ 522.7 $ 416.7

Pension and Other Postretiremen

Pension and Other Postretirement Benefits
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
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 the Company plans to contribute at least $110.0 to the qualified pension plan trust which will satisfy the Companys minimum required contribution for 2010.Of this total, $75.0 was made in the first quarter of 2010.The Company plans to make an additional $35.0 pension contribution by the end of the second quarter of 2010.The Company made $210.0 in contributions during 2009. Net periodic benefit costs for pension and other postretirement benefits were as follows: Three Months Ended March 31, 2010 2009 Pension Benefits Service cost $ 0.8 $ 1.2 Interest cost 47.9 52.4 Expected return on assets (48.9 ) (44.6 ) Amortization of prior service cost 1.0 1.0 Amortization of loss 4.3 4.5 Net periodic benefit cost $ 5.1 $ 14.5 Other Postretirement Benefits Service cost $ 1.0 $ 1.0 Interest cost 10.8 13.8 Amortization of prior service credit (19.7 ) (19.7 ) Amortization of gain (0.7 ) (0.9 ) Net periodic benefit income $ (8.6 ) $ (5.8 ) The decrease in Net periodic benefit cost for Pension Benefits for the three months ended March 31, 2010 was principally caused by a reduction in interest cost and an increase in expected return on assets.The reduction in interest cost was principally the result of lower discount rates.The increase in expected return on assets was principally due to a higher market value of assets at December 31, 2009 compared to December 31, 2008. The increase in Net periodic benefit income for Other Postretirement Benefits for the three months ended March 31, 2010, was principally caused by a reduction in interest cost as a result of a lower discount rate and lower other postretirement benefit obligations. The Amortization of gain for Other Postretirement Benefits was decreased by $0.4 in the three month period ended March 31, 2010, as a result of a preliminary injunction issued on January 29, 2010, in a case filed by three former hourly workers retired from the Companys Butler Works.The preliminary injunction bars the Company from effecting any further benefit reductions or new healthcare charges for Butler Works retirees pending final judgment in the case.A further discussion of the case and the injunction can be found in Note 9. The total projected future benefit obligation of the Company with respect to payments for healthcare benefits to the Companys retirees is accounted for as Pension and other postretirement benefit obligations on the Companys condensed consolidated balance sheets.The net amount of the liability recognized by the Company, as of March 31, 2010, for future payment of such benefit obligations was approximately $0.8 billion, compared to approximately $0.9 billion at December 31, 2009. As a result of the recently enacted Patient Protection and Affordable Care Act (the Act), the Company recorded a non-cash charge of $25.3 in the first quarter of 2010.At the time the Act was signed in

Share-based Compensation

Share-based Compensation
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
Share-based Compensation	NOTE 5 - Share-based Compensation AK Holdings 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.Currently, these awards may be granted with respect to an aggregate maximum of 16million shares through the period ending December 31, 2014.AK Holding has proposed in its 2010 Proxy Statement that its stockholders approve an increase to 19 million shares in the aggregate maximum and an extension of the period during which equity grants may be made through December 31, 2019.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 Companys 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 became exercisable after one year.On July 16, 2009, however, the Board of AK Holding, upon the recommendation of its outside compensation consultant, approved a change to the Director compensation program which replaced the grants of stock options which non-employee Directors previously received upon election to the Board and at five-year intervals thereafter, with ongoing quarterly awards of restricted stock units (RSUs) in the total annualized amount of thirty-five thousand dollars.This change will not affect the vesting of stock options granted to Directors prior to July 16, 2009.Performance shares vest after a three-year period.The total number of performance shares issued will be based on the Companys share performance compared to a prescribed compounded annual growth rate and the total share return compared to Standard and Poors 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 RSUs to be granted to non-employee Directors in lieu of restricted shares of common stock as the equity component of a Directors 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,

