US Steel expects $27 million charge in 1st quarter related to health care overhaul

US Steel expects $27M health care charge in 1Q

PITTSBURGH — United States Steel Corp. said Wednesday it will take a $27 million charge in the first quarter related to the health care overhaul legislation.

Under the new law, companies will have to start paying taxes on a government subsidy they receive for providing drug benefits to retirees.

U.S. Steel said while the tax benefit won’t be eliminated until 2013, accounting rules require that the expected charge be booked immediately.

The steel maker expects its annual taxes to increase by less than $10 million.

Shares climbed 10 cents to $67.34 in after-hours trading.