Long-Term Debt and Other Financ

Long-Term Debt and Other Financing
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
Long-term Debt and Other Financing	NOTE 6 - Long-term Debt and Other Financing During 2009, the Company repurchased $26.4 of its 7 3/4% senior notes due in 2012 (Senior Notes) with cash payments totaling $22.8.In connection with these repurchases, the Company recorded non-cash, pre-tax gains of approximately $3.6.The repurchases were funded from the Companys existing cash balances.There were no repurchases in the first quarter of 2010. The carrying value of the Companys financial instruments does not differ materially from their estimated fair value at March 31, 2010, and the end of 2009.At March 31, 2010, the fair value of the Companys long-term debt, including current maturities, was approximately $611.9.The fair value estimate was based on financial market information available to management as of March 31, 2010.Management is not aware of any significant factors that would materially alter this estimate since that date.The fair value of the Companys long-term debt, including current maturities, at December 31, 2009 was approximately $609.6. The Senior Notes indentures include 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 Notes indentures impose the following additional financial covenants: A minimum interest coverage ratio of at least 2.5 to 1 for the incurrence of debt.Failure to currently meet this covenant limits the amount of additional debt the Company can incur to $100.0.This limitation does not apply to borrowings from the Companys revolving credit facility.At March 31, 2010, the ratio was below the 2.5 to 1 incurrence test.Because of the Companys current cash and liquidity position, however, it does not expect the restriction imposed by its noncompliance with this covenant to have a materially adverse effect on the Company or its operations.This number 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 charges related to impairment of goodwill special charges, and pension and other postretirement employee benefit obligation corridor charges).The corridor charges are amortized over a 10-year period for this calculation. A limitation on restricted payments, which consist primarily of dividends and share repurchases, of $25.0 plus 50% of cumulative net income (or minus 100% of cumulative net loss) from April 1, 2002.As of March 31, 2010, the limitation on restricted payments is $25.0. The indentures governing the Companys outstanding Senior Notes also include a provision permitting the Company, on or after June 15, 2010, to redeem at par value all or a portion of the then-outstanding Senior Notes upon thirty days advance written notice to the holders of such notes.In light of what the Company perceiv

Income Taxes

Income Taxes
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
Income Taxes	NOTE 7 - Income Taxes Income taxes recorded through March 31, 2010, have been estimated based on year-to-date income and projected results for the full year.The amounts recorded reflect the provisions of ASC Topic 740, Accounting for Uncertainty in Income Taxes, which clarifies the accounting for uncertainty in income taxes recognized in an entitys financial statements and prescribes standards for the recognition and measurement of tax positions taken or expected to be taken on a tax return. As a result of the recently enacted Patient Protection and Affordable Care Act and the subsequent enactment of the Health Care and Education Reconciliation Act of 2010, the Company recorded a non-cash charge of $25.3 in the first quarter of 2010.The charge is due to a reduction in the value of the Companys deferred tax asset as a result of a change to the tax treatment associated with Medicare Part D reimbursements.

Comprehensive Income

Comprehensive Income (Loss)
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
Comprehensive Income (Loss)	NOTE 8 - Comprehensive Income (Loss) Comprehensive loss, net of tax, is as follows: Three Months Ended March 31, 2010 2009 Net income (loss) attributable to AK Steel Holding Corporation $ 1.9 $ (73.4 ) Other comprehensive loss, net of tax: Foreign currency translation loss (2.1 ) (1.4 ) Derivative instrument hedges, mark to market: Losses arising in period (22.6 ) (21.6 ) Less: Reclassification of losses included in net income 4.8 4.2 Unrealized gains (losses) on securities Unrealized holding gains (losses) arising during period 0.5 (1.4 ) Less: Reclassification of losses included in net income 0.1 Pension and OPEB adjustment (9.2 ) (9.0 ) Comprehensive loss $ (26.6 ) $ (102.6 ) A deferred tax rate of approximately 38.0% was applied to derivative instrument hedges, unrealized gains and losses and the pension and OPEB adjustment. Accumulated other comprehensive income, net of tax, is as follows: March 31, December 31, 2010 2009 Foreign currency translation $ 2.2 $ 4.3 Derivative instrument hedges (19.1 ) (1.3 ) Unrealized loss on investments (1.0 ) (1.6 ) Employee benefit liability 157.3 166.5 Accumulated other comprehensive income $ 139.4 $ 167.9

Environmental and Legal Conting

Environmental and Legal Contingencies
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
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, 2009 2008 2007 Environmental-related capital investments $ 1.0 $ 1.8 $ 2.4 Environmental compliance costs 106.6 126.5 122.8 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 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 March 31, 2010, the Company had recorded $16.9 in accrued liabilities and $41.2 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, 2009 were $17.0 in accrued liabilities and $40.6 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 Companys consolidated financial condition, results of operations or cash flows.However, since amounts recognized in the financia

Fair Value Measurements

Fair Value Measurements
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
Fair Value Measurements	NOTE 10 - Fair Value Measurements The Company adopted provisions within ASC Topic 820, Fair Value Measurements, 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, (i.e., 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 factors.Market values of the Company's natural gas, electric, nickel and foreign currency forward contracts are generated from forward prices that are derived from observable futures prices relating to the respective commodity from sources such as NYMEX or LME.The difference between these forward prices as of the end of the accounting period and the original forward contract price at its trade date represent the expected forward values of these contracts at their maturity date.The carrying values of these derivatives reflected in the financial statements are the fair values of these forward values.The discount rate used in these fair value calculations reflect the credit quality of the party of the derivative having the obligation to pay.While differing discount rates applied to different contracts as a function of differing maturities and different counterparties, for the period ended March 31, 2010, a spread over benchmark interest rates of less than three percent was used for contracts valued as liabilities, while the spread over benchmark rates of less than one percent was used for derivatives valued as assets. 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 Companys assets and liabilities measured at fair value on a recurring basis as of March 31, 2010.There were no valuations using Level 3 inputs.

Investments in an Unrealized Lo

Investments in an Unrealized Loss Position
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
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 less than cost at March 31, 2010.The investments are in three mutual funds representing the Standard and Poors 500 index, the Russell 1000 Value index and the Europe, Australasia and Far East index.The investments in index funds represent broad asset categories designed to track macroeconomic conditions.The Company evaluated past periods of market declines and the related periods of recovery.The Company believes that the current economic environment is temporary and the investments will recover to levels higher than cost in a reasonable period of time.The Company has no short term cash requirements for these investments and currently does not intend to liquidate them resulting in the realization of a loss before a period of time sufficient for the markets to recover.Based on the market evaluation and the Companys 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 March 31, 2010. INVESTMENTS IN AN UNREALIZED LOSS POSITION At March 31, 2010 Loss Position Loss Position Loss Position Less Than 12 Months Greater Than 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized Investment Value Loss Value Loss Value Loss Marketable Equity Securities $ 17.3 $ 1.8 $ 17.3 $ 1.8

Variable Interest Entity

Variable Interest Entity
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
Variable Interest Entity	NOTE 12 - Variable Interest Entity In the first quarter of 2008, the Companys 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 Companys 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 $360.0.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.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 ASC Topic 810.At March 31, 2010, Middletown Coke had approximately $73.9 in assets on the Companys condensed consolidated balance sheets, comprised mainly of construction in progress.Additionally, Middletown Coke had approximately $77.6 in liabilities, comprised mainly of payables to its parent company, SunCoke which is reflected in other non-current liabilities on the Company's condensed consolidated balance sheets. Through a subsidiary, AK Steel owns a 50% interest in Vicksmetal/Armco Associates (VAA), a joint venture with Vicksmetal Corporation, which is owned by Sumitomo Corporation.VAA slits electrical steel primarily for AK Steel, though also for third parties.AK Steel has determined that VAA meets the definition of a variable interest entity under ASC Topic 810, Consolidation, and as a result, the financials of VAA are consolidated with the results of the Company.

Disclosures About Derivative In

Disclosures About Derivative Instruments and Hedging Activities
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
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 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 March 31, 2010, the Company had entered into forward currency contracts in the amount of 19,700,000 euros.These contracts have not been designated as hedges for accounting purposes. 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 Companys natural gas and nickel requirements and are sometimes used with respect to its aluminum, zinc and electricity requirements.The Companys 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 and electricity 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, other non-current assets or other accrued liabilities. Accounting guidance requires companies to recognize all derivative instruments as either assets or liabilities at fair value in the statement of financial position.In accordance with ASC Topic 815, Derivatives and Hedging, the Company designates commodity price swaps and options as cash flow hedges of forecasted purchases of raw materials and energy sources. Existing natural gas commodity hedges at March 31, 2010 have settlement dates ranging from April 2010 to December 2010.The amount of the existing losses expected to be reclassified into earnings with the next twelve months is $17.3.In addition, existing electricity commodity hedges at March 31, 2010 have settlement dates ranging from June 2010 to September 2010.The amount of the existing losses expected to be reclassified into earnings within the next twelve months is $0.6. As of March 31, 2010 the Company had the following outstanding commodity price swaps and/or options that were entered into to hedge forecasted purchases. Commodity Amount Unit Nickel 836,190 lbs Natural Gas 20,400,000 MMBTUs Electricity 206,400 MWHs FairValue of Derivative Instruments in the Condensed Consolidated Balance Sheets as of March 31, 2010 as of Decemb

New Accounting Pronouncements

New Accounting Pronouncements
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
New Accounting Pronouncements	NOTE 14 - New Accounting Pronouncements ASC Topic 810, Consolidation, as amended, requires an enterprise to perform an analysis to determine whether the enterprises variable interest or interests give it a controlling financial interest in a variable interest entity.The amendment to ASC Topic 810 was effective for fiscal years beginning on or after November 15, 2009.The Company has completed the analysis required by ASC Topic 810 and has concluded that this guidance does not alter the accounting treatment previously accorded to the Companys variable interest entities.

Supplemental Guarantor Informat

Supplemental Guarantor Information
	3 Months Ended Mar. 31, 2010
Notes to Financial Statements [Abstract]
Supplemental Guarantor Information	NOTE 15 - 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 Steels 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. Condensed Statements of Operations For the Three Month Ended March 31, 2010 AK Holding AK Steel Guarantor Subsidiaries Other Eliminations Consolidated Company Net sales $ $ 1,370.2 $ 46.6 $ 84.1 $ (95.2 ) $ 1,405.7 Cost of products sold(exclusive of items shown below) 1,218.4 40.7 78.6 (94.1 ) 1,243.6 Selling and administrative expenses 1.3 55.8 2.9 (5.8 ) 54.2 Depreciation 48.5 1.6 0.2 50.3 Total operating costs 1.3 1,322.7 45.2 73.0 (94.1 ) 1,348.1 Operating profit (loss) (1.3 ) 47.5 1.4 11.1 (1.1 ) 57.6 Interest expense 8.9 8.9 Other income (expense) (2.9 ) (1.9 ) 0.2 (4.6 ) Income (loss) before income taxes (1.3 ) 35.7 1.4 9.2 (0.9 ) 44.1 Income tax provision due to tax law change 25.3 25.3 Income tax provision (benefit) (0.5 ) 15.2 0.5 2.5 (0.3 ) 17.4 Net income (loss) (0.8 ) (4.8 ) 0.9 6.7 (0.6 ) 1.4 Less: income (loss) attributable to noncontrolling interests (0.5 ) (0.5 ) Net income (loss) attributable to AK Holding (0.8 ) (4.8 ) 0.9 7.2 (0.6 ) 1.9 Equity in net income of subsidiaries 2.7 7.5 (10.2 ) Net income (loss) attributable to AK Holding $ 1.9 $ 2.7 $ 0.9 $ 7.2 $ (10.8 ) $ 1.9 Condensed Statements of Operations For the Three Month Ended March 31, 2009 AK Holding AK Steel Guarantor Subsidiaries Other Eliminations Consolidated Company Net sales $ $ 823.8 $ 32.2 $ 90.3 $ (24.1 ) $ 922.2 Cost of products sold(exclusive of items shown below) 827.0 30.6 81.0 (15.6 ) 923.0 Selling and administrative expenses 1.1 47.6 2.5 3.9 (7.3 ) 47.8 Depreciation 49.5 1.7 0.1 51.3 Total operating costs 1.1 924.1 34.8 85.0 (22.9 ) 1,022.1 Operating profit (loss) (1.

Document and Entity Information

Document and Entity Information
	3 Months Ended Mar. 31, 2010	Apr. 23, 2010
Entity Information [Line Items]
Entity Registrant Name	AK STEEL HOLDING CORP
Entity Central Index Key	0000918160
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock Shares Outstanding		109,907,793
Document Fiscal Year Focus	2,010
Document Fiscal Period Focus	Q1
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	2010-03-31